Corporation Bank has clocked 21% growth in its net profits to Rs 2.3 bn for the FY2000 over the previous period. Bank's operating profit margins increased by 100 basis points to 28.6%. Inspite of adverse market condition, the bank has been able to sustain its interest spread ratio to 3%.
During the year, the bank's deposits showed a modest growth rate of 13% to Rs 142.8 bn while advances recorded significant growth rate of 24% to Rs 77.8 bn. The modest growth in deposits is attributed to the shedding of high cost deposits in favour of stable deposits.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
The bank continued to show strong profitability with return on average assets of 1.5% and return on networth of 20.3%. Corporation Bank's net Non Performing Assets(NPAs) declined to 1.92% from 1.98% in the previous period. Also the capital adequacy ratio of the bank is higher at 12.8% as against 9% stipulated by RBI.
At the current market price of Rs 57, the bank is trading at Price/Book value ratio of 0.6 times compared to 7.5 enjoyed by HDFC Bank and 3.6 times enjoyed by ICICI bank. The valuations will change once the bank gears up with latest technology adoption with initiatives like tele banking, internet banking and mobile banking.
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