The Corporation Bank on Friday declared having posted Rs. 160.51 crore net profit for the quarter ending September 2014 as against Rs. 15.48 crore posted during the corresponding quarter of the previous fiscal thereby registering 936.89 per cent growth.
Bank Chairman S.R. Bansal told presspersons in Mangaluru that the net profit for the half year ending September 2014 was Rs. 391.98 crore as against Rs. 393.46 crore in the previous fiscal, a reduction of 0.38 per cent. It had posted Rs. 231.47 crore net profit during the quarter ended June 2014.
The total business touched Rs. 3,27,294 crore as against Rs. 2,94,477 crore during the previous fiscal registering a growth of 11.14 per cent even as the total income witnessed an increase by Rs. 455.42 crore, from Rs. 4,773.64 crore in September 2013 to Rs. 5,229.06 crore in September 2014, Mr. Bansal said.
Multipronged approach
Mr. Bansal said the Bank adopted multipronged approach to increase the income and reduce costs. They included reduced focus on market investments (from Rs. 66,741 crore in September 2013 to Rs. 63,356 crore in September 2014); greater focus on priority sector lending (36 per cent growth) and retail lending [where the bank gets higher interest]; reducing the operational cost which had grown by 19.99 per cent during the previous fiscal to 13.6 per cent; rationalising space utilization and building rent negotiation (projected savings of Rs. 32 crore a year) and redeploying the human resources for the best utilisation.
The gross non performing assets increased from 3.17 per cent to 4.45 per cent and the reason being the Bank not selling the securities to asset recovery companies [at throwaway prices]. “We are trying to recover the NPA through negotiations and persuasions,” Mr. Bansal said.
Executive Director B.S. Srivatsava and General Manager C.G. Pinto were present.
