The state-owned Oriental Bank of Commerce (OBC) today announced a 6.38 per cent increase in net profit to Rs 85.36 crore for the first quarter ended June 30 this year.
The bank, which reported a net profit of Rs 80.15 crore in the corresponding period last year, has made higher provisions for the first quarter. In the quarter ended June, the bank made provisions of Rs 42 crore against Rs 31 crore in the corresponding period last year. Provisions for taxes have been put at Rs 30 crore as against Rs 37.5 crore last year.
OBC chairman and managing director B D Narang said that higher provisions for staff, pensions and advances. He said the capital adequacy ratio has crossed the 12 per cent level compared with 11.81 per cent at the end of 2000-01.
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The bank reported operating profits of Rs 157.36 crore during the first quarter of the current financial year compared with Rs 148.65 crore in the corresponding period last year, representing an increase of 5.9 per cent.
The bank's income increased by a mere 2.23 per cent or Rs 17.09 crore to Rs 782.96 crore. Income on investment decreased to Rs 361.05 crore this year, compared with Rs 388.57 crore last year. On the other hand, expenses rose by 1.36 per cent to Rs 625.60 crore at the end of the first quarter.
During the quarter ended June 30 this year, earnings per share increased to Rs 4.43 compared to Rs 4.16 last year.