The Hindu Business Line : Corporation Bank Q3 net rises to Rs 161.7 cr

CORPORATION Bank has registered a net profit of Rs 161.69 crore in the third quarter of the current financial year against Rs 113.28 crore during the corresponding period of the previous year, showing an increase of 42.73 per cent.

During the period, the total income of the bank stood at Rs 772.52 crore (Rs 673.57 crore in the previous year), showing a growth of 14.68 per cent.

A bank release said here on Saturday that the board of directors, which met in New Delhi on Saturday, has taken on record the unaudited results for the quarter ended December 2004, and declared an interim dividend of 30 per cent.

During the period, the gross profit of the bank improved to Rs 328.58 crore (Rs 235.62), showing a growth of 39.45 per cent.

However, the net profit decreased during the first nine months of the current fiscal and stood at Rs 294.59 crore compared with Rs 384.64 crore during the corresponding period the previous year. The release said that the decline is on account of the bank taking a prudential step by shifting about Rs 4,932 crore of investments from `available-for-sale' (AFS) to `held-to-maturity' (HTM) category in the second quarter of the current financial year, booking depreciation of Rs 205 crore during that quarter. The gross profit for the period stood at Rs 797.10 crore (Rs 726.31 crore), showing an increase of 9.75 per cent.

The total business of the bank during the third quarter improved to Rs 40,540.44 crore (Rs 33,822.31 crore). While the aggregate deposits registered a growth of 9.5 per cent during the period, the net advances showed a growth of 39.34 per cent. The credit deposit ratio improved to 67.7 per cent (53.2 per cent) as at December 2004.

The aggregate investments stood at Rs 9,265.65 crore, showing a decline of 24.19 per cent over December 2003 level, in tune with efforts of the bank to reduce the market risk on the investment portfolio and increase its advances.

The net NPA of the bank stood at 1.49 per cent during the third quarter against 1.69 per cent during the corresponding period of the previous year. The release said that the bank effected a cash recovery of Rs 104.15 crore for the first nine months of the current fiscal and upgraded the NPAs valuing Rs 44.03 crore to performing assets category.

The capital adequacy ratio of the bank stood at 20.27 per cent during the period.

As on December 31, 2004, interest spread improved to Rs 842.77 crore (Rs 718.07 crore), showing a growth of 17.37 per cent. During the period the cost of the deposit was brought down to 4.59 per cent (5.53 per).

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