Corporation Bank Profit Up 21% To Rs 232 Cr

The Mangalore-based Corporation Bank has registered a 21 per cent rise in net profit to Rs 232.44 crore in 1999-2000, up from Rs 192.03 crore in the previous year.

The board, which met yesterday, has recommended a dividend of 20 per cent in addition to an interim dividend of 20 per cent announced a month back. This takes the total dividend to 40 per cent against 35 per cent last year.

The gross profit has gone up 38 per cent to 425.12 per cent while total income stood at Rs 1,875.20 crore (Rs 1,554.80) and expenditure at Rs 1,642.76 crore (Rs 1362.77 crore).

 

The total deposits of the bank grew 13.3 per cent to Rs 14,279.63 crore, while advances was at Rs 7,777.47 crore. Investments worked out to Rs 5,962.43 crore (Rs 5510.69 crore).

The average cost of deposits improved from 8.9 per cent to 8.5 per cent, while the average yield on advances fell from 13.1 per cent to 12.5 per cent. Yield on investment was sustained at 12 per cent while interest spread was at 3 per cent.

Addressing a press conference on Thursday, chairman R S Hugar said, "Despite adverse conditions and stiff competition, the bank's total business grew 17 per cent to Rs 22,057 crore."

The capital adequacy ratio stood at 12.8 per cent while the non-performing asset stood at 192 per cent down from 1.98 per cent in the previous year. The bank has managed to recover Rs 51.64 per cent during the year.

The non interest income has gone up by 32 per cent from Rs 204.60 crore in 1998-99 to Rs 270.81 crore, recording a growth of 34.4 per cent. Of the Rs 270.81 crore, profit from sales of investment was at Rs 58 crore (Rs 11 crore), cash management services contributed to Rs 56 crore, commission was Rs 46 crore, forex stood at Rs 35 crore, letter of credit was 19 crore. However contribution from the bullion trade fell by Rs 4 crore from 19 crore last year.

Hugar, who is expected to retire by the end of this month, said, "The bank has plans to enter the insurance sector and has short listed four players in the insurance sector."