Oriental Bank logs Q4 net profit of Rs 202 crore

first_imgNew Delhi: Public sector Oriental Bank of Commere (OBC) Monday posted a net profit of Rs 201.50 crore for the January-March quarter of the last fiscal, helped by fall in bad loans, arrest of fresh slippages and a healthy growth in retail loan portfolio. The bank had clocked a loss to the tune of Rs 1,650.22 crore in the corresponding period of the fiscal ended March 2018. Total income grew to Rs 5,711.92 crore in the March 2019 quarter from Rs 4,689.12 crore in the same period of the preceding fiscal. On a yearly basis, the bank managed to return to profit after two fiscals by registering a net profit of Rs 55 crore for FY 2018-19. Also Read – Commercial vehicle sales to remain subdued in current fiscal: IcraThe lender had posted a loss of Rs 5,872 crore in 2017-18 and of Rs 1,094.07 crore in 2016-17. For FY 2018-19, total income stood at Rs 20,536.77 crore as against Rs 20,181.25 crore in the previous fiscal. On the asset quality front, gross non-performing assets (NPAs) came down to 12.66 per cent of gross advances at the end of March 2019 from 17.63 per cent in March 2018. Net NPAs or bad loans were also trimmed to 5.93 per cent from 10.48 per cent. Also Read – Ashok Leyland stock tanks over 5 pc as co plans to suspend production for up to 15 days”We have been making profits for the last three quarters. We are very confident that we will sustain the profit in the times to come year after year, quarter after quarter…,” the bank’s MD and chief executive, Mukesh Kumar Jain, told a news conference at its headquarters. “Earlier we were having more than Rs 12,000 crore slippages (for) the full year, now this is contained to around Rs 7,000 crore. Recovery and upgradation (of loan accounts) … has increased from Rs 3,161 crore to Rs 6,597 crore now,” he said. So these things are basically contributing to the turnaround, Jain said. Further, he said that the bank is confident of bringing down the bad loans to below 5 per cent on a net basis by the next fiscal and the gross NPAs less than 10 per cent on account of focussed strategy on arresting slippages, speedier recovery process and constant monitoring. “Our main focus is on recovery and upgradation only. We have even posted six general managers in the field for only with the responsibility of recovery and upgradation (of loan accounts). And we have been seeing good results also,” he said. On asked about bank consolidation and prospects of merger into some bigger, Jain said being a mid-sized bank Oriental Bank can equally acquire some other lender/s as well because of strong fundamentals. “We can think of acquiring some other banks also. Yes, if some opportunity is there as we are in profits, good credit growth is there, net interest margin of about 2.73 per cent. All these parameters are quite healthy and we are open to acquire other bank as well,” he added.last_img

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