Corporation Bank swings into the black with Rs 60.53 cr profit in Q3

Corporation Bank has swung into the black with a profit of Rs 60.53 crore in December quarter 2018, as provisioning for bad loans saw a sharp decline, the lender said Monday.

The bank had posted a net loss of Rs 1,240.49 crore in October-December 2017-18.

Total income of the lender came down to Rs 4,112.32 crore in the latest quarter as against Rs 4,841.37 crore in the same period of 2017-18, it said in a regulatory filing.

The bank said its provisioning for non-performing assets (NPAs) or bad loans was reduced to Rs 842.28 crore for the latest quarter as against Rs 2,494.71 crore in the same period a year ago.

However, the bank's assets worsened with gross NPAs growing to 17.36 per cent of gross advances as at December-end 2018, against 15.92 per cent by December 2017.

In value terms, gross NPAs were at Rs 21,921.42 crore as against Rs 21,817.96 crore earlier.

Net NPAs surged to 11.47 per cent (Rs 13,521.22 crore) from 10.73 per cent (Rs 13,853.90 crore).

The bank said it is maintaining higher provision in terms of NCLT (list 1 and 2 of RBI) and is holding a total provision of Rs 6,412.45 crore against outstanding amount of Rs 9,075.69 crore (or 70.66 per cent) on these accounts as on December 31, 2018.

Provision coverage ratio of the bank as at December-end 2018 is 66.13 per cent, Corporation Bank said.

Stock of the bank closed 0.80 per cent lower at Rs 24.75 on BSE.