Corporation Bank on Friday reported a 25.4 per cent increase in third quarter net profit to Rs 382 crore compared to Rs 305 crore in the same period of the previous year. The rise comes on the back of healthy loan growth. As a result, the bank’s net interest income grew 40.5 per cent to Rs 842 crore. The net interest margin was 2.7 per cent as compared to 2.5 per cent during the same period of the previous year.
The bank registered loan growth of 26.9 per cent in the year till December while deposit growth was 16.7 per cent. Chairman and Managing Director Ramnath Pradeep said deposit growth over April was only seven per cent. Bad loans were a drag. Out of a Rs 212 crore loan given to a plantation firm, Rs 120 crore became non-performing.
The bank saw additional slippages of Rs 631 crore in the first nine months of the financial year.
