Corporation Bank posts Rs 103 cr profit in Q2

State-owned Corporation Bank Tuesday reported a net profit of Rs 103 crore for the second quarter ended September 30, as provision for bad loans declined sharply.

The bank had posted a loss of Rs 1,035.20 crore during the corresponding quarter of the previous fiscal, it said in a regulatory filing.

However, total income declined to Rs 4,216.79 crore during the period under review, compared with Rs 5,344.59 crore a year ago.

The lender's asset quality worsened with gross non-performing assets (NPAs) rising to 17.46 per cent of the gross loans, compared with 15.28 per cent in the year-ago period.

In absolute terms, gross NPAs rose to Rs 21,714.16 crore in the July-September 2018 period, compared with Rs 20,684.88 crore a year ago.

Net NPAs also increased to 11.65 per cent (Rs 13,534.01 crore), from 10.24 per cent (Rs 13,082.59 crore) a year ago.

The provisions for bad loans and contingencies declined to Rs 808.32 crore for the quarter, against Rs 2,668.81 crore in the corresponding period last year.

Of this, provisions for bad loans also eased to Rs 728.56 crore, against Rs 2,535.95 crore a year ago.

During the quarter, the bank received a capital infusion of Rs 2,555 crore from the central government which has been shown under share application money, pending allotment. The shares were allotted to the Centre on October 11.