Corporation Bank Q1 profit up 42 pc

The Bank’s net-interest income increased by 23.68 per cent  from Rs 378.04 crore in June’08 to Rs.467.54 crore as in June ‘09 quarter. Its total business stood at Rs 119,505 crore at the end of June 2009 quarter recording a growth of 27.55 per cent. Deposits increased by 32 per cent to Rs 72,127 crore and advances by 21.63 per cent  to Rs 47,378 crore in June ‘09 quarter.

It also said, it expects a net profit growth rate of 25 per cent during the current fiscal with advances growing at 22 per cent. “We would be happy if our net profit rises by 25 per cent in 2009-10,” Corporation Bank Chairman and Managing Director J M Garg told reporters after announcing the first quarter results of the bank in New Delhi.About the future prospects, Garg said the third and the fourth quarter will see growth and there are signs of offtake in the the retail and agri business segment.

When asked about the interest rate regime, he said “Credit offtake will start in October. Banks will take a call then. Liquidity is improving, the borrowing programme will also put a pressure on the interest rates. After October, if the corporates start borrowing and going for investments, then the interest rates could be revised”.