OBC Q3 Net down 31 pc at Rs 224 cr on rising bad loans

Tags: OBC, Companies
Higher provisioning for bad loans pulled down the net profit of Oriental Bank of Commerce (OBC) by 31.2 per cent to Rs 224.30 crore in the third quarter ended December 2013.

The public sector bank had a net profit of Rs 326.40 crore in the October-December quarter of 2012-13.

The gross non-performing assets of the bank rose to 3.87 per cent from 2.98 per cent in the December quarter of 2012-13 fiscal.

Its net NPAs also rose to 2.91 per cent from 2.14 per cent in the same quarter of 2012-13.

Provisioning for bad loans and contingencies stood at Rs 561 crore in third quarter of 2012-13.

Total income of the bank increased to Rs 5,063.98 crore during the quarter from Rs 4,846.54 crore in the corresponding period a year ago.

The operating expenses of the bank went up by 9 per cent to Rs 712.84 crore during the December quarter.

During the quarter, the government infused Rs 150 crore by way of preferential allotment leading to increase in government shareholding in the bank to 59.13 per cent from 58 per cent.

Interest income during the third quarter increased by 5.68 per cent to Rs 4,723 crore from Rs 4,469 crore in the same period of the previous fiscal.

The revenue from treasury operations during the December quarter was Rs 1,169 crore, up from Rs 1,057 crore in the year-ago period.

Wholesale and corporate banking revenues declined marginally to Rs 2,662 crore, from Rs 2,678 crore during the year ago period.

Retail banking revenues were Rs 2,169 crore during the December quarter, up from Rs 1,969 crore in the same period a year ago.

During the first nine months of 2013-14, the net profit of the bank dipped 19 per cent to Rs 829.09 crore from Rs 1,020.01 crore in the same period a year ago.

It reported a total income of Rs 15,307 crore in the first three quarters, compared to Rs 14,363 crore in the same period last financial year.

Capital Adequacy Ratio (CAR) of the bank stood at 11 per cent at the end of third quarter.

Shares of OBC were trading at Rs 173.80, up 3.67 per cent over previous close on the BSE.

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