Oriental Bank of Commerce, a leading public sector lender, has recently announced that it has registered a net profit to the tune of Rs.201.50 crore in the fourth quarter of the last financial year that ended on 31 March 2019.
In comparison, in the fourth quarter of FY18, the lender had registered a net loss of Rs.1,650.22 crore. Oriental Bank of Commerce’s total income increased to Rs.5,711.92 crore during the period under review, as against a total income of Rs.4,689.12 crore in Q4FY18.
On an annual basis, the lender registered a profit after a total of two financial years by earning a net profit to the tune of Rs.55 crore in FY18-19. Oriental Bank of Commerce registered a net loss of Rs.5,872 crore in FY17-18 and a net loss of Rs.1,094.07 crore in FY16-17.
The public sector lender’s total income touched Rs.20,536.77 crore in FY18-19, in comparison to a total income of Rs.20,181.25 crore in the year-ago period.
In terms of the lender asset quality, the gross NPAs reduced to 12.66% of the gross advances in Q4FY19, as against a gross NPA of 17.63% in the year-ago period. The lender’s net NPAs also reduced to 5.93% during the period under review from 10.48%.
Mr. Mukesh Kumar Jain, the Chief Executive Officer and Managing Director of the bank, said Oriental Bank of Commerce has been making profits during the last three quarters. He added that Oriental Bank of Commerce is confident that it can bring down bad loans to under 5% by the next financial year and gross NPAs to under 10%.
Mr. Jain said Oriental Bank of Commerce’s primary focus will be on recovery and upgradation. He also mentioned that the bank has appointed 6 general managers who will be responsible for recovery and upgradation.
Identifying Oriental Bank of Commerce as a national bank for the MSME and retail sectors, Mr. Mukesh Kumar Jain said the focus for this year will be on agri, MSME, and retail advances.
Sources: The Times of India, Business Standard