OBC net profit rises by 35%

CORPORATE SCORECARD

Riding on higher income from advances and investments, public sector lender Oriental Bank of Commerce (OBC) has posted a 35 per cent growth in the net profit at Rs 237 crore in the second quarter ended September 30, as compared to Rs 175 crore in the corresponding period last year.

The total income of the bank rose by 32 per cent to Rs 2,361 crore during the July-September period of 2008-09 as compared to Rs 1,788 crore in the same period last financial year. Interest income grew by 30.7 per cent to Rs 2,152 crore during the quarter as against Rs 1,645 crore in the year ago period.

 

Besides higher interest income, the bank has also booked significant gains in the investment portfolio. Its income from stock market investments grew by 14.6 per cent at 515 crore as against Rs 449 crore in the year ago period. However, the bank has shown a loss of Rs 122 crore in the government securities portfolio. The total business (deposits and advances) of the bank grew by 28 per cent to Rs 1,48,489 crore as on September 30 this year as compared to Rs 1,16,043 crore a year ago. Advances grew by 30 per cent while deposits were up by 27 per cent during the period. “We expect advances and deposits to grow by 20-22 per cent in FY09,” Misra said.

The bank has a capital adequacy ratio of 12.03 per cent, which will come down to 11.37 per cent after taking into account the Basel-II norms. Gross non performing assets stood at Rs 1,177 crore while net NPAs stood at Rs 525 crore. In percentage terms, gross NPAs have declined to 1.93 per cent from 2.96 per cent a year ago and net NPAs have come down to 0.86 per cent from 0.99 per cent in the year ago period.