Corp Bank Q2 income up 21%, net flat

Mangalore-based public sector lender reported a 21 per cent growth in interest income at Rs 3,744 crore for the quarter ended September 30, 2012, up from Rs 3,090 crore during the same period last year.

However, its net profit remained almost flat at Rs 405 crore, compared to Rs 401 crore on a year-on-year (y-o-y) basis.

The bank’s negligible growth in net profit, despite growth in interest income, was mainly due to 27.8 per cent increase in interest paid on deposits, 16 per cent decline in non-interest income and  decline in yield on investments on y-o-y basis, though salaries declined 13 per cent.

Non-interest income in non-core areas fell 55 per cent, from Rs 190 crore in the second quarter of last year to Rs 86 crore for the quarter ended September 30, 2012.

Corporation Bank’s net interest margin was 2.23 per cent as on September 30, 2012, down from 2.43 per cent as on September 30, 2011 and 2.48 per cent as on June 30, 2011.

Deposits as on September 30, 2012 stood at Rs 1.44 lakh crore and CASA ratio at 21 per cent.

Advances at Rs 98,161 crore represented a 20.25 per cent growth on y-o-y basis. The retail loan portfolio was Rs 21,167 crore at the end of the quarter ended September 30, 2012, growth of 52 per cent on y-o-y basis. During the quarter under review, the bank upgraded assets worth Rs 343.86 crore.

Net NPAs were Rs 1,351 crore as on September 30, 2012, or 1.38 per cent of total advances, a sharp rise from 0.91 per cent as on September 30, 2011.

Total restructured assets were Rs 8,866.64 crore as on September 30, 2012; the
increase during the quarter was Rs 252 crore compared to Rs 1,076 crore during the first quarter ended June 30, 2012.

Capital Adequacy Ratio stood at 13.05 per cent as on September 30, 2012.