Media release  (MB)

Mangalore, Apr 29: Addressing the mediapersons on Saturday, Corporation Bank's chairman and managing director B Sambamurthy announced the performance of the Bank immediately after adoption of the Q4 results of the bank by the Board of Directors.

The Bank continued to record consistent performance in both topline and bottomline during the current fiscal.
[Rs. in crore]
                      

                                    Year ended Quarter ended
                          Mar-06 Mar-07 Growth Mar-06 Mar-07 Growth
Total Income 3,100.03   3,996.00   28.90%   838.47  1,142.65    36.28%
Net Profit         444.46    536.14     20.63%   100.27 118.47        18.15%

Deposits         32,876.53      42,356.89    28.83%
Advances        23,962.43     2 9,949.65    24.99%
Total Business 56,838.96      72,306.54    27.21%

Net Profit recorded a growth of 20.63% on year-on-year basis and 18.15% on quarter-on-quarter basis.   During the four quarters of the current fiscal, the net profit growth rate has been steady.

2006-07          Q1 Q2 Q3 Q4
Net Profit       144.24 127.01 146.42 118.47
% Growth       16.8% 20.3% 27.2% 18.15%

During the year, one of the wholly owned subsidiaries of the Bank, Corp Bank Homes Ltd. was merged with the Bank, as per the Scheme of Amalgamation, with effect from 1.04.2005. The  results of the Bank for the current year includes the results of the said subsidiary from 1.04.2005 to 4.10.2006. 

The Gross profit for twelve month period was Rs.1,140.03crore compared to Rs.953.62 crore in the  previous year, recording an increase of Rs.186.41 crore at a growth rate of 19.54%

The Net Profit of the Bank for the year ended March 31, 2007 was Rs.536.14 crore compared to Rs.444.46 crore recorded in the year ended March 31, 2006, registering a growth of Rs.91.68 crore [20.63%].

The Total Income of the Bank for the 12 months ended March 31, 2007 increased to Rs. 3,996 crore (absolute growth Rs.895.96 crore at 28.90% growth rate) as compared to Rs.3,100.03 crore in the  previous year.

The Bank recorded a satisfactory Net Interest Margin of 3.24% during the twelve month period ended March 31, 2007 despite change in market conditions.

Non Interest Income (excluding profit on sale of investments) during the year increased by 30.08% to Rs.439.41 crore from Rs.337.81 crore during the  previous year.

The Networth of the Bank stood at Rs.3,765 crore compared to Rs.3,375 crore as on March 31, 2006, recording a growth of  11.57%.

The Capital Adequacy Ratio of the Bank as on March 31, 2007 was at a comfortable level of 12.76%, as against 13.92% as at March 31, 2006.

The Return on Equity works out to 14.24%  for the year ended March 2007  [13.17% in March 2006].  The Earning per
Share  was Rs.37.38 as against Rs.30.99 in March 2006.  Book value per share improved to Rs.262.51.  The Return on Average Assets of the Bank  has marginally declined to  1.26% due to pressure on margins.

The Board of Directors of the bank have recommended payment of total dividend of 90% for the year, including 40% interim dividend paid already.

The Total Business of the Bank as on March 31, 2007 stood at Rs.72,306 crore compared to Rs.56,839 crore in March 2006, recording a growth of  27.21%.

The aggregate Deposits of the Bank increased from Rs.32,876 crore as on March 31, 2006 to Rs. 42,357crore, recording a growth of 28.83%. 

The growth in Advances was at 24.99% from Rs.23,962 crore as on March 31, 2006 to Rs.29,950 crore as on 31st March 2007.

Priority Sector advances aggregated to Rs.11,564 crore registering a growth of 28% over March 2006 level. The Priority Sector Advances of the Bank stood at 40.56% of the Net Bank Credit as at the last reporting Friday of March 2007. Advances to agriculture and SSI rose by 35% and 17% respectively, on year-on-year basis (as on last reporting Friday).

The Bank operationalised 20 Retail Asset Hubs [of which 11 are independent branches] for speedy disposal of retail credit proposals.   This new model of credit delivery has enabled the branches to focus more on marketing.

The aggregate Investments of the Bank as on March 31, 2007 were at Rs.14,417 crore as against Rs.10,652 crore as on March 31, 2006

The Gross NPAs has come down to 2.05% compared to 2.56% as on March 31, 2006 and Net NPA ratio was 0.47% as at March 31, 2007 compared to 0.64% on March 31, 2006.

The cash recovery has been robust.   Cash Recovery and upgradations during current fiscal aggregated to Rs.312.77 crore as compared to Rs.171.15 crore during the previous year.  Recovery in NPAs and upgradations have contributed to write back of provisions to the extent of Rs 115.49 Crore during the year ended 31.03.2007 compared to Rs 73.42 Crore during  last year.

As at March 2007, Financial Inclusion Programme is being implemented in 470 villages and 75,689 no-frills accounts have been opened.

The Business per Employee of the Bank rose to Rs.645.42 lakh compared to Rs.528.54 lakh in March 2006. 

All the branches of the bank have been brought under Core Banking Solution as on April 21, 2007, covering 100%  business of the Bank. 

The Total number of branches of the Bank as on March 31, 2007 was 901 and the number of ATMs 929.   The Bank has opened 66 branches during  the current fiscal year.

The Bank has been authorized for collection of Central Excise and Service Tax through e-payment in all Commissionerates throughout India.

The Bank been conferred with ‘Niryath Bandhu Award’ from the Federation of Indian Export Organisation, New Delhi, for Bank’s excellent performance in Export Credit during the year’s 2003-04 and 2004-05.

Business Today-KPMG survey on Best  Banks  in India, [February 2006 & 2007 ] has ranked our Bank, the Best Bank among all Public Sector Banks for the two consecutive years 2006 & 2007.

The Financial Express- Ernst & Young survey on India’s Best Banks [March 2007] has ranked the bank, 2nd among nationalized banks.