Corporation Bank Net profit Up 5.35% at Rs.370.26 Cr.-By Sachin Murdeshwar

                    Corporation Bank Q1 FY13 results

Shri Ajai Kumar (centre) CMD of the Corporation Bank, addressing the Shareholders during the AGM at Mangalore on 29th June

 

PERFORMANCE HIGHLIGHTS FOR JUNE 2012(Q1)

Shri Ajai Kumar, Chairman and Managing Director, Corporation Bank, announced the performance of the Bank after the adoption of the financial results for the quarter ended 30th June 2012 by the Board of Directors.

Earnings

Net Profit: The Net profit of the Bank for the Quarter [Q1] ended June 12 increased to `370.26 crore as against `351.45 crore for Q1 of previous fiscal recording an increase of `18.81crore [+5.35%]. Operating Profit:The operating profit of the Bank for the Quarter [Q1] ended June’12 was at `669.86 crore as against `553.19 crore for Q1 of previous fiscal recording an increase of `116.67 crore [+21.09%].

Earnings per share was at `100 for the quarter ended 30.06.2012 as against `94.90 for Q1 of FY 2011(annualized).

Book Value per Share rose to `583.69 as compared to `505.59 as at June 2011.

Return on Equity was at 17.50% and ROA works out to 0.97%. (both annualized)

Business Growth

Aggregate Business:

Total Business of the Bank as on 30.06.12 stood at `232,649 crore as compared to `196,686 crore as at June 2011.

The total business increased by `35,963 crore with a growth rate of 18.28% on y-o-y basis.

Business per employee has gone up from `15.15 crore as at 30.06.2011 to `16.68 crore as at 30.06.2012

Business per Branch has improved from `144.41 crore as at 30.06.2011 to `149.70 crore as at 30.06.2012.

Deposits:

Deposits of the Bank increased to `134,103 crore as at 30.06.12 from `117,782 crore as on 30.06.11 recording a growth of 13.86% on y-o-y basis.

Advances:

The y-o-y growth in Advances was 24.89% from `78,904 crore as on June11 to `98,546 crore as at 30.06.12.

The Credit Deposit ratio stood at 73.49%.

Agricultural advances of the Bank was at `7,212 crore as at 30.06.2012 as compared to `5,961 crore as at 30.06.11 showing y-o-y growth of 21%.

SME advances of the Bank stood at `14,664 crore as at the end of June 12 as against `11,925 crore as at June 11, showing y-o-y growth of 23%.

Yield on Advances: Yield on advances increased to 11.62% p.a. for the quarter ended June 12 as compared to 11.15% as at June 11.

Income Growth

During Q1 of current financial year, the total income stood at `3,978.23 crore in comparison with `3,244.79 crore in Q1 of previous fiscal showing an increase of `733.44 crore [+22.60%].

On comparison with Q1 of 2011-12, the interest income increased by `672.30 crore from ` 2,978.32 crore to reach `3,650.62 crore [+22.57%] during Q1 of 2012-13.

Similarly, the Non-interest income reached to `327.61 crore as at 30.06.2012 as compared to `266.47 crore during Q1 of previous financial year recording a growth of +22.95%.

The Net interest Income [NII] for Q1 of 2012-13 was at `808.43 croreas compared to `707.56 crore during Q1 of previous financial year recording a growth of +14.26%.

The fee based income for Q1 of 2012-13 was at `206.66 crore as compared to `186.26 crore during Q1 of previous financial year recording a growth of +10.95%.

Asset Quality & Recovery

NPA: Gross NPA stood at 1.71% and Net NPA stood at 1.20% at the end of Q1 of FY 2012-13. In absolute terms the Gross NPAs stood at `1689.42 crore and Net NPA stood at `1185.48 crore.

Cash Recovery: The Bank effected cash recovery and upgradation of NPAs of `212.15 crore, during the quarter ended 30.06.12 compared to `115.86 crore in the Q1 of previous fiscal.

Provision Coverage: The NPA provision coverage ratio stood at 61.02% as at 30.06.2012 with reference to Gross NPA as at 30.06.2012 and 91.30% with reference to Gross NPA as at 30.09.2010.

Capital Adequacy Ratio: The Capital Adequacy Ratio under Basel I as on 30.06.2012 was at a level of 12.38%. The Capital Adequacy Ratio under Basel II norms was at 12.92 % as on 30.06.2012.

Networth: The Networth of the Bank stood at `8,646 crore as at 30.06.2012 as compared to `7,489 crore as at 30.06.2011.

Cost to Income Ratio: The Cost to Income ratio improved to 41.04% for the quarter ended June 2012 as compared to 43.21%during the Q1 of previous year. The employee cost to income ratio was at 21.04% and other operating cost to income ratio was at 20.00% as at 30.06.2012.

Net Interest Margin: The Interest Spread to average interest bearing assets as at 30.06.2012 was at 2.29%.

The Net Profit per employee was at `10.62 lakhs and the Net Profit per Branch was at `95.31 lakhs as at 30.06.2012. (annualized).

The Bank’s network has spread across 6223 functional Units spread across 26 States and 3 Union territories. The Bank has 2 representative offices at Dubai & HongKong.

1554 Branches, 1279 ATMs &3390 Branchless Banking Units as at 30.06.2012

During the quarter, the Bank opened 54 Branches across the country.

New Intiatives

Corporation Bank, with a view to catering to the SME segment in a big way, declared open exclusive SME Loan centres in Eight Cities across the country.

Corporation Bank has facilitated Online Opening of Deposits to its Retail and Corporate Customers through CorpNet – Internet Banking Platform.

Corporation Bank has undertaken Financial Inclusion program for Self Help Groups (SHGs) in Belguam & Tumkur Districts in Karnataka State under which 80000 SHGs will be formed.