Corporation Bank posted net profit of Rs. 35.62 crores

Mangalore Today News Network

Mangaluru, Aug 11, 2016: With a  posted a net profit of Rs. 35.92 crore for the first quarter ending June 2016 against the Rs. 511 crore net loss posted during the same period in 2015-16, Corporation Bank has said it is on an incremental recovery mode.

Speaking to media on Aug 10,  Wednesday after the board meeting, bank  MD, managing director and CEO, chief executive officer Jai Kumar Garg said that the bank was making every effort to recover the NPAs non-performing assets.

During the first quarter of 2016, Rs. 1,203 crore had been recovered against Rs. 500 crore recovered during the fourth quarter ending March 2016.  He said though the operating profit during the first quarter was Rs. 797.2 crore, the net profit was Rs. 35.92 crore in view of provision of Rs. 761 crore made towards NPAs. The bank is striving to recover outstanding debts even as it has not yet sold any NPAs to asset recovery companies.

There was no NPA in the priority sector like agriculture, small and medium industries etc., while the bulk lending sector contributed to major share of NPAs, he said.   MD Garg said that deposits had increased from Rs. 1,92,102 crore in the first quarter of 2015-16 to Rs. 1,98,502 crore during the present first quarter. Advances stood at Rs. 1,36,943 crore in the first quarter ending June 2016 against Rs. 1,40,325 crore during the corresponding previous quarter.  The bank has made marked progress in delivery channels.

The number of branches has increased to 2,451 and ATMs to 3,074 in the first quarter of 2016 from 2,309 and 2,983, respectively, during the corresponding previous quarter. The total debit cards issued by the bank had crossed one crore and during the present first quarter, 4.07 lakh cards were issued. It has also installed 269 cash deposit kiosks, 168 cheque deposit kiosks and 319 passbook kiosks across the country.

Stating that the bank was focusing more on retail lending and avoiding bulk lending, MD  Garg said priority sector advances grew by 5.11 per cent year-on-year to reach Rs. 67,354 crore as on June 30, 2016 from Rs. 64,082 crore during the corresponding previous quarter. Priority sector advances stood at 43.67 per cent surpassing the regulatory target of 40 per cent.

Total agriculture advances reached Rs. 26,655 crore as against Rs. 24,819 crore during the corresponding previous quarter with a growth rate of 7.4 per cent.   Executive director Sunil Mehta was also present at the meet.