Corporation Bank today reported a whopping 82 per cent decline in net profit to Rs 53.3 crore for the first quarter ended June 30, on account of higher provisioning for bad loans.
The state-owned bank had a net profit of Rs 204.2 crore in the same quarter of the previous fiscal.
The fall in net profit is attributable to higher provisioning for bad loans as non-performing assets (NPAs) rose substantially during the quarter.
Total income of the bank also declined to Rs 5,241.1 crore during the quarter, as against Rs 5,334.60 crore a year ago.
Provisions for bad loans and contingencies were increased substantially to Rs 894.6 crore in the reported quarter from Rs 621.39 crore in the same period a year ago.
Gross non-performing assets (NPAs), or bad loans, rose to 11.01 per cent of gross advances compared to 5.43 per cent a year ago.
At the same time, net NPAs also increased to 7.22 per cent of net advances, from 3.55 per cent in the first quarter a year ago.
