Corporation Bank registered a net profit of ₹159.05 crore during the third quarter of 2016-17 as against a loss of ₹388.38 crore in the corresponding period of the previous fiscal.

JK Garg, Managing Director and CEO, attributed this to factors such as increase in the total income, growth of CASA (current account savings account) deposits, and to the reduction in cost of deposits.

While the total income of the bank increased by 13.2 per cent, the total expenses went up by only 1.32 per cent. This cushion, he said, also contributed to the surplus.

In the reporting quarter, the total income of the bank stood at ₹5,839.58 crore (₹5,158.52 crore), and the total expenses, at ₹4518.37 crore (₹4459.48 crore). He said that 38.36 per cent CASA growth is among the best in the industry. When asked if demonetisation had not played a role in boosting the growth, he said: “Had we not taken efforts, CASA growth would have been 15-20 per cent”.

The bank recorded 12.97 per cent growth in deposits during Q3 FY17. The cost of deposits came down to 6.5 per cent (7.34 per cent) during the period.

On the 5.23 per cent decline in advances, he said the bank’s lending witnessed growth in sectors such as agriculture (16.23 per cent), MSME (9.03 per cent), and retail (8.9 per cent). The advances to large industries and wholesale trade declined by 12.56 per cent and 11.1 per cent, respectively.

The bank has cut its exposure in sectors wherever NPAs (non-performing assets) are more, he said.

On Friday, theCorporation Bank share closed at ₹51.55, up 0.49 per cent, on the BSE.

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