NEWS & ADVICE : FIXED DEPOSITS
OBC net profit dips by 8% in Q3
By Neelima Shankar
Jan 28, 2013
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State owned, Oriental Bank of Commerce reported decline in net profit by 7.8 per cent at Rs 326.40 for the third quarter which ended on 31st December due to increase in bad loans.

The bank had reported a net profit of Rs 354.22 crore for the corresponding period of the previous financial year.

Chairman and Managing Director Mr. S L Bansal said, "The decline in net profit is due to the increased provisioning for restructured advances and Rs 30 crore provisions for expected wage revision". The bank has made a provision of Rs 78 crore towards restructured assets.

Total provisions of the bank during the third quarter grew to Rs 603.83 crore as compared with Rs 380.86 crore a year ago.

The gross non-performing assets (NPAs) also grew to 2.98 per cent from 2.92 per cent in December, 2011. Net NPAs rose to 2.14 per cent from 1.89 per cent in the same quarter of the previous fiscal.

Total income of the bank rose 7.9 per cent to Rs 4,846.54 crore during the third quarter from Rs 4,491.76 crore in the same period last year. Net interest income (NII) increased 5.66 per cent to Rs 1,204 crore from Rs 1,140 crore against the same period of the previous fiscal.

Net interest margin (NIM) stood at 2.84 per cent. Mr. Bansal said NIM was expected to increase to 2.95-3 per cent in the fourth quarter. Mr. Bansal said, "The net profit is expected to see a jump of at least 15 per cent in the entire financial year. We expect to close the financial year with a net profit of Rs 1,350 crore to 1,400 crore."


 


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