Oriental Bank of Commerce Q1 profit drops 10% to Rs 353 cr
New Delhi: Oriental Bank of Commerce (OBC) on Saturday reported a 9.7 percent decline in net profit to Rs 353.38 crore in the first quarter ended June 30 on account of higher provisioning.
The public sector bank had posted a net profit of Rs 391.42 crore in the first quarter a year earlier.
Total income increased 11.93 percent to Rs 5,255.70 crore from Rs 4,695.5 crore in the corresponding year-ago period, OBC Chairman and Managing Director S L Bansal said.
Provisions rose to Rs 734.89 crore against Rs 505.12 crore in the same period of the previous fiscal.
Gross non-performing assets (NPAs) as a percentage of total advances rose to 3.36 percent from 2.97 percent. Net NPAs went up to 2.34 percent from 2.05 percent.
Net interest income rose 16.09 percent to Rs 1,307 crore, compared with Rs 1,126 crore in the same period a year ago.
The bank's net interest margin declined to 2.9 percent at the end of the first quarter from 2.79 percent in June 2012.
The bank had a capital adequacy ratio of 12.02 percent at the end of June.
Total business as of June 30 stood at Rs 3,04,269 crore from Rs 2,72,048 crore at end of the first quarter in the previous fiscal, a growth of 11.84 percent.
OBC recorded a credit growth of 12.38 percent to Rs 1.27 lakh crore, while deposits grew 11.4 percent Rs 1.76 lakh crore at the end of the first quarter.
The bank expects credit and deposit growth of 13-14 percent during the entire fiscal, Bansal said.
Asked about raising lending rates in the backdrop of measures taken by the Reserve Bank of India, Bansal said there is no plan at the moment and the bank would take a call on it after 20-25 days.
The bank plans to open 125-150 branches across the country to increase its network, which is currently at about 2,000.