OREANDA-NEWS. May 23, 2011. OBC posts 91.99% rise in Net Interest Income (Y-O-Y). Operating Profit increased by 59.63 % (Y-O-Y). Net Interest Margin rises to 3.30%.

Sh. T.Y Prabhu, Chairman and Managing Director, Oriental Bank of Commerce, announced the financial results of the Bank for the Q2 for the Financial Year 2010-11, after the Board of Directors of the Bank adopted the Balance Sheet and Profit & Loss Statement in the Board Meeting held at New Delhi on 03.11.2010.

RESULTS AT A GLANCE FOR QUARTER ENDING SEPTEMBER 2010(Q2)

Operating Profit of the Bank for Q2 reaches Rs. 805.94 crore showing a growth of 59.63% (Y-O-Y).

Net Profit of the Bank for Q2 reaches Rs.397.64 crore showing a growth of 46.84% (Y-O-Y).

Return on Assets (ROA) of the Bank increases to 1.11% as on 30th September, 2010 from 0.89% as on 30th September, 2009.

Bank's Net Interest Income (NII) for Q2 reaches Rs. 1077.12 crore recording a Y-O-Y growth of 91.99%.

Net Interest Margin (NIM) of the Bank for Q2 increased to 3.30% as against 2.02% as on 30th September, 2009.

BUSINESS GROWTH

1.         Total Business : Total Business of the Bank stood at Rs. 2,13,287 crore as

th ' ' on 30th September, 2010 showing an increase of Rs.28,862 crore from

Rs.1,84,425 crore as on 30th September, 2009 recording a Y-O-Y growth of

15.65%.

2.         Deposits :

>          Total Deposits of the Bank grew by 16.58% (Y-O-Y) to Rs.1,25,786 crore as on 30th September, 2010 from Rs. 1,07,897 crore as on 30th September, 2009.

>          The CASA Deposits of the Bank grew by 24.90% (Y-O-Y).

3. Advances

>          Total Advances of the Bank showed a growth of 14.34% (Y-O-Y) to Rs. 87500 crore as on 30th September,2010 against Rs.76,528 crore as on 30th September, 2009.

>          The Credit Deposit Ratio stood at 69.72% as on 30th September, 2010.

>          Priority Sector Advances grew by 19.31% (Y-O-Y) out of which Direct Agriculture grew by 53.17% (Y-O-Y).

>          SME -Number of SME Accounts increased from 58470 to 162069 and Bank's Fund Based exposure under SME from Rs.7715 crore to Rs.13,605 crore thereby registering a growth of Rs. 5890 crore and an increase of 76.33% (Y-O-Y).

4.         Profitability :

>          Net Profit of the Bank increased by Rs. 126.84 crore to Rs.397.64 crore as on 30th September, 2010 from Rs.270.80 crore as on 30th September, 2009 recording a growth of 46.84 %( Y-O-Y).

>          Operating Profit of the Bank increased by Rs.301.06 crore to Rs.805.94 crore as on 30th September, 2010 from Rs.504.88 crore as on 30th September, 2009 recording a growth of 59.63%( Y-O-Y).

>          Net Interest Income(NII) of the Bank increased by Rs. 516.09 crore to Rs. 1077.12 crore as on 30th September, 2010 from Rs.561.03 crore as on 30th September, 2009 showing an increase of 91.99%(Y-O-Y).

>          Bank's Non-Interest Income was Rs.214.10 crore during the quarter ended 30.09.2010. Non Interest Income of the Bank excluding Treasury Income, grew by 8.78% (Y-O-Y).

5.         Asset Quality :

>          Gross NPAs of the Bank as percentage to Total Advances stood at 1.67%.

>          Net NPAs of the Bank as percentage to Total Advances stood at 0.70%. th

>          The NPA provision coverage stood at 81.36% as on 30th September, 2010 against the minimum prescribed level of 70%.

>          Cash Recoveries aggregating Rs.120.13 crore effected during the Q2 of Financial Year 2010-11 and for Half Year ended September 2010, cash recoveries were Rs.219.20 crore.

6.         Capital :

>          The CRAR of Bank stood at 12.80% (TIER-I at 9.38% and TIER-II at 3.42%) as on 30th September, 2010.

>          Return on Equity (ROE) stood at 20.33% as on 30th September, 2010 as against 16.03% as on 30th September, 2009.

>          Return on Assets (ROA) of the Bank goes up to 1.11% as on 30th September, 2010 from 0.89% as on 30th September, 2009.

>          Earnings per share (EPS) of the Bank stood at Rs.15.87 as on 30th September, 2010 as against Rs.10.81 as on 30th September, 2009.

>          Book Value of share increased to Rs.320.52 from Rs.275.20 in

September 2009.

7.         Cost of Deposits : The Bank's Cost of Deposits declined to 5.86% as on 30th September, 2010 as against 7.08% as on 30th September, 2009.

8.         Yield on Advances : The Bank's Yield on Advances stood at 10.28% as on 30th September, 2010.

9.         Business per employee : The Business per employee jumps to Rs.12.94 crore as on 30th September, 2010 from Rs.11.76 crore as on 30th September, 2009 registering a growth of 10.03% (Y-O-Y).

10.       Business per Branch : The Business per Branch goes up to Rs.138.41 crore as on 30th September, 2010 from Rs.129.97 crore as on 30th September, 2009 registering a growth of 6.49% (Y-O-Y).

Branch Network

During the quarter, Bank has opened 10 branches taking the branch network to 1541 branches as on 30th September, 2010. Bank proposes to open 175 Branches during the current financial year.

During the quarter, Bank installed 44 ATMs increasing the number to 1078 which includes 5 Mobile ATMs and 2 Biometric ATMs.

Clientele

6.36 Lac Deposit Accounts were opened during the Q2 of Financial Year 2010-11.Total customer base reaches 1.46 crore (14.6 million).

HR Initiatives

During the quarter, Bank recruited 955 personnel including 199 Specialist Officers and proposes to recruit 1600 personnel including 373 Specialist Officers during the year.

Technology Initiatives

The Bank has leveraged its IT capability of 100% computerization on Core Banking Solution platform offering an array of IT based products viz. Internet

Banking, Mobile Banking, Electronic Remittance facilities through RTGS/NEFT, Online Education Loan, E-Shoppe, e-taxes, Online Trading of shares, SMS alerts, Proton debit cards, Cash mate cards for students, Ready Kits.

The Bank is offering Internet Banking Services both for the Retail and Corporate customers and the number of Registered Users for Internet Banking stood at 3.11 lac.

The Bank has a total ATM Card base of 22.06 lac and about 76% of the transactions are happening through Alternate Electronic Delivery Channels. The Bank is offering International ATM cum Debit Card which is accepted at large number of ATMs and POS Terminals across the globe. The Bank has also deployed Point of Sale (POS) Terminals at identified Merchant Establishments as an add-on product.

The Bank has already obtained ISO-27001 Certification for both its Data Centers at Delhi & Mumbai which conveys adoption of Global Standards by the Bank.

Insurance Joint Venture

During the second quarter of Financial Year 2010-11, the Bank marketed over 12400 policies with first premium collection of Rs.43.67 crore from the operations of the Life Insurance Joint Venture of the Bank, viz. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

SME

The Bank will focus on Agriculture, Mid-Corporate, SME, Priority Sector and Retail Credit to augment its Advances portfolio.

No. of SME Accounts increased from 58,470 as on Sep'09 to 1,62,069 as on Sep'10 and Bank's Fund Based exposure from Rs.7,715 crore to Rs.13,605 crore thereby registering a growth of Rs.5,890 crore and an increase of 76.33% (Y-O-Y).

Financial Inclusion

During the half year, Bank opened 2.65 lac No Frill Accounts with cumulative number of accounts at 12.78 lac as on 30th September, 2010.

Bank has issued 28429 Biometric Cards during the half year. The total number of Biometric Cards issued as on 30th September, 2010 is 1.25 lac. Bank proposes to install 20 new biometric ATMs.

Bank proposes to issue an additional 44000 fresh Biometric Cards during the year in the allotted villages with population of more than 2000.

Bank launched Oriental Grameen Swarojgar Card (a micro credit product) on 13th October 2010 to further speed up financial inclusion by way of providing finance to micro activities like cobblers, blacksmiths, vegetable vendors,

tailors, kirana shop, carpenters, rickshaw pullers, tea vendors, barbers, fruit sellers, etc. to eligible residents in the villages allotted to the Bank.

On 13.10.2010, Bank also launched a Micro Thrift Scheme called ORIENTAL GRAMEEN JAMA YOJANA - a cumulative deposit scheme for the financially excluded people in rural areas.

Bank shall be covering 300 villages above the population of 2000 during the current Financial Year which shall be raised to 570 villages in the subsequent year.

Bank also proposes to appoint 300 Business Correspondents during the year which shall cover also these villages and provide banking services like opening of No Frill accounts, Credit Linkage, Remittances and Acceptance of Variable Term and other Deposits.

2300 Self Help Groups (SHGs) and Joint Liability Groups (JLGs) have been formed by the Bank during the quarter. Till 30th September, 2010, 48478 Self Help Groups (SHGs) and Joint Liability Groups (JLGs) have been formed by the Bank.

The Bank is already working as Lead Bank in three Districts viz. Ferozepur in Punjab, Sriganganagar in Rajasthan and Palwal in Haryana.

Launch of sale of Gold Coins

On 1st November, 2010, Bank commenced the sale of Gold Coins through its identified Branches in Delhi and Mumbai. These coins are in 24 Carat Gold- 999.9 fineness in 5 gm, 8 gm and 10 gm in an attractive tamper proof packing with certification as per International Standards.