Corporation Bank announces unaudited financial results

Corporation Bank announces unaudited financial results

Mangalore Today News Network

Mangalore, Feb 8, 2014: S.R.Bansal, Chairman and Managing Director, Corporation Bank, announced the performance of the Bank after the adoption of the financial results for the quarter/nine months ended 31st December 2013 by the Board of Directors.

 
1. Business Growth:

Bank has crossed major milestone by crossing business of Rs.3 lakh cr and entered the league of Big Banks.

As on December 2013, the total business increased on year-on-year basis by 23% to Rs.301,375cr, whereas deposits increased by 26.68% to Rs.177,845cr and advances increased by 18.28% to Rs.123,530cr.

2. Net Interest Income:

(a) There has been improvement in Net Interest Income, income improved from Rs.883cr during Q3 quarter of last fiscal year to Rs.909cr during Q2 of current year and further increased to Rs.1001cr during the Q3 of current year.

(b) During the nine months ended December 2013, the net interest income was Rs.2876cr as against Rs.2495cr during last corresponding period, accounting for an increase of 15%. This is reflected improvement in Yield on Advances from 11.40% during the Q2 to 11.44%during Q3. Similarly Yield on Investment which was 7.66% during Q2 improved to 7.87%. Cost of deposit which was 8.13%in Q2 has come down to 8.03% during Q3. Impact of this can be seen in improvement of NIM from 2.04% during Q2 to 2.18% during Q3.

(c) As a result, Operating Profit which was Rs.664cr during Q2 improved to Rs.743cr during Q3 recording increase of 12% on sequential basis during the current year.

3. Advances- Retail, MSME, and Agriculture:

During the current year the bank concentrated on deployment of credit to agriculture, MSME and Retail whereas the bank has been selective in lending to large Industries, Commercial Real Estate and Capital Market. The increase in exposure to these sectors was either low or has come down.

The impact of various initiatives taken by the bank to expand the credit to priority sectors can be seen by large increase in priority sector portfolio.

 
New Initiatives:

1. Corporation Bank, with a view to catering to the SME& Agricultural segments in a big way, has opened exclusive SME Loan centres in Sixteen Cities across the country and Five Agri Business Development Centres

2. Corporation Bank has facilitated Online Opening of Deposits to its Retail and Corporate Customers through CorpNet – Internet Banking Platform

3. The Bank has also enabled Internet Banking through this application for personal banking

4. Corporation Bank has launched “Project Sankalp” a Business Process Re-engineering and organizational transformation journey

5. Plastic Money for all segments:

•      International Debit Card

•      International Credit Card

•      International TravelCard

•      Prepaid Gift Cards

•     Students Campus Cards

          

New Products:

 Ø  The Bank has launched two new premium Savings Bank Schemes “Corp Signature” and “Corp Super” with many attractive add on facilities

Ø  Bank also has launched a new variant – Corp Saral Savings Account where the customers can avail of a bouquet of features and add-ons along with personal accident insurance

Ø  Bank also launcheda special  Mobile Banking App through Android and IOS Phones and Tablets through which customer can avail various facilities /services

Ø  Corp Global current account variant launched for Exporters and Importers who deal in Forex with various facilities

Ø  The Bank has launched two new premium Current Account Schemes “Corp Club” and “Corp Privilege” with many attractive add on facilities

Ø  Branchless Banking operational in 3926 locations across India through 2843 BCAs

Ø  Bank is actively participating in Electronic Benefit Transfer (EBT) program in the States of Andhra Pradesh, Karnataka and Tamil Nadu.

Ø  The Bank has Business Correspondents in all the villages allotted under Financial Inclusion

Ø  A total number of 7.95 lakh transactions amounting to Rs.8104 Lakhs have been routed through the BCs during the Quarter ended December 2013 under FI & EBT. []10.77 lakh transactions amounting to Rs.5601.21 lakhs during Q2-Sept 13]

Ø  The Bank has implemented Urban Financial Inclusion in 125 locations.

Ø  Bank has provided banking services to all 318 villages allotted with more than 2000 population

Ø  Bank has provided banking services in 492 (out of 1562 villages) villages with less than 2000 population and the coverage of remaining 1070 villages will be completed by March 2016 as per FIP 2013-2016.

Awards & Accolades: Corporation Bank is ranked First under “National Awards for Excellence in MSE Lending” and Second under “National Awards for Excellence in Lending to Micro Enterprises” for the year 2012-13 under Public Sector Banks from Ministry of Micro, Small and Medium Enterprises