Corporation Bank Net Up 52%
by 5, November, 2009 0 |
Corporation Bank’s net profit rose 52 per cent to Rs 292 crore in the second quarter of 2009-10, compared to Rs 192 crore in the corresponding quarter last year.
Mr J.M. Garg, Chairman and Managing Director said that growth in both other income and interest income boosted the bank’s profits. Net interest margin (NIM) fell as lending rates came down faster than deposit rates. Yield on advances fell to 10.15 per cent (10.80 per cent), cost of deposits came down to 6.22 per cent (7.06 per cent) and treasury income increased to Rs 75 crore (Rs 23.7 crore).
According to Mr. Garg, the share of current and savings account deposits (CASA) to total deposits has come down as corporates prefer to invest in liquid schemes of mutual funds than keeping the money in current accounts. He said that the bank is trying to improve its CASA and maintain it above 25 per cent. Corporation Bank is looking to achieve 22 per cent credit growth in this financial year.The bank is planning to raise Rs 500-600 crore through the issue of medium term notes (MTN) this financial year.
“We will raise overseas funds once our branch in Hong Kong is operational. The branch should be operational by December and at least one MTN issue will be done this financial year,” said a senior bank official.
Corporation bank offers a variety of loans including home loans and personal loans.
