Mumbai, Oct. 24
CORPORATION Bank's net profit surged 72.40 per cent to touch Rs 105.6 crore for the quarter ended September 30, 2005 as against Rs 27.39 crore in the corresponding quarter last year.
The huge increase in profit is due to lower provisioning this year for fall in treasury income. Last year, the bank made a provisioning of Rs 213.68 crore, while this year it provided for only Rs 96.01 crore.
The rise in net profit is also due to growth in credit, which increased by 9.4 per cent, said Mr V. K. Chopra, Chairman and Managing Director, Corporation Bank.
Although capital adequacy ratio fell to 17.05 per cent (19.01 per cent), it is still high as compared to 12 per cent, which is the norm, Mr Chopra said.
"There is no need to go for a fresh public issue as of now," he said.
For the six months ended September 30, 2005, Corporation Bank's net profit stood at Rs 229.12 crore (Rs 132.90 crore). Total income increased to Rs 1,551.61 crore (1,338.60 crore) and total expenditure increased to Rs 1,010.71 crore (Rs 870.08 crore).