Corporation Bank registered a net profit of Rs.35.92 crore in the first quarter of 2016-17 as against a profit of Rs. 204.26 crore in the corresponding period of previous fiscal, recording a decline of 82.41 per cent.
Addressing press persons 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 Rs. 761.28 crore, and the operating profit was Rs. 797.20 crore during the quarter.
Total income of the bank also declined to Rs 5,241.1 crore during the quarter, as against Rs 5,334.60 crore a year ago. Provisions for bad loans and contingencies were increased substantially to Rs 894.6 crore in the reported quarter from Rs 621.39 crore in the same period a year ago.
TURNAROUND
Stating that the bank had registered a loss of Rs.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 Rs. 1031.16 crore (₹1080.72 crore), and non-interest income at Rs. 517 crore (Rs. 401.83 crore) during the period.
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