Corporation Bank has been focussing on recovery, retail business, CASA, and asset quality to boost its growth, according to PV Bharathi, Managing Director and Chief Executive Officer of the Bank.

Replying to shareholders’ queries at the 22nd Annual General Meeting of the Bank in Mangaluru on Saturday, she said the extensive recovery efforts put in by Corporation Bank in the last two years have helped it march towards growth.

The Bank was put into PCA (prompt corrective action) framework of the Reserve Bank of India in December 2017. The net NPA (non-performing asset) ratio of the bank had touched 11.51 per cent. The bank, which made all efforts to ensure the recovery of NPAs, has been able to bring net NPA down to 5.71 per cent now. Stating that Corporation Bank is one of the banks to take the maximum advantage of IBC (Insolvency and Bankruptcy Code), she said the fact that the bank recovered ₹6,000 crore during the past one year itself gives a clear indication about the efforts put in to improve the performance of the bank.

Recovery path

Corporation Bank, which is on a recovery path, is now focusing more on retail advances. She said these high-yielding advances help the bank to improve the interest collected, which, in turn, would help improve profit.

On CASA (current account savings account) segment, she said the bank has been able to curtail a lot of high-cost bulk deposits. The bank’s efforts to bring down the cost of deposits helped it to control the interest expended and improve its CASA, she said.

Referring to asset quality, Bharathi said a lot of measures have been taken right from the time of sanction, to the disbursement and to the follow-up for the recovery of advances.

The Annual General Meeting also sought the permission of the shareholders to raise the capital of the bank by way of issuance of fresh equity shares and/or by issuance of additional tier-1 or tier-2 capital as per Basel-III guidelines.

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