The Hindu Business Line : OBC net up 12 pc to Rs 143.42 cr

The Chairman and Managing Director of Oriental Bank of Commerce, Mr K.N. Prithviraj (right), and the General Manager, Mr Rajeev Madhok, at a press conference in the Capital on Monday. — Kamal Narang

New Delhi , Jan. 23

ORIENTAL Bank of Commerce (OBC) has recorded a net profit of Rs 143.42 crore for the quarter ended December 31, 2005, a 12.3 per cent increase over the net of Rs 127.70 crore during the corresponding period in the previous fiscal.

Total income increased to Rs 1176.14 crore at the end of the third quarter of the current fiscal against Rs 1075.61 crore during the corresponding period of fiscal 2004-05.

Addressing a press conference here on Monday, the Chairman and Managing Director, OBC, Mr K.N. Prithviraj, said that the bank's net profit for the first nine months of the current fiscal reached Rs 535.94 crore, a 2.45 per cent increase over Rs 523.10 crore during the corresponding period in the previous fiscal. The operating profit for the nine months increased to Rs 909.70 crore from Rs 889.94 crore.

Mr Prithviraj said that the bank plans to raise Rs 500 crore Tier-II capital soon, which would take the bank's capital adequacy to over 13 per cent from 12.98 per cent. "Our bank could be comfortably placed in meeting the capital adequacy requirements under Basel-II norms," he said.

Interest rates: Queried on interest rates, Mr Prithviraj said that with deposit rates going up, it would be natural for banks to have a re-look at the lending rates. However, he said that the situation was being monitored regularly and a decision would be taken after watching the moves of other major players in the industry.

He said that the banking industry would also take cues from Tuesday's RBI review of the credit policy in deciding the future course of action.

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