Corporation Bank recorded a net profit of Rs 15.48 crore in the second quarter of 2013-14 as against Rs 405.71 crore in the corresponding period of the previous fiscal, recording a decline of 96.19 per cent.
Addressing presspersons here on Monday, S.R. Bansal, Chairman and Managing Director of the bank, attributed the reason for the decline to increase in the provisioning against bad debt.
The total provisions during the second quarter of 2012-13 stood at Rs 648.83 crore (Rs 280.04 crore). Of this, the provisions for bad and doubtful debtincreased to Rs 365.21 crore (Rs 229.24 crore).
The net NPA of the bank stood at 2.20 per cent (1.38 per cent). Slippages during the quarter stood at Rs 1,139.80 crore, he said.
Roadmap
The net interest income was at Rs 909.87 crore (Rs 803.25 crore), and the non-interest income at Rs 339.66 crore (Rs 325.97 crore). Asked about the roadmap for the coming quarters, Bansal said that the bank would focus on increasing the CASA (current account savings account) deposits, and ensuring quality credit with focus on MSME, retail and agriculture sectors. Customer acquisition will be on the agenda.
The bank will also open more branches and ATMs and other delivery channels. Focus will be given on improving asset quality, he said.
To a query on raising capital, he said the Government has given approval for adding a capital of Rs 450 crore to the bank. Besides that, the Government wants the bank to do retail lending and 10 per cent of that capital can be expected.
He said that the Monday’s board meeting has given in-principle approval for raising capital through QIP. The bank will hold an extraordinary general meeting on December 16 to discuss that. On Monday, the bank scrip closed at Rs 299.60 on the BSE, down 0.07 per cent.