OBC net up to Rs 143.42 cr

BS 200 SCORECARD

Oriental Bank of Commerce reported an increase of 12.31 per cent in its net profit to Rs 143.42 crore for the quarter ended December 31, 2005, as compared with Rs 127.70 crore for the same quarter in 2004-05.

Total income has increased 9.34 per cent to Rs 1,176.14 crore from Rs 1,075.61 crore in the year-ago period, the bank informed the Bombay Stock Exchange.

The bank recorded lower profits owing to higher operating expenses on account of payment of wage arrears, increase in rent and taxes and hike in premium.

OBC shifted government securities from asset for sale (AFS) to held to maturity (HTM) category to insulate its investment portfolio against rising interest rates.

Earlier, the bank had said it expects to raise Rs 500 crore tier II capital by the end of February.

On the sidelines of the bank's tie-up with Franklin Templeton to sell mutual fund products K N Prithviraj, chairman and managing director, Oriental Bank of Commerce, had said, "We are looking at a suitable interest rate to raise the tier II capital, which is expected to happen during the end of January or February."

The board of directors has given its approval. Prithviraj said though there is no urgent need for capital at present, he expects the interest rates to firm up, and raising of the tier II capital will, then, enable the bank to access funds.