Oriental Bank of Commerce Q1 profit up 3% at Rs 365 cr

Written by PTI | New Delhi | Updated: Aug 5 2014, 07:08am hrs
Oriental Bank of Commerce (OBC) on Monday reported a marginal 3.16% rise in net profit to R364.54 crore in the first quarter ended June 30 as provisioning against bad loans increased.

The public sector bank had posted a net profit of R353.38 crore in the first quarter a year earlier. Total income increased 6.09% to R5,576.03 crore from R5,255.70 crore in the year-ago period, OBC CMD SL Bansal said.

Net profit has been flat because of increase in provisions compared to the same period of the last fiscal, he said. Total provisions rose to R774 crore against R734.89 crore in the same period of the previous fiscal. Provision for bad loans increased sharply to R478 crore against R345 crore. Gross non-performing assets (NPAs) as a percentage of total advances rose to 4.33% from 3.36%. Net NPAs went up to 3.11% from 2.34%. The net interest income also declined 5% to R1,243 crore, compared with R1,307 crore in the same period a year ago.

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

Bansal said the bank has requested the government for a R500-crore capital infusion. The government infused R150 crore into the bank last fiscal to enhance capital base.

Total business as of June 30 stood at R3,24,861 crore against R3,04,269 crore at end of the first quarter in the previous fiscal, a growth of 6.77%.