• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Mr B. Sambamurthy

Our Bureau

New Delhi, July 29 A higher provisioning due to depreciation in its government securities portfolio has pulled down the bottomline growth of Corporation Bank in the first quarter of the current fiscal.

Net profit grew a sluggish 4.06 per cent to Rs 184.30 crore for the quarter ended June 30, 2008 despite strong performance on the core operations side. In the same quarter last year, the bank had recorded a net profit of Rs 177.11 crore.

For the period under review, the bank had provided Rs 63 crore as depreciation in securities portfolio.

In the first quarter last fiscal, it had income (write back) to the tune of Rs 13 crore on this account. The bank has also in the latest quarter reduced the duration of its available for sale (AFS) portfolio to 1.7.

“But for our securities depreciation, our net profit growth this quarter would have been 50 per cent”, Mr B. Sambamurthy, Chairman and Managing Director, told reporters after a meeting of the board of directors here on Tuesday.

Total income for the quarter under review stood at Rs 1,446.28 crore (Rs 1,238.83 crore). Gross profit grew 16.49 per cent to Rs 320.99 crore (Rs 275.56 crore).

Mr Sambamurthy said that the bank would look to mop up about Rs 1,000 crore of tier-II capital to fund business growth this year. Mr Sambamurthy said one cannot rule out the possibility of banks hiking prime lending rates (PLR) again. He also said that the message from the RBI was very clear.

More Stories on : Financial Performance | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee sheds 10 paise

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line