Corporation Bank Q2 net dips 81% at Rs 27.39 crore

BS 200 SCORECARD

Corporation Bank has posted a 81 per cent drop in its net profit for the second quarter ended September 30, 2004, at Rs 27.39 crore, down from Rs 144.93 crore in the corresponding period of the previous year. The steep fall in net profit, the sharpest over the last 25 quarters, is due to the one time hit taken on account of transfer of government securities to the held to maturity (HTM) category and reduced trading profits on the treasury operations.

Corporation Bank has transferred government bonds worth Rs 4,932 crore from the `available for sale' (AFS) to the HTM category at the prevailing market price.

This triggered a provision of Rs 205 crore. These transferred securities are now shielded from further rise in the interest rates in the market.