The bank's gross profit rose 32.12 per cent to Rs 106.35 crores, up from Rs 80.49 crores in the corresponding period of the previous year.

Its total income increased 12.01 per cent to Rs 460.13 crores for the quarter ended December 31 1999, against Rs 410.78 crores in the same period last year. The bank's interest income in the reporting quarter rose 11 per cent to Rs 402.61 crores from Rs 362.68 crores in the same of the previous fiscal. While its other income shot up by 19.68 per cent to Rs 57.52 crores from Rs 48.10 crores.

The bank's total expenditure rose by 9.59 per cent to Rs 394.45 crores in the third quarter of 1999-2000, up from Rs 359.92 crores in the corresponding period in the previous year. The bank's interest expenditure rose to Rs 280.89crores, up from Rs 268.55 crores and operating expenses rose to Rs 72.89 crores from Rs 61.74 crores in the corresponding period of the previous year. The bank's deposit rose to Rs 1,44,36.36 crores, up from Rs 12,114.26 crores meanwhile advances grew from Rs 5,234.22 crores to Rs 7,027.68 crores.

Bank to set up insurance arm by Oct
Following the guidelines laid down by the Reserve Bank of India (RBI) on entry of banks and financial insitutions into the insurance sector, Corporation Bank -- one of the two banks eligible for entering the the insurance sector -- will launch insurance subsidiary by October 2000.

Confirming the development, Corporation Bank chairman RS Hugar said, ``I have written to the central bank, seeking relaxation in its guidelines restricting domestic banks to a 30 per cent stake in the insurance venture.''

Hugar disclosed this on the sidelines at the launch of Corporation Bank's gold deposit scheme and its primary dealership outfit -- Corpbank Securities. CorpbankSecurities which has an authorised capital of Rs 100 crores has been setup for taking up primary dealership and provide depth in the Government securities market. Of this, Rs 50 crores has already been deployed. The subsidiary wiil take up underwriting, market making in Government securities and improvement in secondary market tradding system.

It will be headed by DGM of the bank, R K Nair. ``The setting up of the subsidiary was considered by the bank to give focussed thrust to the treasry operations which is one of the profitable and core competence area of the bank,'' Hugar said.

Gold scheme
Corporation Bank has become the second bank to launch a gold deposit scheme -- CorpGold deposit scheme. It has mopped up over 100 kg of gold through the scheme on Saturday -- the day of the launch of the scheme. The bank's target is to mop up over 25 tonnes of gold by the fiscal 2000. Last year, SBI launched a gold deposit scheme to mop up the idle gold for productive purposes. ``The gold depositscheme will initially be operational in 15 select branches throughout the country,'' said Hugar.

According to him, the primary objective of the scheme is to mobilise a part of the privately held gold lying idle with the public and putting it to productive use. ``The process of recycling of idle gold from the system will reduce the dependency on import of yellow metal. The scheme will bring about a change in the mindset of the public in their traditional view on gold from idle asset to an interest bearing asset,'' he said.

The maturity period of the gold deposit scheme ranges between three and seven years. For a minimum period of three years, the bank offers an interest of 3 per cent, 3.25 per cent for four years, 3.50 per cent for five years, 3.75 per cent for six years and 4 per cent for seven years. The rate of return on the gold deposit is in line with the rates offered by SBI. In case of Corporation Bank, the minimum quantity of gold which can be deposited under the scheme is 250 grams.