Corporation Bank net profit falls 39% on bad loan provision Corporation Bank has recorded a net profit of Rs 231.47 crore during the first quarter of 2014-15 against Rs 377.98 crore in the corresponding period of the previous fiscal, a decline of 38.76 per cent. SR Bansal, Chairman and Managing Director, said the bank decided to declare one particular account of Rs 532 crore as NPA (non-performing asset) during the quarter. Terming that account as a long standing one, he said almost all the banks have exposure in this account. “Without auditors’ interference, we have shown it as NPA. That is the biggest hit in this quarter,” he said. When asked about the details of that account, Bansal said it belongs to a company involved in processing and trading of rice. The bank’s gross non-performing assets stood at Rs 5,469.94 crore and net NPAs at Rs 3,694.24 crore during the first quarter of 2014-15. The bank made provisions (other than tax) and contingencies of Rs 458.90 crore (₹447.02 crore) during the period. NPA control Bansal said the bank has set up verticals for controlling NPAs and monitoring standard accounts. He said the bank will also start a vertical to monitor the new branches. More than 800 branches were opened after 2011. The net interest income stood at Rs 944.24 crore and other income at Rs 361.60 crore. Corporation Bank board gives nod for stock split The board of directors of Corporation Bank has announced the splitting of its equity shares. The board, which met on Friday, considered and approved the sub-division of one equity share of the bank with a face value of Rs10 each into five equity shares of face value Rs 2 each. Bansal, said the retail investors are finding it difficult to buy as the price of the scrip was hovering around Rs 400. The Government is also proposing to reduce its holding to 52 per cent from 62 per cent plus. Keeping that opportunity and larger participation by retail investors in mind, the board decided to split the stock, he said. The bank informed the stock exchanges that the sub-division of shares is subject to approval of the shareholders, Reserve Bank of India, Ministry of Finance and any other statutory and regulatory authorities, if any, as applicable. #CorporationBank #Q1Result #TotalIncome #NetProfit #NPA #SRBansal #CMD #StockSplit
Posted on: Sat, 09 Aug 2014 05:00:01 +0000
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