Corporation Bank recorded a net profit of ₹126.4 crore in the third quarter of 2013-14 against ₹303.17 crore in the corresponding period of the previous fiscal, registering a decline of 58.22 per cent.
Addressing newspersons here on Friday, SR Bansal, Chairman and Managing Director, attributed the decline to higher provisioning.
The provisions during the quarter stood at ₹616.85 crore (₹455.76 crore).
Stating that the asset quality position improved during the current fiscal, he said gross slippages have fallen to ₹755.66 crore in the quarter under consideration, compared with ₹1,384.95 crore in the second quarter of the current fiscal. On the restructured accounts, he said the accounts of Government undertakings, such as power utilities and Air India, account for 42.5 per cent of outstanding restructured accounts. During the third quarter, the bank restructured accounts worth ₹1,163 crore.
The net interest margin of the bank stood at 2.18 per cent (2.35 per cent) during the third quarter.
The total business of the bank stood at ₹3.01-lakh crore at the end of December 2013 as against ₹2.44-lakh crore at the end of December 2012.
On Friday, the shares of Corporation Bank closed at ₹250.70 on the BSE, up 0.97 per cent, against the previous closing of ₹248.30.