Oriental Bank of Commerce Q2 net up 80%

Total recovery was Rs 449 cr during in July-September 2012-13, compared with Rs 303 cr y-o-y

Oriental Bank of Commerce (OBC) today reported 80.15% rise in net profit at Rs 302.19 crore for the second quarter ended September 2012, against Rs 167.74 crore in the year ago period. The growth came on the back of recovery from bad loans, treasury profits and improvement in interest margins.

“The net profit of bank has gone up substantially on annual basis as there has been strong recovery of assets which had gone bad in the past and lower provisions for non-performing loans,” OBC Chairman and Managing Director S L Bansal told a press conference.

Total recovery was Rs 449 crore during in July-September 2012-13, compared with Rs 303 crore in the same quarter of 2011-12. of the same period of the previous fiscal.

The total income increased by 18.21% to Rs 4,821 crore during the July-September quarter, from Rs 4,078.48 crore over the same period last year. Operating profit increases by 21.5% to Rs 921.23 crore. Capital Adequacy Ratio stood at 12.06% at the end of second quarter.

Net Interest Income (NII) was up 16.94% to Rs 1,157.10 crore. Net interest margin stood at 2.79%. The bank is aiming NIM of 2.85% for FY13.

Deposits stood at Rs 1,64,175 crore at the end of September 2013, showing a growth of 9.78%, while advances stood at Rs 1,18,844 crore depicting a growth of 12.53%. The bank is expecting credit growth of 16% this year.

Asked about exposure to Kingfisher Airlines, Bansal said the bank had given a loan of Rs 54 crore and it continued to be a standard asset as the company was servicing the loan.