Oriental Bank of Commerce Q2 net rises 24 pc to Rs 126 cr

Oriental Bank of Commerce (OBC) on Tuesday reported a 23.5 percent rise in net profit at Rs 126 crore in the second quarter ended September of the current fiscal year. The state-owned bank had posted a net profit of Rs 102 crore in the corresponding July-September period last fiscal.

The bank's total income rose 15 percent to Rs 5,702 crore in July-September as compared with Rs 4,967 crore in the year-ago period. Net interest income also rose 15 percent to Rs 1,456 crore in the quarter under review, while the non-interest income was up 35 percent to Rs 824 crore.

The net interest margin (NIM), the difference of interest gained and expended, also increased 0.06 percentage points to 2.62 percent during the quarter ended September 2019. OBC's gross non-performing loan or bad loans came down to 12.53 percent of the gross advances as of September 30, 2019, from 17.24 percent at the end of September 2018.

Net bad loans also reduced to 5.94 percent from 10.07 percent a year ago. However, provision for bad loans rose to Rs 1,050 crore during the quarter as against Rs 832 crore parked aside in the year-ago period.

The bank said there were fresh slippages to the tune of Rs 1,388 crore during the quarter that emanated from loans to retail, agri, MSME and other sectors. Textile, iron and steel, manufacturing and wholesale distribution were among the major industries contributing to fresh slippages.

There were cash recoveries and upgradation of Rs 825 crore in the September quarter of 2019-20 as against Rs 1,491 crore in the corresponding quarter last year. Shares of OBC on Tuesday closed 1.41 percent higher at Rs 50.25 on the BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)