Corporation Bank's second quarter net profit dropped 95 percent on the back of investment hit and provisioning hit, says bank CMD SR Bansal. Though he is confident of bringing down the NPA level to 3 percent or less from the current 3.17 percent now by year-end.
Also Read: Corporation Bank Q2 net drops 96%, asset quality weakens Below is the verbatim transcript of SR Bansal's interview on CNBC-TV18 Q: Looks like this was a bit of one-off quarter for you. 95 percent drop in profit, big rise in provisioning. Going forward do you think this would essentially be a one-off and you would return to normal profitability?A: Yes, I think we will be returning to normal profitability. This was an exceptional quarter mainly because of this investment hit and the provisioning hit. If you see during the year-on-year basis, we are short by Rs 472.57 crore mainly because of additional investment depreciation of Rs 305.82 crore and additional non-performing asset (NPA) provisions of Rs 135 crore and reduction in profit on sale of investment of around Rs 31 crore. This states together Rs 472 crore. Q: Is there any internal target that you are setting where you would like your gross as well as your net NPAs to be by the end of this fiscal year?
A: We feel that with the efforts and the step taken we will be definitely curtailing the NPA level. Our strive is to reduce it further. Q: Can the gross NPA come to the 3 percent mark?
A: As on today it is 3.17 percent and we are expecting that it should be around 3 percent or even less.
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