Oriental Bank of Commerce Q1 profit up 3 pc to Rs 365 cr
Oriental Bank of Commerce (OBC) today reported a marginal 3.16 per cent rise in net profit to Rs 364.54 crore
New Delhi: Oriental Bank of Commerce (OBC) today reported a marginal 3.16 per cent rise in net profit to Rs 364.54 crore in the first quarter ended June 30 as provisioning against bad loans increased.
The public sector bank had posted a net profit of Rs 353.38 crore in the first quarter a year earlier.
Total income increased 6.09 per cent to Rs 5,576.03 crore from Rs 5,255.70 crore in the corresponding year-ago period, OBC Chairman and Managing Director S L Bansal said.
“Net profit has been flat because of increase in provisions compared to the same period of the last fiscal,” he said.
Total provisions rose to Rs 774 crore against Rs 734.89 crore in the same period of the previous fiscal. Provision for bad loans increased sharply to Rs 478 crore as against Rs 345 crore in the same period a year ago.
Gross non-performing assets (NPAs) as a percentage of total advances rose to 4.33 per cent from 3.36 per cent. Net NPAs went up to 3.11 per cent from 2.34 per cent.
The net interest income also declined by 5 per cent to Rs 1,243 crore, compared with Rs 1,307 crore in the same period a year ago.
The bank’s net interest margin declined to 2.56 per cent at the end of the first quarter from 2.9 per cent in June 2013.
Bansal said the bank has requested the government for Rs 500 crore capital infusion.
The government last fiscal infused Rs 150 crore in the bank to enhance capital base.
Total business as of June 30 stood at Rs 3,24,861 crore from Rs 3,04,269 crore at end of the first quarter in the previous fiscal, a growth of 6.77 per cent.
OBC recorded a credit growth of 8 per cent to Rs 1.38 lakh crore, while deposits grew 5.83 per cent Rs 1.86 lakh crore at the end of the first quarter.
The bank expects credit and deposit growth of 12 per cent during the entire fiscal, Bansal said.
Shares of the bank closed at Rs 282.35, up 0.36 per cent on the BSE.