Corporation Bank tumbles

Though Corporation Bank showed a 67% (YoY) increase in net profit for Q1FY18 at Rs.60 crore, the disappointment is huge on the falling asset quality front. Gross NPA rose sharply to 15.49% from 11.70% (QOQ) while Net NPA too increased from 8.33% to double digit ay 11.14%.

The provisioning for NPA rose to Rs.1510 crore v/s Rs.874 crore (YoY) and the provision coverage ratio was at 51.49%. The Bank stated that it was carrying a provision of Rs 92 crore as on June 30, 2017, being 15% of the outstanding food credit availed by Punjab government.

Little wonder then that the stock price is currently amongst the top losers on the BSE, down 3% at Rs.45  level; its 52-week high and low stands at Rs.64.70 and Rs.35.60 respectively.