North India based Oriental Bank of CommerceNSE -1.40 % on Monday said that it is open to acquire other state run lenders and that the bank has managed to achieve a turn around.
OBC posted a net profit of Rs 202 crore for the last quarter of 2018-19, an increase of 39.02% as compared with the quarter ending December 2018. The company’s scrip on the BSE closed at Rs 92.30, down by 3.30% on a day when the banking sector barometer, Bankex lost 1.19%.
“We are now a strong bank, well capitalised and poised for growth”, said OBC’s managing director MK Jain adding that the bank has also identified some candidates for possible acquisition.
OBC posted a net profit of Rs 202 crore for the last quarter of 2018-19, an increase of 39.02% as compared with the quarter ending December 2018. The company’s scrip on the BSE closed at Rs 92.30, down by 3.30% on a day when the banking sector barometer, Bankex lost 1.19%.
“We are now a strong bank, well capitalised and poised for growth”, said OBC’s managing director MK Jain adding that the bank has also identified some candidates for possible acquisition.
Jain said that the bank will now look to raise around Rs 1,000 crore through a qualified institutional payment (QIP) route by the end of December quarter.
“We have managed a turn around. Our main focus was on recovery and upgradation and that has given results,” he said, adding that the bank has posted a 100% profit with Rs 55 crore for FY 2019 as compared with a net loss of Rs 5,872 crore in the previous fiscal.
For the current fiscal, OBC is looking at an overall credit growth of 10-12%, said Jain adding that their focus will be on retail, agriculture and medium small enterprises sector.
“We have managed a turn around. Our main focus was on recovery and upgradation and that has given results,” he said, adding that the bank has posted a 100% profit with Rs 55 crore for FY 2019 as compared with a net loss of Rs 5,872 crore in the previous fiscal.
For the current fiscal, OBC is looking at an overall credit growth of 10-12%, said Jain adding that their focus will be on retail, agriculture and medium small enterprises sector.
Bank is well capitalised at 12.73% as against minimum requirement of 10.875%, so we will not seek any capital from the government,” he added.
OBC made recoveries of around Rs 1,827 crore in the last quarter of this fiscal. Total recoveries in FY19 were of Rs 6,597 crore as against Rs 3,161 crore in the previous fiscal.
Net NPA or bad loans for the bank decreased to 5.93% at Rs 9,440 crore as against 7.15% (Rs 9,973 crore) in December 2018.
The bank which has around Rs 20,000 crore exposure to non-banking financial companies (NBFCs) said that most of this is in AAA rated firms.
OBC made recoveries of around Rs 1,827 crore in the last quarter of this fiscal. Total recoveries in FY19 were of Rs 6,597 crore as against Rs 3,161 crore in the previous fiscal.
Net NPA or bad loans for the bank decreased to 5.93% at Rs 9,440 crore as against 7.15% (Rs 9,973 crore) in December 2018.
Jain said that the bank is expecting recoveries of Rs 1,000 crore in the first quarter of this fiscal with around three more large cases being resolved through the Bankruptcy Code.
The bank which has around Rs 20,000 crore exposure to non-banking financial companies (NBFCs) said that most of this is in AAA rated firms.
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