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Corporation Bank expects net profit to rise to Rs 2,000 crore by FY20 end

Updated : November 19, 2019 12:51 PM IST

Corporation Bank is expecting its net profit to increase to Rs 2,000 crore by the end of the financial year 2020, said PV Bharathi, MD and CEO of the bank. Bharathi said that the bank was expecting a 40-50 bps increase in net interest margins due to recoveries.

“We had targeted recovery of around Rs 6,000 crore including the NCLT recoveries. The Essar recovery which has been long pending has now come. We expect that by November 2019, around Rs 1,300 crore of amount will be coming into credit and this amount will go to the bottom line,” said Bharathi, in an interview with CNBC-TV18.

She further said that the exposure to Bhushan Power is only Rs 151 crore while to Videocon, it is around Rs 2,500 crore.

Talking about loan growth, Bharathi said, “We have targeted Rs 130,000 crore; at the beginning of the year in March ’19, we were around Rs 120,000 crore... we are targeting around 60 percent in RAM — retail, agri and MSME and 40 percent in corporate.”

On the merger front, the MD and CEO said, “The merger is expected to take place from April 1, 2020. So the first balance sheet will be as on March 31, 2021."
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