Corp Bank starts fiscal year on positive note

Corporation Bank has started on a positive note in the current fiscal, albeit with a mix of high and low on several fronts. While the net profit for the quarter is put at Rs 36 crore, the total income during the period is Rs 5,241 crore against Rs 5,334 crore in the corresponding period of 2015, varying by -1.75%.

According to the results of the first quarter that ended on June 30, the deposits of the bank have increased to Rs 1,98,502 crore against Rs 1,92,102 crore on June 30, 2015, making for a growth of 3.33 %. The advances of the bank stood at Rs 1,36,943 crore against Rs 1,40,325 crore in the corresponding quarter of previous year. The overall business reached Rs 3,35,445 crore against Rs 3,32,427 crore registered in the same quarter period earlier, showing a growth of 0.91%.

As per the statistics available, current account savings account (CASA) deposits stood at Rs 41,431 crore accounting for 20.87% contribution to total deposits, followed by saving deposits witnessing a jump by 16.34 % reaching Rs 30,620 crore against Rs 26,320 crore in the same month period previous year. Credit deposit ratio is at 68.99%.

Income wise too, there is a tad fall, with interest income reaching a level of Rs 4,724 crore against Rs 4,933 crore in the same quarter previous year, followed by net interest income at Rs 1,031 crore against Rs 1,080 crore and non-interest income at Rs 517 crore (growth rate of 28.92 %) against Rs 401 crore in the first quarter of 2015. The income generated from ATM transactions is Rs 29.47 crore against Rs 27.97 crore in the same quarter period in 2015, while the income generated from card renewal and other charges was Rs 14 crore against Rs 11.62 crore in the maiden quarter of previous year.

The priority sector advances including rural infrastructure development fund (RIDF) has grown by 5.15% year-on-year reaching Rs 67,354 crore in the first quarter against Rs 64,082 crore in June last year. While the priority sector advances was 43.67% crossing regulated target of 40% of Adjusted Net Bank Credit (ANBC). In the area of agricultural advances too, there is an increase of 7.40%, with the advances touching Rs 26,655 crore at the end of the first quarter against Rs 24,819 crore during the same quarter in previous year. There is also a marginal rise in lendings to women beneficiaries and small and marginal farmers, followed by micro, small and medium enterprises.

The bank has reached Rs 40.37 lakh basic saving bank deposit accounts with a balance of Rs 290.39 crore at the end of first quarter. Under Pradhan Mantri Jan Dhan Yojana (PMJDY) alone, the bank has opened Rs 26.16 lakh and balance in these accounts is calculated at total Rs 759.99 crore.

Managing Director and Chief Executive Officer (CEO) of the bank Jai Kumar Garg said that 11 branches were opened in the current financial year alone, with the bank having its major presence in Karnataka, followed by Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Andhra Pradesh, totalling 2,451 branches.

Deputy General Manager M B Ganesh and Executive Director Sunil Mehta were present.