Corp Bank Q4 net up 10.6% to Rs 345.3 cr

Mangalore-headquartered public sector lender Corporation Bank has posted a 10.6 per cent rise in its net profit to Rs 345.3 crore during the fourth quarter of last financial year.

“The net profits were low on account of the higher provisioning for pension liabilities,” Ramnath Pradeep, chairman and managing director of Corporation Bank, said. The bank had to provide Rs 184 crore towards pension liabilities in the fourth quarter.

The total income of the bank grew 39.5 per cent to Rs 3,046.78 crore during this period compared with Rs 2,184 crore reported last year.

The operating profit increased 37 per cent to Rs 746.57 crore. Meanwhile, the interest spread rose 29 per cent to Rs 761.76 crore in this period, and the net interest margin was 2.48 per cent, up 18 basis points from the previous quarter.

 

On annual basis, Corporation Bank posted a 20.77 per cent jump in its net profit to Rs 1,413.27 crore as against Rs 1,170.25 crore in the previous fiscal. Total income of the bank rose by 23.32 per cent to Rs 10,500 crore in the last financial year. Operating profit of the bank has grown by 22.73 per cent to Rs 2,662.40 crore during this period.

Net interest income during the financial year rose 54.5 per cent to Rs 2,939 crore with a net interest margin of 2.52 per cent. “Our total business stood at Rs 2,03,598 crore in FY 2011. We are targeting a total business of Rs 2,65,000 crore in FY 2012,” Pradeep said.

Deposits of the bank grew by 26 per cent to Rs 1,16,748 crore in the last financial year and advances grew by 37.42 per cent to Rs 86,850 crore in this period. The bank’s current account savings account (CASA) ratio stood at a slightly over 25 per cent during this period. The bank also aims to increase its CASA deposit to 30 per cent by giving more focus on current and savings deposits, he added.

On the non-performing assets front, the gross NPA decreased to 0.91 per cent from 1.02 per cent an year earlier. However, net NPA increased to 0.46 per cent from 0.31 per cent an year ago period.

“We want to bring down NPA at minimum level with an emphasis to increase NIM to 3 per cent,” Pradeep said.

On the capital adequacy front, the capital to risk weighted assets (CRAR) under Basel-II stood at 14.11 per cent by March, 2011.

The public sector lender will open 200 new branches in the current financial year. It is also exploring possibility of opening branches at Hong Kong, Tanzania, Nepal and Vietnam.