Oriental Bank Q1 net down 2.4% at Rs 354 cr

Public sector lender Oriental Bank of Commerce (OBC) today reported a 2.4% dip in net profit to Rs 354.7 crore for the quarter ended June 30, 2011, mainly on account of a rise in provisioning against bad assets.

It had posted a net profit of Rs 363.3 crore for the first quarter (April-June) of the previous fiscal, OBC said in a filing to the Bombay Stock Exchange (BSE).

However, total income of the bank increased by 28.7% to Rs 3,920.3 crore during the first quarter of 2011-12 from Rs 3,045.5 crore in the corresponding year-ago period.

Interest income of the bank rose to Rs 3,596.5 crore during the period under review from Rs 2,830.8 crore in the same quarter of the previous fiscal.

The bank made a provision of Rs 314.2 crore for bad assets during the quarter, compared to Rs 227.9 crore in the same quarter a year ago.

OBC's gross non-performing assets (NPAs) increased to 2.07% during the quarter ended June 30 from 1.74% in the same quarter a year ago, it said.

Its net NPAs also went up to 1.09% during the three-month period from 0.72% during the first quarter of 2010-11.