Corporation Bank declines on disappointing Q4 results

The stock has dipped 5% to Rs 285 after reporting a sharp 88% yoy decline in net profit at Rs 41.5 crore for Q4FY14.

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SI Reporter Mumbai
Last Updated : May 12 2014 | 10:53 AM IST
Corporation Bank has dipped 5% to Rs 285 in an otherwise strong market, after reporting a sharp 88% year-on-year (yoy) decline in net profit at Rs 41.5 crore for the fourth quarter ended March 31, 2014 (Q4FY14), due to higher provisioning for bad and doubtful debts. The state-owned bank had posted a profit of Rs 356 crore in the corresponding quarter last fiscal.

Net interest income, the difference between interest earned and paid, too declined by 2.5% to Rs 907 crore as against Rs 931 crore in the same quarter last fiscal.

The bank said its gross non-performing assets (NPAs), as a percentage of total assets, increased to 3.42% in the March quarter from 3.08% at the end of December quarter. Net NPAs, too, rose to 2.32% in the March quarter from 2.15% three months earlier.

The stock opened at Rs 289 and touced a low of Rs 280 on the NSE. A combined around 370,000 shares changed hands on the counter so far on the NSE and BSE.

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First Published: May 12 2014 | 10:48 AM IST

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