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Corporation Bank has recorded a net profit of ₹159.97 crore during the fourth quarter of 2016-17 against a loss of ₹510.97 crore in the corresponding period of the previous fiscal, registering a growth of 131.31 per cent.
The net profit increased to ₹561.21 crore during 2016-17 against a loss of ₹506.48 crore in 2015-16.
Addressing presspersons here, Jai Kumar Garg, Managing Director and Chief Executive Officer, said the factors such as increase in the non-interest income, reduction in the cost of deposits, increase in CASA (current account savings account), and better recovery and upgradation of NPAs (non-performing assets) have helped the bank to register profit during the quarter.
The non-interest income stood at ₹892.45 crore during the Q4 of 2016-17 against ₹484.17 crore in the corresponding period of 2015-16.
The net interest income stood at ₹4838.03 crore (₹4734.46 crore) during Q4.
The share of CASA to total deposits increased to 26.47 per cent during the Q4 of 2016-17 from 22.14 per cent in the corresponding period of the previous fiscal.
The CASA deposits stood at ₹58,374 crore (₹45,420 crore), recording a growth of 28.52 per cent during the quarter.
Garg said that the increase in CASA helped the bank to bring down the cost of deposits to 6.69 per cent (7.32 per cent) during the quarter.
He said the total recovery and upgradation of bad accounts increased to ₹3,300 crore during the financial year 2016-17 against ₹1,590 crore in 2015-16.
The gross and net NPAs stood at 11.70 per cent (9.98 per cent) and 8.33 per cent (6.53 per cent), respectively, during the quarter.
Though the provision for bad and doubtful debts came down to ₹853 crore (₹1957 crore), it went up to ₹179 crore (₹90 crore) on standard assets.
To a query on the outlook for 2017-18, he said the bank is targeting a growth of 12-15 per cent in both advances and deposits.
It is also targeting recovery and upgradation of ₹6,300 crore during 2017-18.
Quality credit growth will be another focus area during the year, he said.
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