Financial Daily from THE HINDU group of publications
Friday, Feb 08, 2002
Financial Daily from THE HINDU group of publications Friday, Feb 08, 2002 |
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Money & Banking
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Public Sector Banks Corporate Results - Public Sector Banks Gold trading, forex deals boost Corpn Bank profits M. Ramesh
CHENNAI, Feb. 7 CORPORATION Bank's bottom-line for the nine months ended December 2001 was buttressed by an increase in the profit on the sale of investments, foreign exchange operations and trading in gold. However, the company's cash management product, Collection and Payment Services (CAPS), earned a lower income than in the corresponding nine months of the previous year. CAPS earned Rs 37.80 crore as against Rs 41.61 crore in April-December 2000. In contrast, "foreign exchange operations" earned Rs 35.27 crore, 50 per cent more than the Rs 23.49 crore previously. Trading in securities fetched a profit of Rs 108.55 crore, which is 205 per cent higher than the Rs 35.50 crore made in April-December 2000. Similarly, profit from trading in gold was at Rs 5.63 crore, up from Rs 1.95 crore previously. The recovery of written-off debts was also lower at Rs 18.36 crore, as compared to Rs 22.43 crore. Likewise, fees from both funds transfers (TT and demand drafts) and bill collections declined. The bank made a profit of Rs 19.22 crore from funds transfer as against Rs 21.40 crore in the first three quarters of last year. Cheque collections earned Rs 9.70 crore as against Rs 11.37 crore previously. The commission from bank guarantees and LCs amounted to Rs 14.74 crore, as against Rs 13.42 crore. Funds transfers, cheque collection and commission, which constitute the core areas of non-interest income, earned a lower profit of Rs 43.66 crore, as against Rs 46.19 crore previously — down 5.47 per cent. However, in the non-core areas (CAPS, forex, securities and gold trading, write-backs), profit increased 64 per cent to Rs 205.61 crore in the first three quarters of the current year, from Rs 124.89 crore in the same period last year. This is in line with the trend in the banking industry.
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