The Mangalore-based state-run bank, which tapped the capital market last year, posted a net profit of Rs 125.13 crore in 1996-97. The bank's board will meet in Delhi on Thursday to finalise the audited accounts for fiscal 1998. The board will also decide on its maiden dividend payment. Broking houses expect a dividend of Rs 2.75 for a share of Rs 10. Among the brokerages, ICICI securities has projected the highest net profit (Rs 177.1 crore) and Indosuez WI Carr Securities the lowest (Rs 161.10 crore).

Two brokerage firms -- Prabhudas Lilladhar and SBC Warburg Dillon Read -- estimate Corporation Bank's net profit to be over Rs 175 crore, while two others peg the profit at over Rs 170 crore. All projections were made during January-February1998. The average earning per share (EPS) is estimated at Rs 15.85, which is a growth of 8.2 per cent, while average projections for dividend per share veers round to Rs 2.75 per share of Rs 10. The bank recorded an EPS of Rs 15.30 in 1996-97.

Kotak Securities, the research and broking arm of Kotak Mahindra Finance Ltd, has predicted a sustained growth in Corporation Bank's profitability. "Corporation Bank will post a net profit of Rs 165 crore and an EPS of Rs 13.8 for the fiscal ended, March 1998," Kotak Securities' report said. The bank's business recorded a 39 per cent rise to Rs 13,500 crore as on March 31, 1998, against Rs 9,688 crore in the corresponding period the previous year.