The company’s net interest income rose 10.7 per cent to Rs. 1,280.94 crore (FY 2013-14) as compared to Rs 1157.11 in the same period of last fiscal.
The net interest margin of the company which is an important measure of profitability increased to 2.87 per cent in July-September period from 2.79 per cent in the same period last year, though non-interest income declined to 23 per cent. The cost deposit ratio of the financial institution also rose to 75.15 per cent from 72.49 per cent. OBC chairman and managing director S L Bansal said that the bank aims the net interest margin of 2.85 per cent for the entire fiscal. He further commented on the loan growth and said, ‘We have decided to consolidate during this year. We are expecting a credit growth of around 10 per cent this fiscal.’
Elaborating on the highlights of the financial results for September 2013, Bansal said that the gross non-performing assets of the firm have increased to 3.77 per cent at the end of the quarter, against 2.92 per cent at the end of September 2012 and the net bad loans have gone up to 2.59 per cent from 2.04 per cent.
‘The pressure on asset quality has continued. Banks were hoping that the economy has bottomed out. It will be a challenge for banks to rein in bad debts till the economy does not revive,’ Bansal added.
The net interest margin of the company which is an important measure of profitability increased to 2.87 per cent in July-September period from 2.79 per cent in the same period last year, though non-interest income declined to 23 per cent. The cost deposit ratio of the financial institution also rose to 75.15 per cent from 72.49 per cent. OBC chairman and managing director S L Bansal said that the bank aims the net interest margin of 2.85 per cent for the entire fiscal. He further commented on the loan growth and said, ‘We have decided to consolidate during this year. We are expecting a credit growth of around 10 per cent this fiscal.’
Elaborating on the highlights of the financial results for September 2013, Bansal said that the gross non-performing assets of the firm have increased to 3.77 per cent at the end of the quarter, against 2.92 per cent at the end of September 2012 and the net bad loans have gone up to 2.59 per cent from 2.04 per cent.
‘The pressure on asset quality has continued. Banks were hoping that the economy has bottomed out. It will be a challenge for banks to rein in bad debts till the economy does not revive,’ Bansal added.