Corporation Bank Q1 net profit rises 67% to Rs60 crore
New Delhi: State-owned Corporation Bank has reported a rise of 67.5% in net profit at Rs 60.15 crore for the first quarter ended June 30, 2017.
Bank’s net profit in the April-June quarter of previous fiscal was at Rs 35.92 crore. However, total income of the bank was lower than a year earlier at Rs 5,112.99 crore during June quarter of 2017-18, as against Rs 5,241.11 crore in the same period year ago, due to fall in wholesale and retail earnings, it said in a regulatory filing.
Bank’s asset quality was dented further, both year-on- year and quarter-on-year, as gross non-performing assets (NPAs) spiked to 15.49% of gross advances as on June 2017 against 11.01% year ago and 11.70% in previous March quarter.
Net NPAs or bad loans too turned higher at 11.14% of the net advances by June-end 2017, as against 7.22% year-ago same period and 8.33% at end-March 2017. Value-wise gross NPAs were worth Rs 21,712.67 crore by end of first quarter of current fiscal, against Rs 15,726.12 crore at end-June 2016.
Net NPAs were Rs14,857.53 crore as against Rs9,882.15 crore for the two sets of comparable time-frames.
Likewise, the bank allocated a higher provision of Rs1,510.18 crore as NPA provision for June quarter of 2017-18, up from Rs 874.05 crore parked aside for June 2016 quarter. The provision coverage ratio as on June 30, 2017 stood at 51.49%.
Corporation Bank said it is carrying a provision of Rs91.88 crore as on June 30, 2017, being 15% of the outstanding food credit availed by Punjab government.
Stock of the bank closed 0.97% up at Rs46.85 on BSE.