Oriental Bank of Commerce registered a strong improvement in its performance in the second quarter of the year, with the public sector bank recording a net profit of Rs.101.7 crore for the period.
This is a huge improvement when compared to the first quarter of the year, during which the bank posted a net loss of Rs.393.21 crore. The bank had registered a loss of Rs.1,750 crore in Q2 of the last financial year.
The net profit during this quarter can be attributed to the tax reversal and lower provisions. While the net interest income increased to Rs.1,275 crore, provisions and contingencies were at Rs.1,074 crore, a 67 per cent Y-o-Y decline.
A tax write-back of Rs.203 crore also helped the bank register this net profit.
The bank, however, saw an increase in its net NPAs, with this increasing to Rs.13,795.23 crore. In terms of percentage value net NPAs were at 10.07 per cent in the quarter.
The total income of the bank also dropped to Rs.4,967.29 crore during the quarter.
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