Oriental Bank of Commerce chairman and managing director B D Narang expects the bank's net profit for 2004-05 to be lower on account of the merger of the failed Global Trust Bank (GTB) with itself. | |
| He, however, said the merger was proceeding smoothly and all issues on the liabilities side have been sorted out. |
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| "We have now taken up issues on the asset side, and will then resolve property and staff issues," he said. |
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| He sees the merger benefits to start showing over the next three years. |
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| "I see GTB contributing Rs 1.5-3.0 billion by March 2006," he said. |
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| He said GTB was currently a strategic business unit of the bank for technical reasons, but in due course would be integrated with the bank. |
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| He said the bank is not looking at any acquisitions till all issues relating to the GTB merger are fully resolved. |
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| The recent wage revision agreement signed with the bank's union will have an impact of Rs 600-700 million during the current year. But much of the increase has already been provided for, he said. |
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| The bank is also looking at expanding its presence in the eastern part of the country and has got more licenses from the Reserve Bank of India, he said. |
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| However, Narang said the bank was not looking at any acquisitions in the east and would be looking to grow organically. |
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| OBC opened a bank in Bhubaneshwar in Orissa Thursday. |
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