Corp Bank net up 12.6% to 262 cr, ties up with LIC

Our Banking Bureau

Mumbai, June 6: THE Mangalore-headquartered Corporation Bank has registered a 12.64 per cent growth in its net profit to Rs 261.84 crore for the year ended 2000-01, up from Rs 232.44 crore in the preceding fiscal.

The bank has also entered into a strategic alliance with the Life Insurance Corporation (LIC) to distribute the latter’s insurance suite, especially bancassurance products designed by LIC. LIC in turn will consider providing group insurance cover to the account holders of Corporation Bank. The bank has also decided on entering merchant banking, but is yet to chalk out the details. The bank’s total income grew by 11.84 per cent to Rs 2,097 crore while interest income improved by 12.53 per cent to Rs 1,805 crore. Cost of deposits was brought down to 8.1 per cent from 8.5 per cent while spreads improved marginally to 3.4 per cent from 3 per cent. Yield on advances stood at 12.4 per cent while yield on investments stood at 11.8 per cent. Said Corporation Bank’s chairman and managing director, K Cherian Varghese: “We have been consistent continuously and this has been another successful year for us. Despite adverse conditions and stiff competition prevailing in the industry, Corporation Bank’s total business has crossed Rs 25,000 crore”.
Total advances of the bank grew by Rs 889 crore (up by 11.42 per cent) to Rs 8,666 crore (Rs 7,777 crore).

Deposits of the bank grew by 16 per cent to Rs 16,560 crore (Rs 14,280 crore). Aggregate investments stood at Rs 6,860.34 crore, up by 18.46 per cent (Rs 1,069.42 crore).

Corporation Bank has maintained its NPA level of less than 2 per cent with the current NPA ratio at 1.98 per cent slightly higher than the 1.92 per cent in the preceding fiscal. The bank’s capital adequacy ratio (CAR) was comfortable at 13.3 per cent (12.8 per cent).