State-owned Oriental Bank of Commerce (OBC) on Monday reported a net profit of Rs 112.68 crore for the first quarter ended June 30, 2019, helped by improvement in asset quality and sharp decline in provisions.
"The public sector lender had posted net loss of Rs 393.21 crore in the corresponding quarter of the last year," OBC said in a filing to the Bombay Stock Exchange.
The Gurugram-headquartered lender's net interest income (NII), which is the difference between interest earned and interest expended, rose by 15.25 per cent to Rs 4,920 crore in Q1FY20 compared to Rs 4,269 crore in the same quarter last year.
The other income (non-interest income) jumped 55.10 per cent to Rs 715 crore against Rs 461 crore in the same period last year.
During the quarter under review, the operating profit stood at Rs 1,025.11 crore, while total income was Rs 5,634.98 crore as compared to Rs 4,729.58 crore posted in the same quarter last fiscal.
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The provisions and contingencies of the bank declined sharply to Rs 842.43 crore as compared to Rs 1,539.5 crore made in the year-ago quarter. Provision for NPAs for the quarter stood at Rs 865.48 crore as gainst Rs 1,222.51 crore in same quarter last year.
Oriental Bank of Commerce's asset quality improved during June quarter, with gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - falling to 12.56 per cent versus 17.89 per cent in the year-ago quarter. Net NPA declined to 5.91 per cent during June quarter as compared to 10.63 per cent in the corresponding quarter last year.
Shares of Oriental Bank of Commerce shares closed trade at Rs 80.35 apiece, down 2.01 per cent, on the BSE on Monday.
Edited by Chitranjan Kumar
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