Home / Business / Corp Bank Q4 loss jumps to Rs 6581.5 crore

Corp Bank Q4 loss jumps to Rs 6581.5 crore

MANGALURU: Corporation Bank on Friday announced a loss of Rs 6581.5 crore in the fourth quarter of last fiscal as against a loss of Rs 1838.4 crore in the same quarter for the previous fiscal (17-18). At the same time, the bank’s operating profit before provisions and contingencies for the fourth quarter of FY 18-19 was Rs 694 crore as against Rs 989 crore for the corresponding quarter in the previous financial year (17-18).

Sharing major highlights during the last fiscal, bank indicated it had incurred loss on account of higher provisioning in the quarter which has taken provision coverage ratio of the bank to 83.30% as on March 31 from 63.65% on the corresponding date in 2018. Gross NPA of the bank has come down to 15.35% as on March 31 from 17.35% as on March 31, 2018 and net NPA was down at 5.71% on March 31 against 11.74% on March 31, 2018.

The bank in a bid to pare down its losses has cut its cost of deposit to 5.40% during FY 2018-19 as against 5.74% during FY 2017-18 and cost of deposit for last quarter of FY 2018-19 was 5.35%. Cost of funds of the bank too came down to 5.01% as on March 31, 2019 as against 5.26% on March 31, 2018. The recovery in written off accounts increased to Rs 707 crore in FY 2018-19 as against Rs 318 crore in FY 2017-18.

The bank which did not sell any asset to asset Reconstruction Company during last fiscal, is focussing on retail business, reducing share of its bulk business. In respect of borrowal accounts referred to NCLT, the bank is having exposure to 11 and 20 accounts respectively under NCLT 1st and 2nd list amounting to Rs 4211 crore and Rs 4869 crore respectively and is holding 100% provision to like amount on both these accounts.

News credit : Indiatimes