Corporation Bank
BSE: 532179 | NSE: CORPBANK | ISIN: INE112A01015 | Banks - Public Sector
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Chairman's Speech | Year : Mar '09 |
Dear Shareholders, 1. With immense pleasure I welcome all of you to the twelfth Annual General Meeting of Corporation Bank, which is my first turn as the Chairman & Managing Director of the Bank. On this auspicious occasion I am happy to share with you in brief, the Economic Scenario of the Country and the salient features of your Banks Performance. 2. Economic Scenario 2.1 During the year gone by, the world economy continued to suffer from recessionary conditions. Though the Indian economy suffered comparatively much less, there was nevertheless, a moderation in growth. After clocking over 8.5% average GDP growth for the last five years, the real GDP growth for 2008-09 has been pegged at 6.7%. 2.2 In F.Y. 2009, while industrial growth decelerated to 2.8%, from 8.8% in the corresponding period of the previous year, the trade deficit has expanded to 4 billion from billion. Due to this and large FII outflows, the foreign exchange reserves have fallen by .7 billion (to 2 billion at end March 2009). The likely growth in agriculture may only be 2.6% as compared to 4.9% last year. The saving grace was that (WPI) inflation, which had steadily been increasing, fell drastically from nearly 13% in August 2008 to 0.26% by end-March 2009, largely due to fall in global commodity prices. 2.3 On the banking front, during EY. 2009, aggregate deposits of Scheduled Commercial Banks increased by 19.8% compared to 22.4% recorded in the previous year. Growtli in non-food credit decelerated to 17.5% (23%). Broad money (M3) growth was 18.4% at end-March 2009, which was higher than the RBI projected growth of 16.5-17% for EY. 2009. 2.4 Through all these developments, your Bank continued its drive to grow rapidly by registering business growth of nearly 30%, with over one-fourth growth in profits and continued containment of both gross and net NPAs in a challenging environment. The Bank opened two overseas Representative Offices in Dubai and Hong Kong, as part of its global expansion plan and was more than adequately capitalized (13.61% under Basel II) to meet credit growth requirements for 2009-10. 3. Consistent Performance 3.1 Your Bank continued its journey on a high trajectory growth path in business and profitability in the traditional manner. A bank which started its presence in humble way in the temple town of Udupi 104 years back has earned and won the confidence of the people through its meritorious service. The sustained growth story reveals that: 3.2 Net Profit: Your Banks Net Profit for the twelve months period ended 31.03.2009 registered a growth rate of 21.47% and increased to Rs.892.77 crore compared to Rs. 734.99 crore in the corresponding period ended 31st March, 2008. 3.3 Operating Profit; The Operating Profit of the Bank went up by Rs.545.48 crore during the twelve months period ended 31.03.2009 to Rs.1,796.62 crore as compared to Rs.1,251.14 crore in the corresponding period of previous year, recording a growth rate of 43.60%. 3.4 Total Income: The Total Income of the Bank for the 12 month period increased to Rs.7,174.57 crore registering a growth of 37.54% compared to Rs.5,216.33 crore registered as at 31.03.2008. 3.5 Net Interest Income: The Net Interest Income increased by Rs.247.67 crore (17.16%) from Rs.1,443.31 crore for the twelve months ended March, 2008 to Rs. 1,690.98 crore for the corresponding period ended March, 2009. 3.6 Non-Interest Income: Non-interest income has increased from Rs.699.78 crore to Rs.1,107.22 crore for the twelve months period ended March, 2009, recording a growth of 58.22%. 3.7 Business Growth: The Total Business of the Bank as on 31st March, 2009 stood at Rs.122,496 crore. The total business increased by Rs.27,886 crore from Rs.94,610 crore in March, 2008. The increase recorded in business is 29.47%. 3.8 Deposits: The Total Deposits of the Bank increased to Rs.73,983.91 crore from Rs.55,424.42 crore as on 31st March, 2008, recording a growth of 33.49%. The average CASA has grown from Rs. 12,749 crores in March 2008 to Rs. 14,508 crores as on March, 2009, registering a Y-o-Y growth of 14%. 3.9 Advances: The Y-o-Y growth in Advances is 23.80% from Rs.39,185.57 crore to Rs.48,512.16 crore as on 31st March, 2009. The Credit Deposit ratio stood at 65.57%. 3.10 NPA: The Gross NPA has come down to 1.14% compared to 1.47% as on 31st March, 2008 and Net NPA stood at 0.29% as at 31st March, 2009. 3.11 Cash Recovery: The Bank could effect a cash recovery and upgradation of NPAs of Rs.278.45 crore, during the period ended 31.03.2009. 3.12 Net worth: The Net worth of the Bank stood at Rs.4,897 crore compared to Rs.4,229 crore as on 31st March, 2008. 3.13 Capital Adequacy Ratio: The Capital Adequacy Ratio of the Bank as on 31st March, 2009 as per Basel I is at a comfortable level of 13.66%, as compared to 12.09% as on 31st March, 2008. The Tier I ratio as on 31st March, 2009 is at 8.93%. The CRAR as per Basel II stood at 13.61%. 3.14 Return on Equity/EPS: The Return on Equity works out to 18.23% (annualised) for the year ended March, 2009 as compared to 17.38% (annualised) in March, 2008. The Earnings per Share (annualised) works out to Rs.62.24 as compared to Rs.51.24 as on March, 2008. 3.15 Cost to Income Ratio: The Cost to Income ratio improved to 35.79% for the 12 month period ended March, 2009 from 41.62% in the corresponding period last year. 3.16 Yield on Advances: The yield on advances improved to 10.82% for the 12 month period ended March, 2009 from 10.20% in the corresponding period last year. 3.17 Cost of Deposits: The Cost of Deposits went up to 7.02% for the 12 month period ended March, 2009 from 6.45% in the corresponding period last year, mainly due to the volatile and competitive market conditions which prevailed in the first half of the financial year. 3.18 Staff Productivity: The Business per Employee of the Bank was higher at Rs. 10.49 crore compared to Rs.8.39 crore in March, 2008. 4. Branch Expansion 4.1 Domestic Footprint: During the current financial year the bank opened 73 new branches and 75 ATMs. The Total number of branches of the Bank as on 31st March, 2009 stood at 1054 and number of ATMs at 1032, as against 981 branches and 957 ATMs as at 31st March, 2008. The Bank has drawn plans to open 700 new branches in next five years. 4.2 International Footprint: The Bank has opened a Representative Office at Hong Kong in January 2009 in addition to the office at Dubai, which was opened during August 2008. 5. Technology Initiatives: The Bank has migrated all its units [1111] to the Core Banking solutions [CBS] covering 100% business. The Bank has also operationalised and networked 1032 ATMs across rhe country inclusive of 7 Biometric ATMs. Out of these 75 ATMs have been commissioned during this financial year. 150 POS terminals have been installed at different merchant establishments. Internet Banking facility has been provided with robust scaleable Model View Controller (MVC) architecture. RTGS facility has been provided at 1034 units and NEFT facility provided at 1015 units of the Bank. 25 self service terminals (KIOSKS) have been installed at the identified branches. 6. Financial Inclusion: The Bank has extended Branchless Banking units to 411 villages as on 31.03.2009 as against the target of 400 villages. Smart Cards have been issued to all account holders at these villages to enable them to operate their accounts through the Business Correspondents from their villages. 6.1 Financing SME Sector: The Bank has framed a comprehensive policy for financing to SMEs to step up the credit to Small Enterprises Sector, so as to increase credit by 20% p.a. The Bank has identified 50 branches across the country to accelerate lending to SME Sector. 7. Clientele Growth: On Y-o-Y basis, 11,65,360 new accounts were acquired under deposits as at the end of March, 2009. To improve share of low cost deposits, the bank has added 9,71,600 new CASA accounts during period from 01.04.2008 up to 31.03.2009. 8. Awards & Accolades Your Bank has bagged the following prestigious awards during the financial year. 8.1 During 2008, the Bank received the Gold Trophy of the SCOPE Meritorious Award for Best Managed Bank/Financial Institution/Insurance Company. Standing Conference of Public Enterprises, the apex body of Central Government owned enterprises, to encourage, recognise and reward the excellence achieved, instituted these awards for the first time. 8.2 The Bank was also awarded the SKOCH Challenger Award 2008 for Customer Relationship Management. 8.3 The Business Today - KPMG study has ranked our Bank as Best Bank in quality of assets category. 8.4 The Bank has bagged the Runner-up award for Best Online and Multichannel Banking Team in the Banking Technology Award 2008 instituted by Indian Banks Association [IBA] and Trade Fairs and Conference International [TFCI]. 8.5 Bank has also won die Use of Technology for Financial Inclusion award from the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad for the Best use of IT in Retail Banking for its Branchless Banking and Financial Inclusion initiatives. 9. I would like to thank all the employees for their active involvement and contribution to die progress of the Bank. I would also like to thank RBI and Ministry of Finance, Government of India and die Directors of the Bank for their support and guidance in achieving die progress. Yours sincerely, Place : Mangalore (J. M. Garg) Date : 12-06-2009 Chairman & Managing Director |
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| Source : Religare Technova | |
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