Oriental Bank hit by merger cost
Public sector bank Oriental Bank of Commerce has reported a net loss of Rs 99.4 crore in the fourth quarter ending March 2008 as against a net profit of Rs 54.9 crore in the corresponding period of the previous year, reports Arun Kumar.india Updated: Apr 23, 2008 21:19 IST
Delhi-based public sector bank Oriental Bank of Commerce has reported a net loss of Rs 99.4 crore in the fourth quarter ending March 2008 as against a net profit of Rs 54.9 crore in the corresponding period of the previous year, largely on account of higher provisioning on account of merger of erstwhile Global Trust Bank.
The bank was supposed to write off Rs 1225 crore of losses on account of merger of since 2005. It had already written off Rs 738 crroe till March 2007 and in 2007-08 it had written off balance Rs 487.72 crore, of which Rs 241.7 crore was slated for 2008-09. And large part of this – Rs 304 crore – was written off in fourth quarter, resulting into a net loss of Rs 99.4 crore.
However, total income has increased to Rs 2,071.01 crore for the three-month period from Rs 1,577.29 crore in the same period last year. The bank's board of directors has recommended a dividend of 47 per cent for fiscal 2008.
For the financial year 200708, the bank has posted a net profit of Rs 353.22 crore, a 39 per cent decline as compared to Rs 580.81 crore in the previous financial year. During the period, total income has increased to Rs 7,454.84 crore from Rs 5,652.91 crore in the previous year.
During the year, Oriental Bank’s gross non-performing assets (NPAs) declined to Rs 1280 crore from Rs 1454 crore in the previous years. As on March 2008, the Gross NPAs is 2.31 per cent and net NPAs is 0.99 per cent. Its total business grew by 22 per cent to Rs 133,184 crore from Rs 1,09,391 crore in 2006-07. In 2007-08, its deposit grew by 21.7 per cent to Rs 77,857 crore and advances increased by 21.9 per cent to Rs 55,327 crore.