RIENTAL Bank of Commerce (OBC) has recorded a 12.32 per cent growth in net profit for the quarter ended June 30 to Rs 74.10 crore as against Rs 65.97 crore in the previous year's first quarter. The results for the first quarter were taken on record by the board of directors of the bank at
their meeting held in Mumbai on Wednesday.
Outstanding deposits at the end of the first quarter stood at Rs 18,109 crore, 35 per cent higher than the Rs 13.404 crore as on June 30, 1998. Outstanding advances at the end of the quarter stood at Rs 7,503 crore, a 15.92 per cent rise against Rs 6,468 crore recorded in the corresponding period last year.
The net interest income for the first quarter was up 21.37 per cent to Rs 180.86 crore from Rs 149.01 crore recorded in the year-ago period. Other income at Rs 47.68 crore was 49 per cent higher than the Rs 31.98 crore
recorded in the first quarter of the previous year.
The bank's operating expenses were 32.8 per cent higher at Rs 100.44 crore from Rs 72.62 crore in the previous financial year. Provisions were also higher by 37.05 per cent at Rs 54 crore as against Rs 39.4 crore during the corresponding period last year.
OBC chairman Dalbir Singh said the bank has applied all the tighter provisioning norms prescribed by the Reserve Bank of India that come into effect from March 31, 1999.
He said the capital adequacy ratio of the bank was above 14 per cent and ratio of net non performing assets to net advances was 4.5 per cent. While the first three months of the current financial year have seen deposits grow by Rs 1,304 crore, outstanding advances have declined by Rs 204 crore.
Mr Singh said hi terms of the targets set by the bank it is planning to achieve a total business of Rs 30,000 crore by increasing its deposit base to Rs 21,000 crore and advances to Rs 9,000 crore by the end of the current financial year.
Growth-Oriented Show
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June`99 June `98 % Change
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Deposits 18,109.00 13,404.00 35.00
Advances 7,503.00 6,468.00 15.92
Investments 9,721.00 6,477.00 50.08
Interest Income 180.86 149.01 21.37
Other Income 47.68 31.98 49.00
Oper Expenses 100.44 75.62 32.82
Provisions 54.00 39.40 37.05
Net Profit 74.10 65.97 12.32
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