According to Mr. Ramnath Pradeep, Chairman and Managing Director, Corporation Bank recorded a 21 per cent increase in net profit at Rs 352 crore for the quarter ended September 30, against Rs 292 crore in the corresponding quarter last year.
The bank was able to protect its margins as about 65 per cent of its advances are linked to the benchmark prime lending rate and it increased the BPLR during the quarter.
The bank also reduced its cost of deposits by shedding bulk deposits. The cost of deposits declined to 5.4 per cent (6.44 per cent).
Trading profits fell to Rs 4 crore (Rs 75 crore), which resulted in lower non-interest income. Advances grew by 33 per cent over the previous year and by 8 per cent over the June quarter.
SME advances grew by 40 per cent and agricultural loans by 51 per cent.
Currently, retail loans account for 20 per cent of total advances. The aim is to increase it to 25 per cent by the year end.
The bank is targeting a credit growth of 25 per cent this fiscal, but will now look at more working capital loans, instead of project finance.
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