Corporation Bank opens microfinance branch

Mangalore-headquartered public sector lender, Corporation Bank has opened a new micro-finance branch in Hyderabad in its bid to increase financial inclusion initiative of the bank.

“The basic objective of opening a micro finance branch is to help the weaker sections of the society especially women through financial inclusion, micro credit and financial literacy,” a bank release said.

The other major areas of functioning of this branch will be direct lending to self help groups, NGOs, MFIs among others with provision for micro insurance products like Janashree Bima Yojna, Jeevan Madhur, Jeevan Mangal of LIC through group approach and micro pension.

 

“The special focus of this micro finance branch in Hyderabad will be to address the banking needs of the urban poor,” the release added.

The public sector lender has already opened three micro finance branches across the country and this newly opened branch at Kothapet in Hyderabad is the fourth one by the bank.

Earlier, Reserve Bank of India has classified all bank loans to micro finance institutions after April 1 as priority sector lending.

Corporation Bank has posted a 10.6 per cent rise in its net profit to Rs 345.3 crore in the fourth quarter of last financial year.

“The net profits were low on account of higher provisioning for pension liability,” Ramnath Pradeep, chairman and managing director of Corporation Bank said.

The bank had to provide Rs 184 crore towards pension liability in the fourth quarter.

Total income of the bank grew by 39.5 per cent to Rs 3046.78 crore in this period as compared with Rs 2184 crore reported last year.

Operating profit increased by 37 per cent to Rs 746.57 crore during this period. Meantime, while interest spread rose by 29 per cent to Rs 761.76 crore in this period, net interest margin was at 2.48 per cent, up by 18 basis points from the previous quarter.