Oriental Bank of Commerce Q1 net profit up 10%

Oriental Bank of Commerce reported 10.3% rise in net profit to Rs 391.4 cr for Q1.

Written by Agencies | New Delhi | Published: July 30, 2012 2:30:27 pm

Oriental Bank of Commerce (OBC) today reported a 10.3 per cent rise in net profit to Rs 391.4 crore for the first quarter ended June 30 on account of increase in net interest income.

The public sector bank had posted a net profit of Rs 354.7 crore for the first quarter (April-June) of the previous fiscal.

The total income of the bank increased by 19.7 per cent to Rs 4,695.5 crore during the first quarter of 2012-13 from Rs 3,920.3 crore in the corresponding year-ago period,OBC Chairman and Managing Director S L Bansal said.

During the period under review,the net interest income rose by 10.56 per cent to Rs 1,126 crore,compared to Rs 1,018 crore in the same period an year ago.

However,the net interest margin (NIM) of the bank declined to 2.79 per cent at the end of the first quarter against 2.94 per cent in June,2011.

The bank aims at clocking NIM of 3 per cent for 2012-13,he said.

Going forward,he said,the bank expects to register at least 20 per cent growth in net profit during the current fiscal.

The bank had a net profit of Rs 1,141.56 crore during 2011-12.

Asked about the capital requirement to meet Basel III norms beginning January 2013,he said,”the bank will need additional capital of Rs 800 crore to meet this”.

The bank expects credit growth of 16 per cent while deposits are likely to grow at 17 per cent during the current fiscal,Bansal said.

Total business of the bank as on June 30,stood at Rs 2,72,100 crore from Rs 2,42,770 crore at end of first quarter of previous fiscal,registering a growth of 12.06 per cent.

As far as asset quality of the bank is concerned,the gross NPAs as a percentage to total advances rose to 2.97 per cent from 2.07 per cent in the same quarter an year ago.

Its net NPAs also went up to 2.05 per cent during the three-month period from 1.09 per cent during the first quarter of 2010-11.

Capital Adequacy Ratio (CAR) of the bank stood at 12.29 per cent at the end of June,2012.

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