Corporation Bank turns around fortunes with R 159.97 crore profit in Q4

MANGALURU, May 20: In a total turnaround of fortunes, city based Corporation Bank has recorded net profit of R 159.97 crore for the quarter ending March 31, 2017 against losses of R 510.97 crore for the corresponding quarter in March 2016. The bank’s top brass that announced this result on Saturday attributed this 131.31% growth to combination of reasons including reduced cost of deposits, move to shift from bulk to retail deposits and rise in investment income. Announcing the Q4 results, J K Garg, managing director and CEO of the Bank told reporters that the bank’s ability to focus on recovery and upgradation of bad accounts has yielded much desired results for the bank. Against recovery of R 1590 crore of bad debts, the bank mopped in R 3,300 crore in the financial year 2016-17, he said adding that going forward the bank intends to mop up R 6,300 crore of bad debts during the current fiscal from R 3300 crore.
Total business for fourth quarter of last fiscal at R 3,60,916.41 crore registered a growth of 4.46% against business of R 3,45,493.08 crore in fourth quarter ending March 31, 2016. Deposits and advances at R 2,20,559,62 crore and R 1,40,356.79 crore respectively for the fourth quarter of last fiscal registered a growth of 7.50% and 0.02% respectively as against R 2,05,170.84 crore and R 1,40,322.24 crore in the fourth quarter of fiscal year ending March 31, 2016.
On the sluggish offtake in advances, Garg said the bank’s performance is in tune with industry performance where the overall credit growth was 4%. “We consciously moved towards agriculture, retail and MSME lending, shifting our lending from risky to less risky areas, a move that has earned us good dividends,” Garg said adding that the bank will strive to achieve credit and advances growth of 12-15% respectively in the current fiscal as well. (Agencies)