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Corporation Bank has reported a net loss of Rs 12.40 billion for the December quarter of the current fiscal on higher provisioning for bad loans. The state-owned bank had, in contrast, registered net profit of Rs 1.59 billion in the October-December period of last fiscal. Sequentially, the net loss widened from Rs 10.35 billion in the second quarter (July-September) of 2017-18. The bank's total income also decreased to Rs 48.41 billion in the third quarter of 2017-18, as against Rs 58.39 billion in the year-ago period as expenses were higher, showed the bank's balance sheet in a regulatory filing. Corporation Bank saw its non- performing assets (NPAs) or bad loan ratio reach 15.92 per cent of the gross advances at the end of December 2017, up from 11.26 per cent by same time of 2016. Net NPA were 10.73 per cent of the net advances against 7.64 per cent by the same period year earlier. In absolute value, gross NPAs stood at Rs 218.17 billion as on December 31, 2017, as against Rs 158.27 billion as on December 31, 2016.
Net NPAs were Rs 138.53 billion against Rs 103.14 billion. The bank's provisioning for bad loans ballooned to Rs 24.94 billion for third quarter of the current fiscal, from Rs 991.63 crore in the year-ago period. The lender provided Rs 12.80 billion during the third quarter in respect of 11 NPA accounts under Insolvency and Bankruptcy Code (IBC) proceedings as per RBI directive of June 2017, out of the total requirement of Rs 17.36 billion to be made fully by end of this fiscal. The bank said it needs to make additional provisioning of Rs 10.04 billion as per another RBI directive in August 2017 in respect of 20 NPA accounts under Insolvency and Bankruptcy Code and it will provide for the same by March 31. The provision coverage ratio stood at 59.48 per cent as on December 31, 2017. The Corporation Bank stock closed 1.83 per cent up at Rs 36.25 on BSE.