Mumbai : Corporation Bank’s profit after tax fell 96.19% from a year ago to Rs.154.7 mn in the quarter ended September due to a rise innon-performing loans and a hit to its government bond portfolio.
“The reason for lower net profit for the quarter is the huge increase inprovisions to the tune of Rs.3.69 bn over Q2 of lastfinancial year due to extraordinary requirement towards investment depreciationand higher provision towards NPA,” Corporation Bank said.
The bank’s net gross performing ratio was 2.20% as on Sep 30 against 1.38%a year ago. The gross non-performing asset ratio was 3.17% against 1.97% ayear ago.
Non-performing asset provision coverage ratio stood at 51.54% as on Sep 30.
During Jul-Sep, the bank transferred government bonds of book value 92.16bln rupees from its trading portfolio to held-to-maturity portfolio.
The transfer led to a loss of 1.21 bln rupees in the quarter.The bank also made a total provision of 2.50 bln rupees as against a net gilt depreciation of 5.53 bln rupees as on Sep 30. For Jul-Sep, the net interest margin stood at an annualised 2.15%.
Yieldon advances for the half year was 11.38% as compared to 11.75% a year ago. Net interest income for the quarter under consideration rose 13.27% to Rs.9.1 bn. As on Sep 30, deposits rose 20.64% on year to Rs.1.73 trln and advancesrose 23.33% to 1.21 trln rupees. The bank’s credit deposit ratio stood at 69.82%as on Sep 30.