OREANDA-NEWS. January 31, 2012. Oriental Bank of commerce announced 3Q financial results.

 

Amt.

(YoY Growth)

Business Mix

Rs. 2,67,000 crore

(21.24 %)

Deposits

Rs. 1,56,000 crore

(20.77 %)

Advances

Rs. 1,11,000 crore

(21.91 %)

Customer Base

17.72 million

 

PROFIT

>          Net Profit of the Bank stood at Rs.354.22 crore for Q3 of FY 2011-12 as compared to a profit of Rs.408.25 crore for Q3 of FY 2010-11 largely due to the provisioning for restructured advances and Rs.90.30 crore for Investments.

>          Net Profit for Nine Months ended 31st December,2011 stood at Rs.876.66 crore as compared to a profit of Rs.1169.21 crore for Nine Months ended 31st December,2010.

>          Operating Profit of the Bank stood at Rs.827.08 crore for Q3 of FY 2011-12 as compared to a profit of Rs.773.92 crore for Q3 of FY 2010-11.

>          Operating Profit for Nine Months ended 31st December,2011 stood at Rs.2386.66 crore as compared to a profit of Rs.2402.18 crore for Nine Months

ended 31st December,2010.

BUSINESS

>          Total Business of the Bank increased to Rs.2,66,892 crore as on

31st December,2011 from Rs. 2,20,136 crore as on 31st December,2010, registering a YoY growth of 21.24 %.

>          Total Deposits increased to Rs.1,56,194 crore as on 31st December,2011 from Rs.1,29,335 crore as on 31st December,2010, registering a YoY growth of 20.77 %.

>          Advances of the Bank increased to Rs.1,10,698 crore as on 31st December,2011 from Rs.90,801 crore as on 31st December,2010, registering a YoY growth of 21.91%.

>          CASA Deposit increased by Rs.2217 crore to Rs.34,805 crore from Rs.32,588 crore registering a growth of 6.80% (YoY).

>          CASA Deposits to Total Deposits at 22.28%.

>          Credit Deposit Ratio at 71.01%.

INCOME

>          Total Income during Q3 of FY 2011-12 increased by 37.61% to Rs.4492 crore from Rs.3264 crore in Q3 of FY 2010-11 due to healthy growth of 38.37% in Interest Income which reached Rs.4196 crore.

>          Total Income during Nine Months ended 31st December,2011 increased by 31.26% to Rs.12,491 crore from Rs.9516 crore in Nine Months ended 31st December,2010 due to healthy growth of 30.93% in Interest Income which reached Rs.11,594 crore.

>          Non Interest Income during Q3 of FY 2011-12 increased by 27.60% to Rs.295 crore from Rs.231 crore in Q3 of FY 2010-11.

>          Non Interest Income during Nine Months ended 31st December,2011 increased by 35.78% to Rs.897 crore from Rs.660 crore in Nine Months ended 31st December,2010 .

>          Net Interest Income during Q3 of FY 2011-12 increased by 10.69% to Rs.1140 crore from Rs.1030 crore in Q3 of FY 2010-11.

IMPORTANT RATIOS

>          Gross NPA ratio stands at 2.92% as at 31st December,2011 and Net NPA ratio at 1.89 %.

>          Provision Coverage Ratio at 63.26%.

>          Net Interest Margin (NIM) at 2.90% for Q3 of FY 2011-12 and 2.83% for Nine Months ended 31st December,2011.

>          Return on Assets (RoA) at 0.81% for Q3 of FY 2011-12 and 0.70% for Nine Months ended 31st December,2011.

>          Cost of Deposit is at 7.85% for Q3 of FY 2011-12 and 7.58% for Nine Months ended 31st December,2011.

>          Yield on Advances is at 12.23% for Q3 of FY 2011-12 and 11.78% for Nine Months ended 31st December,2011.

>          Cost to Income Ratio is at 42.37% for Q3 of FY 2011-12 and 40.98% for Nine Months ended 31st December,2011.

>          Book Value Per Share at Rs.356.54 as on 31st December,2011 as against Rs.338.86 as on 31st December,2010 .

>          CRAR of the Bank is at 12.12% under BASEL-II (Tier-I Capital: 9.51%; Tier -II Capital: 2.61%).

>          Business per Branch increased to Rs.154 crore from Rs.140 crore registering a growth of 10.24 % (YoY).

>          Business per Employee increased to Rs.14.91 crore from Rs.13.37 crore registering a growth of 11.52% (YoY).

DELIVERY CHANNELS

>          Bank's Branch Network stood at 1730 Branches with 22 Extension Counters.

>          38 Branches have been opened by the Bank during Q3 of FY-2011-12 and 110 Branches have been opened during Nine Months ended 31st December,2011.

>          Bank Installed 9 New ATMs during Q3 of FY-2011-12. The total number of ATMs as on 31st December, 2011 stood at 1251 (including 7 Mobile ATMs, 324 offsite ATMs and 6 Biometric ATMs).

>          ATM Coverage is at 72.31% vis-a-vis Branch Network.

>          The ATM customer base as on 31st December,2011 stood at 31.32 lac.

>          4.21 lac internet banking users and 21.95 lac customers availing SMS facility.

>          82% of eligible cash transactions happening through ATMs.

RETAIL CREDIT

>          Retail loans (including Indirect Housing) at Rs.11,296 crore constituted 10.20% of Total Advances (Retail Loans excluding indirect Housing stood at Rs.10,461 crore and constituted 9.45% of Total Advances).

o Education loan Portfolio grew by 10.71% (YoY) to reach Rs.1213 crore as

on 31st December,2011 from Rs.1095 crore as on 31st December,2010 . o Vehicle Loan Portfolio grew by 22.20% (YoY) to reach Rs.1068 crore as

on 31st December,2011 from Rs.874 crore as on 31st December,2010. o Direct Housing loan portfolio grew by 15.97%(YoY) to reach Rs.4989 crore as on 31st December, 2011 from Rs.4302 crore as on 31st December,2010 .

PRIORITY SECTOR

>          PS Advances grew by 21.61%(YoY) to Rs.38,533 crore as on 31st December,2011 from Rs.31,685 crore as on 31st December,2010 .

o Agricultural advances grew by 25.81% (YoY) to Rs.13,876 crore as on

31st December,2011 from Rs.11,029 crore as on 31st December,2010. o Bank issued 25652 Kisan Credit Cards (KCCs) during the Quarter ended 31st December,2011 with an amount of Rs. 589 crore. Total number of KCCs as on 31st December,2011 was 3,94,413 KCCs with an amount of Rs.7810 crore.

MICRO, SMALL & MEDIUM ENTERPRISES

>          Number of MSE (Micro & Small Enterprises) Accounts increased to 1,98,277 from 1,66,478 and Bank's Fund Based exposure under MSE to Rs.16,649 crore from Rs.13,564 crore thereby registering a growth of Rs.3085 crore i.e. an increase of 22.75% (YoY).

>          Number of MSME (Micro, Small & Medium Enterprises) Accounts increased to 1,99,555 from 1,67,667 and Bank's Fund Based exposure under MSME to Rs.18,773 crore from Rs.15,437 crore thereby registering a growth of Rs.3336 crore i.e. an increase of 21.61 % (YoY).

>          17 MSME Specialised Branches and 45 MSME focused Branches were functional as on 31st December,2011.

FINANCIAL INCLUSION

>          75,213 NO FRILLS Accounts were opened during Q3 of FY 2011-12 taking the total number of NO FRILLS Accounts to 20,53,291 as on 31st December,2011 with an outstanding balance of Rs.399.71 crore .

>          574 villages have been allotted to the Bank with population of more than 2000, out of them 417 villages (343 Villages through BC Model & 74 Villages through Branch/Mobile Branch Model) have been covered as on 31st December,2011. Rest of the villages shall be covered during Q4 of FY 2011 -12.

>          2,76,571 No Frill/Savings Accounts have been opened in 417 covered villages up to 31st December,2011.1,22,673 Biometric Cards have been activated till 31st December, 2011 and 1,32,049 transactions made during Nine Months ended 31st December,2011.

HR INITIATIVES

>          Bank recruited 1072 personnel including 49 Probationary Officers & 73 Specialist Officers during Q3 of FY-2011-12.

>          During Nine Months ended 31st December,2011, Bank recruited 1810 personnel including 424 Probationary Officers & 298 Specialist Officers.

>          71 Probationary Officers and 726 Clerks are likely to join by February,2012.

NEW INITIATIVES

>          The Bank has recently been assigned the responsibility of State Level Banker's Committee (SLBC) of Delhi State.

>          The Bank has recently launched a new Salary Account Scheme named SALARY PLUS with added features.

>          The Bank has launched "ORIENTAL BANK MEDICLAIM POLICY" in collaboration with the Oriental Insurance Company Ltd. for its customers. It is a Family floater Scheme covering 4 family members in the age group of 3 months to 79 years with Insurance cover ranging from Rs. 1 Lac to Rs. 5 Lacs. It will also help the Bank in increasing its CASA base.

>          The Bank has launched a co-branded Credit Card in the name of SBI-Oriental Bank of Commerce Credit Card which is in collaboration with SBI Cards. The card is available in two variants - Platinum and Gold for customers of the Bank.

>          The Bank launched a Scheme for Financing Coconut Farming in Coastal Areas. The scheme is more area specific in nature and branches located in the area where cultivation of coconut is widely practiced i.e. Andhra Pradesh, Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, Goa, West Bengal, Pondicherry, Maharashtra would focus on financing under the scheme.

>          The Bank started e-Stamping Service in the states of Gujarat and Karnataka. Presently, B/O Ashram Road, Ahmedabad and B/O Richmond Road, Bangalore are acting as Authorized Collection Centers. The Service shall be extended to other selected 7 Branches in Gujarat shortly. The Bank is going to implement e - Stamping service shortly in the states of Delhi, Maharashtra & Tamil Nadu.

IT INITIATIVES

>          Net Banking Enhancements viz Online generation of Password, Ready Kit for networking customers and Online generation of Term Deposit.

>          Cheque Truncation System at Chennai has been implemented in October, 2011.

>          E-mail based tracker-id system for Funds transfer transactions through net-banking for J & K based Customers.

>          The Bank has successfully launched service window for customers through Net banking for making online payment of Maharashtra Government VAT and Central Sales Tax.

>          Implementation of Centralised Pension Software is expected to augment opening of new Savings Accounts and in turn enhance our CASA Base.

AWARDS & ACCOLADES DURING THE QUARTER ENDED 31st DECEMBER.2011

>          In a survey conducted by "Business World -PWC" for 2011, the Bank has improved its ranking to 8th amongst Group of 22 Large Banks under "The Best of the Lot" category as compared to 13th position in 2010 in the same category. Under "India's Fastest Growing Banks" category, the Bank ranked 7th amongst a Group of Large Banks.

>          As per "Business Today - KPMG" Survey, Bank improved its position to 11th amongst all Indian Banks as compared to 14th position in 2010.

CSR INITIATIVES

> As a part of its Corporate Social Responsibility, the Bank has set up a Trust in the name of 'OBC Rural Development Trust' on 09.12.2005 for setting up of Rural Self Employment Training Institutes (RSETIs). The Trust has set up Institutes in five Districts, viz., Jaipur, Sriganganagar, Ferozepur ,Dehradun & Palwal. Since

inception, a total of 711 training programmes have been conducted benefiting 23,759 candidates. During the Financial Year 2011-12, 128 training programmes have been conducted benefiting 3147 candidates.

>          The Bank has opened 4 Financial Literacy & Credit Counselling (FLCC) Centres in Karnal and Palwal districts of Haryana, Sriganganagar in Rajasthan & Ferozpur in Punjab. A total of 6969 persons were counseled in these FLCCs, out of which 89 cases were referred for debt restructuring.

>          A Project for extending social welfare schemes such as NREGA, Pension, etc. has been launched in 5 Districts viz. Sriganganagar in Rajasthan, Amritsar, Gurdaspur and Muktsar in Punjab and Jind in Haryana. A total number of 2,77,659 smart cards have been issued to the beneficiaries in these 5 districts up to 31st December,2011.