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Corporation Bank has reported a rise of 8.42 per cent in net profit for the March quarter at ₹45.07 crore compared with ₹41.57 crore a year ago.
The operating profit during the quarter increased to ₹965.37 crore, from ₹636.55 crore in the March 2014 quarter, said SR Bansal, Chairman and Managing Director.
He said the provisions made for restructuring assets during the quarter were ₹146.4 crore. It was ₹109 crore in the entire previous fiscal.
The bank’s net non-performing assets rose to 3.08 per cent in the fourth quarter, from 2.32 per cent a year earlier.
The bank has also seen bulk deposit growth shrink from 54 per cent to less than 51 per cent “We are increasing the retail deposits and reducing bulk deposits,” he said.
The cost of deposits has come down from 7.96 per cent in Q3 of 2014-15 to 7.71 per cent in Q4. However, it was 8.08 per cent in the fourth quarter of 2013-14, he said.
Deposits stood at ₹199,346 crore in the March 2015 quarter, compared with ₹193,393 crore a year ago, while advances rose marginally to ₹145,066 crore from ₹137,086 crore.
Net interest income of the bank stood at ₹1,113.99 crore (₹907.48 crore), while net interest margin rose to 2.26 per cent (1.91 per cent). The other income increased to ₹503.63 crore (₹388.26 crore).
The lender’s net profit for 2014-15 fiscal increased to ₹584.26 crore against ₹561.72 crore in the previous fiscal.
Income from the ATM transactions increased to ₹95.64 crore in the fiscal (₹67.95 crore), while income from card renewals and other charges reached ₹46.17 crore (₹28.94 crore).
Bansal said the board of directors has proposed a dividend of 70 per cent. This amounts to ₹1.40 per share of ₹2 each for the year 2014-15.
Outlook Bansal expressed hope that the country’s industrial climate will improve in the next two-three quarters. When the industrial economy is good, the banking sector will do well, he said.
On Friday, the scrip of Corporation Bank closed at ₹58.90, up 2.52 per cent, against the previous close of ₹57.45.
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