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Our Bureau

Posts 4.24% increase in net profit at Rs 580 crore

MR ALLEN C A PEREIRA, Executive Director, Oriental Bank of Commerce, with Mr A. Subramanian, General Manager, addressing a press conference to announce the bank's annual results in the Capital on Saturday. — Kamal Narang

New Delhi April 28 Faced with increased cost of deposits, Oriental Bank of Commerce (OBC) plans to hike interest rates on home loans up to Rs 20 lakh by 50-75 basis points.

"This will happen in the next few days. It is not for existing borrowers, but for new borrowers," Mr Allen C.A. Pereira, Executive Director, said here today.

He pointed out that the bank had not gone in for interest rate hike in this category even though it was linked to prime lending rates (PLR) and the PLR was periodically being revised.

With the cost of deposits going up to 9.75 per cent level, the bank was compelled to go in for a hike in interest rates on home loans up to Rs 20 lakh.

Meanwhile, OBC on Saturday reported a 4.24 per cent increase in net profit for the year ended March 31, 2007, to Rs 580.81 crore compared with Rs 557.16 crore in the previous year.

Fourth-quarter net dips

However, for the fourth quarter ended March 31, 2007, the bank has reported a sharp decline in net profit at Rs 54.86 crore against Rs 204.94 crore.

OBC officials attributed the decline to higher provisioning on account of depreciation on investment in government securities.

The board of directors has recommended a dividend of 47 per cent (inclusive of 20 per cent interim dividend already paid) for the year 2006-07 amounting to Rs 117.75 crore.

More Stories on : Housing Finance | Interest Rates | Public Sector Banks

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