Corporation Bank today reported a sharp 88.3 per cent decline in net profit at Rs 41.57 crore for the fourth quarter ended March 31, 2013-14 due to higher provisioning and rise in bad loans.
The Mangalore-headquartered bank had posted a net profit of Rs 355.53 crore in the year-ago period.
The total income of the bank, however, increased to Rs 5,032.62 crore during January-March quarter of 2013-14, from Rs 4,635.50 crore in the corresponding period a year ago, it said in a regulatory filing to the BSE.
During the quarter, the bank made provisioning towards bad loans to the tune of Rs 824.53 crore, significantly higher than Rs 459.93 crore reserved a year ago.
Also, bank's net non-performing assets (NPAs) or bad loans jumped to 2.32 per cent (Rs 3,180.56 crore) in the fourth quarter from 1.19 per cent (Rs 1,410.87 crore) a year earlier.
Gross NPAs increased to 3.42 per cent (Rs 4,736.79 crore) from 1.72 per cent (Rs 2,048.22 crore).
For the full fiscal 2013-14, its net profit was higher than a year ago at Rs 561.72 crore
Bank's net profit for the entire fiscal also dipped to Rs 561.72 crore from Rs 1,434.67 crore in previous fiscal.
"Total income has increased from Rs 16,942 crore for the year ended March 31, 2013 to Rs 19,606.29 crore for the year ended March 31, 2014," it said.
The bank's shares closed higher by 1.67 per cent at Rs 301.10 apiece on the BSE today.
