Oriental Bank net rises to Rs 686 crore

New Delhi: Oriental Bank of Commerce (OBC) has recorded a net profit of Rs 686 crore in 2003-04, a 50 per cent growth against Rs 457 crore in 2002-03. The operating profit was up by 31.8 per cent to Rs 1,533 crore as against Rs 1,163 crore.

OBC announced a total dividend of 50 per cent for the year including the 20 per cent interim dividend it had paid earlier.

"The bank managed to increase its profit from Rs 457 crore in 2002-03 to Rs 686 crore in 2003-04 through high recovery of NPAs and reducing the cost of deposits," chairman and managing director, B.D. Narang said at a press conference.

Total business increased by 21.5 per cent to Rs 56,286 crore in 2003-04 against Rs 46,333 crore in the previous year.

The bank, which had brought down its net non-performing assets (NPA) to nil in fiscal 2002-03, has pruned its gross NPAs down from 6.9 per cent to 5.9 per cent in 2003-04. The bank has recovered Rs 557.58 crore worth of NPAs during fiscal 2003-04. OBC's capital adequacy stands at 14.47 per cent as against 14.04 per cent last year. The bank's net worth has increased to Rs 2,676.79 crore from Rs 2,109.33 crore in the previous fiscal.

The earnings per share have gone up to Rs 35.63 from Rs 23.73 during 2002-03. The bank has strengthened its retail portfolio by registering a 55.4 per cent growth at Rs 4,318 crore (Rs 2,779 crore).