Corporation Bank targets about 20% credit growth in FY10

9403 Investors following Corporation Ban. Share this News with them.

0

Like this story, share it with millions of investors on M3

Corporation Bank targets about 20% credit growth in FY10

Corporation Bank's Q4 FY09 standalone net profit was up 26.7% at Rs 260.49 crore as compared to Rs 205.6 crore YoY. JM Garg, CMD, Corporation Bank, targets around 20% credit growth in FY10. He said the bank will be able to maintain margin around 2.5%.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See latest News about Corporation Ban See previous management interviews See what other Experts & Brokerages are saying about Corporation Ban Corporation Ban BSE | NSE 25/05/12 Are Mutual Funds betting on Corporation Ban?

Corporation Bank's  Q4 FY09 standalone net interest income was up 6.39% at Rs 428.3 crore as against Rs 402.56 crore year-on-year. Its standalone net profit was up 26.7% at Rs 260.49 crore as compared to Rs 205.6 crore YoY.
In FY09, standalone NII was up at Rs 1,690.98 crore as against Rs 1,443.31 crore. While standalone net profit came in higher at Rs 892.77 crore versus Rs 734.99 crore.

Also see: Corporation Bank Q4 PAT up 27% at Rs 260.49 cr

JM Garg, CMD, Corporation Bank, targets around 20% credit growth in FY10. He said the bank will be able to maintain margin around 2.5%.

Here is a verbatim transcript of the exclusive interview with JM Garg on CNBC-TV18. Also see the accompanying video.

Q: Net interest income barely moved just 6% but profits surprised with about a 25% jump. Can you take us through what happened in the net interest income level? Was it a lack of volume growth in terms of advances or was it a pressure on margin?

A: Credit growth in the last financial year has come down to 23.9% as compared to previous year's almost 30%. That is because of the effect of the second half wherein credit demand had flattened. The other is the lag effect of interest rate as far as deposits are concerned. Interest rates have been going up in the last financial year. We have taken retail as well as wholesale deposits above 10%, in fact up to 12%, whereas the reduction in the prime lending rate impacted our earnings. With liquidity at high levels in last quarter, the offtake on one hand was less while rates have come down substantially.

Continued on next page ...