Corporation Bank - Well-Managed PSU Bank

Corporation Bank (CB) is a mid-sized public sector bank, with 1,000-plus branches in the southern and western parts of the country. It has the reputation of being one of the best-managed public sector banks in India with a relatively clean balance sheet and an impressive track record. Strengths Operating efficiency: The bank’s operating efficiency ratios have improved markedly over the past three years. Its employee cost as a percentage of income has come down from its peak of 11.37 per cent in FY06 to 7.45 per cent in FY10. But on a quarter-on-quarter (q-o-q) basis the company’s operating cost has been rising: its cost-to-income ratio stood at 39.1 per cent in Q2FY11, compared to its own eight-qua