Oriental Bank of Commerce Q2 net rises 24% to Rs 126 crore

Oriental Bank of Commerce's total income rose 15 per cent to Rs 5,702 crore in July-September as compared with Rs 4,967 crore in the year-ago period.

New Delhi: Oriental Bank of Commerce (OBC) on Tuesday reported a 23.5 per cent 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 per cent 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 per cent to Rs 1,456 crore in the quarter under review, while the non-interest income was up 35 per cent to Rs 824 crore.

The net interest margin (NIM), a difference of interest gained and expended, also increased 0.06 percentage points to 2.62 per cent during the quarter ended September 2019.

OBC's gross non-performing loan or bad loans came down to 12.53 per cent of the gross advances as on September 30, 2019, from 17.24 per cent at the end of September 2018.

Net bad loans also reduced to 5.94 per cent from 10.07 per cent 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 up-gradation of Rs 825 crore in 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 per cent higher at Rs 50.25 on the BSE.