Corporation Bank swung back into the black in the June quarter after posting losses for two consecutive quarters.
Net profit plunged 82.4 percent to Rs 35.9 crore compared to Rs 204.3 crore in the April-June quarter last year. Net interest income fell 4.6 percent to Rs 1,031.2 crore, according to the government owned lender's filing on the Bombay Stock Exchange.
Asset Quality Worsens
Gross non performing assets grew 103 basis points to 11.01 percent compared to 9.98 percent in the quarter ended March. Net non performing assets also increased to 7.22 percent from 6.53 percent in the previous quarter.
Provisions fell 54.4 percent to Rs 894.6 crore from Rs 1,960.2 crore on a quarter-on-quarter basis. The bank has set aside Rs 107.4 crore, which is 15 percent of the outstanding food credit availed by the government of Punjab.
Provision coverage for the bank stood at 55.02 percent as of June 30, 2016.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
