Corporation Bank profit rises 28% to Rs 334 crore

Written by fe Bureau | Bangalore | Updated: Jul 30 2010, 04:28am hrs
The net profit of Corporation Bank for the quarter ended June 30 rose 27.76% to Rs 333.78 crore from Rs 261.25 crore recorded in the corresponding period of the last fiscal.

Total business went up 30.40% to Rs 1,55,840 crore from the year-ago Rs 1,19,505 crore.

JM Garg, chairman & managing director of the bank, said, We are looking at achieving the growth of 20-25% in our total business to cross Rs 2,00,000-crore mark by the end of the current fiscal.

While credits of Corporation Bank grew 36.78% to Rs 64,805 crore, deposits rose 26.21% to Rs 91,035 crore during the reporting period.

Total income of the bank saw an increase of 9% to Rs 2,294 crore in the reporting period, up from Rs 2,102 crore in the year-ago quarter. The percentage of net non-performing assets increased to 0.43% in the reporting period from 0.32% during the same period a year ago. Citing the reason behind it, Garg said it was basically due to agricultural debt waiver scheme which had expired on December 31, 2009. Though the scheme was later extended till June, the bank didn't upgrade it in its balance sheet accordingly. Secondly, two-three large borrowers' accounts turned to NPA and finally few accounts under the SME category also turned bad loans, said Garg.