Moneycontrol Bureau
Public sector lender Oriental Bank of Commerce (OBC) met street expectations with the second quarter profit rising 16 percent year-on-year to Rs 291 crore supported by other income and tax writeback but the asset quality of the bank weakened and provisions increased further during the quarter.
Net interest income, the difference between interest earned and interest expended, grew by 2.7 percent to Rs 1,246.3 crore in the quarter ended September 2014 compared to Rs 1,281 crore in the year-ago period.
Net profit was expected at Rs 285.4 crore and net interest income at Rs 1,257.5 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Other income climbed 25.9 percent to Rs 392.65 crore in September quarter from Rs 311.87 crore in same quarter last year.
Provisions and contingencies jumped 18.4 percent sequentially and 16.5 percent on yearly basis to Rs 641.2 crore during the quarter with the provision coverage ratio at 58.96 percent as on September 2014.
On the asset quality front, gross non-performing assets (NPAs) increased 41 basis points Q-o-Q (up 97 bps Y-o-Y) to 4.74 percent and net NPA rose 18 bps Q-o-Q (up 60 bps Y-o-Y) to 3.29 percent in the quarter gone by.
There was a net tax writeback of Rs 78 crore during the quarter as against tax paid of Rs 23 crore in the year-ago period.
At 13:29 hours IST, the stock was quoting at Rs 266.50, down Rs 12.35, or 4.43 percent on the BSE.
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