Corporation Bank Q3 net up 19% to Rs 305 cr

Public sector lender Corporation Bank reported 18.92 per cent increase in net profit to Rs 304.99 crore for the third quarter ended December 2009 as compared to Rs 256.47 crore in the corresponding quarter last year.

Its total income increased by 10.9 per cent from Rs 1,905.52 crore for the quarter ended December 31, 2009 to Rs 2,112.29 crore during the corresponding period last year.

The net interest income went up from Rs 478 crore in the third quarter of the last financial year to Rs 545 crore in the corresponding period this year. The net interest margin (NIM) for the quarter improved to 2.54 per cent from 2.30 per cent, said its chairman and managing direcrtor J M Garg said.

Its deposits rose by 36.38 per cent to Rs 84,411 crore. The cost of deposit declined to 6.16 per cent from 6.91 per cent a year ago.
Its outstanding advances rose from 44,937 crore to Rs 56,710 crore. It yield on advances was 10.22 per cent at end of December 2009. Its credit deposit ratio was 67.18 per cent.

Its cost to income ratio improved to 33.24 per cent at end of December 2009 from 40.22 per cent a year ago.Gross non-performing assets stood at 1.32 per cent compared to 1.24 per cent a year ago. The capital adequacy ratio was 17.24 per cent.

For the next two years, the bank has estimated additional capital requirement of Rs 4,000 crore to support 25 per cent year-on-year growth in credit.