Corporation Bank net profit grows only 1%

Last Updated: Sat, Nov 10, 2012 07:14 hrs

Corporation Bank on Friday reported a marginal increase in its net profit at Rs 405.71 crore for the second quarter, recording a growth of 1.15 per cent, on the back of higher provisioning and higher interest cost. The bank's net profit was at Rs 401 crore in the year-ago period.

Net profit of the bank for the half-year ended September 30 increased to Rs 775.97 crore, compared with Rs 752.56 crore during the same period of the last financial year.

The total income grew 17 per cent to Rs 4,070.45 crore, compared with the same period a year ago. For the first half of the current financial year, total income stood at Rs 8,048.68 crore against Rs 6,724.91 crore in the same period a year ago.

The provisioning stood at Rs 268.82 crore, compared with Rs 195.41 crore in the same period a year ago. The average interest cost was at 8.30 per cent and it impacted profits. The bank has exposure worth Rs 207 crore towards cash-strapped Kingfisher Airlines, of which Rs 160 crore has been provided for.

Chairman and managing director Ajai Kumar said right now, recovery is not on the table for this account. The bank also has exposure of Rs 100 crore towards Deccan Chronicle Holdings Limited.

Gross non-performing assets (NPA) rose to 1.97 per cent compared with 1.32 per cent a year ago. Net NPAs stood at 1.38 per cent as against 0.91 per cent a year ago. The net interest income was at Rs 803.25 crore. This was Rs 743.60 crore a year ago.

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