State-owned Oriental Bank of Commerce (OBC) posted net profit of Rs125.9 crore in the quarter-ended September, up 23% year-on-year, as fewer new loan accounts turned bad and on account of a rise in net interest margin. It had reported a profit of Rs112.7 crore in April-June quarter.
OBC’s interest income grew 13.9% year-on-year to Rs4,878 crore in the three months ended September. Gross non-performing assets (NPA) declined 471 basis points (bps) year-on-year to 12.53% in the September quarter, while net NPA fell 413 bps to 5.94%, the bank said in a filing with the exchanges. Bad loans declined due to lower fresh slippages.
The lender’s net interest income grew 14.7% to Rs1,456 crore. Its net interest margin—a key measure of profitability—grew 6 bps year-on-year to 2.62%.
OBC’s provisioning coverage ratio (PCR) increased to 77.13% as of September-end, up 11.8 percentage points from a year ago. PCR is the amount set aside to cover NPAs.
Shares of Oriental Bank of Commerce on Tuesday ended at Rs50.40 on the National Stock Exchange, up 1.8% from the previous close.