• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

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

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

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

Our Bureau

Posts Rs 146-cr net in Q3; targets Rs 1 lakh cr biz by 2009

Mr B. Sambamurthy

Advertisement

New Delhi Jan. 24 Corporation Bank is in talks with a host of foreign banks to raise debt resources from markets abroad, its Chairman and Managing Director, Mr B. Sambamurthy, said here on Wednesday.

"It would be a plain vanilla borrowing. We can go up to $200 million. It would most likely be a syndicated loan or inter-bank placement," Mr Sambamurthy told newspersons after announcing the third quarter results of the bank here today.

Last year, the bank had raised some yen-denominated funds to augment its resources.

Asked whether the bank was looking at Japanese market again for raising debt funds, he said that the bank was yet to firm up the market or the foreign bank for the borrowing.

"We had someone from Australia making an offer to us yesterday," he said.

Mr Sambamurthy also said that the bank had no plans to raise any capital during the current fiscal or even in the next year.

He, however, highlighted that the bank had headroom to raise tier-II capital of Rs 2,000 crore.

Corporation Bank on Wednesday reported a net profit of Rs 146.42 crore for the quarter ended December 31, 2006, on a total income of Rs 1046.11 crore.

The bank had recorded net profit of Rs 115.07 crore on total income of Rs 783.48 crore in the corresponding period in the previous year.

The net interest margin (NIM) for the quarter ended December 31, 2006, slipped to 3.15 per cent (3.2 per cent).

"The NIM can at best be sustained in the fourth quarter," he said, highlighting the increasing cost of deposits.

Rate hike on cards

He hinted that the bank might go in for another deposit rate hike by the end of this month.

Mr Sambamurthy also said that the bank was aiming a business turnover of Rs 1,00,000 crore by 2009 against the current level of Rs 68,504 crore.

As a medium term plan, Corporation Bank wants to grow its current account savings account (CASA) share to 40 per cent over the next three years from the current level of 30 per cent.

Related Stories:
Corpn Bank net down at Rs 115 cr

More Stories on : Financial Performance | Public Sector Banks

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

Stories in this Section
Rupee ends a tad lower

Copyright © 2007, 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