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Corporation Bank has recorded a net profit of ₹231.47 crore during the first quarter of 2014-15 against ₹377.98 crore in the corresponding period of the previous fiscal, a decline of 38.76 per cent.
Addressing presspersons here on Friday, SR Bansal, Chairman and Managing Director, said the bank decided to declare one particular account of ₹532 crore as NPA (non-performing asset) during the quarter.
Terming that account as a long standing one, he said almost all the banks have exposure in this account. “Without auditors’ interference, we have shown it as NPA. That is the biggest hit in this quarter,” he said.
When asked about the details of that account, Bansal said it belongs to a company involved in processing and trading of rice.
The bank’s gross non-performing assets stood at ₹5,469.94 crore (₹2,748.78 crore), and net NPAs at ₹3,694.24 crore (₹1,900.30 crore) during the first quarter of 2014-15.
The bank made provisions (other than tax) and contingencies of ₹458.90 crore (₹447.02 crore) during the period.
NPA control Bansal said the bank has set up verticals for controlling NPAs and monitoring standard accounts. He said the bank will also start a vertical to monitor the new branches. More than 800 branches were opened after 2011.
The net interest income stood at ₹944.24 crore (₹964.73 crore), and other income at ₹361.60 crore (₹581.19 crore).
Corporation Bank board gives nod for stock split
The board of directors of Corporation Bank has announced the splitting of its equity shares.
The board, which met on Friday, considered and approved the sub-division of one equity share of the bank with a face value of ₹10 each into five equity shares of face value ₹2 each.
Addressing presspersons here, SR Bansal, Chairman and Managing Director, said the retail investors are finding it difficult to buy as the price of the scrip was hovering around ₹400.
The Government is also proposing to reduce its holding to 52 per cent from 62 per cent plus.
Keeping that opportunity and larger participation by retail investors in mind, the board decided to split the stock, he said. The bank informed the stock exchanges that the sub-division of shares is subject to approval of the shareholders, Reserve Bank of India, Ministry of Finance and any other statutory and regulatory authorities, if any, as applicable.
On Friday, the scrip closed at ₹334.35 on the BSE, down 5.07 per cent from the previous close of ₹352.20.
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