Corporation Bank posted a 5.3 per cent growth in net profit to Rs 351 crore for the quarter ended June 30, compared to Rs 333.8 crore in the same period of the previous year. The flat growth in net profit is due to higher cost of funds and slower loan growth.
The public lender’s net interest margin was hit, as the cost of funds rose to 6.7 per cent during the April-June period from 4.9 per cent in the reporting period in 2010.