Corporation Bank May Post Higher Net

The public sector Corporation Bank is expected to make a net profit of Rs 130 crore in the present fiscal as against Rs 104 crore in the last financial year. This was stated by K R Ramamoorthy, the banks chairman-cum-managing director.

The bank, which made a net profit of only Rs four crore in 1990, is expected to make a gross profit of Rs 260 crore till the March end, the CMD said while addressing a meeting at the inauguration of its 406th branch in New Delhi.

The banks first three quarters profit for the present fiscal ended December 31, 1996, touched the Rs 185-crore mark.

 

Regarding the proposed public issue, the chairman said that with the first tranche of public offer slated for next year, the government which holds cent per cent equity, would then hold only about 80 per cent in the bank. The bank has decided to return Rs 30 crore to the government by end of this fiscal, Ramamoorthy said, adding that at present the government holding was about Rs 112 crore. The chairman disclosed that the public issue of Rs 250 crore planned in 1996, could not be floated during the present financial year due to unattractive market conditions.

However, he asserted that there was no pressing need for the public issue as the banks internal resource position was strong enough to run its operation.