Demonetization benefited Corporation Bank immensely

Pics: Joshwa D'Souza

Daijiworld Media Network-Mangaluru(JD)

Mangaluru, Nov 15: “The Corporation Bank headquarters will still remain in Mangaluru and only few key operations will be shifted to Bengaluru keeping the future expansion in mind,” said Jai Kumar Garg, the managing director and CEO of Corporation Bank. 

Answering the media persons on Monday November 14, with regard to the questions raised against the expansion in the regional office in city, he said, “The decision to buy land in Bengaluru and shift few key departments like IT and training etc was taken a year ago. As per the same decision, land was purchased and it will require at least two to three years for the infrastructure to come up in Bengaluru.”

When asked about the opposition from the people's representatives, he declined to comment.

Bank greatly benefited by demonetisation

When asked about the effects of demonetisation, he said that the bank has received the additional deposits of Rs 9,500 crore as a benefit of demonetisation in savings and current accounts from November 9.

“In addition, We exchanged notes worth Rs 4000 crore. This rise will benefit us in the increase of profits and thus improve the performance,” he said.

Substantial growth in net profit

While speaking about the increase in the net profit in this quarter which ended on September 30, he said that compared to last quarter's profit of Rs 36 crore, the bank has garnered the profit of Rs 206 crore with the increase of 472 %.

“The operating profit of the bank for the quarter ending on September 30, 2016 has increased to Rs 1,267 crore as against Rs 797 crore as on 30 June 2016 exhibiting a growth of 58.97 %. The deposits of the bank as on 30 September 2016 have increased to Rs 2,16,115 crore as against Rs 1,98,502 crore as on 30 June 2016, exhibiting a growth of 8.87%.” he explained.