The Hindu Business Line : Corporation Bank net rises 20%

Mangalore April 28 Corporation Bank has recorded a net profit of Rs 536.14 crore during 2006-07 against Rs 444.46 crore in 2005-06, registering a growth of 20.63 per cent.

Addressing presspersons here on Saturday, Mr B. Sambamurthy, Chairman and Managing Director of the bank, attributed this growth to various factors, including the growth in volume of business. The volume of business witnessed a jump of Rs 15,467.58 crore during the year. The total business as on March 31, 2007 stood at Rs 72,306 crore (Rs 56,839 crore), recording a growth of 27.21 per cent. "This growth of over Rs 15,000 crore is the highest ever achieved by the bank in a single year," he said.

Other factors such as increase in non-fund income and forex income have also contributed to the growth in the net profit. "We have also done well in gold business, especially in retail," he said.

The gross profit for 2006-07 was Rs 1,140.03 crore (Rs 953.62 crore), an increase of Rs 186.41 crore.

During the last fiscal, the total income increased to Rs 3,996 crore (Rs 3,100.03 crore), a growth of 28.90 per cent.

Despite change in market conditions, the bank recorded a satisfactory net interest margin of 3.24 per cent during 2006-07, he said. During the year, non-interest income (excluding profit on sale of investments) increased by 30.08 per cent to Rs 439.41 crore (Rs 337.81 crore).

The aggregate deposits increased to Rs 42,357 crore (Rs 32,876 crore), and the advances stood at Rs 29,950 crore (Rs 23,962 crore).

During 2006-07, the cost of deposits stood at 5.30 per cent (4.55 per cent) and the yield on advances at 9.05 per cent (8.26 per cent).

Q4 net at Rs 118 crore

During the fourth quarter of 2006-07, the bank posted a net profit of Rs 118.47 crore (Rs 100.27 crore), a growth of 18.15 per cent. During the period, the total income stood at Rs 1,142.65 crore (Rs 838.47 crore) and the other income at Rs 161.90 crore (Rs 133.05 crore).

The board of directors has recommended payment of total dividend of 90 per cent for the year, including 40 per cent interim dividend paid already, he added.

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