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Monday, February 9, 2015

Corporation Bank Q3 net rises 16.2% as interest expense falls

Corporation Bank recorded a net profit of Rs.147.20 crore in the third quarter of 2014-15 as against Rs.126.69 crore in the corresponding period of the previous fiscal, registering a growth of 16.2 per cent.

Addressing newspersons here on Monday, SR Bansal, Chairman and Managing Director of the bank, said some of the initiatives of the bank in brining down the cost of deposits and increasing income from ATMs have helped improve performance.

Stating that the bank was able to control and reduce the cost of deposits, he said the interest expense on deposits was lower by Rs.111.37 crore in the third quarter vis-à-vis the second.

In Q3, the bank re-priced deposits aggregating Rs.25,000 crore. He said bulk deposits were reduced by Rs.13,000 crore during the period.

Income from ATM transactions rose 50.2 per cent, Bansal said. It increased to Rs.103.67 crore, from Rs.69 crore in the corresponding period of the previous fiscal. The net interest income of the bank stood at Rs.1,029 crore (Rs.1,001.60 crore), and the other income at Rs.328.27 crore (Rs.338.59 crore).

The gross and net NPAs (non-performing assets) of the bank increased to 4.88 per cent (3.08 per cent) and 3.27 per cent (2.15 per cent), respectively.

On NPAs, he said one account is coming up for restructuring in Q4. The bank has made provisions for that in the third quarter, he said.

Tier-I capital

Bansal said that the bank raised additional tier-1 capital in the form of non-convertible perpetual bonds amounting to Rs.500 crore during February.

On Monday, the scrip of Corporation Bank closed at Rs.62.65 apiece on the BSE, down 2.72 per cent from the previous close of Rs.64.40.

Source : Thehindubusinessline


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