New Delhi: Oriental Bank of Commerce (OBC) on Thursday posted 80 percent jump in its net profit at Rs 302.19 crore for the second quarter ended September on the back of recovery from bad loans.
The state-owned bank had a net profit of Rs 167.74 crore in the same quarter last fiscal.
The net profit of bank has gone up substantially as there has been strong recovery of assets which had gone bad in the past and lower provisions for non-performing loans, OBC Chairman and Managing Director S L Bansal told reporters here.
On exposure to Kingfisher Airlines, he said that bank has given a loan of Rs 54 crore and it continues to be standard asset.
Total recovery, including upgradation was Rs 449 crore, during the the second quarter as against Rs 303 crore in the same period of the previous fiscal.
At the same time, provision during the quarter was Rs 459.88 crore as compared to Rs 485.34 crore in the same quarter a year ago.
The total income increased by 18.21 percent to Rs 4,821 crore from Rs 4,078.48 crore in the same period last year.
Operating profit rose by 21 percent to Rs 921 crore from Rs 758 crore in the same period of the previous fiscal.
Net interest income improved by 16.94 percent to Rs 1,157.10 crore.
Net interest margin (NIM) stood at 2.79 percent, Bansal said, adding the bank aims NIM of 2.85 percent for the entire fiscal.
The bank expects a credit growth of 16 percent during the year, he said.
During the first half of 2011-12, the bank registered 32 percent rise in net profit to Rs 693.61 crore, compared to Rs 522.44 crore in the same period a year ago.
The bank reported a total income of Rs 9,517 crore in the first six months, compared to Rs 7,999 crore in the previous financial year.
Total business of the bank as on September 30, stood at Rs 2,83,019 crore from Rs 2,55,163 crore at end of first quarter of previous fiscal, registering growth of 10.92 percent.
As far as asset quality of the bank is concerned, the gross NPAs as a percentage to total advances declined to 2.92 percent from 2.95 percent in the same quarter an year ago.
Its net NPAs, however, went up to 2.04 percent from 1.90 percent at the end of September 2011.
Capital Adequacy Ratio (CAR) of the bank stood at 12.06 percent at the end of second quarter.