State-owned Oriental Bank of Commerce (OBC) on Wednesday reported 15.94 per cent increase in its net profit at Rs 291.41 crore for the second quarter ended September on account of rise in fee income as compared to corresponding period last year. The bank had a net profit of Rs 251 crore in the same quarter last fiscal.
Bhupinder Nayyar, executive director, OBC said, "the net profit has gone up primarily due to rise in non-interest income and good recovery." Total income increased by 6.83 per cent to Rs 5,328.56 crore from Rs 4,987.71 crore in the same period last year.
As far as asset quality of the bank is concerned, the gross non-performing asset (NPA) as a percentage of total advances rose to 4.74 per cent from 3.77 per cent in the same quarter a year ago. Its net NPAs went up to 3.29 per cent from 2.69 per cent at the end of September 2013. Fresh slippages to NPA were, however, contained at Rs 978 crore as compared to Rs 1,041 crore in the same quarter a year ago.
Asset quality remains a challenge and the bank is making all efforts to contain it, he said.The non-interest income of the bank rose 25.90 per cent to Rs 392.64 crore as compared to Rs 311.87 crore in the second quarter of the previous fiscal.