OBC expects net profit to cross Rs 1,000 cr

State-owned Oriental Bank of Commerce today said it expects net profit of the bank to cross the landmark level of Rs 1,000 crore by the end of the current fiscal.

"Given the track record we should cross Rs 1,000 crore (net profit) during the current fiscal," Oriental Bank of Commerce Chairman and Managing Director T Y Prabhu said after introducing mobile banking.

The bank has already posted a net profit of Rs 817 crore in the first three quarters of 2009-10.

During the last quarter September-December 2009, the bank reported a 14.76 per cent growth in net profit at Rs 289.43 crore.

Asked about the Net Interest Margin (NIM) outlook, Prabhu said, the fiscal should close with NIM of 2.25 per cent against 2.20 per cent last fiscal.

The NIM of the bank improved to 3 per cent at the end of the third quarter compared to 2.02 per cent in the same quarter previous fiscal.

Talking about the mobile banking facility introduced by the bank, Prabhu said "we are taking convenience to a new level by providing customers with an ability to stay connected with their bank even when they are on the go."

Customers shall now be able to make balance enquiries, make inter-bank or intra-bank fund transfer through his or her mobile phone, he said.

Asked about hike in deposit rates, Prabhu said, "there is enough liquidity in the system and therefore I don't expect the rates to go up before March this year."

At the same time there is strong deposit growth taking place, he added.

The business mix of the bank increased to Rs 1,92,796 crore as on February 16, 2010, registering a growth of 21.7 per cent.

The total business of the bank is expected to cross Rs 2 lakh crore by the end of the current fiscal, he said.

Total deposits of the bank increased to Rs 1,12,833 crore registering a growth of 22.05 per cent while advances grew by 21.2 to Rs 79,964 crore at the end of February 16, 2010.

The bank has opened 66 branches so far in the current fiscal and will open another 40 branches by March end, he said, adding, the total branch network will thus cross 1,500.

Capital adequacy ratio of the bank stood at 13.20 per cent for the quarter ended December 31, 2009.