Mangaluru: Loan Upto Rs 1 Lakh to Farmers – Corporation Bank ED Srivastav

Mangaluru: Public sector Corporation Bank held a press meet discussing the performance highlights of the first quarter of the current fiscal, which closed with a net profit of Rs 204.26 crore, down from Rs 231.47 crore in the same period last year, here on August 7.

Addressing the mediapersons, S R Bansal, Chairman and Managing Director of Corporation Bank said that though the net profit decreased, the total income has increased to Rs 5,334.60 crore in the quarter (Q1/30 June, 2015) from Rs 5,215.02 crore for the quarter that ended June 30, 2014 with a growth rate of 2.29%. He also said that the bank is looking into increasing their presence in Karnataka.

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He also said that the bank has initiated a multi-pronged strategy for the purpose of close and effective monitoring of the stressed assets and for recovery of NPAs by forming 4 separate verticals (at Head office, Circle Offices and Zonal Offices) for monitoring of stressed accounts and Recovery and up gradation of NPAs accounts, along with 2 separate verticals for monitoring of CASA growth in newly opened branches and for monitoring of Payroll accounts. A separate vertical has been created to reduce and control the avoidable operating expenses.

72 Corp Excel Branches and 131 e-lobbies across the country are operational and offering services like Cash withdrawal, Cash and Cheque deposit and Passbook printing, besides 20 standalone self-service passbook kiosk. The Bank is migrating to contemporary Core Banking Solutions (CBS) for customer deliverable.

In order to restructure the business operations of forex transactions, the bank has conceptualised the creation of Forex Hubs at Bengaluru and Mumbai. The proposed Hubs will not only ensure better compliance with FEMA/ICC/RBI regulations, adherence to the bank’s policy and credit sanction terms, but also prevention of seepage of income and control of operations. The Hubs are expected to be operational during the current financial year (i.e.2015-16). It has also introduced a new product ‘FCNR premium’ to encourage flow of NRI deposits into the bank. The product facilitates earning additional returns apart from the regular interest, in case the foreign currency is at premium. It has also introduced a new nostro account in United Arab Emirates Dirham (AED) currency to encourage transactions from the NRIs based in the Gulf Countries. Corporation Bank has two representative offices in Dubai and Hong Kong.

Speaking on Financial Inclusion, Deputy General Manager R. Natarajan said that the bank has reached a level of 38.42 lakhs Basic Saving Bank Deposit Accounts (BSBDA) with a balance of Rs 21.79 lakhs as on 30th June 2015. Branchless Banking units are already operational in 4685 locations across India as on 30th June 2015. The bank has opened 22,99,720 accounts under Pradhan Mantri Jan Dhan Yojana PMJDY (Rural – 11,43,431 & Urban – 11,56,289) and the balance in these accounts is Rs 535.78 crore as on 30th June 2015. The average balance in the non-zero balance accounts is Rs 3,225 per account as against the national average of Rs 2,403. The percentage of zero balance accounts has been on a declining trend and has reduced from 31.89% (31.03.15) to 27.76% (as on 30.06.15). Out of the 22,99,720 accounts opened under PMJDY, RuPay card has been issued to 98.74% of the accounts and passbooks have been issued to 89.66% accounts. Further, 59.70% of the accounts opened under PMJDY have been seeded with Aadhaar numbers.

In terms of The Department of Financial Services, Ministry of Finance, Govt. of India instructions, Corporation Bank rolled out Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY), from 1st June, 2015.

As of 30 June 2015, the Bank’s ATM network reached to the level of 2983, with the opening of 50 ATMs across the country during the quarter. Internet Banking Channels are witnessing steady increase in usage with more than 10 lakh internet banking users. As of 30th June 2015, the Bank had installed 40,255 POS machines (including mobile POS machines) at various merchant establishments. It has a pan India presence with wide network of 2309 branches, with 16 new branches opened during the quarter.The bank was the first Bank to launch Mudra card which works on Rupay payment platform. The card facilitates the borrower in hassle free withdrawal of working capital loan from any ATM/Micro ATM.

Replying to questions about farmer suicides, Executive Director B K Srivastav said, “If any farmer is in need of money for farming or non-farming activities, he can contact any branch of Corporation Bank. If he is indebted to money lenders and wants to repay the loans, Corporation Bank is ready to give a loan of upto Rs 1 lakh to repay the money lenders.

Highlights of the first quarter
• Operating Profit of the Bank for the quarter ended 30th June 2015 [Q1] improved to Rs.808.50 crore as against Rs.697.55 crore for the quarter ended 30th June 2014 registering a growth of 15.91%.
• Net Interest Margin [NIM] for the quarter ended 30th June 2015 [Q1] improved to 2.13% (annualized) as against 1.93% (annualized) of the corresponding quarter of previous financial year.
• Return on Assets (ROA) of the Bank improved from 0.28% as at 31.03.2015 [12M] to 0.38% as at 30.06.2015 [Q1].
• Cost of deposits of the Bank for the Q1 ended 30th June 2015 reduced to 7.66% as against 8.09% for the Q1 ended 30th June 2014.
• CRAR [Basel III] of the Bank for the Q1 ended 30th June 2015 improved to 11.28% as against 11.21% for the Q1 ended 30th June 2014.
• Provision Coverage Ratio [PCR] of the Bank for the Q1 ended 30th June 2015 improved to 57.17% as against 52.19% for the Q1 ended 30th June 2014.
• Net Profit of the Bank for the quarter ended 30th June 2015 [Q1] stood at Rs.204.26 crore.
• Cost to Income ratio of the Bank for the Q1 has reduced to 45.47% as against 46.58% for the corresponding quarter of previous financial year.

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