Corp Bank Q4 Net Dips 17.6% To Rs 45 Crore

Corporation Bank has posted a 17.6 per cent dip in its net profit for the fourth quarter (Q4) ended March 2001 on Wednesday to Rs 45.33 crore against Rs 55.02 crore in the previous corresponding period.

According to chairman and managing director K Cherian Varghese the fall in Q4 net was due to additional provisioning for government securities and loans.

The Mangalore-based bank's net profit for fiscal 2001, however, increased by 12.70 per cent to Rs 261.84 crore from Rs 232.44 crore the previous year.

The bank's non-performing assets (NPAs) have increased from 1.92 per cent last year to 1.98 per cent this year. In absolute terms, the net NPA of the bank was at Rs 171 crore from Rs 148.80 crore, the pervious year. The bank has recovered Rs 58.59 crore (Rs 51.67 crore) in the fiscal. The board has recommended a 40 per cent dividend for 2000-01.

Other income of the bank was at Rs 292.09 crore. According to Varghese there is a consolidation in the fee based income.

"There are price cuttings. However we are not going to reduce our margins on cash management services. We have added 141 new clients," said Varghese.

The deposits of the bank grew by 15.97 per cent to Rs 16560.14 crore, while advances rose by 11.42 per cent in the year to Rs 8,666.10 crore. The cost of deposits for March 2001 was at 8.1 per cent from 8.5 per cent the previous year.

The bank's capital adequacy ratio (CAR) was at 13.3 per cent. On plans for overseas listing, Varghese said, "We do not need funds as of now as we have a very comfortable CAR. The accounts have already been published according to international standards. As and when we need funds, we will tap it."

The bank's scrip closed at Rs 139.55, an increase of 1.01 per cent at the Bombay Stock Exchange.