CorpBank Q1 net profit declines 12%

CorpBank Q1 net profit declines 12%

Public sector bank Corporation Bank on Friday reported an 11.75 per cent decline in net profit at Rs 204.26 crore for the first quarter ended June 30, 2015, on account of higher provisioning for bad loans as NPAs rose substantially during the quarter.

The bank had reported net profit of Rs 231.46 crore in the corresponding quarter last year.

However, the bank’s total income increased by 22.92 per cent to Rs 5,334.59 crore compared with Rs 5,215.02 crore a year ago, Corporation Bank said in a filing to the BSE.
The bank’s operating profit rose by 15.90 per cent to Rs 808.50 crore compared with Rs 697.55 crore.

Net Interest Income (NII), or the difference between the interest earned on loans and the interest paid on deposits, stood at Rs 1,080.72 crore in the fiscal first quarter, an increase of 14.45 per cent from Rs 944.24 crore a year ago. The lender’s other income rose by 11.12 per cent to Rs 401.83 crore as compared with Rs 361.60 crore.

On the asset front, gross NPAs ratio or bad loans increased to 5.43 per cent compared with 3.96 per cent last year, while net NPAs stood at 3.55 per cent as against 2.71 per cent.

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