Corporation Bank's fourth quarter profits dropped by 18% due to a significant reduction in operating margins and higher provisioning for NPAs.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Provisions & Contingencies
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
P/E (at current price)
The bank's interest income continued to grow in double digits and on an aggregate was up 13% for FY01. However, higher cost of funds depressed margins. This has resulted in a marginal 3% growth in operating profits in the fourth quarter. On a year on year basis OPM rose by 360 basis points.
A 55% rise in provision amount for FY01, resulted in a slow growth in profits at 13%. Higher provision could be due to adverse industry and capital market scenario in the last fiscal.
At the current market price of Rs 138 Corporation Bank is trading at a P/E of 6x FY01 earnings and a Price/Book value ratio of 1.2x.
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