Corporation Bank Q3 net up 34%

Mangalore-headquartered public sector lender, Corporation Bank, today reported 34.3 per cent jump in its net profit at Rs 256.4 crore for the third quarter ended December 31, 2008 compared to the corresponding quarter last year.

The bank's total income during the quarter went up by 50.5 per cent to Rs 1,905.5 crore compared to the same quarter last year.

During third quarter, the net interest income increased by 37.30 per cent to Rs 477.98 crore compared to the corresponding period. Operating profit for the quarter ended December 2008 went up by 61.90 per cent on year-on-year basis, to Rs 449.40 crore. Total business showed a Y-o-Y growth of 27.7 per cent to Rs 1,06,831 crore.

For the nine month period ended December 2008, the cost of deposits went up to 6.91 per cent from 6.42 per cent in the corresponding period last year, mainly due to the volatile and compititive market conditions, which prevailed in the first half of the financial year.

Gross NPA has come down from 1.71 per cent in December 2007 to 1.24 per cent in December 2008. Net NPA stood at 0.33 per cent. CRAR improved to 12.76 per cent from 12.07 per cent in December 2007.

The capital adequacy ratio of the bank as on December 31, 2008 was at a comfortable level of 12.76 per cent, as compared to 12.07 per cent in the year ago period.

Return on equity works to 17.3 per cent (annualised) as compared to 16.4 per cent in the previous year. The earnings per share (annualised) works out to Rs 58.77 as compared to Rs 49.21 as at December 2007.