Performance highlights for the Quarter ended 30 th June 2016 Performance highlights of the Bank -June 16 [Q1] over June 15 [Q1]:

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1 Sector Bank Performance highlights for the Quarter ended 30 th June 2016 Performance highlights of the Bank -June 16 [Q1] over June 15 [Q1]: Parameter A Premier Public Sector Bank As at 30 June 15[Q1] As at 30 June 16 [Q1] [Rs. in Crores] Variation Deposits 1,92,102 1,98, % Advances 1,40,325 1,36, % Business 3,32,427 3,35, % Saving Bank Deposit 26,320 30, % Current Bank Deposit 10,034 10, % CASA 36,355 41, % Bulk Deposit 49.97% 44.52% -5.45% Operating Profit % Net Interest Margin [NIM] 2.13% 2.00% -0.13% Return on Assets [ROA] 0.38% 0.06% -0.32% Cost of Deposits 7.66% 6.85% -0.81% Yield on Advances 10.69% 9.75% -0.94% CRAR [Basel III] 11.28% 10.27% -1.01% Provision Coverage Ratio 57.17% 55.02% -2.15% Net Interest Income 1,080 1, % Non-Interest Income % Interest Income 4,933 4, % Total Income 5,334 5, % Net Profit (Q1-to-Q1) Deposits of the Bank increased to Rs.1,98,502 Crores as on 30th June 2016 from Rs. 1,92,102 Crores as on 30th June 2015, exhibiting a growth of 3.33%. Advances of the Bank stood at Rs.1,36,943 Crores as at 30th June 2016 as against Rs.1,40,325 Crores of corresponding previous quarter. Total Business of the Bank reached to the level of Rs.3,35,445 Crores as on 30th June 2016 as against Rs. 332,427 Crores as on 30th June 2015, showing a growth of 0.91%.

2 CASA deposits stood at Rs.41,431 Crores as at 30th June 2016 and CASA share to total deposits worked out to 20.87% Saving deposits increased by 16.34% over the previous corresponding quarter to reach a level of Rs.30,620 Crores as against Rs.26,320 Crores of corresponding previous financial year. Credit Deposit Ratio works out to 68.99% as at 30th June Cost of deposits of the Bank for the Q1 ended 30th June 2016 reduced to 6.85% as against 7.66% for the Q1 ended 30th June Operating Profit of the Bank for the quarter ended 30th June 2016 [Q1] stood at Rs.797 Crores as against Rs. 808 Crores for the quarter ended 30th June Net Interest Margin [NIM] for the quarter ended 30th June 2016 [Q1] stood at 2.00% (annualized) as against 2.13%(annualized) of the corresponding quarter of previous financial year. Return on Assets (ROA)of the Bank stood at 0.06% as at as against 0.38% as at [Q1]. CRAR [Basel III] of the Bank for the Q1 ended 30th June 2016 stood at 10.27%. Provision Coverage Ratio [PCR] of the Bank for the Q1 ended 30th June 2016 stood at 55.02% as against 57.17% for the Q1 ended 30th June Net Profit of the Bank for the quarter ended 30th June 2016 [Q1] stood at Rs.36Crores. During Q1 of F.Y total income reached to the level of Rs.5,241 Crores as against Rs. 5,334 Crores in the corresponding quarter of previous year. A New product Corp Surya Rashmi for financing Solar Water Heating as well as Solar Electricity System/Plants for both, On-grid as well as off-grid model has been introduced. Corp Rental Abhiyan [CRA] a promotional campaign under Corp Rental Scheme was in operation for 4 months from to wherein 0.50% concession in interest rate was offered to fresh loans sanctioned under Corp Rental Scheme. Monsoon Offer 2016 a promotional campaign has been introduced for 4 months from to wherein concessional processing charges is being offered to fresh loans under Corp Home, Corp Vehicle (Personal Segment), Corp Vyapar and Corp Doctor Plus Scheme. 2 P a g e

3 CAPITAL INFUSION Government of India has allocated funds to the extent of Rs.677 Crores vide notification F. No.7/38/2014-BOA dated 19th July 2016 by way of preferential allotment of equity in favour of Government of India. INCOME/EXPENDITURE Interest Income during Q1 of F.Y reached a level of Rs.4,724 Crores as against Rs.4,933 Crores of corresponding quarter of previous financial year. Net Interest Income during Q1F.Y stood at Rs.1,031 Crores as against Rs.1,080 Crores of corresponding quarter of previous financial year. Non-Interest Income in Q1 of F.Y was at Rs.517 Crores as against Rs.401 Crores of corresponding quarter of previous year with a growth rate of 28.92%. The income from ATM transactions and Card renewal/ other charges as at 30th June 2016 stood at Rs Crores and Rs.14 Crores respectively as against Rs Crores and Rs Crores for the corresponding period of previous financial year. Due to sustained efforts, the Bank could reduce the cost of deposits. The interest expense on deposits was lower by Rs Crores (-5.74%) over the corresponding quarter [Q1] of previous financial year. IMPORTANT RATIOS Return on Equity stood at 1.29% as at 30th June 2016 as compared to % as at (Q4). Earning per Share is Rs as at 30th June 2016 as compared to % as at (Q4). Book Value per Share is Rs as at 30th June 2016 as compared to Rs as at (Q4) and Rs as at (Q1). Gross NPA ratio of the Bank as at 30th June 2016 stood at 11.01% as against 9.98% as on 31 st March Net NPA ratio of the Bank as at 30th June 2016 stood at 7.22% as against 6.53% as on 31 st March P a g e

4 DELIVERY CHANNELS The total debit cards issued by our bank cumulatively crossed one Crore in the current quarter. During Q1 of FY , the Bank has issued 4.07 lakh debit cards. As on , our total Debit card population stood at lakh. Bank has installed 3074 ATMs till 30 th June Out of this, 1,126 ATMs are under owned model, 1,947 ATMs are installed under DFS and 1 mobile ATM under outsourced Model. Bank had installed 98,706 POS machines (including mobile POS machines) at various merchant establishments as on 30 th June Bank has issued 81,305 credit cards including LIC Co-branded Credit Cards as on 30 th June Bank has launched premium variants of VISA credit cards namely Platinum and Signature which was launched in the presence of Union Minister of Railways-Mr. Suresh Prabhu. Net Banking registrations were lakhs and SMS Banking registrations were lakhs as on 30 th June Bank has installed 269 Cash Deposit Kiosks, 168 Cheque Deposit Kiosks and 319 Passbook Kiosks as on 30 th June BRANCH NETWORK-PAN INDIA PRESENCE Bank has a pan India presence with wide network of 2,451 branches. During the quarter [Q1] Bank has opened 11 Branches across the country. INTERNATIONAL FORAYS Corporation Bank has two representative offices in Dubai and Hong Kong. RETAIL CREDIT Focus on Retail lending continued during the FY The retail credit is marketed under the Brand name of Corp Schemes. The portfolio under Corp Schemes stood at Rs.27,729 Crores as on 30th June 2016 as against Rs. 24,474 Crores as on 30 th June 2015 with a growth rate of 13.3%. 4 P a g e

5 PRIORITY SECTOR Priority Sector Advances [including RIDF] grew by 5.11% (y-o-y) to reach Rs.67,354 Crores as at 30th June 2016 as against Rs.64,082 Crores as on 30 th June Priority sector advances stood at 43.67% surpassing the regulatory target of 40% of ANBC. Total Agricultural advances [including RIDF] reached the level of Rs.26,655 Crores as at 30th June 2016 as against Rs.24,819 Crores as on 30th June 2015 with a growth rate of 7.40%. Loan to women beneficiaries formed 6.13% of ANBC as on 30 th against target of 5% of ANBC. June 2016 as Loan to small and marginal farmer stood at Rs. 12,679 Crores as on 30 th June 2016 as against Rs. 9,943 Crores for the first quarter of first year. Loan to Small and Marginal farmer formed 8.22% as on 30 th June 2016 as against the regulatory target of 8% of ANBC. MICRO, SMALL & MEDIUM ENTERPRISES Advances to Micro enterprises stood at Rs.11,175 Corers as at 30th June 2016 forming 7.25% of ANBC. MSME advances stood at Rs.28,995 Crores as on out of which Rs. 27,480 Crores is under priority sector as against Rs.25,354 Crores as on , thus registering a Y-o-Y growth of Rs.2126 Crores in absolute terms. FINANCIAL INCLUSION The Bank has reached a level of lakhs Basic Saving Bank Deposit Accounts (BSBDA) with a balance of Rs Crores as at 30th June Branchless Banking units are already operational in 4727 locations across India as at 30th June Progress made under Pradhan Mantri Jan Dhan Yojana (PMJDY): Total number of 2291 villages were allocated to the Bank under PMJDY grouped into 894 sub service areas and 951 wards in urban area under PMJDY across 23 states. The Bank has opened Lakhs accounts under PMJDY and the balance in these accounts was Rs Crores as on 30th June The average balance in the non-zero bal. accounts is Rs.3,638/- per account as against the national average 5 P a g e

6 of Rs.2388/-. The percentage of zero balance accounts has been on a declining trend and has reduced from 27.76% (as on ) to 20.17% (as on ). Out of the Lakhs accounts opened under PMJDY, RuPay card has been issued to 97.82% of the accounts and passbooks have been issued to 90% accounts. Further 62.31% of the accounts opened under PMJDY have been seeded with Aadhaar numbers. Implementation of Social Security Schemes: In terms of The Department of Financial Services, Ministry of Finance, Govt. of India instructions, our Bank rolled out Pradhan Mantri Jeevan Jyothi Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY). Performance under these schemes as on 30 th June, 2016 is as under: NEW INITIATIVES Scheme No. of enrollment PMJJBY PMSBY APY TOTAL Bank has entered into an agreement with CSC e-governance Service India Ltd. for extending banking services through their Common Service Centers (CSCs) across the country. The Bank has implemented Kiosk software in 275 CSC locations as on and has taken steps to expand the model in all CSCs present in the wards allotted to our Bank in DBT/DBTL districts and also in other places across the country. Bank has taken all the required steps to implement DBTL scheme of the Government, details of which are furnished below: Bank is participating in Aadhaar Payment Bridge System (APBS) and Aadhaar enabled Payment System (AEPS) implemented by NPCI under DBTL Scheme. Implemented interoperability for on-us transactions and for off us transactions. Seeding of Aadhaar number in the Bank accounts is being done on daily basis as and when the details are received at branches. To support STAND UP INDIA initiative of Govt of India, Corporation Bank is offering 25 bps concessions in interest rate to women beneficiaries in addition to 50 bps concession available to guarantee covered accounts. In association with well-known and reputed Non-Governmental organization, the Bank is empowering women in rural areas of Karnataka state. 6 P a g e

7 To make MSME lending environmentally sustainable, Corporation Bank has adopted Environment and Social Risk Framework (ESRF) guidelines of World Bank /SIDBI for SME borrowers engaged in manufacturing activities and requesting credit facilities above Rs lakh CSR & EMPOWERMENT INTIATIVES Corporation Bank Economic Development Foundation [CBEDF]: The Corporation Bank Economic Development Foundation is a non-profit economic outfit Trust has been pursuing its objectives of fulfilling social obligation in tune with corporate mission. Amongst others, CBEDF implemented following major projects during April-June of CorpKiran Project of CBEDF: For the welfare of underprivileged, through CorpKiran, Bank has extended a financial grant to various Institutions in the first quarter of The activities mainly included providing water purifier to Charitable Hospital, Computers to schools and Medicine and walker to old age home. Corporation Bank Self Employment Training Institutes [COBSETI]: COBSET Institutes at Chikmagalurand Kudige in Kodagu district are regularly conducting training Programmes to train the rural un-employed youth of these two districts. During the first quarter of , 551 candidates have been trained by both the institutes. The settlement rate of the candidates trained by these institutes is nearly 75%. Gramina Abhyudaya Financial Literacy Trust [GAFL Trust] GAFL Trust sponsored by the Bank is regularly conducting financial literacy camps at various places through Financial Literacy Centers [FLCs]. These Centers conduct Financial Literacy camps in line with the revised RBI guidelines. The FLOs are engaged in educating the PMJDY account holder to make use of the accounts opened under PMJDY and to avail the associated benefits of using the RuPay cards. The Centers also guide the common people for enrolment under various Social Security Schemes of Govt. of India. During April-June , the Trust conducted 670 Financial Literacy Camps at schools, colleges, other institutions and SHGs, involving persons. SHG formation: The Bank has promoted 2904 new Self Help Groups (SHGs) in Hassan, Mandya, Belgaum, Tumkur & Ramanagara districts of Karnataka during April June 2016.Through this major initiative, Bank has ensured that the members of groups have access to banking facilities including deposits and loans. 7 P a g e

8 Bank under the aegis of Corporation Bank Economic Development Foundation donated computer and cup-board to SDM Mangala Jyoti Integrated School, Vamanjoor, Mangaluru. NEW PRODUCTS Corporation Bank launched a new facility called Green PIN, an online module for generation of PIN for credit card holders. The facility enables credit card users to generate the Personal Identification Number (PIN) online. Shri. S. K. Roy, Chairman, LIC of India launched the facility at the Apex Level meeting between LIC of India and Corporation Bank in the presence of Shri. Jai Kumar Garg, MD and CEO of Corporation Bank. EXCELLENCE AWARD ON EMPOWERING MSMES 2016 Shri Jai Kumar Garg, Managing Director & CEO of Corporation Bank receiving the award from Shri Kalraj Mishra, Honorable Union Minister for MSMEs, Government of India at New Delhi on 3rd May, P a g e

9 Financial Indicators [Rs. In Crores] Variation Mar 16 [Q4] June 15 [Q1] June 16 [Q1] Q1 [ ] over Q1[15-16] Q1 [ ] over Q4[15-16] Abs. % Abs. % Operating Profit % % Net Profit % Total Income 5, , , % % Interest Income 4, , , % % Net Interest Income , , % % Non-Interest Income from Core Areas % As at : 31st March 30th June 30th June Variation Abs Variation % 2016 [12M] June 16/June 15 June 16/June 15 Total Business 3,45,493 3,32,427 3,35,445 3, % Deposits 2,05,170 1,92,102 1,98,502 6, % Average Deposits 1,91,611 1,90,506 2,00,804 10, % Net Advances 1,40,322 1,40,325 1,36, % Average Advances 1,41,544 1,40,600 1,34, % Investments 63,280 52,374 61, % Average Investments 55,581 54,081 63, % 10.88% 11.91% 10.52% CRAR- Under Basel II 7.33% 8.41% 7.13% Tier I 3.55% 3.50% 3.39% Tier II CRAR - Under Basel III Tier I Tier II 10.56% 7.93% 2.63% 11.28% 8.18% 3.10% 10.27% 7.71% 2.56% Net Worth ,689 11,520 Gross NPAs (as % to gross advances) 9.98% 14, % 7, % 15,726 Absolute Net NPAs (as % to net advances) Absolute 6.53% 9, % 4, % 9,882 9 P a g e