Millennium Post

OBC quarterly net profit rises 3% to Rs365 crore

State-run Oriental Bank of Commerce on Monday reported 3.15 per cent increase in net profit to Rs 364.54 crore for the quarter ended 30 June.

The bank had reported a net profit of Rs 353.38 crore during the same quarter year-ago, Oriental Bank said in a filing to the Bombay Stock Exchange (BSE).

The bank's total income increased from Rs 5,255.7 crore for the quarter ended 30 June, 2013 to Rs 5,576 crore for the quarter ended 30 June, 2014.

Other income increased by 9.3 per cent to Rs 588.20 crore in the quarter under review from Rs 538.05 crore earlier.

OBC's gross non-performing assets (NPA) increased to 4.33 per cent of total advances as against 3.99 per cent reported last quarter and 3.36 per cent in the same period last fiscal.

The bank's net NPA as a percentage of total advances stood at 3.11 per cent as against 2.82 per cent sequentially.

In absolute terms, gross NPA shot up 39 per cent year-on-year (up 6.5 per cent quarter-on-quarter) to Rs 5,982.8 crore and net NPA rose 44 per cent y-o-y (up 8.3 per cent q-o-q) to Rs 4,228.8 crore in the first quarter of the current financial year.

Operating expenses of OBC during the quarter slipped 8.9 per cent year-on-year to Rs 689.23 crore against Rs 756.81 crore in the year-ago period.

The bank’s net interest margin declined to 2.56 per cent at the end of the first quarter from 2.9 per cent in June 2013.

Bansal said the bank has requested the government for Rs 500 crore capital infusion.
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