Financial Daily from THE HINDU group of publications
Friday, Apr 22, 2005
Corporate Results - Public Sector Banks
Money & Banking - Financial Performance
Corporation Bank Q4 net down 10 pc
Mumbai , April 21
CORPORATION Bank's fourth quarter net profit fell nearly 10 per cent over the year-ago period mainly on account of higher provisioning for bad loans and lower income from investments in bonds.
Net profit for the full year ended March 31, 2005 was down 20 per cent.
The bank's board, which met today, recommended a final dividend of 35 per cent (Rs 3.50 per share), taking the total for the year to 65 per cent, including the 5 per cent to mark its centenary year.
The Mangalore-based bank has reported a net profit of Rs 107.57 crore for the quarter ended March 31, 2005, against Rs 119.49 crore in the corresponding period last year.
Mr V.K. Chopra, Chairman and Managing Director, said the decline in treasury profit and increased provision for bad and doubtful debts have led to the drop in net profit.
The bank made a total provisioning of Rs 93.65 crore, of which Rs 37.96 crore is for NPAs.
The Government-controlled bank, in which Life Insurance Corporation of India holds 26 per cent stake, is looking for an opportunity to make a strategic investment to expand locally, Mr Chopra said.
The bank's interest income for the quarter increased to Rs 576.65 crore from Rs 553.18 crore.
Operating profits before provisions and contingencies were higher at Rs 259.88 crore from Rs 180.73 crore in the previous quarter.
For the full year, the bank's net profit fell by Rs 101.97 crore to Rs 402.16 crore from Rs 504.13 crore in the previous year. Mr Chopra said despite difficult operating environment, the net interest margin improved from 3.76 per cent to 3.94 per cent.
The bank has recovered Rs 148 crore during the year and upgraded loans worth Rs 58 crore to standard assets.
He said retail lending, which accounts for 31 per cent of the total advances, registered a 45 per cent growth in the current year. Corp Bank Securities, a subsidiary of the Bank, recorded a loss of Rs 45.08 crore this year, as against profit of Rs 46.98 crore last year.
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