JOIN USCorporation Bank has posted a net profit of Rs 159.05 crore for the third quarter ending December 2016.
With this, the bank has made a turnaround compared to the corresponding period of the previous fiscal when it had incurred a loss of Rs 388.38 crore.
Addressing reporters at the headquarters of the bank, managing director and chief executive officer of the bank Jai Kumar Garg, who rated it as a major achievement for the bank, attributed it to various measures initiated by the bank, including bringing down the cost of deposits to 6.50%, growth in current account and saving account (CASA) deposits at 38% and also a dip in non-performing assets (NPA).
Reacting to a query on whether demonetisation caused any spurt in the CASA deposits, Garg said, “Although the bank was already way ahead, demonetisation helped further in leveraging the growth.”
In the case of advancements, however, the bank has continued its lending for sectors like agriculture and micro, small and medium enterprises (MSME), while self-regulatory measures have been taken in the case of industries to arrest further losses from NPA, thus showing overall decline in advancements for the particular quarter, said the MD.
Earlier, M G Ganesh, general manager, who read out the quarterly results said, “The bank has registered a growth of 140.95% by generating a net profit of Rs 159.05 crore against the loss of Rs 388.38 crore during the same quarter period in the previous year. Similar deposits of the bank increased to Rs 2,23,384.02 crore against Rs 1.97,738.33 crore in December 2015, followed by total business of the bank at Rs 3,58,396.30 crore against Rs 3,40,199.05 respectively, contributing to 5.35% growth.”