Corporation Bank, on Friday, reported a net profit of Rs.351.26 crore for the fourth quarter ended March 31, 2012, as compared to Rs.345.34 crore in the corresponding period of the previous fiscal, a growth of 1.71 per cent.
The net profit for the year ended March 31, 2012, increased to Rs,1.506.04 crore from Rs.1,413.27 crore in 2010-11, a growth of 6.56 per cent.
“Corporation Bank is going from strength to strength …. We have also structurally strengthening the bank,” said Ajai Kumar, Chairman and Managing Director, here while announcing the annual financial results of the bank.
“We are now offering more flexible SME products through eight SME loan centres and planning to open such centres across the country,” said Mr. Kumar, adding, “this has resulted in making faster decisions as well as having more delivery channels.” The bank is planning to open around 500 branches in the current fiscal across the country.
“Changing track with times, ….. we are planning to introduce new technological upgradation for our ATMs, where one can get money by punching a code number without a card,” Mr. Kumar said.
This would be introduced soon, likely within three months, he added.
Mr. Kumar admitted that credit offtake had been low in the fourth quarter. “There has been a high volatility in the last quarter…. We could have done better. Current Account Savings Account (CASA) couldn't grow as we expected. However, we have a solid base of deposits. But CASA will be improved with new zonal and circle offices,” he said.
Till March 2012, the bank restructured accounts of Rs.7,539 crore in which Air India accounted for Rs.1,300 crore.
The restructured accounts include some state-owned electricity boards also. In the fourth quarter alone, it restructured accounts of Rs.2,999.58 crore. Its exposure to the troubled airline Kingfisher was Rs.171 crore, which is now part of its non-performing assets (NPAs).
The operating profit for the year ended March 31, 2012, increased by Rs.302.06 crore or 11.83 per cent on a year-on-year basis from Rs.2,553.91 crore in 2010-11. For the quarter ended March 2012, the operation profit was Rs.814.24 crore against Rs.730.20 crore in the year-ago period, an increase of 11.54 per cent.
Total business as on March 2012 stood at Rs.2.37-lakh-crore, up by Rs.33,013 crore or 16.21 per cent in the year under review.
Net interest income increased by Rs.207 crore from Rs.2,939 crore to Rs.3,146 crore in 2011-12. The net interest margin (NIM) works out to 2.48 per cent. Non-interest income increased to Rs.1,492 crore from Rs.1,255 crore, up 18.85 per cent.
Gross NPAs stood at 1.26 per cent and net NPAs at 0.87 per cent as at end-March 2012. In absolute terms, gross NPAs were Rs.1,274 crore and net NPAs Rs.869 crore.
Keywords: CorpBank performance