Oriental Bank of Commerce has surged 7% at Rs 228 after reporting a better-than-expected net profit of Rs 391 crore for the quarter ended June 2012, on back of higher other income and lower provisioning. Analysts, on an average, expected net profit of Rs 329 crore from the state-owned bank for the quarter.
The bank had reported a net profit of Rs 355 crore in the corresponding quarter of previous fiscal.
Net interest income (difference between interest earned and interest expended) grew 11% at Rs 1,126 crore, while income from other sources surge 26% at Rs 408 crore on yoy basis.
The bank’s gross non-performing assets (NPA) as a proportion of advances in June quarter declined to 2.97% from 3.17% in March quarter. Net NPAs also fallen to 2.05% from 2.21% on quarter-on-quarter basis.
The stock opened at Rs 215 and hit a high of Rs 230 on the BSE. As many as a combined 1.38 million shares have already changed hands on the counter so far, against an average around 360,000 shares that were traded daily in past two weeks.
