Riding over spurt in recovery of technically written off accounts, state-run Oriental Bank of Commerce's (OBC) net profit for the fourth quarter of FY13 surged 16.25 per cent at Rs307.94 crore on Thursday.
At the same time for the full fiscal, the net profit rose 16.33 per cent to Rs1,327.95 crore, which is much more than the 15 per cent net profit growth that the bank had expected for FY13.
OBC's operating profit for the quarter ending March 31, 2013 rose a significant 25.5 per cent to 946.53 crore from Rs753.92 crore of the corresponding period. For the full fiscal, it rose by 17.52 per cent to Rs 3,690.69 crore.
"A major reason behind the increase in net profits has been the significant improvement in the technical written off accounts. We have recovered more than Rs 550 crore from technical written off accounts," the bank's Chairman and Managing Director (CMD) S l Bansal told reporters in a press conference.
last year, the recovery under the same head was only Rs 125 crore. The non-performing assets (NPAs) of the bank though rose to 2.27 per cent in 2012-13 from 2.21 per cent of the year ago period. While gross NPAs rose to 3.21 per cent from 3.17 per cent.
"Gross NPA has moved up by 4 basis points from 3.17 per cent to 3.21 per cent primarily because one large industrial advance has slipped to NPA category amounting to Rs465 crore," Bansal said, though he added that going by the challenging economic conditions, the rise in NPAs has been quite minimal.