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Saturday, August 8, 2015

Corporation Bank Q1 profit declines 12%

An increase in provisions for non-performing assets (NPAs) brought down Corporation Bank’s net profit by 11.75 per cent during the first quarter of 2015-16.

Addressing presspersons here on Friday, SR Bansal, Chairman and Managing Director, said the bank registered a net profit of Rs.204.26 crore in the quarter againstRs.231.47 crore in the corresponding quarter of the previous fiscal.

The net provisions for NPAs stood at Rs.604.23 crore against Rs.466.08 crore, an increase of 29.64 per cent.

Bansal said that the provision coverage ratio with respect to gross NPA increased to 57.17 per cent as against 52.19 per cent earlier.

The gross and net NPAs stood at 5.43 per cent (3.96 per cent) and 3.55 per cent (2.71 per cent) respectively.

The net interest income of the bank increased to Rs.1,080.72 crore (Rs.944.24 crore), and non-interest income to Rs.401.83 crore (Rs.361.60 crore) during the period.

“The focus is on making the fundamentals of the bank strong,” Bansal said.

On the share of CASA (current account savings account) deposit to the total deposits, Bansal said it stood at 18.92 per cent.

The bank is targeting a CASA share of 25 per cent by the end of the current financial year, he said.

Bulk deposits

Stating that the bank has taken steps to bring down bulk deposits, Bansal said the share of such deposits have come down from 54 per cent in June 2014 to 51 per cent in March 2015. At the end of June 2015, it came down to 49.5 per cent, he said.

He said advances to large industries were down 2.12 per cent. Advances to agriculture and MSME (micro, small and medium enterprises) recorded a growth of 42.41 per cent and 4.40 per cent, respectively. Corporation Bank shares closed at Rs.54.05, up 0.46 per cent from the previous close, on the BSE on Friday.

Source : Thehindubusinessline


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