Mangaluru: City headquartered Corporation Bank announced a profit of Rs. 60.15 crore during the first quarter of financial year 2017-18, registering a growth of 67.46% over the net profit registered during the corresponding year of the last fiscal. MD and CEO of the bank Jai Kumar Garg attributed the performance in maiden quarter of the fiscal to measures taken to reduce the cost of deposits (5.93% against 6.85% in 2016), growth in current account and savings account (CASA) and reduction in loss on total deposits despite increase in total deposits to Rs 2,10,903.87 crore against Rs 1,98,502.07 crore in the corresponding period of previous fiscal.
Bank’s asset quality was dented further, both year-on- year and quarter-on-year, as gross non-performing assets (NPAs) spiked to 15.49 per cent of gross advances as on June 2017 against 11.01 per cent year ago and 11.70 per cent in previous March quarter. Net NPAs or bad loans too turned higher at 11.14 per cent of the net advances by June-end 2017, as against 7.22 per cent year-ago same period and 8.33 per cent at end-March 2017.
Value-wise gross NPAs were worth Rs 21,712.67 crore by end of first quarter of current fiscal, against Rs 15,726.12 crore at end-June 2016. Net NPAs were Rs 14,857.53 crore as against Rs 9,882.15 crore for the two sets of comparable time-frames.
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