The Hindu Business Line : Oriental Bank chief sees drop in profits on GTB merger

ORIENTAL Bank of Commerce (OBC) is likely to see a drop in profits for 2004-05 on account of its recent acquisition of Global Trust Bank, the bank's Chairman and Managing Director, Mr B.D. Narang, said today.

Speaking on the sidelines of an Assocham seminar on `Mergers and Acquisitions', Mr Narang said that the dip in profits would be a temporary phenomenon. He, however, did not put a figure on the extent of hit the bank would take on account of merger.

He said that the operations of the erstwhile GTB are expected to bring profits for the bank from 2005-06. "GTB will contribute over Rs 150 crore from 2006," he said. OBC's net profits for 2003-04 stood at Rs 686 crore.

Mr Narang also said that the bank could consider a second round of voluntary retirement scheme after the complete amalgamation of GTB.

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