Corporation Bank reported a 31.30 per cent rise in net profit at Rs 93.24 crore for the second-quarter ended September 30, 2001, compared with Rs 71.02 crore during the corresponding quarter in the previous fiscal.
For the half-year ended September 30, 2001, the bank posted a 28.30 per cent growth in net profit at Rs 171.28 crore compared with Rs 133.55 crore in the corresponding period in the previous fiscal.
During the quarter, the bank's total interest income rose 12.50 per cent to Rs 487.47 crore (Rs 433.45 crore) and the total non-interest income increased by 46.60 per cent at Rs 100.73 crore (Rs 68.70 crore).
A break-up of the interest income shows that the interest earned on advances rose by only 5.8 per cent to Rs 246.97 crore (Rs 233.43 crore), while that from investments was up by 14.1 per cent to Rs 206.04 crore (Rs 180.58 crore). And the interest from other sources was up by 77.3 per cent at Rs 34.46 crore (Rs 19.44 crore).
The growth in the non-interest income was mainly due to: sale of investments at Rs 34.82 crore (Rs 10.95 crore), earnings from cash management services at Rs 12.58 crore (Rs 12.91 crore), profit on exchange transactions at Rs 10.76 crore (Rs 8.32 crore), recovery of bad debts at Rs 8.69 crore (Rs 10.12 crore) and dividend on shares at Rs 7.09 crore (Rs 3.34 crore).
Total expenses incurred by the bank during the quarter was up by 11.90 per cent at Rs 416.20 crore (Rs 372.10 crore). The bank made provisions towards bad and doubtful debts, which jumped by 145.90 per cent to Rs 27.30 crore (Rs 11.10 crore).
The bank's net non-performing assets marginally rose to 2.18 per cent (1.98 per cent), while the capital adequacy ratio stood at 13.5 per cent (13.3 per cent).
K Cherian Varghese, chairman and managing director of the bank, said the bank has managed to bring down the cost of deposits from 8.1 per cent as on March 31, 2001 to 7.7 per cent as on September 30, 2001.
He further pointed out that despite the declining interest rates, introduction of sub-prime lending rate for blue-chip corporates, and adverse market conditions, the bank has been able to maintain the net interest margin (spread) at 3.80 per cent.
The bank's scrip today opened higher at Rs 124.45 on the Bombay Stock Exchange compared with yesterday's close of Rs 121. It touched a high of Rs 124.90 and a low of Rs 122 and closed at Rs 122.35.
