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Oriental Bank of Commerce (OBC) on Thursday posted 16.25 per cent rise in its net profit at Rs 307 crore for the fourth quarter ended March 31 against Rs 264 crore in the corresponding period of the previous year. It was driven by increase in non-interest income. “Major highlight for improvement in this performance is recovery under the technical written-off accounts that has improved substantially,” Chairman and Managing Director S L Bansal said.
Total income in the January-March period of 2012-13 rose 9.45 per cent to Rs 4,996 crore, compared with Rs 4,565 crore in the year-ago period.
Non-interest income increased 34.32 per cent to Rs 462 crore, against Rs 344 crore in the same quarter of the previous year. Net interest income increased 13.63 per cent to Rs 1,214 crore from Rs 1,068 crore in the fourth quarter of 2011-12. Net interest margin improved slightly to 2.82 per cent from 2.8 per cent in the year-ago quarter.
Shares of OBC closed 7.3 points or 2.72 per cent lower at Rs 260.75 on the Bombay Stock Exchange on Thursday. The board of directors of the bank proposed a dividend of Rs 9.20 a share for 2012-13.
For the full financial year 2012-13, net profit rose by 16.33 per cent to Rs 1,327.95 crore from Rs 1,141.56 crore in 2011-12. Total income increased 13.51 per cent to Rs 19,359.49 crore.
Non-performing assets (NPAs) rose to 2.27 per cent in 2012-13 from 2.21 per cent a year ago while gross NPA rose to 3.21 per cent from 3.17 per cent. Capital adequacy ratio of the bank stood at 12.04 per cent according to Basel-II norms.
