Public sector lender Oriental Bank of Commerce (OBC) will announce its third quarter (October-December) earnings today. The CNBC-TV18 poll of analysts expect net interest income to rise 9 percent to Rs 1,309 crore from Rs 1,204.4 crore and profit after tax may fall 25 percent to Rs 244 crore from Rs 326.4 crore year-on-year.
Expectations
-Net interest income growth is expected to be subdued since the bank is cautiously growing its balance sheet-Loan and deposit growth is estimated to be lower than industry average at around 9-10 percent. Loan growth was 9 percent Y-o-Y in Q2 and flat Q-o-Q.-Profit after tax decline estimate is due to higher provisions and possible depreciation on investments-Net interest margin is estimated to be stable Q-o-Q-The bank has been reducing dependence on bulk deposits, which should contain cost of funds-Pressure on asset quality is expected to continue-At the end of Q2, the management guidance was Rs 2,000 crore of restructuring in October-March period of 2013-14, which included Lanco and Electrosteel.-Bond issuance by state electricity boards is expected to help-Watch out for recoveries from agri segment. Post Q2, the bank said 80 percent of agri slippages were likely to be recovered.
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