Corporation Bank registered a net profit of ₹35.92 crore in the first quarter of 2016-17 as against a profit of ₹204.26 crore in the corresponding period of previous fiscal, recording a decline of 82.41 per cent.

Addressing presspersons in Mangaluru on Wednesday, Jai Kumar Garg, Managing Director and Chief Executive Officer of the bank, attributed this decline in net profit to the increase in NPAs (non performing assets) and provisions related to that.

The gross and net NPAs of the bank stood at 11.52 per cent (5.43 per cent) and at 7.22 per cent (3.55 per cent), respectively, during the period. He said that total provision was ₹761.28 crore, and the operating profit was ₹797.20 crore during the quarter.

TURNAROUND

Stating that the bank had registered a loss of ₹510.97 crore in the fourth quarter of 2015-16, he said the bank has now recorded a profit from that level. “If you see the quarter on quarter, we are showing a turnaround in profit,” he said, adding Corporation Bank is one among a few banks showing profit in first quarter of 2016-17 after showing a loss in fourth quarter of 2015-16.

Asked about the outlook for the coming quarters, Garg said the bank will focus on recovery in the coming quarters.

CASA

At a time when overall deposit growth was 3.33 per cent, the CASA (current account savings account) deposits have shown a growth of 13.96 per cent. In the meanwhile, the bulk deposits have come down from 49.97 per cent in Q1 of 2015-16 to 44.52 per cent in the Q1 of 2016-17, he said.

The net interest income of the bank stood at ₹1031.16 crore (₹1080.72 crore), and non-interest income at ₹517 crore (₹401.83 crore) during the period.

On Wednesday, the scrip of the bank closed at ₹40.80 on BSE, down 0.73 per cent, against the previous close of ₹41.10.

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