Oriental Bank of Commerce (OBC) on Monday reported a net profit of Rs 201.50 crore for the fourth quarter ended March 31, 2019. Thé public sector lender had reported a net loss of Rs 1,650 crore in the fourth quarter last fiscal.
For the entire fiscal 2018-19, OBC has reported a net profit of Rs 55 crore, a turnaround of sorts when compared to a net loss of Rs 5,872 crore in the previous fiscal.
The turnaround could largely be attributed to a 109 per cent increase in total recovery and upgradation at Rs 6,597 crore (Rs 3,161 crore) during fiscal 2018-19.
Net NPAs have decreased to 5.93 per cent (Rs 9,440 crore) as against net NPAs of 10.48 per cent at Rs 14,282 crore last year.
Commenting on the bank’s financial performance, Mukesh Kumar Jain, Managing Director & CEO, Oriental Bank of Commerce, attributed the turnaround to three main reasons—containment of slippages; sharp increase in recoveries to the tune of 108 percent on a year on year basis besides over 41 percent growth in retail advances.
Aided by spike in retail advances, the bank’s overall advances grew 15.75 percent in 2019-20. For the current fiscal, OBC is eyeing overall credit growth of 10-12 percent, Jain said.
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