Oriental Bank of Commerce net profit slumped 58% to R167.7 crore in the July-September quarter, against R397.65 crore in the same quarter previous fiscal. The profit fell on higher provisioning for bad loans and write offs, which rose 54.4% in the second quarter.
OBC stock closed down 4.73% at R290.15 at the Bombay Stock Exchange on Monday. Its net NPA ratio rose sharply to 1.90% against just 0.70% in the year-ago quarter. Its net interest margin (NIM) fell sharply to 2.64% in July-September 2011, from 3.30% in July-September 2010. The bank’s provision coverage ratio stood at 63.77%.
During the first half of 2011-12, OBC registered 31% fall in net profit to R522.44 crore, compared to R760.96 crore in the same period a year ago.