NEW DELHI: Public sector lender, Oriental Bank of Commerce (OBC), has reported a 41.14% jump in its net profit at Rs 363.31 crore for the quarter ended June 30.
The company’s scrip increased by 5.95% on the Bombay Stock Exchange while the Bankex, the index for banking stocks, increased by 0.92%. The bank had posted a net profit of Rs 257.41 crore for the first quarter of the previous fiscal.
OBC reported an increase of 8.92% in total income to Rs 3,045.54 crore for the first quarter against Rs 2,796.10 crore in the year-ago period. The public sector bank said it will review its deposit rates on Saturday, following the Reserve Bank’s move to increase short-term policy rates earlier this week.
“We will take a view on the deposit rates in our ALCO (Asset Liability Committee) meeting on Saturday,” OBC chairman and managing director TY Prabhu said after announcing the first quarter results.
Mr Prabhu said lending rates are likely to remain stable till September this year and long-end lending rates would go up, depending on credit growth. “There is pressure on short-term deposit rates in light of the existing liquidity situation and expected credit growth in the coming months,” he said.
OBC reported a revenue of Rs 1,805.78 crore from its corporate banking segment during the first quarter of this fiscal, up 17.20% over the figure of Rs 1,540.79 crore for the same period of 2009-10.
The capital adequacy ratio of the bank stood at 12.44% for the quarter ended June 30, 2010. Credit pipeline seems very strong, said Mr Prabhu.
“There are around Rs 8,000-10,000 crore loan sanctions at various stages, mostly related to the infrastructure sector,” he said, adding that once the credit demand picks up, disbursal would start taking place.
The bank’s revenue from the retail banking segment went up by 35.55% during the quarter ended June 30 to Rs 939.90 crore against Rs 693.42 crore in the corresponding period last year
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