Corp Bank
The stock price of Corporation Bank was hammered down on the back of its very poor numbers for Q4FY14. The bank reported a sharp 88% (YoY) drop in its net profit for the quarter at Rs.42 crore and this was mainly on the back of increase in bad loans (NPAs) and consequently higher provisioning. For Q4, the Bank made a provisioning of Rs.8254 crore, which is 79% higher on YoY provisioning. In Q3, the Bank had provisioned Rs.916 crore. Asset quality has also deteriorated, with Net NPA coming in at 2.32% v/s 2.15% (QoQ) and Gross NPA was at 3.42% v/s 3.08% in Q3.
For FY14 too the performance was not good. Its net profit for the fiscal declined 61% to Rs 562 crore on a 16% growth in total income at Rs.19606 crore. The total advances portfolio increased to Rs.1,37,086 crore , up 15% and of this the three portfolios — agriculture, MSME, and retail — contributed a share of Rs.67009 crore. Agri advances rose 39%, MSME grew 27% and retail rose 15%. The Bank’s CAR as per Basel III norms stood at 11.64% as at 31st March’14 v/s 11.89% as at end of Q3FY14. And YoY, the provision coverage ratio was at 52.9% v/s 62.02%. As at 31st March’14, the Government of India holds 63.33% stake in the bank.