Oriental Bank of Commerce net rises by 43.5% to Rs 457 crore

New Delhi:Oriental Bank of Commerce (OBC) has recorded a net profit of Rs 457 crore for the financial year ended 31 March 2003 — a 43.5-per cent growth over the previous year's net of Rs 320 crore.

The gross profit for the year stood at Rs 1,163 crore — 26.82 per cent higher than the previous year's Rs 917 crore. For the fourth quarter ended 31 March 2003, the net profit was Rs 119.49 crore, a jump of 87.28 per cent over Rs 63.80 crore in the last quarter of the previous fiscal.

OBC chairman and managing director B D Narang says his bank has declared a dividend of 45 per cent for the fiscal, against 35 per cent in the previous year. "The rise in the profits was due to a combination of factors including reduction of cost of deposits, strict control on expenses, efficient cash management and large recoveries of NPAs [non-performing assets], besides treasury income."

The total business of the bank had gone up to Rs 45,486 crore from Rs 42,974 crore in the previous year. The net NPAs had come down to 1.4 per cent as compared with 3.1 per cent in the previous year. The capital adequacy ratio had gone up to 14.04 per cent against 10.99 per cent.