OBC dazzles despite high NPA provisions
State-owned Oriental Bank of Commerce on Wednesday reported 49.1 per cent dip in net profit to Rs 153.27 crore for second quarter ended September 30, 2016-17, on higher provisioning for bad loans. The bank’s net profit stood at Rs 301.31 crore in the July-September quarter of 2015-16.
“Total income has decreased from to Rs 5,278.71 crore for the quarter ended September 30, 2016 as against Rs 5,454.13 crore in the same quarter of previous fiscal,” the bank said in a regulatory filing. Provisioning, a bulk of which is reserved to cover bad loans and contingencies, was raised to Rs 774.54 crore during the quarter, from Rs 589.42 crore parked aside by the bank in the same period of 2015-16.
The lender’s asset quality slipped further with gross non- performing assets rising to 12.36 per cent of the gross advances as on September 2016 from 5.70 per cent a year ago.Net NPAs or bad loans as a percentage of net advances as on September 2016, rose to 8.93 per cent as against 3.55 per cent. In absolute terms, gross NPAs amounted to Rs 18,382.53 crore from Rs 8,557.96 crore. Net NPAs were Rs 12,748.16 crore. OBC stock closed 0.60 per cent lower at Rs 115.35 on BSE on Wednesday.