State-run lender Oriental Bank of Commerce (OBC), which will announce its earnings on Wednesday, is expected to report a 14 percent growth (year-on-year) in profit at Rs 285.4 crore in September quarter led by non-interest income (also on account of low base in the year-ago period).
In Q2FY14, profit declined 17 percent Y-o-Y to Rs 251 crore due to 20 percent jump in provisions and a 23 percent fall in non-interest income (owing to trading loss).
Net interest income is seen falling 2 percent to Rs 1,257.5 crore in the quarter ended September 2014 compared to Rs 1,281 crore in same quarter last year.
Analysts expect gross non-performing liabilities to be impacted on account of lower sale of loans to asset reconstruction companies.
In August, RBI asked asset reconstruction companies to increase mandatory upfront investment in security receipts to 15 percent versus 5 percent earlier.
Loan growth is estimated to be subdued during the quarter. In Q1FY15, there was 8 percent growth in advances led by decline in agriculture and corporate but growth in SME was healthy.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
