The Hindu Business Line : OBC eyes Rs 900-cr profit this fiscal

"We hope in March 2006, we will touch a business of Rs 1,00,000 crore. This would include Rs 60,000 crore in deposits and Rs 40,000 crore in advances," the Chairman and Managing Director, OBC, Mr B.D. Narang, said at press conference here.

The bank had a business turnover of Rs 56,286 crore at the end of March 2004.

He said the bank was hoping to take its net profit to the region of Rs 800-900 crore at the end of the current fiscal.

"We expect Rs 800-900 crore in profits annually from the combined entity of OBC and Global Trust Bank (GTB)," Mr Narang said. GTB was earlier merged with OBC.

Oriental Bank is hitting the capital market on April 25 to raise up to Rs 1,700 crore by selling 5.8 crore equity shares. After the public offer, the shareholding of the Government in the bank would come down to 51.2 per cent from 66 per cent.

The capital raising exercise would boost the bank's capital adequacy ratio to over 14 per cent that had slipped to 9 per cent from the earlier 16 per cent after the merger of GTB. Mr Narang said the CAR might come down by 3 per cent when the bank implements the stringent Basle-II norms by 2007.

Meanwhile, OBC is joining hands with Bank of Baroda and Bank of Maharashtra for a joint venture in Malaysia.

The three banks will have an equal share of 33 per cent in the banking subsidiary at Kuala Lumpur, a senior OBC official said.

BoB had a representative office in Malaysia and wanted it to be converted into a subsidiary. Apart from this, OBC is also planning to set up an office in Dubai's financial centre, the official said.

At present, OBC had no international presence.

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