net profit fellby 81 per cent to Rs27.39 crore for the
quarter ended September 30, as against Rs144.93 crore
in the year ago period.
Cherian Varghese, chairman, Corporation Bank, ascribed
the decline in profits, to lower returns from the sale
of investments in the backdrop of hardening yields in
the government securities. The bank's trading profits
fell to Rs39.42 crore from Rs118.82 crore.
the six months ended September, the fall in the profit
on sale of securities dipped to Rs54 crore (Rs177 crore).
The bank had to also provide for depreciation to its
investment portfolio to the extent of Rs227.62 crore.
bank has shifted Rs4,932 crore of securities from the
`available for sale' category to `held to maturity'
(HTM) category and this resulted in charging additional
depreciation of about Rs205 crore to the profit and
loss accounts, Varghese said.
said more than10 per cent of the bank's investment portfolio
- excluding the HTM category - is in the investment
fluctuation reserve, as against the stipulated requirement
of 5 per cent to be fulfilled by March 2006. Consequently,
the bank will be in a far better position to withstand
the volatility in the investment portfolio, he said.
income for the second quarter, was lower at Rs685.81
crore (Rs732.87 crore). This is inclusive of interest
earned at Rs564.20 crore (Rs549.10 crore) and Other
Income at Rs121.61 crore (Rs183.77 crore).
expenditure of the bank was at Rs445.15 crore (Rs444.88
crore). This is inclusive of interest expended at Rs564.20
crore (Rs549.10 crore) and operating expenses at Rs168.82
crore (Rs142.85 crore).
and contingencies recorded a jump of 280 per cent at
Rs213.68 crore (Rs56.27 crore). Provisions for non-performing
assets were at Rs7.86 crore (Rs48.75 crore).
NPAs were at Rs743.10 crore (Rs653.42 crore). Net NPAs
were at Rs265.34 crore (Rs155.20 crore). For the half-year
ended September 30, the bank posted a-51 per cent fall
in net-profit at Rs132.90 crore (Rs271.36 crore).
of reports on Corporation Bank
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