Corporation Bank: Corporation Bank turns around fortunes with Rs 159.97 crore profit in Q4

MANGALURU: In a total turnaround of fortunes, city based Corporation Bank has recorded net profit of Rs 159.97 crore for the quarter ending March 31, 2017 against losses of Rs 510.97 crore for the corresponding quarter in March 2016. The bank’s top brass that announced this result on Saturday attributed this 131.31% growth to combination of reasons including reduced cost of deposits, move to shift from bulk to retail deposits and rise in investment income.

Announcing the Q4 results, J K Garg, managing director and CEO of the Bank told reporters that the bank’s ability to focus on recovery and upgradation of bad accounts has yielded much desired results for the bank. Against recovery of Rs 1590 crore of bad debts, the bank mopped in Rs 3,300 crore in the financial year 2016-17, he said adding that going forward the bank intends to mop up Rs 6,300 crore of bad debts during the current fiscal from Rs 3300 crore.

Total business for fourth quarter of last fiscal at Rs 3,60,916.41 crore registered a growth of 4.46% against business of Rs 3,45,493.08 crore in fourth quarter ending March 31, 2016. Deposits and advances at Rs 2,20,559,62 crore and Rs 1,40,356.79 crore respectively for the fourth quarter of last fiscal registered a growth of 7.50% and 0.02% respectively as against Rs 2,05,170.84 crore and Rs 1,40,322.24 crore in the fourth quarter of fiscal year ending March 31, 2016.

On the sluggish offtake in advances, Garg said the bank’s performance is in tune with industry performance where the overall credit growth was 4%. “We consciously moved towards agriculture, retail and MSME lending, shifting our lending from risky to less risky areas, a move that has earned us good dividends,” Garg said adding that the bank will strive to achieve credit and advances growth of 12-15% respectively in the current fiscal as well.

READ ---  Respicardia bags FDA nod for sleep apnea implant

Referring to annual performance, Garg said the net profit for the last fiscal was Rs 561.21 crore against loss of Rs 506.48 crore as on March 31, 2016, a growth of 210.81%. Operating profit as on March 31, 2017 was Rs 4439.53 crore against Rs 3095.02 crore on March 31, 2016, a growth of 43.44%. Interest income increased to Rs 3090.29 crore as on March 31, 2017 as against Rs 1735.16 crore of the previous fiscal, a growth rate of 78.10%, Garg added.