Corporation Bank net up 21%

Owing to higher core earnings, the Mangalore-headquartered Corporation Bank has posted a net profit of Rs 351.7 crore for the quarter ended September, as against Rs 291.6 crore reported in the same period last year, registering a rise of 20.6 per cent.

Total income of the bank rose by 14.1 per cent to Rs 2364.2 crore, as against Rs 2072.3 crore reported in the year-ago period. Net interest income increased by 42 per cent to Rs 715.25 crore, as against Rs 503.51 crore in the corresponding period last year.

Despite the hardening of interest rates and rise in cost of deposits, the bank was able to expand its margin during the second quarter. Net interest margin increased to 2.64 per cent from 2.30 per cent in the year-ago period.

Meanwhile, the cost of deposits declined to 5.40 per cent, as against 6.44 per cent in the corresponding period last year.

Total business reached Rs 1,66,700 crore in the July-September period, up 24.91 per cent from Rs 1,33,456 crore in the corresponding period last year.

While deposits increased by 19.82 per cent to touch Rs 96,920 crore, advances grew by 32.74 per cent to Rs 69,780 crore during this period.

Advances towards small and medium enterprises (SME) stood at Rs 8,130 crore, up by 40 per cent in the second quarter. Agricultural advances increased by 50.87 per cent to Rs 6883 crore in the second quarter.

On the capital adequacy front, the mid-sized public sector lender had a capital adequacy ratio of 14.48 per cent against a regulatory minimum of nine per cent.