Public sector lender Corporation Bank today reported a 26.7 per cent increase in its fourth quarter net profit to Rs 260.49 crore driven by the 105.6 per cent jump in non-interest income.
The Mangalore-headquartered bank had recorded a profit of Rs 205.60 crore in the corresponding period last year. For the year, the bank has made a provision of Rs 170 crore on account of bad loans compared to Rs 123 crore made last year and accordingly its net non-performing assets as a percentage to gross advances improved to 0.29 per cent from 0.32 per cent.
During the quarter, the bank's non-interest income stood at Rs 493.26 crore as against Rs 239.93 crore a year ago. The lender's operating profit increased 67.2 per cent to Rs 674.73 crore compared with Rs 403.50 crore y-o-y. Similarly, total income jumped 50.2 per cent to Rs 2,199.6 crore from Rs 1,464.7 crore during the same period.
The bank has restructured 4,313 loan accounts worth Rs 1,043.46 crore under the restructuring scheme of the Reserve Bank of India. "On account of the restructuring, we have taken a hit of Rs 18 crore due to provisioning," said Chairman and Managing Director J M Garg.
For the year ended March 31, 2009, Corporation Bank posted a net profit of Rs 892.77 crore, up 21.47 per cent compared with Rs 734.99 crore in the previous year. Total income has increased from Rs 5,216.3 crore in 2007-08 to Rs 7,174.57 crore in 2008-09.
During 2008-09, the bank's total business rose 29.47 per cent to Rs 1,22,496 crore, including a 23.80 per cent increase in net advances to Rs 48,512 crore and 33.49 per cent rise in deposits to Rs 73,984 crore.