MUMBAI: Corporation Bank on Wednesday reported a net profit of Rs. 444.46 crore in the year ended March 31, 2006 against Rs. 402.16 crore in the previous year. Total income stood at Rs. 3,197.93 crore against Rs. 2,841.37 crore.

In the fourth quarter ended March 31, 2006, the net profit was Rs. 100.27 crore down 6.78 per cent from Rs. 107.57 crore in the corresponding quarter of the previous year.

The bank declared a total dividend of 70 per cent for 2005-06, including the interim dividend of 35 per cent already paid, against 65 per cent paid for 2004-05.

The dip in net profit in the last quarter was due to increased cost of funds and provisions for home loans, said B. Sambamurthy, Chairman and Managing Director, Corporation Bank, here on Wednesday. The bank's operating profit stood at Rs. 269.16 crore for the last quarter against Rs. 244.88 crore in the corresponding period of the previous year. It recorded a total income of Rs. 862.83 crore, up 22 per cent against Rs. 703.25 crore in the quarter under reference.

The bank effected a cash recovery of Rs, 171 crore against Rs. 148 crore. Consequently, the gross non-performing assets (NPA) of the bank have been brought down from Rs. 647 crore to Rs. 626 crore and the net NPA from Rs. 207 crore to Rs. 154 crore. The bank also been able to write-back Rs. 69 crore from the provisions made for NPAs. The bank's net interest margin for the year was at 3.56 per cent against 3.94 per cent in the previous year. Cost of deposits has gone up marginally from 4.54 per cent as on March 2005 to 4.55 per cent as on March 2006. Yield on advances came down to 8.26 per cent during the year from 8.42 per cent.

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