Mangaluru, Feb 10, 2015: City based Corporation Bank has posted encouraging figures for the third quarter with a net profit of Rs 147.21 crore as against Rs 126.69 crore for the corresponding quarter of the last financial year, registering a growth rate of 16.20%. Operating profit for the quarter at Rs 726.54 crore was less compared to third quarter in FY 14 where it was Rs 743.55 crore, but higher by Rs 88.55 crore, compared to second quarter of FY 15, a growth of 13.88%.
Attributing the profit to a 15 basis point reduction in cost of deposit of the bank for the third quarter that ended on December 31, 2014, S K Bansal, chairman and managing director told reporters here on Feb 9, that cost of deposit stood at 7.96% as against 8.11% as on September 30, 2014. Net interest margin for the third quarter ending December 31, 2014 increased to 2.09% as against 2% as on September 30, 2014. Income from ATM transaction grew at 50.20%, he said.
The bank has also taken a conscious decision to shed bulk deposits to improve interest margins, he said, adding such bulk deposits of above Rs 1 crore which stood at Rs 1.04-lakh crore has been reduced by Rs 13,000 crore and presently stands at Rs 91,000 crore. Bank raised additional tier 1 capital in the form of non-convertible, perpetual bonds amounting to Rs 500 crore during February 2015, he said adding the fourth quarter should help the bank post still better numbers.
Corp Bank has undertaken many measures to control the operating costs and this has started yielding results, he said. Growth in operating expenses for the nine months period ending December 31 has reduced to 8.10% as against 21.94% growth for the nine months period ending December 31, 2013 on a year-on-year basis. Despite opening 75 branches and equal number of ATMs during the third quarter, bank’s operating expenses decreased by a marginal 0.52%, Bansal noted. Corporation Bank is a Managalore based Bank, with it’s HQ in the city.