The growth in interest on advances helped Corporation Bank report 20.27 per cent rise in net profit at Rs 127.01 crore for the quarter ended September 2006 against Rs 105.60 crore in the same period a year ago. | |
| However, its operating profit dipped to Rs Rs 235.66 crore from Rs 263.88 crore. The interest income (on advances) rose 45.04 per cent to Rs 573.58 crore from Rs 395.45 crore. The interest expenses also jumped about 51 per cent to Rs 515.81 crore. |
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| The bank's total income for the second quarter rose to Rs 945.54 crore from Rs 785.26 crore in July-September 2005. The non-interest income declined to Rs 113.05 crore from Rs 138.01 crore owing to drop in revenues from treasury operations, Corporation Bank Chairman and Managing Director B Sambamurthy said. |
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| The provisioning and contingencies fell substantially at Rs 38.65 crore from Rs 96.01 crore a year ago. In fact, the public sector bank was able to effect recoveries and upgrades of Rs 135 crore against Rs 93 crore, he said. |
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| The margins have been under pressure partly owing to rise in the interest rate on deposits. The NIM (net interest margins) declined to 3.2 per cent from 3.4 per cent a year ago. |
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| The yield on advances moved up to 8.69 per cent (8.30 per cent) but the cost of deposits rose substantially (48 basis points) to 5.01. The yield on investments dipped to 7.61 per cent from 7.87 per cent. |
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| The bank's deposits rose 27.74 per cent to Rs 29,760 crore. The share of low-cost deposits (current account and savings account "� CASA) was 32 per cent. The bank plans to raise this to 40 per cent in 15 months. |
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| Reflecting the growth in credit demand in the economy, the bank's advances grew 38.46 per cent to Rs 28,004.62 crore. The credit deposit ratio stood at 73.66 per cent. The retail credit stood at Rs 6,995 crore (25 per cent of net credit). |
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| The gross NPAs (non-performing assets) were down to 2.16 per cent from 3 per cent. The net NPAs were down to 0.48 per cent from 0.98 per cent. The NPAs coverage ratio improved to 78.20 per cent from 71.03 per cent a year ago. The networth was Rs 3,646 crore against Rs 3,284 crore. |
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| While the bank's book value per share stood Rs 254.18 per share, its capital adequacy was at 13.2 per cent at the end of September against 17.05 per cent a year ago. |
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