Corporation Bank's Q4 net up marginally

Total income rises by 15.6% to Rs 4,635 cr

Corporation Bank recorded a marginal increase of 1.22 per cent in its net profit for the fourth quarter ended March 31 at Rs 355.53 crore, compared to the year-ago period. The rise was due to provisioning on account of wage revision, which was Rs 42 crore.

The bank’s total income for the fourth quarter grew by 15.6 per cent at Rs 4,635.49 crore. The interest income also swelled by 13.4 per cent to Rs 4,068.09 crore. However, during the quarter under review, the bank took a hit on its investment portfolio to the extent of Rs 85 crore due to a rise in yields of government securities.

For the entire FY13, the bank reported a net profit of Rs 1,434.67 crore, a drop of 4.74 per cent over FY12. The fall was due to increased provisioning for bad asset to the tune of Rs 928 crore.

“We provided for an extra amount of Rs 322 crore, compared with the last financial year towards provisioning for asset quality,” said C G Pinto, general manager and chief financial officer. According to Pinto, the provisioning of Rs 42 crore towards wage revision was also not there in the previous financial year. The bank’s total income recorded a growth of 16.76 per cent at Rs 16,942.02 crore.

The total interest income of the bank recorded a growth of 17.79 per cent at Rs 15,334.08 crore over the previous financial year, while the non-interest income recorded a growth of 7.73 per cent at Rs 1,607.94 crore.

Gross non-performing assets (NPAs) stood at 1.72 per cent of the total and net NPAs at 1.19 per cent at the end of FY13. In absolute terms, the gross NPAs stood at Rs 2,048.23 crore and net NPAs at Rs 1,410.88 crore.

The NPA provision coverage ratio stood at 62.06 per cent with reference to NPAs as on March 31.