Rise in cost of funds one of the reasons
Mumbai, April 26
The Mangalore-based Corporation Bank Ltd has posted a net profit of Rs 100.27 crore for the quarter ended March 31, 2006, lower by 6.79 per cent from the Rs 107.57 crore recorded in the corresponding period last year.
The drop in profit was mainly because of the rise in cost of funds coupled with the higher provisioning for standard assets.
Total income for the quarter was higher at Rs 862.83 crore (Rs 703.25 crore).
The bank's board has recommended a dividend of Rs 7 per share, which includes the centenary dividend of 50 paise, said Mr B. Sambamurthy, Chairman and Managing Director.
Addressing a press conference, Mr Sambamurthy said net interest income was Rs 310.92 crore (Rs 286.61 crore). Other income was higher at Rs 157.41 crore against Rs 126.6 crore. Provisions and contingencies increased substantially to Rs 108.93 crore (Rs 78.65 crore).
"In the last quarter we have made provision mainly for retail advances. The provision for housing loans was increased from Rs 10 crore to Rs 40 crore," said Mr Sambamurthy.
For the full year, the bank reported a net profit of Rs 443 crore (Rs 350.69 crore). Total income was Rs 3,218.94 crore (Rs 2,762.27 crore) and other income was Rs 559.25 crore (Rs 467 crore).
During the fiscal, the bank's cost of deposits rose to 4.55 per cent (4.54 per cent) and yields from advances fell to 8.26 per cent (8.42 per cent).Related Stories:
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