Corporation Bank posts Rs1,240 crore loss on higher NPAs
New Delhi: Corporation Bank has reported a net loss of Rs1,240.49 crore for the December quarter of the current fiscal on higher provisioning for bad loans.
The state-owned bank had, in contrast, registered net profit of Rs159.02 crore in the October-December period of last fiscal. Sequentially, the net loss widened from Rs1,035.20 crore in the second quarter (July-September) of 2017-18. The bank’s total income also decreased to Rs4,841.37 crore in the third quarter of 2017-18, as against Rs5,839.56 crore in the year-ago period as expenses were higher, showed the bank’s balance sheet in a regulatory filing.
Corporation Bank saw its non- performing assets (NPAs) or bad loan ratio reach 15.92% of the gross advances at the end of December 2017, up from 11.26% by same time of 2016. Net NPAs were 10.73% of the net advances against 7.64% by the same period year earlier.
In absolute value, gross NPAs stood at Rs21,817.96 crore as on 31 December 2017, as against Rs15,827.99 crore as on 31 December 2016. Net NPAs were Rs13,853.91 crore against Rs10,314.94 crore.
The bank’s provisioning for bad loans ballooned to Rs2,494.71 crore for third quarter of the current fiscal, from Rs991.63 crore in the year-ago period. The lender provided Rs1,280.39 crore during the third quarter in respect of 11 NPA accounts under Insolvency and Bankruptcy Code (IBC) proceedings as per RBI directive of June 2017, out of the total requirement of Rs1,736.42 crore to be made fully by end of this fiscal.
The bank said it needs to make additional provisioning of Rs1,004.19 crore as per another RBI directive in August 2017 in respect of 20 NPA accounts under Insolvency and Bankruptcy Code and it will provide for the same by 31 March.
The provision coverage ratio stood at 59.48% as on 31 December 2017. The Corporation Bank stock closed 1.83% up at Rs36.25 on BSE.
- Lenovo eyes making smart wearables in India, higher market share
- Malaysia’s IHH revises offer for Fortis Healthcare, to immediately invest Rs650 crore
- BSE Mid and Small-cap indices outperform Sensex in April so far
- China fails to get Indian support for Belt and Road ahead of summit
- Govt acts against rape, but make sons more responsible: PM Modi at rally