OREANDA-NEWS. May 31, 2011. Oriental Bank of Commerce Announced performance highlights for the financial year ended March 2011.

>          Holding of Govt. of India increases to 58% from 51.09%.

>          Net Interest Income increased to Rs.4178 crore from Rs. 2907 crore showing a growth of 43.68% (YoY).

>          NIM improved to 3.18% from 2.56% as on March'10.

>          Decline of 54 bps in cost of deposits to 6.03%.

>          Capital adequacy Ratio (Basel II) stood at 14.23%.

>          Earnings per share improved to Rs. 59.90 from Rs.45.29

GOVT.'S SHAREHOLDING

>          Bank has allotted 4,12,21,482 equity shares of Rs. 10 each at a premium of Rs.412.11 per share to the Government of India on preferential basis. As a result, the Government of India's holding has increased to 58% from 51.09%.

PROFIT

>          Net Profit of the Bank recorded a YoY growth of 5.24% to reach Rs. 334 crore for the fourth quarter of 2010-11 (Q4 FY'11) as compared to a profit of Rs. 317 crore in Q4 FY'10.

>          Net Profit for the Financial Year ended March'11 amounted to Rs. 1503 crore as compared to Rs. 1135 crore last year, registering a YoY growth of 32.45%.

>          Operating Profit for Q4 FY'11 stood at Rs. 843 crore as against Rs. 777 crore in Q4 FY'10 registering a YoY growth of 8.50%.

>          Operating Profit of the Bank during the Financial Year ended March'11 grew by 34.01% to reach Rs. 3245 crore from Rs. 2422 crore as compared to FY'10.

BUSINESS

>          Total Business of the Bank rose to Rs. 2,35,893 crore as compared to Rs. 2,04,442 crore in March'10, showing a YoY growth of 15.38%.

>          Deposits at the end of March'11 amounted to Rs. 1,39,054 crore as compared to Rs. 1,20,258 crore in March'10, exhibiting a growth of 15.63% on YoY basis.

>          CASA Deposit grew by Rs. 4125 crore to Rs. 34,148 crore from Rs. 30,023 crore registering a growth of 13.74% (YoY).

>          CASA Deposits to Total Deposits stood at 24.56%.

>          Advances of the Bank at Rs. 96,839 crore at the end of March'11 grew by 15.03% (YoY) from Rs. 84,184 crore at the end of March'10.

>          Credit Deposit Ratio stood at 69.73%.

INCOME

>          Total income during Q4FY'11 rose by 19.70% to Rs. 3532 crore due to healthy growth of 20.36% in Interest Income which reached Rs. 3232 crore.

>          Total Income during FY'11 increased to Rs.13048 crore recording a growth of 13.88% on account of 17.85% growth in Interest Income which reached Rs. 12088 crore.

>          Net Interest income during Q4FY'11 improved by 2.42% to Rs.1013 crore from Rs. 989 crore.

>          Net Interest income during FY'11 improved by 43.68% to Rs.4178 crore from Rs. 2907 crore.

>          Non-Interest Income in Q4 FY'11 amounted to Rs. 300 crore and for FY'11 Rs.960 crore.

IMPORTANT RATIOS

>          Gross NPA ratio stood at 1.98% (12 M) as at March'11 and Net NPA ratio stood at 0.98%.

>          Provision Coverage Ratio at 76.79% was above stipulated 70%.

>          Net Interest Margin (NIM) improved to 3.18% as compared to 2.56%.

>          Return on Assets (ROA) increased to 1.03%.

>          Cost of Deposit stood at 6.51% for Q4FY'11 and for FY'11 at 6.03%.

>          Yield on Advances for Q4FY11 was 10.60% and 10.32% for FY'11.

>          Cost to income ratio reduced by 421 bps to 36.84 % in FY'11 as against 41.05 % last Year.

>          Earnings per Share for FY'11 stood at Rs. 59.90 against Rs. 45.29 in the previous year.

>          Book Value Per Share improved to Rs. 325.13 in March'11 as against Rs. 291.23 in

March'10.

>          CRAR of the Bank is strong at 14.23% under BASEL-II (Tier-I Capital: 11.21%; Tier -II Capital : 3.02%).

>          Business per Branch increased to Rs. 145.61 crore from Rs. 135.57 crore

registering a growth of 7.41% (YoY).

>          Business per Employee increased to Rs. 14.20 crore from Rs. 13.31 crore

registering a growth of 6.69% (YoY).

DELIVERY CHANNELS

>          Bank's branch network stood at 1620 Branches with 24 extension counters.

>          84 Branches have been opened by the Bank during FY 2010-11.

Plans to add around 174 branches during FY 2011 -12.

>          Installed 69 ATMs during Q4 & 212 ATMs during FY 2010-11 for our 25.83 lac card holders. The total number of ATMs as on March'11 stood at 1192 (including 6 Mobile ATMs, 302 offsite ATMs and 3 Biometric ATMs).

>          More than 3.53 lac internet banking users and 12.32 lac customers availing SMS facility.

>          79% of eligible cash transactions are happening through ATMs.

>          Bank is offering RTGS and NEFT through all Service Outlets.

RETAIL CREDIT

>          Retail loans (excluding Indirect Housing) at Rs. 8748 crore constituted 9.03% of Total Advances and grew by 30.43% on YoY basis.

o Education loan Portfolio grew by 13.45% (YoY) to reach Rs.1102 crore and

Vehicle Loan Portfolio grew by 34.45% (YoY) to reach Rs.920 crore. o Direct Housing loan portfolio grew by 15.47% (YoY) to reach Rs. 4453 crore.

PRIORITY SECTOR

>          PS Advances grew by 21.33% to Rs. 35,651 crore and were at 42.70% of ANBC.

o Agricultural advances grew by 12.90% to Rs.12,721 crore as at March'11. o Issued 102206 Kisan Credit Cards (KCCs) during Financial Year ended 31st March,2011 with an outstanding amount of Rs. 2090 crore. At the year end, 3,58,322 KCCs were outstanding with an amount of Rs.5734 crore.

MICRO,SMALL & MEDIUM ENTERPRISES

>          Credit to MSME Sector grew by 40.56% to more than Rs. 17,670 crore as at end of March' 11.

>          Number of MSE (Micro & Small Enterprises) Accounts increased to 169102 from 156779 and Bank's Fund Based exposure under MSE to Rs. 15,844 crore from Rs. 10,869 crore thereby registering a growth of Rs. 4975 crore and an increase of 45.78% (YoY).

>          20022 MSE & MSME accounts were opened with an amount of Rs. 2858 crore

during Q4 of FY'11.

>          76070 MSE & MSME accounts were opened with an amount of Rs. 6768 crore during Financial Year ended March'11.

>          17 SME Specialised Branches and 45 MSME focused Branches as on

31st March,2011.

FINANCIAL INCLUSION

>          1,71,642 NO FRILLS Accounts opened during Q4 of FY'11 and 5,55,142 Accounts opened during Financial Year ended March'11 taking the number of total NO FRILLS Accounts to 15,68,063 as on 31st March2011.

>          570 villages have been allotted to the Bank with population of more than 2000. Out of these 300 villages have been covered by 31st March,2011.

>          270 villages shall be covered during the FY 2011-12.

>          Bank has empanelled M/S FINO as technology provider and M/S FINO FINTECH FOUNDATION for extending IT enabled Banking services.

>          300 CSPs/BCs have been engaged in 300 covered villages up to March'11.

>          Enrolment of customers have started in 300 covered villages and 86,018 FIP Accounts have been opened up to 31st March,2011. 25,823 Biometric Cards issued and 12208 transactions done.

INSURANCE JOINT VENTURE

>          During the fourth quarter of Financial Year 2010-11, the Bank marketed 10349 policies with first premium collection of Rs. 38.33 crore and earned a commission of Rs. 4.26 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 Financial Year ended March'11, the Bank marketed 42393 policies with first premium collection aggregating Rs. 159.80 crore as compared to 38097 policies with first premium collection of Rs. 119.12 crore during the last financial year. Bank earned a Gross Commission of Rs.35.56 crore during the Financial Year 2010-11.

HR INITIATIVES

>          During the quarter, Bank recruited 295 personnel including 15 Specialist Officers.

>          1836 personnel including 241 Specialist Officers have been recruited during the Financial Year ended March'11.

>          Recruitment process for 526 Specialist Officers, 500 Probationary Officers and 1750 Clerks is underway.

NEW INITIATIVES

>          The Bank pioneered a unique Term Deposit Scheme called "VARISHTH SAMMAN" w.e.f. 5th April,2011 for prospective senior citizens in the 50's Age Bracket. It is a First such Scheme floated in Banking Industry which gives Long Term Interest Advantage to Prospective Senior Citizens. The 5 to 10 year tenor deposit carries an attractive interest rate of 9.25% p.a. which automatically increases to 9.75% on the depositor attaining 60 years of age. Bank shall not levy any penalty on foreclosure of VARISHTH SAMMAN Deposit.

>          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, vegetable vendors, tailors, 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.

>          The Bank has signed a MoU with Equifax Credit Information Services which is one of the largest Credit Bureau of USA.

>          The Bank became the 1st Public Sector Nationalised Bank to commence the enrollment process for issuance of Unique Identification Number (Aadhaar) for the customers 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.

>          Bank commenced the sale of 24 Carat Gold Coins of 999.9 fineness through its identified Branches across India.

>          IT Initiatives

1.         Launch of Income Tax Payment Facility through ATMs.

2.         Online ASBA Facility Operationalised.

3.         Instant Funds Transfer through Inter Bank Mobile Payment System (IMPS).

4.         The Bank has operationalised voice enabled ATMs for visually impaired and Biometric ATMs for rural masses.

5.         Value Added Services through ATMs:

(a)        Cheque Status Inquiry

(b)        Stop Payment Request

6.         Facility of Online e-commerce transaction through OBC Debit Card along with Verified by VISA as 2nd factor authentication.

>          The Bank is in the process of launching a Co-Branded Credit Card with a leading Public Sector Bank.

>          Loan Syndication Cell to cater to SME and Mid Corporate.

AWARDS & ACCOLADES

>          OBC figures in "FORBES Global -2000"- Rank upgraded to 1670th place in 2010 from 2000th place.

>          In a recent survey conducted by Outlook Money, the Bank has figured among Top 10 Banks under various parameters notably Proactive Communication, Staff Courtesy, Trustworthiness, Complaint Resolution, Customer Understanding, No Hardsell, Professionalism, Banking Hour Convenience, Informed Staff and Response Time. The overall ranking of the Bank was 6th amongst India's Most Customer Friendly Banks.

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 (RSETIs).

>          The Trust has set up Institutes in four Districts, viz., Jaipur, Sriganganagar, Ferozepur and Dehradun. Since inception, a total of 588 training programmes

have been conducted benefiting 20586 candidates. During the FY 2010-11, 155 training programmes have been conducted benefiting 4734 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 diversification, formation of Self Help Groups, Skill Development, Entrepreneurship development and promoting use of non-conventional energy.

>          The Bank has opened 2 Financial Literacy & Credit Counselling (FLCC) Centres in Karnal and Palwal districts of Haryana in January,2011.

>          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 166146 smart cards have been issued and activated up to 31.03.2011.