CORPORATION BANK

BANKING

CORPORATION BANK - Financial Results for the Quarter / Half year ended 30th September 2012

Nov 9, 2012

by Prashant Kapadia

Shri Ajai Kumar, Chairman and Managing Director, Corporation Bank, announced the performance of the Bank after the adoption of the financial results for the  quarter /half year ended 30thSeptember 2012 by the Board of Directors.

1. Aggregate Business:

Total Business of the Bank as on 30.09.12stood at  `241,899 crore as compared to `202,247 crore as at 30.09.2011.

The total business increased by  `39,652 crore with a growth rate of  19.6%  on   y-o-y basis.

Business per employee has gone up from  `15.47 crore as at 30.09.2011 to `17.41 crore as at 30.09.2012

Business per Branch has improved from `147.09  crore as at  30.09.2011 to `151.09 crore as at 30.09.2012.

2. Deposits:

Deposits of the Bank increased to `143,738 crore as at 30.09.12  from `120,613 crore as on 30.09.11 recording a growth of 19.2% on y-o-y basis.

3. Advances:

The y-o-y growth in Advances was 20.3% from `81,634 crore as on September 11 to `98,161 crore as at 30.09.12.

Business Growth

a. Agricultural advances of the Bank was at `8,004 crore as at 30.09.2012 as compared to  `5,778 crore as at 30.09.11 showing y-o-y growth of 38%.

b. SME advances of the Bank stood at `15,784 crore as at  30.09.2012 as against  `12,792 crore as at  September 2011, showing  y-o-ygrowth of 23%.

c. Retail advances increased to `21,167 crore as at 30.09.12 as against `13,870 crore as at 30.09.11.

d. Yield on Advances:  Yield on advances increased to 11.75% p.a. for the  half year ended  Sept 12 as compared to 11.46% as at Sept 11.

1. Net Profit: The Net profit of the Bank for the Quarter [Q2] ended  30 th September 2012 increased to  `405.71  crore as against  `401.11 crore for Q2 of previous fiscal recording an increase of `4.60 crore.

2. Operating Profit: The operating profit of the Bank for the Quarter [Q2] ended  30 thSeptember 2012  was at  `685.75  crore as against  `690.78  crore for Q2 of previous  fiscal.

3. Income: The total income for the Quarter [Q2] ended September 2012 grew by 17% and reached `4,070.45  crore as against  `3,480.12 crore for Q2 of  FY 2012.  The Interest income also grew by 21% over Q2 of FY 2012 to reach `3,744.48 crore as at 30.09.2012.

4. The  Fee income from core areas like Commission, Exchange, Brokerage, etc., increased by 20% over Q2 of FY 2012 to reach `239.45 crore as at 30.09.2012.

5. Net Interest  Income (NII)  for the  Quarter [Q2]  ended  September 2012 was at `803.25 crore as against `743.60 crore for Q2 of FY 2012 and recorded a growth rate of 8%.

6. Return on Assets [ROA] was at 1.03%, and  Return on Equity [ROE] was at 18.34% for the Quarter [Q2] ended September 2012. (annualized).

7. Cost to Income Ratio was at 39.27% for the Quarter [Q2] ended September 2012.

8. During the quarter, the Bank opened 47 Branches across the country.

Advances

Sept-10 Sept-11 Sept-12

Highlights of Quarter [Q2] ended 30.09.20123

1. Net Profit: The Net profit of the Bank for the  half year ended 30th September 2012 increased to  `775.97 crore as against  `752.56 crore for  the first half  of previous financial year recording an increase of `23.41 crore (+3.1%).

2. Operating Profit: The operating profit of the Bank for the half year ended 30 th September 2012 was at `1,355.61 crore as against `1,243.97 crore for first half of  previous fiscal recording an increase of `111.64 crore(+8.97%).

3. During first half of current financial year, the Total income stood at `8,048.68 crore in comparison with `6,724.91 crore for half year ended 30.09.11 showing an increase of `1,323.77 crore [+19.7%].

4. On comparison with first half  of FY 2011-12, the Interest income increased by `1,326.04 crore from ` 6,069.06 crore to reach `7,395.10 crore [+21.8%]  for the half  year ended 30.09.2012.

5. Non-interest income was at  `653.58  crore as at 30.09.2012 as compared to `655.85 crore during first half of previous financial year.

6. The  Net interest Income [NII] for  half year ended 30.09.2012 was at `1,611.68 crores compared to  `1,451.16 crore during  first half  of previous financial year recording a growth of +11.1%.

7. The fee based income from core areas like Commission, Exchange, Brokerage, etc., for first half of FY 2012-13 was at `446.11 crore   as compared to `385.19 crore as at 30.09.2011 recording a growth of +15.8%.

8. Return on Assets [ROA] was at 1.00%, and Return on Equity [ROE] was at 17.91% for the half year ended September 2012. (annualized).

9. Cost to Income Ratio was at 40.16% for the half year ended September 2012.

10. Earnings per share increased to `104.77 as at 30.09.2012 as against `101.61as at 30.09.2011. (annualized).

11. Book Value per Share rose to  `611.08  as at 30.09.2012 when compared to  `532.67 as at  30.09.2011.

12. Net Interest Margin: The Interest Spread to average interest bearing assets for half year ended 30.09.2012 was at 2.26%. (annualized)

13. The  Net Profit per employee was at  `11.17 lakhs and the  Net Profit per Branch was at `96.94 lakhs as at 30.09.2012. (annualized).

Highlights of half year [H1] ended 30.09.20124

1. NPA: Gross NPA stood at 1.97% and Net NPA stood at 1.38% at the end of half year of FY 2012-13. In absolute terms the Gross NPAs stood at `1,949.34 crore  and Net NPA stood at `1,351.03 crore.

2. Cash Recovery: The Bank effected cash recovery and upgradation of NPAs of `510.09 crore, during the half year ended 30.09.12 compared to `250.48 crore  in the first half of previous financial year.

3. Provision Coverage: The NPA provision coverage ratio stood at  60.44% with reference to NPA as at 30.09.2012.

1. Capital Adequacy Ratio: The Capital Adequacy Ratio under Basel  II as on 30.09.2012 was at a level of 13.05%. The Capital Adequacy Ratio under Basel I norms was at 12.19% as on 30.09.2012.

2. Networth: The Networth of the Bank stood at  `9,052 crore  as at 30.09.2012 as compared to `7,890 crore as at 30.09.2011.

1. The Bank’s network has spread across 6,427 functional Units spread across 26 States and 3 Union territories.  The Bank has 2 representative offices at Dubai & HongKong.

2. 1601 Branches, 1281 ATMs  & 3545 Branchless Banking Units as at 30.09.2012

3. During the half year period ended 30.09.2012, the Bank opened 101 Branches across the country.

1. Corporation Bank, with a view to catering to the SME & Agricultural segments in a big way,  has opened exclusive SME Loan centres in  Fifteen Cities across the country and Five Agri Business Development Centres.

2. To further boost the Agri lending, Gold loan shoppe have been opened in 7 places and 60 specialised Gold loan cells would be made functional very soon.

Asset Quality & Recovery

Capital & Networth

Branch Network

New Initiatives5

3. Corporation Bank has facilitated Online Opening of Deposits to its Retail and Corporate Customers through CorpNet – Internet Banking Platform.

4. The Bank has developed applications for I-Pad and Android tablets, which provide latest information, updates, interest rates and other relevant information for the users.  The Bank  has also  enabled Internet Banking through this application  for personal banking.

5. Corporation Bank has undertaken Financial Inclusion program for Self Help Groups (SHGs) in Belguam & Tumkur Districts in Karnataka State under which 80000 SHGs will be formed. Presently 38375 SHGs have already been enrolled under this initiative.

6. Corporation Bank launched Grand Festival Bonanza for Various Loans Schemes of the Bank from September 01, 2012 for a limited period.  The Bonanza is offered for Home Loans, Vehicle Loans, NRI Home Loans, Doctor Plus (Finance for Medical Professionals) and  Vyapar Schemes (Loan for Trade & Business) with various incentives /concessions.

7. Corporation Bank organized  Home Expo (Property Fair)  at 20 cities across the country. The Home Expo has been arranged specially for the benefit of the customers as a one stop convenience for availing Home and other loans of the Bank.

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