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Corporation Bank Q1 net profit rises 67% to Rs. 60 crore

Corporation Bank Q1 net profit rises 67% to Rs. 60 crore

Mangalore Today News Network

Mangaluru, August 12, 2017: City headquartered Corporation Bank on Friday announced a profit of Rs. 60.15 crore during the first quarter of financial year 2017-18, registering a growth of 67.46% over the net profit registered during the corresponding year of the last fiscal.

Addressing media on Friday here, MD and CEO of the bank Jai Kumar Garg attributed the performance in maiden quarter of the fiscal to measures taken to reduce the cost of deposits (5.93% against 6.85% in 2016), growth in current account and savings account (CASA) and reduction in loss on total deposits despite increase in total deposits to Rs 2,10,903.87 crore against Rs 1,98,502.07 crore in the corresponding period of previous fiscal.

corporation bank

Bank’s asset quality was dented further, both year-on- year and quarter-on-year, as gross non-performing assets (NPAs) spiked to 15.49 per cent of gross advances as on June 2017 against 11.01 per cent year ago and 11.70 per cent in previous March quarter. Net NPAs or bad loans too turned higher at 11.14 per cent of the net advances by June-end 2017, as against 7.22 per cent year-ago same period and 8.33 per cent at end-March 2017. Value-wise gross NPAs were worth Rs 21,712.67 crore by end of first quarter of current fiscal, against Rs 15,726.12 crore at end-June 2016. Net NPAs were Rs 14,857.53 crore as against Rs 9,882.15 crore for the two sets of comparable time-frames.

Likewise, the bank allocated a higher provision of Rs 1,510.18 crore as NPA provision for June quarter of 2017-18, up from Rs 874.05 crore parked aside for June 2016 quarter. The provision coverage ratio as on June 30, 2017 stood at 51.49 per cent. Corporation Bank said it is carrying a provision of Rs 91.88 crore as on June 30, 2017, being 15 per cent of the outstanding food credit availed by Punjab government. Stock of the bank closed 0.97 per cent up at Rs 46.85 on BSE.

Executive Director Gopal Murali Bhagat and others were present.

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