Source: Oriental Bank of Commerce
Friday, January 28, 2011 06:33 PM IST (01:03 PM GMT)
Editors: General: Consumer interest, Economy; Business: Accounting & management consultancy services, Banking & financial services, Financial Analyst, Stock exchanges
--------------------------------------------------
Oriental Bank of Commerce - Performance Highlights for the Quarter Ended December 2010
New Delhi, Delhi, India, Friday, January 28, 2011 -- (Business Wire India) -- Operating profit grows by 24.27% to touch rs.773.92 crore, Net profit records 41.05 % growth to reach rs.408.25 crore, net interest income surges by 17.98%(yoy), net interest margin stood at 3.10%
Amt. (YoY Growth)
Business Mix -- Rs. 2.20 lac crore (16.29 %)
Deposits -- Rs.1.29 lac crore (16.79 %)
Advances -- Rs. 0.91 lac crore (15.59 %)
Customer Base -- More than 1.5 Crore
-- Net Interest Income increased to Rs.1029.85 crore from Rs. 872.87 crore showing a growth of 17.98% (YoY).
-- NIM improved to 3.10% from 3% as on Dec'09 .
-- Decline of 16 bps in cost of deposits to 6.08%.
-- Capital adequacy Ratio (Basel II) is comfortable at 12.38%.
-- Earnings per share increased to Rs. 65.20 (annualized).
Performance Highlights for the quarter ended December 2010
Profit
-- Net Profit of the Bank recorded a YoY growth of 41.05% to reach Rs. 408.25 crore for the third quarter of 2010-11(Q3 FY'11) as compared to a profit of Rs. 289.43 crore in Q3 FY'10.
- Net Profit from core operations (excluding treasury operation) witnessed a jump of 78.35% to reach Rs. 376.82 crore in Q3FY'11 from Rs. 211.28 crore in Q3FY'10.
-- Net Profit for the Nine Months ended Dec'10 amounted to Rs. 1169.21 crore as compared to Rs. 817.64 crore last year, registering a YoY growth of 43%.
-- Operating Profit for Q3 FY'11 stood at Rs. 773.92 crore as against Rs. 622.79 crore in Q3 FY'10 registering a YoY growth of 24.27%.
- Core Operating Profit excluding trading profit rose substantially by 36.33 % to Rs. 742.49 crore in Q3 FY'11 from Rs. 544.64 crore in Q3FY'10.
-- Operating Profit of the Bank during the Nine Months FY'11 grew by 46.07% to reach Rs. 2402.18 crore from Rs. 1644.58 crore as compared to Nine Months of FY'10.
Business
-- Total Business of the Bank rose to Rs. 220136 crore as compared to Rs. 189300 crore in Dec'09, showing a YoY growth of 16.29%.
-- Deposits at the end of Dec'10 amounted to Rs. 129335 crore as compared to Rs. 110745 crore in Dec'09, exhibiting a growth of 16.79% on YoY basis.
-- Saving deposits increased by 27.69% to Rs. 23317 crore while current deposits rose by 5.48% to Rs. 9271 crore.
-- Advance of the Bank at Rs. 90801 crore at the end of Dec'10 grew by 15.59% (YoY) from Rs. 78555 crore at the end of Dec'09.
-- Credit Deposit Ratio stood at 70.32%.
Income
-- Total income during Q3FY'11 rose by 12.20% to Rs. 3264.17 crore due to healthy growth of 13.52% in interest Income which reached Rs.3032.76 crore.
-- Total Income during Nine Months FY'11 increased to Rs.9515.75 crore recording a growth of 11.87% on account of 16.96% growth in Interest Income (Rs.8855.51 crore).
-- Net Interest income during Q3FY'11 improved by 17.98% to Rs.1029.85 crore from Rs.872.87 crore.
-- Non-Interest Income in Q3 FY'11 amounted to Rs. 231.41 crore (Nine Months FY'11: Rs.660.24 crore).
Important Ratio
-- Gross NPA ratio stood at 1.94% as at Dec'10 whereas Net NPA ratio stood at 0.91%.
-- Provision Coverage Ratio at 77.42% was above stipulated 70%.
-- Net Interest Margin (NIM) stood at 3.10% for the quarter ended Dec'10 and 3.25% for Nine Months ended Dec'10.
-- Returns on Assets stood at 1.11% in the Q3FY'11 (Nine Months FY'11: 1.08%).
-- Cost of Deposit reduced by 16 bps to 6.08% in Q3FY'11 (Nine Months FY'11: 5.85% reduced by 104 bps).
-- Cost to income ratio reduced by 516 bps to 37.19 % in Nine Months FY'11 as against 42.35 % last Year.
-- Earnings per Share (annualized) stood at Rs. 65.20 for the Q3 against Rs. 46.20 last year (Nine Months ended Dec' 10: Rs. 46.67 against Rs. 32.64 in previous period).
-- Book Value Per Share improved to Rs.338.86 in Dec'10 as against Rs. 290.18 in Dec'09.
-- CRAR of the Bank is strong at 12.38% under BASEL-II (Tier-I Capital: 9.09%; Tier -II Capital : 3.29%).
-- Business per Branch increased to Rs. 139.95 crore from Rs. 130.55 crore registering a growth of 7.20% (YoY).
-- Business per Employee increased to Rs. 13.37 crore from Rs. 12.15 crore registering a growth of 9.98% (YoY).
Delivery Channels
-- Bank's branch network stood at 1573 Branches with 33 extension counteRs.. Plans to add around 104 more branches before the end of the year.
-- Installed 45 ATMs during Q3 for our 23.82 lac card holdeRs.. The total number of ATMs as on Dec'10 stood at 1123(including 6 Mobile ATMs and 2 Biometric ATMs).
-- More than 3.30 lac internet banking useRs. with 9.96 lac customeRs. availing SMS facility.
-- Bank is offering RTGS and NEFT through all Service Outlets.
Retail Credit
-- Retail loans (excluding Indirect Housing) at Rs. 7495 crore constituted 8.20% of Total Advances and grew by 17.83 % on YoY basis.
- Good growth in Education loan at 14.98% (YoY) and Car/Vehicle Loan at 43.34% (YoY).
- Direct Housing loan portfolio rose by 17.65% (YoY) to reach Rs. 4302 crore.
-- Under the Festival Bonanza Housing and Vehicle loans started in Oct'10 and ended on 31st Dec,2010, Bank generated business worth Rs. 660 crore out of which Rs. 469 crore was under Housing and Rs. 191 crore under Vehicle Loan.
International Forays
-- Bank has established oveRs.eas footprints via Representative Office in Dubai which was opened in March 2009.
-- Bank plans to open its 1st OveRs.eas Branch in 2011 at Dubai International Financial Center and has sought RBI approval for the same. It will help the Bank to gain foot hold in international market for future growth. The Bank shall also explore further locations in near future for setting up its operation in developing countries that provides business opportunity to Indian corporates.
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 (RUDSETIs).
-- The Trust has set up Institutes in four Districts, viz., Jaipur, Sriganganagar, Ferozepur and Dehradun. Since inception, a total of 556 training programmes have been conducted benefiting 19952 candidates.
-- Free training on skill development to rural unemployed youth is imparted for self-employment generating activities such as Tailoring, Stitching and Embroidery, Phulkari, Food Preservation, etc.
-- The activities of the Trust also cover education of farmeRs. in crop diveRs.ification, formation of Self Help Groups, Skill Development, EntrepreneuRs.hip development and promoting use of non-conventional energy.
-- The Bank has operationalised voice enabled ATMs for the visually impaired and Biometric ATMs. The Bank has assisted in improving computer literacy among children and has provided financial assistance to NGOs and Institutions committed to social cause.
-- A Project for extending social welfare schemes such as NREGA, Pension, etc. has been launched in 6 Districts viz. Sriganganagar and Hanumangarh in Rajasthan, Amritsar, Gurdaspur and Muktsar in Punjab and Jind in Haryana. A total number of 1,25,452 smart cards have been issued out of which 1,06,149 cards have been activated up to 31.12.2010.
-- Bank also provided medical assistance to villageRs. in some identified villages through a Rural Clinic Programme.
Priority Sector
-- PS Advances grew by 20.74% to Rs. 31685 crore.
- Agricultural advances grew by 16.67% to Rs.11029.41 crore as at Dec'10.
- Issued 70707 Kisan Credit Cards during Nine Months ended 31st Dec,2010 with an amount of Rs. 1418.27 crore.
Micro Small & Medium Enterprises
-- Credit to MSME Sector grew by 56% to more than Rs. 15437 crore as at end of Dec' 10.
-- Number of SME Accounts increased to 166468 from 148380 and Bank's Fund Based exposure under SME to Rs. 13564 crore from Rs. 8304 crore thereby registering a growth of Rs. 5260 crore and an increase of 63.34% (YoY).
-- 7019 SME & MSME accounts with an amount of Rs. 1726.60 crore opened during Q3 of FY'11.
-- 20205 SME & MSME accounts with an amount of Rs. 2694.75 crore opened during Nine Months ended Dec'10.
-- 17 SME Specialised Branches and 45 MSME focused Branches as on 31st Dec,2010.
Financial Inclusion
-- 118193 NO FRILLS Accounts opened during Q3 of FY'11 and 383500 Accounts opened during Nine Months ended 31st Dec,2010 taking the number of total NO FRILLS Accounts to 13,96,421 as on 31st Dec,2010.
-- 570 villages have been allotted to the Bank with population of more than 2000. Out of these 300 villages are to be covered by 31.03.2011.
-- 27 villages have been adopted till 31st Dec, 2010 and work on the adoption of the remaining 273 villages during Q4 of this financial year is underway.
-- Bank has empanelled M/S FINO as technology provider and M/S FINO FINTECH FOUNDATION for extending IT enabled Banking services.
-- 27 CSPs/BCs have been engaged in 27 allotted villages up to Dec'10.
Empowerment Initiatives
-- Bank has launched Oriental Grameen Swarojgar Card (a micro credit product) for empowerment of rural entrepreneuRs. and 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.
-- Bank has also launched a Micro Thrift Scheme called ORIENTAL GRAMEEN JAMA YOJANA - a cumulative deposit scheme for the financially excluded people in rural areas.
New Initiatives
-- Bank has commenced the sale of Gold Coins through its identified Branches across India. 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.
-- On 19th Nov, 2010, Oriental Bank of Commerce became the 1st Public Sector Nationalised Bank to commence the enrollment process for issuance of Unique Identification Number (Aadhaar) for the customers / staff of the Bank and public at large. This launch of UID enrollment process will accelerate the efforts of the Bank in its Financial Inclusion activities by using State of Art Biometric based micro ATMs and use of UID in Financial Transactions.
-- IT Initiatives
1. Stop Payment of Cheque and Cheque Status Inquiry for our cardholdeRs. through our ATMs.
2. ATM facility for visually impaired peRs.ons.
3. Facility of Online Internet e-commerce transaction through OBC Debit Card along with Verified by VISA as 2nd factor authentication.
-- The Bank is in a process of launching a Co-Branded Credit Card.
Insurance Joint Venture
-- During the third quarter of Financial Year 2010-11, the Bank marketed 13589 policies with fiRs.t premium collection of Rs. 53.24 crore and earned a commission of Rs. 6.88 crore from the operations of the Life Insurance Joint Venture of the Bank, viz. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.
-- During the Nine Months ended Dec'10, the Bank marketed 32044 policies with fiRs.t premium collection aggregating Rs. 121.48 crore as compared to 26817 policies with fiRs.t premium collection of Rs. 85.05 crore during the corresponding period of last financial year.
HR Initiatives
-- During the quarter, Bank recruited 296 peRs.onnel including 26 Specialist OfficeRs..
-- 1541 peRs.onnel including 226 Specialist OfficeRs. have been recruited during the Nine Months ended Dec'10.
-- Recruitment process for 541 Specialist OfficeRs. is underway.
-- Written test for recruitment of 322 Probationary OfficeRs. and 1105 Clerks conducted recently.
Awards & Accolades
-- The Bank is accorded ISO 27001 Certificate for its Primary Data Centre, DR Site, Near Line Site & related processes at Department of Information Technology. It signifies adoption of international level security practices by our Bank, through which security becomes an integral part of the Business Process. It also conveys adoption of globally recognized standards.
-- The Bank has been awarded the "Amity Corporate Excellence Award" for the year 2010 by Amity International Business School, India.
-- Dun & Bradstreet has ranked the Bank among India's top PSUs companies 2009".
-- OBC figures in "FORBES Global -2000"- Rank upgraded from 2000th in 2004 to 1952nd place in 2008 to 1670th place in 2010.
-- National Institute of Banking Management (NIBM), Pune had adjudged OBC as "Customer Friendly Bank".
-- The Banker (London UK, July 2008) has ranked the Bank at 348th position among the top 1000 Banks in the world and 7th in the country wise ranking.
CONTACT DETAILS
Andalib Subzwari, Basic 4 Advertising Pvt. Ltd., +91 11 41734935, basicfour@gmail.com
KEYWORDS
CONSUMER, ECONOMY, CONSULTANCY SERVICES, BANKING, Financial Analyst, STOCK EXCHANGES
If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.
Submit your press release at http://www.businesswireindia.com
No comments:
Post a Comment