Corporation Bank registered growth of 1.71 per cent in net profit during the fourth quarter of 2011-12.
The bank recorded a net profit of Rs 351.26 crore in Q4, against Rs 345.34 crore in the corresponding period the previous fiscal.
Speaking to Business Line from Mumbai, Mr Ajai Kumar, Chairman and Managing Director of Corporation Bank, said that credit demand was weak in the fourth quarter. “We could have shown growth, but that would have been at a higher cost. I have kept the advances growth that was comfortable for the industry,” he said.
The net profit of the bank stood at Rs 1,506.04 crore (Rs 1,413.27 crore) for 2011-12.
Stating that slippages have been contained in the last quarter, he said that, compared to the December figures, slippages have come down in the March quarter.
Slippages contained
“So we have been able to close it about 1.26 per cent of the gross and 0.87 per cent of net NPAs. Compared to the figure of 0.46 per cent last March, it is higher.
But in December, it was 0.97 per cent,” he said.
Compared with last year's recovery of about Rs 627.33 crore, the bank has done Rs 758.6 crore of cash recovery and upgradation.
To a query on the future outlook, he said the bank has strategic plans for expansion in potential centres in rural and semi-urban areas. In centres where the population is below one lakh, the bank need not wait for the RBI's approval to open branches.
During 2011-12, the total deposits of the bank stood at Rs1,36,142 crore (Rs 1,16,748 crore) and total advances at Rs 1,00,469 crore (Rs 86,850 crore).
DIVIDEND
The board of Corporation Bank has announced a dividend of 205 per cent to its shareholders. The bank informed the stock exchanges that the board of directors of the bank, at its meeting on May 4, has recommended a dividend of 205 per cent. The dividend will be Rs 20.50 per share of the face value of Rs 10 each.
On Friday, the scrip of Corporation Bank closed at Rs 385.30 on the BSE, down 3.70 per cent against the previous closing of Rs 400.10.