OBC turns profitable in Q2 on lower provisions; asset quality improves...
Public sector lender Oriental Bank of Commerce turned profitable in July-September quarter despite lower other income and operating income. The bank reported net profit at Rs 101.7 crore for the quarter against loss of Rs 1,750 crore in year-ago and loss of Rs 393.21 crore in June quarter. Lower provisions and tax reversal helped the bank come back in black. Net interest income grew by 1.8 percent year-on-year to Rs 1,275 crore with loan degrowth at 8.5 percent for quarter ended September 2018. Asset quality improved sequentially as gross non-performing assets declined at 17.24 percent against 17.89 percent in June quarter. Net NPA also fell at 10.07 percent against 10.63 percent QoQ. In absolute terms also, gross NPAs were down 1.8 percent quarter-on-quarter to Rs 25,673 crore and net NPAs down by 3.3 percent to Rs 13,795 crore in second quarter of FY19. The bank has reported provisions and contingencies at Rs 1,074 crore, which were lower by 30 percent sequentially and 67 percent YoY. Provision coverage ratio also improved to 65.31 percent at the end of September quarter against 64.5 percent in June quarter. The bank has received tax write-back of Rs 203 crore during the quarter against expenses of Rs 20 crore in same period last year. Other income (non-interest income) as well as operating profit dropped sharply by 37 percent each to Rs Rs 677.72 crore and Rs 972.5 crore in Q2 YoY.
Public sector lender Oriental Bank of Commerce turned profitable in July-September quarter despite lower other income and operating income. The bank reported net profit at Rs 101.7 crore for the quarter against loss of Rs 1,750 crore in year-ago and loss of Rs 393.21 crore in June quarter. Lower provisions and tax reversal helped the bank come back in black. Net interest income grew by 1.8 percent year-on-year to Rs 1,275 crore with loan degrowth at 8.5 percent for quarter ended September 2018. Asset quality improved sequentially as gross non-performing assets declined at 17.24 percent against 17.89 percent in June quarter. Net NPA also fell at 10.07 percent against 10.63 percent QoQ. In absolute terms also, gross NPAs were down 1.8 percent quarter-on-quarter to Rs 25,673 crore and net NPAs down by 3.3 percent to Rs 13,795 crore in second quarter of FY19. The bank has reported provisions and contingencies at Rs 1,074 crore, which were lower by 30 percent sequentially and 67 percent YoY. Provision coverage ratio also improved to 65.31 percent at the end of September quarter against 64.5 percent in June quarter. The bank has received tax write-back of Rs 203 crore during the quarter against expenses of Rs 20 crore in same period last year. Other income (non-interest income) as well as operating profit dropped sharply by 37 percent each to Rs Rs 677.72 crore and Rs 972.5 crore in Q2 YoY.
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