OBC FY06 net should be Rs 800-900cr: Narang

Oriental Bank of Commerce (OBC) is expecting 32% growth in business at Rs 1,00,000 crore and a net profit of Rs 800-900 crore in 2005-06 even after the merger of Global Trust Bank (GTB).

"We hope we will conveniently touch a business of Rs 1,00,000 crore - Rs 60,000 crore in deposits and Rs 40,000 crore in advances - in March 2006," B D Narang, chairman of OBC, said while speaking at the roadshow for its second public offer.

The offer will open on April 25, and the bank is expected to raise up to Rs 1,700 crore by selling 5.8 crore equity shares. The scrip is hovering at over Rs 300 on the major bourses.

OBC is raising money to increase its capital adequacy ratio (CAR) to over 14%. OBC's CAR had dipped to 9% from 16% after the GTB merger. Narang said CAR may come down by 3% when the bank implements the stringent Basle-II norms by 2007.

He also expects the GTB unit to start contributing to operating profits from this quarter. "We expect Rs 800-900 crore in profits annually from the combined entity," Narang said.