Corporation Bank FY 2011 net up 20.77% at Rs 1,413 cr

Mumbai: Helped by a healthy growth in loans and a drop in non-performing assets (NPAs), public sector Corporation Bank has clocked a 20.77 per cent jump in net profit in FY 2011 at Rs 1,413.27 crore as against Rs 1,170.25 crore in the previous fiscal.

Advances grew by a healthy 37.42 per cent, while both the gross and net NPAs decreased to 0.91 per cent and 0.46 per cent, respectively.

"Our total business stood at Rs 2,03,598 crore in FY 2011. We are targeting a total business of Rs 2,65,000 crore in FY 2012," Corporation Bank Chairman and Managing Director Ramnath Pradeep told reporters here today.

Excluding the provision towards second option scheme of retired/existing employees, the Karnataka-based lender's net profit has grown 31.31 per cent.

Net interest income in FY 2011 rose 54.45 per cent to Rs 2,939 crore, while net interest margin stood at 2.52 per cent.

The bank's current account savings account (CASA) stood at a slightly over 25 per cent, lower than the previous fiscal's.

In the fourth quarter of the FY 2011, the bank's net profit rose 10.6 per cent to Rs 345.33 crore, after making provision for second option for pension for existing employees (amortised for five years) and fully in respect of retired employees.

Non-interest income from core areas increased by Rs 64.08 crore (31.1 per cent) and reached Rs 269.87 crore during the quarter, while net interest margin stood for this three- month period was at 2.5 per cent.

In FY 12, the bank will focus on building up its CASA which will be done through a number of initiatives, including opening of salary accounts, Pradeep said.

Source: Financial Express