Corporation Bank registered a net profit of ₹206.28 crore in the second quarter of 2016-17 as against a profit of ₹188.61 crore during the corresponding period of 2015-16, recording a growth of 9.37 per cent.
Addressing presspersons in Mangaluru on Monday, Jai Kumar Garg, Managing Director and Chief Executive Officer of the bank, said that the improvement in recovery and upgradation in loan accounts and the increase in CASA (current account savings account) have helped the bank to register a good growth in the second quarter of 2016-17.
The bank, which had made a recovery and upgradation of ₹1,596 crore during the fiscal 2015-16, surpassed the figures in the first six months of 2016-17. The total recovery and upgradation stood at ₹1,768 crore in the first two quarters of 2016-17.
Garg said that the CASA deposits of the bank also increased from ₹41,431 crore in Q1 of 2016-17 to ₹44,289 crore in Q2 of 2016-17. It was at ₹38,541 crore in the second quarter of 2015-16.
To a query on the outlook for the current fiscal, Garg said that the trend is going to continue in the coming quarters also. There will be substantial improvement in the performance of the bank in the coming quarters.
The net interest income of the bank stood at ₹1255.92 crore (₹1161.29 crore), and the other income at ₹794.64 crore (₹431.75 crore) during the period.
The gross and net NPAs (non-performing assets) of the bank stood at 10.81 per cent (5.32 per cent) and 6.91 per cent (3.54 per cent), respectively, during the second quarter.
DEMONETISATION
To a question on the transactions in the bank following the demonetisation move by the government, he said the total deposits of ₹500 and ₹1000 currency notes stood at ₹9,893 crore from November 10-12. People exchanged around ₹632 crore during those three days.
Asked about its impact, he said there has been a substantial increase in CASA deposits following this. The increase in CASA will give the bank the benefit of low cost of funds, he said.
On Monday, the scrip of Corporation Bank closed at ₹42.10 on BSE, down 1.98 per cent, against the previous close of ₹42.95.