OBC Q1 net plummets 29% at Rs 257.84 cr

Higher provisioning for bad loans brought down the net profit of Oriental Bank of Commerce (OBC) by 29 per cent at Rs 257.84 crore during the April-June quarter of the current fiscal.
The public sector bank had posted a net profit of Rs 364.54 crore in the first quarter a year ago.
Total income also declined marginally to Rs 5,568.78 crore from Rs 5,576.03 crore in the corresponding year-ago period, the bank said in a filing on the BSE.
Total provisions rose to Rs 786.65 crore against Rs 777.18 crore in the same period of the previous fiscal. Provision for bad loans increased to Rs 595.75 crore as against Rs 478.26 crore in the same period a year ago.

Gross non-performing assets (NPAs) as a percentage of total advances rose to 5.85 per cent from 4.33 per cent. Net NPAs went up to 3.76 per cent from 3.11 per cent in the first quarter of the previous fiscal.
The net interest income rose 6.90 per cent to Rs 1,328.51 crore, compared with Rs 1,242.75 crore in the same period a year ago.

Gross NPA in absolute terms increased to Rs 8,577.04 crore from Rs 5,982.85 crore in the first quarter of the last fiscal. At the same time, net NPA rose to Rs 5,357.77 crore from Rs 4,228.81 crore in the June quarter of the last fiscal.

The bank's net interest margin, however, remained unchanged at 2.65 per cent at the end of the first quarter.
Total business as of June 30 stood at Rs 3,42,507 crore from Rs 3,24,861 crore at end of the first quarter in the previous fiscal, a growth of 5.43 per cent.