OBC posts Rs 102 cr profit in Q2

Oriental Bank of Commerce (OBC) Thursday reported a profit of Rs 101.74 crore for the second quarter ended September 30, despite increase in bad loans.

It had reported a net loss of Rs 1,749.90 crore in the corresponding July-September quarter of 2017-18, OBC said in a BSE filing.

However, total income of the state-owned lender declined to Rs 4,967.29 crore during the quarter, as against Rs 5,511.70 crore in the same period of 2017-18.

Asset quality dented further as gross NPAs, as a percentage of gross advances, hit 17.24 per cent by the reported quarter as against 16.30 per cent as on September 30, 2017. In absolute terms, NPAs stood at Rs 25,673.31 crore against Rs 26,431.86 crore.

Net NPAs rose to 10.07 per cent (Rs 13,795.23 crore) of the net loans by end of September quarter 2018-19 from 9.44 per cent (Rs 14,128.29 crore) in the year-ago period.

However, total provisioning eased to Rs 1,073.75 crore for the quarter, down from Rs 3,146.92 crore a year ago.

At the end of the reported quarter, the capital adequacy ratio of the bank stood at 10.35 per cent as compared to 10.60 per cent in the same period a year ago.

The bank further said RBI grants banks an option to spread provisioning for mark to market (MTM) losses on investments held in bonds for the June quarter 2018 equally over up to four quarters, commencing with the first quarter.

"Accordingly, during the quarter and half-year ended September 30, 2018, Rs 144.34 crore and Rs 288.68 crore ,respectively have been charged to the profit and loss account towards such MTM losses and the balance unamortised MTM loss as on September 30 is Rs 288.68 crore," it said.