During FY14, the bank reported a net profit of Rs 562 crore, down from Rs 1,435 crore in 2012-13. Its total income rose to Rs 19,606 crore in FY14 from Rs 16,942 crore in FY13 CARE Ratings has downgraded Corporation Bank’s perpetual bonds and upper tier-II bonds from “AAA” to “AA+” on weak profitability. It also flagged concerns over moderate resource profile due to drop in the share of show-cost deposits. It reaffirmed “AAA” rating for lower tier-II bonds. The revision in ratings reflects the weak profitability during FY14 impacted by deterioration in its asset quality and moderate resource profile characterised by declining proportion of low-cost deposits, CRISIL said. The ratings, however, continue to derive comfort from capital support and majority ownership of bank by the Centre (63.3 per cent holding), adequate capitalisation levels and stable asset growth. The bank’s ability to improve its resource profile and asset quality, enhance its profitability and maintain stable capitalisation levels would be the key rating sensitivity, the rating agency added. The upper tier-II bonds and perpetual bonds are rated one notch lower than lower tier-II bonds. It is due to their increased sensitiveness to capital adequacy ratio (CAR), capital raising ability and profitability during the long tenure of instruments. During FY14, the bank reported a net profit of Rs 562 crore down from Rs 1,435 crore in 2012-13.
Its total income rose to Rs 19,606 crore in FY14 from Rs 16,942 crore in Fy13. The bank had 2,021 branches and 2,264 ATMs as of March this year. The bank also has its representative offices at Hong Kong and Dubai. The bank has a wholly-owned subsidiary — Corp Bank Securities Ltd.