OBC to emerge as a global player by 2010

Oriental Bank of Commerce is drawing up a vision plan 2010 for becoming a global player in five years after consolidating its position in India.

"The bank is drawing a vision plan 2010 wherein OBC will like to reposition as a global player having strengthened its position at home," OBC's new chairman K N Prithviraj said today.

OBC also aims to transform itself from being a mere bank to a major financial services player, for which it would tie up with other players as well.

He said the bank will strive to improve its financial parameters by cutting non-performing assets and cost of deposit while increasing the return on assets, net interest margin and profits in the coming years.

Prithviraj said the bank expects a "handsome" profit growth this fiscal. Apart from OBC's own profits, he said the erstwhile Global Trust Bank, which OBC acquired last fiscal, will become a profit centre and help the bank post a higher net profit.

OBC's net profit was up by 11% at Rs 760.1 crore during 2004-05. Total income rose marginally to Rs 4,077 crore in 2004-05 as compared to Rs 4,022 crore in the previous year. OBC aims to increase its business by 33% to Rs 1,00,000 crore this fiscal with thrust on retail, small and medium sized enterprises.

Of the total business, prithviraj expects the GTB entity to contribute Rs 14,000 crore in business (deposits and advances) this fiscal, a jump of over 50% from Rs 9,000 crore in 2004-05.