Corporation Bank recovered smartly from its lower level on Monday, following the announcement of impressive third quarter results that beat analysts' expectations.
By 12:05 IST, the scrip of the state-run bank rose by 6.09% to Rs 140.20 on the BSE, recovering from a low of Rs 132.50. A volume of over 1.33 lakh shares was registered on the counter.
For Q3 ended 31 December 2002, Corporation Bank recorded a net profit growth of 66% to Rs 151.81 crore (Rs 1.51 billion), compared a to a net profit of Rs 91.45 crore in the corresponding period of the previous year. Total income also increased by 47% to Rs 389.71 crore (Rs 3.89 billion), from Rs 265.13 crore (Rs 2.65 billion) in DQ 2001.
Both net profit as well as total income surpassed capitalmarket.com poll of three banking analysts, which had estimated the bank's growth in net profit in the range of 8.5-32% to Rs 99-121 crore. The bank actually registered a net profit of Rs 151.81 crore (Rs 1.51 billion), up 66%.
Total income also beat projections. Analysts had estimated the bank's total income in the range of Rs 286.5 to Rs 347 crore (Rs 3.47), a growth between 8% to 31%. The bank actually recorded a total income of Rs 389.71 crore (Rs 3.89 bilion), up 47%.
Analysts said the Q3 results were impressive, following the good rise in interest income as well as a decline in interest expenditure.
Mangalore-based Corporation Bank has a total of 730 branches and 65 extension counters spread across the country.
Corporation Bank, among public sector banks, has the second largest network of online interconnected automated teller machines. The bank currently has 300 ATMs across the country and is planning to increase them to 500 by March 2003. Corporation Bank is also an corporate agent for the Life Insurance Corporation of India. It has trained about 63 officers as part of its insurance policy distribution plans.
Meanwhile, Corporation Bank has sent around 23 notices in a bid to recover non-performing assets worth Rs 30 crore. The bank plans to issue further notices to around 100 defaulters for recovery of at least Rs 100 crore.
As on 31 December 2002, the government holding in Corporation Bank was 57.17%, while institutions, public and foreign bodies held 32.85%, 4.34% and 4.83% respectively.
BSE Code: 532179
More Hot Pursuits
