Public sector Corporation Bank on Friday reported an 18.92 per cent rise in net profit to Rs 304.99 crore for the third quarter ended December 2009 compared to Rs 256.47 crore in the corresponding quarter last year. Its total income increased 10.9 per cent to Rs 2,112.29 crore from Rs 1,905.52 crore in the quarter ended December 31, 2008.
The net interest income went up to Rs 545 crore from Rs 478 crore. The net interest margin for the quarter improved to 2.54 per cent from 2.30 per cent, said Chairman and Managing Director JM Garg.
The lender’s deposit base rose 36.38 per cent to Rs 84,411 crore. The cost of deposit declined to 6.16 per cent from 6.91 per cent a year ago.
The bank’s outstanding advances rose from Rs 44,937 crore to Rs 56,710 crore. The yield on advances was 10.22 per cent while credit deposit ratio was 67.18 per cent.
Its cost to income ratio improved to 33.24 per cent from 40.22 per cent a year ago.
Its gross non-performing assets stood at 1.32 per cent compared to 1.24 per cent a year ago. The capital adequacy ratio was 17.24 per cent.
For the next two years, the bank has estimated an additional capital requirement of Rs 4,000 crore to support a 25 per cent year-on-year credit growth.
