Moneycontrol
Last Updated : Feb 13, 2018 09:29 AM IST | Source: PTI

Corporation Bank posts Q3 loss at Rs 1,240 cr on higher NPAs

Corporation Bank has reported a net loss of Rs 1,240.49 crore for the December quarter of the current fiscal on higher provisioning for bad loans.

 
 
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Corporation Bank has reported a net loss of Rs 1,240.49 crore for the December quarter of the current fiscal on higher provisioning for bad loans.

The state-owned bank had, in contrast, registered net profit of Rs 159.02 crore in the October-December period of last fiscal.

Sequentially, the net loss widened from Rs 1,035.20 crore in the second quarter (July-September) of 2017-18.

The bank's total income also decreased to Rs 4,841.37 crore in the third quarter of 2017-18, as against Rs 5,839.56 crore in the year-ago period as expenses were higher, showed the bank's balance sheet in a regulatory filing.

Corporation Bank saw its non- performing assets (NPAs) or bad loan ratio reach 15.92 per cent of the gross advances at the end of December 2017, up from 11.26 per cent by same time of 2016.

Net NPA were 10.73 per cent of the net advances against 7.64 per cent by the same period year earlier.

In absolute value, gross NPAs stood at Rs 21,817.96 crore as on December 31, 2017, as against Rs 15,827.99 crore as on December 31, 2016. Net NPAs were Rs 13,853.91 crore against Rs 10,314.94 crore.

The bank's provisioning for bad loans ballooned to Rs 2,494.71 crore for third quarter of the current fiscal, from Rs 991.63 crore in the year-ago period.

The lender provided Rs 1,280.39 crore during the third quarter in respect of 11 NPA accounts under Insolvency and Bankruptcy Code (IBC) proceedings as per RBI directive of June 2017, out of the total requirement of Rs 1,736.42 crore to be made fully by end of this fiscal.

The bank said it needs to make additional provisioning of Rs 1,004.19 crore as per another RBI directive in August 2017 in respect of 20 NPA accounts under Insolvency and Bankruptcy Code and it will provide for the same by March 31.

The provision coverage ratio stood at 59.48 per cent as on December 31, 2017.

The Corporation Bank stock closed 1.83 per cent up at Rs 36.25 on BSE.
First Published on Feb 12, 2018 08:47 pm

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