Oriental Bank's first-quarter profit up 17 per cent
22 July 2009
Oriental Bank of Commerce on Tuesday reported a 17 per cent rise in net profit at Rs257.41 crore for the quarter ended 30 June on the back of healthy treasury and fee-based income. The bank had a net profit of Rs220.52 crore in the year-ago period.
Non-interest income grew by 91 per cent to Rs391.89 crore from Rs205.49 crore, while interest income increased by 23 per cent to Rs2,404 crore from Rs1,915 crore in the quarter. Operating profit grew by 46 per cent to Rs516.91 crore from Rs353.73 crore. However, net interest margin remained under pressure at 1.83 per cent.
Addressing a press conference in New Delhi, Alok K Misra, chairman and managing director, said despite difficult market conditions, the bank had posted encouraging results with its focussed business strategy and continuing support of over 12 million customers.
The bank expects a credit growth of 20-21 per cent during the current financial year, Misra said, adding that deposits were also expected to grow at a similar pace.
He said the bank would raise up to Rs500 crore from tier-I and tier-II bonds to meet the credit growth target of 21 per cent during the current fiscal. He added that the timing of the issue would depend on the requirement and interest rate conditions in the market.