With provisioning for non-performing assets (NPAs) reaching ₹2,535.95 crore during the second quarter of this fiscal, Corporation Bank registered a loss of ₹1,035.2 crore. The bank had recorded a net profit of ₹206.28 crore during the second quarter of 2016-17.
Provisions (other than tax and contingencies) went up to ₹2,668.81 crore (₹826.80 crore). Of this, provisions for NPAs stood at ₹2,535.95 crore (₹790 crore) during the period.
The bank’s unaudited (reviewed) financial results for the second quarter, which was submitted to the stock exchanges, said that in terms of the directions of the RBI, in respect of 11 NPA accounts covered under the Insolvency and Bankruptcy Code (IBC), the aggregate provision required for such accounts is ₹1,735.83 crore.
Of this, the bank provided ₹924 crore during the quarter. The balance amount shall be provided by March 31, it said.
The gross NPA of the bank increased to ₹20,684.87 crore during Q2 against ₹15,611 crore in the year-ago period. And, the net NPA rose to ₹13,082.59 crore (₹9,560.74 crore).
The gross NPA stood at 15.28 per cent (10.81 per cent), and net NPA at 10.24 per cent (6.91 per cent).
The net interest income dipped to ₹1,239 crore (₹1,256 crore), and other income, to ₹718 crore (₹794 crore) during the quarter.
The bank made an operating profit of ₹1,162.64 crore (₹1,266.58 crore in Q2 FY17).
On Tuesday, the Corporation Bank scrip closed at ₹45.15 on BSE, up 1.01 per cent from the previous close.