Corp Bank Q3 net marginally up at Rs 402 cr on higher NPAs
"Air France apologizes to its passengers for the disruption and inconvenience that this strike may cause, which will affect the whole French air transport industry," the airline said in a statement from its headquarters in Roissy.
Public sector lender Corporation Bank reported muted 5.2 per cent rise in net profit at Rs 402 crore for the third quarter ended in December, due to higher cost of funds and non-performing assets (NPAs).
It had posted net profit of Rs 382.4 crore in the year-ago period.
"Had it not been for the higher provisioning and a steep spike in the cost of funds (from 5.72 to 7.64 per cent), our profit would have been much better," the Mangalore-based bank's Chairman and Managing Director Ajay Kumar told reporters.
Gross non-performing assets (NPAs) rose 1.35 per cent in the quarter versus 1.32 per cent. Accordingly, the bank made provisions of Rs 301 crore in the third quarter, a rise of 54 per cent over Rs 195 crore in the same period last fiscal.
The overall fresh slippage during the quarter stood at Rs 374 crore, Kumar said.
He said the rise in provisioning was necessitated by the Kingfisher Airlines account. Of the Rs 300-crore loan to the troubled airline, Rs 156 crore has become bad loan. Also, Rs 30 crore of the total loan had been recast in November, 2010.
On the Supreme Court cancelling all the 122 licences issued in 2008, Kumar said though his exposure of Rs 146 crore is limited to one account of Videocon Mobiles, whose license was also cancelled, and is a secured funding, he is worried about this as a lot of clarity is needed to arrive at the financial import of the apex court verdict.
All together, the bank has an exposure of Rs 2,400 crore to telecom sector, including Rs 420 crore to GTL Infra's Chennai Network, whose entire debt was recast recently.
The bank's net interest income grew 2.26 per cent to Rs 861 crore from Rs 842 crore Y-on-Y. Deposits rose 28.5 per cent to Rs 1,26,607 crore, advances grew 28 per cent to Rs 92,378 crore taking the credit deposit ratio to 73 per cent.
The bank is well capitalised with a CAR of 12.84 per cent, with the Tier-I capital being at 7.87 per cent.
Since the cost of fund has gone up considerably, from 5.72 per cent to 7.64 per cent, its NIM came down to 2.66 per cent from 2.99 per cent during the reporting quarter.