OBC Q3 disappoints; net down 31%, net interest income up 2%

Public sector bank Oriental Bank of Commerce Friday reported a 31 percent year-on-year decline in its third quarter net profit to Rs 224.3 crore, on weak growth in net interest income and higher operating expenses. Quarterly net income grew 2 percent to Rs 1230 crore. A CNBC-TV18 poll of analysts had estimated NII at Rs 1309 crore and net profit at Rs 244 crore. Gross non-performing assets of the bank climbed to 3.87 percent from 3.77 percent in the September quarter. Net NPAs increased to 2.91 percent from 2.69 percent. In absolute terms, gross and net NPAs were Rs 5184 crore and Rs 3833 crore respective. Quarterly provisions stood at Rs 561 crore for the quarter, compared to Rs 604 crore quarter during the same period last year. The bank’s provision coverage ratio stood at 59.68 percent as on December 31, and capital adequacy ratio (as per Basel III norms) at 11 percent.