Helped by a healthy growth in loans and a drop in non-performing assets (NPAs), public sector Corporation Bank has clocked a 20.77% jump in net profit in FY 2011 at Rs 1,413.27 crore as against Rs 1,170.25 crore in the previous fiscal.
Advances grew by a healthy 37.42%, while both the gross and net NPAs decreased to 0.91% and 0.46%, respectively.
"Our total business stood at Rs 2,03,598 crore in FY 2011. We are targeting a total business of Rs 2,65,000 crore in FY 2012," Corporation Bank Chairman and Managing Director Ramnath Pradeep told reporters here today.
Excluding the provision towards second option scheme of retired/existing employees, the Karnataka-based lender's net profit has grown 31.31%.
Net interest income in FY 2011 rose 54.45% to Rs 2,939 crore, while net interest margin stood at 2.52%.
The bank's current account savings account (CASA) stood at a slightly over 25%, lower than the previous fiscal's.
In the fourth quarter of the FY 2011, the bank's net profit rose 10.6% to Rs 345.33 crore, after making provision for second option for pension for existing employees (amortised for five years) and fully in respect of retired employees.
Non-interest income from core areas increased by Rs 64.08 crore (31.1%) and reached Rs 269.87 crore during the quarter, while net interest margin stood for this three- month period was at 2.5%.
In FY 12, the bank will focus on building up its CASA which will be done through a number of initiatives, including opening of salary accounts, Pradeep said.