Corporation Bank Q1 net up 42% at Rs 261 cr

Mangalore-based public sector lender, Corporation Bank, today reported 41.75 per cent rise in its net profit at Rs 261.25 crore for the first quarter ended June 30, 2009 compared to the corresponding quarter last year. Its operating profit for the quarter went up by 77.96 per cent year-on-year to Rs 571.24 crore.

The bank’s total income during Q1 increased by 45.31 per cent on y-o-y basis to Rs 2,101.53 crore. The rise in net profit was driven by a
23.6 per cent growth in its net interest income at Rs 467.54 crore as at June 2009 compared to the same period a year ago. Its non interest income increased by 2.2 times to Rs 359.32  crore during the quarter ended June 2009 as against the year ago period.

Its total business stood at Rs 119,505 crore, recording y-o-y growth of 27.55 per cent. Deposits increased by 31.76 per cent to Rs 72,127  crore, while advances have shown a rise of 21.6 per cent to Rs 47,378  crore. Cost of Deposits has come down to 6.67 per cent as compared to 7.02 per cent per annum for the year ended March 31, 2009. Yield on advances stood at 10.61 per cent per annum for the quarter ended June 2009.

Gross NPA has come down from 1.46 per cent in June 2008 to 1.29 per cent in June 2009. Net NPA declined to 0.32 per cent as compared to 0.36 per cent in June 2008. Bank is well capitalised with CRAR of 14.84 per cent as compared to 12.43 per cent in June 2008 as per Basel-I norms. The CRAR under Basel-II is at 16.29 per cent of which Tier-I component is 9.63 per cent and Tier-II component is 6.66 per cent.

Return on Equity (ROE) increased to 20.26 per cent from 16.71 per cent in June 2008. Return on assets works out to 1.26 per cent as compared to 1.19 per cent in June 2008.