Mangalore, May 11: Addressing the media reporters in the press meet held at the conference hall of corporation bank on May, 11 Saturday Ajai Kumar, MD&Chairman of corporation bank, highlighted the audited Financial Results and performance of the bank for the year ended March, 31, 2013.Recently bank had come out with a special Mobile Banking app through Android and IOS phones and Tablets.
Chairman &MD of the bank has informed that in view of giving a fillip to the Agriculture Credit growth, Corporation Bank, one of the premier public sector bank will be holding Rural Expos across the country in the month of May 2013.
The bank has 31 zones across the country and each zone will be conducting a minimum of ten rural expos and bank has also plans to create village level awareness on various products and social welfare activities like health checkup and eye camps along with Rural Expos with a festive ambience to facilitate easy acceptance. It is proposed to conduct more than 300 such camps across the country, Ajai Kumar said.
He further said that Corporation bank is one of the first public sector banks to introduce transaction based banking. The mobile banking App”Corp Mobile” can be downloaded free from App store for IOS phones/Tables and play store for Android phones/Tablets.
The account holder can access various facilities/services through the App using net banking user ID and password. The account holder can check the current balance of all his linked running accounts, third party accounts maintained at corporation bank and even other Banking using NEFT,chairman added.
Last year bank has introduced the concept of Home and Vehicle Expos across the country which was a huge success not only in creating awareness about the products of the bank but also facilitated on the spot booking of proposals. Loans were sanctioned in the shortest possible time. Enthused by the success the bank proposes to carry out at least 30 to 35 such Expos throughout the country, he said
The bank has recently launched its redesigned branch at Malleshwaram and SME loan centre at Mission Street in Bangalore as a part of project Sankalp initiated by the bank in January this year.
The bank has embarked into a business process Re-engineering and Organizational transformation process christened as Project Sankalp.The project focuses on overhaul of our processs, re-modeling of branches, streamlining centralized units and re-designing the core process. It also envisages strengthening Bank’s alternate-channel architecture, developing Bank’s HR processes besides grooming future leaders of the bank.
As pilot, Malleshwaram branch at Bangalore has already been redesigned to enhance the customer experience. The branch has been provided specially designated staff-Corp Mitra, who will help and guide the customers at the branch. The interiors of the branch have been designed aesthetically and the layouts are demarcated between customer facing and operations work,he clarified
He further informed that the SME loan centre is also redesigned as part of the project and that the work-flow process has been made customer-friendly to reduce the turnaround time.
Amar Lal Daultani, B.K Srivastav, executive directors of the bank and Clement G Pinto were present in the meet.
Business Growth in Nut shell.
1).Aggregate Business: total business as on 31.03.2013 Rs.284, 722 crore as compared to Rs.236, 611 for the corresponding period in the year 2012.(Increase by 20.33%)
1. a) Business per employee has increased to Rs.19.21 crores in 31.03.2013 from Rs.17.13 crores in 2012 (increase by 12.14%)
1. b) Business per branch has improved from Rs.157.74 crores as at 31.03.2012 to Rs.166.80 as at 31.03.2013(increased by 5.74%)
2).Deposits: Bank has registered an increase in deposit growth by 21.94% i.e. Rs.166, 005 crore period ending 31.03.2013 and Rs.136, 142 crore for corresponding period in 2012.
3)Advances: Increased by 18.16% from 100,469 crore as at 31.03.2012 to Rs.118,717 crore as at 31.03.2013.
A) Agricultural advances: registered a growth of 32.6% i.e. Rs.9466 crore as on 31.03.2013 and Rs.7140 crore as at 31.03.2013.
B).SME Advances: stood at Rs.19, 518 crore as at 30.03.2013 and Rs.14, 340 crore as at March 2012.(36.1% increase)
C).Retail Advances: increased to Rs.25, 148 crore as at 31.03.2013 as compared to the corresponding period in 2012 Rs.18, 089 crore (39% growth)
D).Yield on Advances: increased by 11.65% for the year ended 31.03.2013 as compared to the same period in 2012 11.62%
Highlights of Quarter (Q4) ended 31.03.2013
- Net profit: Increased to Rs.355.53 crore as against Rs.351.26 crore for Q4 of previous fiscal recording an increase by 1.22%.
- Operating Profit: The operating profit of the bank for the quarter(Q4) ended 31st March 2013 was at Rs 922.46 crore as against Rs 814.26 crore for Q4 of previous fiscal.(increase by 13.29%)
- Income: The total income for the quarter(Q4) ended March,31,2013 grew by 15.6% and reached Rs 4635.49 crore as against Rs 4009.16 crore for Q4 of FY 2012.
- The Fee income: From core area like commission,exchange,brokerage etc increased by 27.8% over Q4 of FY 2012 to reach Rs 301.99 crore as at 31.03.2013
- Net interest Income (NII): for the quarter (Q4) ended March 2013 was at Rs 930.78 crore as against Rs.833.92 crore for Q4 of FY 2012 and recorded a growth of 11.6%.
- Return on Assets: (ROA) was at 0.81% and return on equity was at 15.03% for the quarter (Q4) ended March 2013.
- Cost to Income Ration was at 38.43% for the quarter (Q4) ended March 2013.
- During the quarter, the bank opened 54 branches across the country.
Highlights of FY 2012-2013
1.Net Profit: The net profit of the bank for the year ended 31.03.2013 marginally decreased to Rs.1434.67 crore as against Rs.1506.04 crore for the previous financial year recording decrease of Rs -71.37 crore (-4.74%).The decline in profits is mainly on account of higher provision requirements during the year.
2.Operating Profit: stood at Rs.3037 crore as on 31.03.2013 as compared to previous fiscal(Rs.2855.97 crore) recording an increase of 181.03 crore (+6.34%)
3.Total income stood at Rs 16942.02 crore in comparison with Rs 14510.40 crore for the year ended 31.03.2013 showing an increase by 16.76%
4.On comparison with FY 2011-12 the interest income increased by Rs 2316.30 crore from Rs 13,017.78 crore to reach Rs 15,334.08 crore (+17.79%) for the financial year ended 31.03.2013.
5. Non-interest income was stood at Rs.1607.94 crore as at 31.03.2013 as compared to Rs.1492.62 crore during the previous financial year.
6.The net interest income for financial year ended 31.03.2013 was at Rs 3425.85 crores as compared to Rs 3146.89 crore during the previous financial year recording a growth of +8.86%.
7.The fee based income from core area like commission,exchange,brokerage etc for the financial year 2012-2013 was at Rs 986.79 crore as compared to Rs 831.71 crore as at 31.03.2012 recording an increase by +18.65%
8. Return on assets (ROA) was at Rs 0.88% and return on equity (ROE) was at 16.27% for the year ended March 2013.
9. Cost to income ratio was at 39.67% for the year ended 2013.
10. Earning per share slightly decreased to Rs.96.74 as at 31.03.2013 as against Rs.101.67 as at 31.03.2012
11. Book value per share rose to Rs 645.76 as at 31.03.2013 when compared to Rs 558.69 as at 31.03.2012
12. Net Interest Margin: the interest spread to average interest bearing assets for year ended 31.03.2013 was at 2.29%.
13. The net profit per employee was at Rs 9.68 lakhs and the net profit per branch was at Rs.84.05 lakh as at 31.03.2013
Photo source:Sathish kapikad