Money & Banking

Corporation Bank Q3 profit zooms 595% to ₹420 cr

Our Bureau Mangaluru | Updated on February 07, 2020 Published on February 07, 2020

Corporation Bank registered a net profit of ₹420.67 crore in the third quarter of 2019-20 against a profit of ₹60.53 crore in the corresponding period of 2018-19, recording a growth of 594.97 per cent.

Speaking to BusinessLine after the meeting of the board of directors to review the financial results for Q3 and for the nine months of 2019-20, PV Bharathi, Managing Director and CEO of the bank, attributed the growth to the recovery from two accounts that had gone to the NCLT and rise in interest income. The bank has made disbursements of more than ₹6,000 crore under the retail segment and more than ₹10,000 crore under the corporate segment. “This actually helped us to boost our interest income,” she said.

The net interest income (NII) of the bank stood at ₹1,375.46 crore during Q3 of 2019-20 against ₹1,303.01 crore in the third quarter of 2018-19.

Stating that the bank has been following a very stringent recovery process and holding camps all across the field, Bharathi said this process helped the bank bring down the NPA ratio. The gross NPA of the bank stood at 14.80 per cent (17.36 per cent) and net NPA ratio at 5.32 per cent (11.47 per cent) during Q3 of 2019-20. The gross NPAs in absolute terms came down to ₹19,557.16 crore (₹21,921.42 crore) and net NPAs to ₹6,321.81 crore (₹13,521.22 crore) during the period.

However, the provision for NPAs increased to ₹1,300.35 crore during Q3 of 2019-20 against ₹842.27 crore in the corresponding period of 2018-19. Other income of the bank increased to ₹1,897.24 crore (₹294.22 crore) during the period.

The operating profit of the bank stood at ₹2,035.20 crore in Q3 of 2019-20 against ₹771.09 crore in the corresponding period of the previous fiscal.

 

 

Published on February 07, 2020
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