Jump in provisioning dents Oriental Bank Q2 net profit

Oriental Bank of Commerce (OBC) has reported a 58 per cent decline in net profit for the quarter ended September 30, 2011 at Rs 167.74 crore (Rs 397.65 crore).

The second quarter bottomline performance was weighed down by 114 per cent jump in provisioning, especially towards bad debts.

For the quarter under review, provisioning (other than taxes) stood at Rs 485.34 crore (Rs 226.31 crore).

“The bank has moved to system-driven NPA provisioning. The second quarter performance was impacted by this. You will see a different picture in the December quarter,” Mr Nagesh Pydah, Chairman and Managing Director of OBC, said here on Monday.

Total income of the bank for the second quarter ended September. 30, 2011 increased by 27 percent to Rs 4,078.78 crore (Rs 3206.04 crore).

For the six months ended September 30, 2011, OBC reported a net profit of Rs 522.44 crore, reflecting a 31 percent decline over net profit of Rs 760.96 crore recorded in same period last year.

Total income increased by 28 percent to Rs 7998.84 crore(Rs 6251.58 crore).