The Hindu Business Line : Oriental Bank Q2 net down 23 pc on GTB merger pangs

ORIENTAL Bank of Commerce has a recorded a net profit of Rs 165 crore for the quarter ended September 30, 2005, a 23 per cent decline compared to Rs 215 crore during the corresponding period in the previous fiscal.

Total income increased 28 per cent to Rs 1,179 crore during the quarter against Rs 918 crore.

The bank said the decline in profit has mainly been on account of increase in operating expenses on account of amalgamation of erstwhile GTB with it and shifting of Government securities from AFS to HTM category and resultant booking of net depreciation of Rs 172.08 crore.

The bank's total business had gone up by 22.6 per cent to Rs 79,403.80 crore as on September 2005 from Rs 64,740.33 crore as on September 2004.

During the first half, the bank made recoveries of Rs 328 crore, resulting in reduction of gross NPA from Rs 2,492.27 crore as on March 2005 to Rs 2,385.29 crore as on September 2005 (9.1 per cent to 7.9 per cent) and net NPA from Rs 327 crore as on March 2005 to Rs 211.94 crore as on September 2005 (1.3 per cent to 0.8 per cent).

The capital adequacy ratio stood at 13.68 per cent at the end of September 2005 against 16.07 per cent on September 2004.

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