Corporation Bank Q1 net falls 12% at Rs 204 crore

Corporation Bank today said its net profit fell by 11.75 per cent to Rs 204.26 crore during the first quarter ended June 30.

Bank's net profit in the corresponding quarter of the previous fiscal stood at Rs 231.47 crore.

The fall in net profit is attributed to a higher provision for bad loans as NPAs rose substantially during the quarter.

Total income of the bank, however, grew by 23 per cent to Rs 5,334.60 crore during the quarter, as against Rs 5,215.02 crore in the similar period a year ago.

Provisions for bad loans and contingencies were raised substantially to Rs 621.39 crore in the reported quarter, registering an increase of 35.4 per cent from Rs 458.90 crore, a year ago.

Gross Non-Performing Assets (NPAs) stood at 5.43 per cent of gross advances during the period under review, up from 3.96 per cent a year ago.

Net NPAs or bad loans as a percentage of net advances stood at 3.55 per cent as against 3.71 per cent during the same period, a year earlier.

Corporation Bank shares closed at Rs 54.05 per scrip on BSE, up 0.46 per cent from its previous close.