BUSINESS

Oriental Bank net up 17 % at Rs. 257 crore

Special Correspondent

NEW DELHI: Oriental Bank of Commerce (OBC) has reporter a 17 per cent rise in net profit at Rs. 257.41 crore for the quarter ended June 30, 2009, on the back of healthy treasury and fee-based income. The bank had a net profit of Rs. 220.52 crore in the year-ago period.

Non-interest income grew by 91 per cent to Rs. 391.89 crore from Rs. 205.49 crore. Interest income increased by 23 per cent to Rs. 2,404 crore in the quarter under review from Rs. 1,915 crore. The operating profit grew by 46 per cent to Rs. 516.91 crore from Rs. 353.73 crore.

Addressing a press conference here on Tuesday, Alok K. Misra, Chairman and Managing Director, said despite difficult prevailing market conditions, the bank had posted encouraging results with its focussed business strategy and continuing support of over 12 million customers. Net interest margin remained under pressure at 1.83 per cent.

He said the bank would raise up to Rs. 500 crore from bonds to meet the credit growth target of 21 per cent during the current fiscal. “We can raise up to Rs. 500 crore from Tier-I and Tier-II bonds during 2009-10,” he said. The bank expected a credit growth of 20-21 per cent during the current financial year, he said, adding that deposits were also expected to grow at a similar pace.

About the timing of the issue, Mr. Misra said it would depend on the requirement and interest rate condition in the market.

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