Corporation Bank records Rs.1,035-cr loss

With provisioning for non-performing assets (NPAs) reaching Rs.2,535.95 crore during the second quarter of this fiscal, Corporation Bank registered a loss of Rs.1,035.2 crore. The bank had recorded a net profit of Rs.206.28 crore during the second quarter of 2016-17.

Provisions (other than tax and contingencies) went up to Rs.2,668.81 crore (Rs.826.80 crore). Of this, provisions for NPAs stood at Rs.2,535.95 crore (Rs.790 crore) during the period.

The bank’s unaudited (reviewed) financial results for the second quarter, which was submitted to the stock exchanges, said that in terms of the directions of the RBI, in respect of 11 NPA accounts covered under the Insolvency and Bankruptcy Code (IBC), the aggregate provision required for such accounts is Rs.1,735.83 crore.

Of this, the bank provided Rs.924 crore during the quarter. The balance amount shall be provided by March 31, it said.

The gross NPA of the bank increased to Rs.20,684.87 crore during Q2 against Rs.15,611 crore in the year-ago period. And, the net NPA rose to Rs.13,082.59 crore (Rs.9,560.74 crore).

The gross NPA stood at 15.28 per cent (10.81 per cent), and net NPA at 10.24 per cent (6.91 per cent).