Corporation Bank posts Rs. 61 crore net profit in Q3

Mangalore Today News Network

Mangaluru, Feb 12, 2019: Mangaluru-headquartered Corporation Bank, which had sustained losses earlier, has come out of the red by posting Rs. 61 crore net profit in the third quarter of 2018-19. The bank had reported Rs. 1,240 crore loss during the same period in 2017-18.

For nine months ended December 2018, the bank posted Rs. 249 crore net profit as against the loss of Rs. 2,216 crore reported for the same period in 2017-18, a release from the bank here said.

Several measures undertaken by the bank to improve its performance have helped it to come out of the red.

While its current and savings bank deposits ratio to total deposits increased from 25.69 % as in December 2017 to 29.3 % in December 2018, the net interest margin too rose from 2.23 % to 3.19 % during the period. At the same time, the bank was able to reduce the cost of deposits, from 5.86 % to 5.42 % during the period.

In recovering dues from written off accounts too, the bank made substantial progress by getting Rs. 3,954 crore for nine months ended December 2018 as against Rs. 3,152 crore recovered in December 2017.

The bank, by focussing on retail business, has cut down bulk deposits from 35.77 % as in December 2017 to 27.58 % in December 2018.

The gross NPAs have increased to 17.36 % as in December 2018 from 15.92 % in December 2018 while the net NPAs too rose to 11.47 % from 10.73 % during the period.