Corporation Bank Q1 net profit rises 67% at Rs 60 cr

State-owned Corporation Bank has reported a rise of 67.5 per cent in net profit at Rs 60.15 crore for the first quarter ended June 30, 2017.
Bank's net profit in the April-June quarter of previous fiscal was at Rs 35.92 crore.
However, total income of the bank was lower than a year earlier at Rs 5,112.99 crore during June quarter of 2017-18, as against Rs 5,241.11 crore in the same period year ago, due to fall in wholesale and retail earnings, it said in a regulatory filing.
Bank's asset quality was dented further, both year-on- year and quarter-on-year, as gross non-performing assets (NPAs) spiked to 15.49 per cent of gross advances as on June 2017 against 11.01 per cent year ago and 11.70 per cent in previous March quarter.

Net NPAs or bad loans too turned higher at 11.14 per cent of the net advances by June-end 2017, as against 7.22 per cent year-ago same period and 8.33 per cent at end-March 2017.
Value-wise gross NPAs were worth Rs 21,712.67 crore by end of first quarter of current fiscal, against Rs 15,726.12 crore at end-June 2016.

Net NPAs were Rs 14,857.53 crore as against Rs 9,882.15 crore for the two sets of comparable time-frames.
Likewise, the bank allocated a higher provision of Rs 1,510.18 crore as NPA provision for June quarter of 2017-18, up from Rs 874.05 crore parked aside for June 2016 quarter.

The provision coverage ratio as on June 30, 2017 stood at 51.49 per cent.
Corporation Bank said it is carrying a provision of Rs 91.88 crore as on June 30, 2017, being 15 per cent of the outstanding food credit availed by Punjab government.
Stock of the bank closed 0.97 per cent up at Rs 46.85 on BSE.