 "Corporation Bank net plunges 88.2% to Rs 41 crore in Q4")
The reason for decline in net profit is the increase in the provisions for bad and doubtful debts, investment and restructured advances over the previous fiscal. The Bank's overall provisions went up 79.3 per cent to Rs 825 crore as against Rs 460 crore a year ago. During the fourth quarter, the bank's gross non-performing assets went up 2.3 times to Rs 4,737 crore from Rs 2,048 crore in the year ago quarter. The net NPA percentage stood at 2.32 per cent from 1.19 per cent a year ago.
The operating profit in the fourth quarter declined 31 per cent year on year to Rs 637 crore compared to Rs 922 crore in the year ago period.
The net interest income for the quarter ended March 2014 was Rs 907 crore as against Rs 931 crore, showing a drop of 2.5 per cent over the same period last year. Yield on advances dipped 36 basis points to 11.29 per cent in March 2014 compared to 11.65 per cent in March 2013. The net interest margin stood at 2.10 per cent.
The return on assets witnessed a massive decline and stood at 0.08 per cent from 0.81 per cent a year ago. The capital adequacy ratio under Basel-III stood at 11.64 per cent with Tier-I capital at 8.14 per cent.
Total business of the bank as on March 31, 2014 stood at Rs 3,30,479 crore, a growth of 16.07 per cent over Rs 2,84,722 crore in the previous year. The advances of the bank have grown 15.47 per cent to Rs 1,37,086 crore from Rs 1,18,717 crore in March 2013. The deposits grew 16.50 per cent to Rs 1,93,393 crore as on March 2014 as against Rs 1,66,005 crore in March 2013.
The credit-deposit ratio stood at 70.88 per cent.
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