Friday, April 30, 2010
ORIENTAL BANK OF COMMERCE FARES BETTER IN FY19 (VERSUS FY 09)
ORIENTAL BANJK OF COMMERCE
RESULTS FY 10 VS FY09
1. Review :
Oriental Bank of commerce has produced good results in FY 10 compared to FY09.Total Interest Earned has increased to Rs.1025712 lakhs from Rs.885647 lakhs. Consequently, Total Income has zoomed to Rs.1145717 lakhs from Rs.992779 lakhs in previous year.
Net Profit (+) / for the period has gone up to Rs.113468 lakhs from Rs.90542 Lakhs in FY09.
The Basic EPS has increased smartly to Rs.45.29 from Rs. 36.14 on a Face value of Rs.10. This is a good increase over the year. At current Market price of Rs.354, the P/E ratio is 7.82, which leaves scope for price appreciation.
But capital adequacy ratio has come down to 10.83 from 12 last year, indicating the need for the Bank to go in for more capital funds.
The percentage of Gross/Net NPA has increased to 0.87 from 0.65. Though it is not very high, the Bank may have to exercise better scrutiny on its loan book expansion.
Quarter on quarter also, the % of Gross/Net NPA has been increasing to 0.87 from 0.75, 0.66 and 0.71 in earlier quarters of the year.
Return on Assets has increased to 0.91 from 0.88. ROA has been increasing QOQ reasonably ( .95, .91, .89, .89).
Over all, business expansion has taken place very smartly and is expected to continue in future.
2. OTHER NEWS :
Aided by better core operations and decline in cost of deposits, Oriental Bank of Commerce (OBC) has reported a 61.90 per cent increase in net profit for the fourth quarter ended March 31, 2010 at Rs 317.04 crore.
Net interest income for the quarter under review increased 114.94 per cent to Rs 989.37 crore. The net profit jump in the fourth quarter can be attributed to better core operations, Mr T.Y. Prabhu, Chairman and Managing Director of OBC, told reporters after a board meeting here.
He also highlighted that the quantum jump in net profits has come despite a sharp fall in treasury income. For the quarter under review, OBC's treasury income stood at Rs 27 crore (Rs 157 crore in Q4 of 2008-09).
For the year ended March 31, 2010, OBC has reported a net profit of Rs 1134.68 crore, registering a 25.32 per cent increase over the previous year. The board of directors has recommended a dividend of 91 per cent. The bank's cost of deposits declined to 6.57 per cent as on end March 2010 against 7.52 per cent as on March 31, 2009.
On OBC's capital raising plans, Mr Prabhu said that the bank had sought capital support of Rs 1,000 crore from the Government. “As of now, capital is adequate. But we may raise capital during the current fiscal. We will take a call after May. There is enough headroom to raise capital both in Tier-I and Tier-II,” he said.
3. AUDITED,CUMULATIVE,NON-CONSOLIDATED RESULTS
Description FY 10(Rs. in lakhs) FY 09(Rs. in lakhs)
Interest/Discount on Advances/Bills 756747 651970
Income on Investments 246180 :214103
Interest on Balances With RBI 20958 : 16892
Others 1827 : 2682
Interest Earned 1025712 : 885647
Other Income 120005 :107132
Total Income 1145717 :992779
Interest Expended: 734969 :685997
Employees cost: 97129: 75616
Other Operating Expenses: 71469 : 62668
Operating Expenses: 168598 : 138284
Total Expenditure excluding provisions: 903567 : 824281
Operating Profit : 242150 : 168498
Provisions (other than tax) : 81598 : 52490
Profit(+) before tax : 160552 : 116008
Tax Expense : 47084 : 25466
Net Profit(+) after tax : 113468: 90542
Net Profit (+) / for the period 113468 90542
Dividend (%) : - 91 : 73
Face Value (in Rs.) :10 :10
Paid-up Equity :l 25054 :25054
Reserves : 706998 :620181
Capital Adequacy Ratio : 10.83 : 12
Basic EPS (in Rs.) : 45.29 : 36.14
Diluted EPS (in Rs.) : 45.29 : 36.14
Gross/Net NPA : 72382 : 44242
% of Gross/Net NPA :0.87 :0.65
Return on Assets: 0.91 : 0.88
4 . Announcements on NSE site
29-04-2010 Oriental Bank Of Commerce has informed the Exchange that the Board of Directors of the Bank at its meeting held on April 29, 2010 have proposed dividend of 91% (Rs 9.10 per share) for the year ended March 31, 2010.
29-04-2010 Oriental Bank of Commerce has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 1025712 lacs for the year ending on 31-MAR-2010 against Rs. 885647 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 734969 lacs for the year ending on 31-MAR-2010 against Rs. 685997 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 113468 lacs for the year ending on 31-MAR-2010 against Rs. 90542 lacs for the year ending on 31-MAR-2009.
29-04-2010 Oriental Bank of Commerce has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 268549 lacs for the quarter ending on 31-MAR-2010 against Rs. 234811 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 169613 lacs for the quarter ending on 31-MAR-2010 against Rs. 188781 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 31704 lacs for the quarter ending on 31-MAR-2010 against Rs. 19582 lacs for the quarter ending on 31-MAR-2009.