NEW DELHI: Oriental Bank of Commerce (OBC) swung to a net profit of ₹201.50 crore in the March quarter from a net loss of ₹1,650.22 crore a year earlier. Profit also surged 39% on a sequential basis.
The state-run lender turned a net profit of ₹55 crore for the fiscal year ended 31 March, from a net loss of ₹5,872 crore a year earlier as a result of fewer slippages, higher recovery and growth in advances.
Higher interest income and a lower provisioning requirement for bad loans also helped the company turn profitable.
OBC aims to acquire another bank, based on its healthy financial position, the bank’s managing director and chief executive officer Mukesh Kumar Jain said but did not elaborate.
Jain’s comments come at a time when the government has been pushing for consolidation of public sector banks, which will not only lead to economies of scale but also make lenders stronger, more competitive and boost their risk-taking appetite. Last month, Bank of Baroda became India’s third-largest lender after its merger with Dena and Vijaya Bank.
OBC’s net non-performing assets fell to 5.93% ( ₹9,440 crore), as on March 2019 from 10.48% ( ₹14,282 crore) a year earlier.
Total cash recovery more than doubled to ₹6,597 crore in 2018-19 from ₹3,161 crore in 2017-18.