Oriental Bank of Commerce (OBC) on Wednesday announced a jump of 10.7 per cent in its net interest income (NII) during the second quarter of the current fiscal to Rs 1,280.94 crore.
The bank had posted NII of Rs 1,157.11 crore in the same quarter last fiscal. Bank’s total income also registered a jump of 3.45 per cent to Rs 4,987.71 crore againstRs 4,821.37 crore during Q2 FY13.
Bank’s retail credit segment grew by 15.61 per cent to Rs 15,197 crore in which vehicle loan segment was the performer. Vehicle loan portfolio grew by 16.36 per cent to Rs 1,483 crore along with housing loan segment which jumped by 15.46 per cent to Rs 6,629 crore on year on year (YoY) basis.
While the bank’s NII and total revenue registered growth, its net profit fell by 16.80 per cent to Rs 251.41 crore for the second quarter on account of rise in provisioning for bad loans. OBC had posted a net profit of Rs 302.19 crore in the same quarter last fiscal.
The net profit of bank has declined on account of rise in provision against bad debts, less recovery and loss in treasury operation. The bank’s provision for non-performing assets during the quarter rose by 30 per cent to Rs 331.93 crore as compared Rs 301.02 crore in the same quarter of the previous fiscal.
As far as asset quality of the bank is concerned, the gross NPAs as a percentage to total advances rose to 3.77 per cent from 2.92 per cent in the same quarter a year ago. Its net NPAs went up to 2.69 per cent from 2.04 per cent at the end of September 2012.
During the first half of 2012-13, the bank registered 12.81 per cent fall in net profit to Rs 604.79 crore, compared to Rs 693.61 crore in the same period a year ago. Asked about the profit outlook, Bansal said, “We expect to maintain last year’s profit. last fiscal, we had recorded a net profit of Rs 1,327.95 crore. And till now we have made Rs 604.79 crore profit and hope to take it around Rs 1,300 crore by end of this fiscal.”