OREANDA-NEWS. November 1, 2011. Oriental Bank of Commerce

>          Net Profit of the Bank stood at Rs. 167.74 crore for Q2 of FY 2011-12 as compared to a profit of Rs. 397.64 crore for Q2 of FY 2010-11.

>          Net Profit for Half Year ended 30th September, 2011 stood at Rs. 522.44 crore as compared to a profit of Rs. 760.96 crore for H1 of FY 2010-11.

>          Operating Profit of the Bank stood at Rs. 758.21 crore for Q2 of FY 2011-12 as compared to a profit of Rs. 805.94 crore for Q2 of FY 2010-11.

>          Operating Profit for Half Year ended 30th September, 2011 stood at Rs. 1559.58 crore as compared to a profit of Rs. 1628.26 crore for H1 of FY 2010-11.

BUSINESS

>          Total Business of the Bank increased to Rs. 2,55,163 crore as on

30th Septmeber, 2011 from Rs. 2,13,287 crore as on 30th September, 2010, registering a YoY growth of 19.63 %.

>          Total Deposits increased to Rs. 1,49,552 crore as on 30th September, 2011 from Rs. 1,25,786 crore as on 30th September,2010, registering a YoY growth of 18.89 %.

>          Advances of the Bank increased to Rs. 1,05,611 crore as on 30th September,2011 from Rs.87,500 crore as on 30th September,2010, registering a YoY growth of 20.70%.

>          CASA Deposit increased by Rs. 2261 crore to Rs. 34,182 crore from Rs. 31,921 crore registering a growth of 7.08 % (YoY).

>          CASA Deposits to Total Deposits at 22.86 %.

>          Credit Deposit Ratio at 70.75%.

INCOME

>          Total income during Q2 of FY 2011-12 increased by 27.21 % to Rs. 4078 crore from Rs. 3206 crore in Q2 of FY 2010-11 due to healthy growth of 27.04 % in Interest Income which reached Rs. 3801 crore.

>          Total income during Half Year ended 30th September, 2011 increased by 27.95 % to Rs. 7999 crore from Rs. 6252 crore in Half Year ended 30th September,2010 due to healthy growth of 27.05 % in Interest Income which reached Rs. 7398 crore.

>          Non Interest Income during Q2 of FY 2011-12 increased by 29.55 % to Rs. 277 crore from Rs. 214 crore in Q2 of FY 2010-11 due to healthy growth in Income from Treasury at Rs. 18 crore as against Rs. 0.81 crore in September, 2010.

>          Non Interest Income during Half Year ended 30th September, 2011 increased by 40.20 % to Rs. 601 crore from Rs. 429 crore in Half Year ended 30th September, 2010.

>          Bank earned Net Interest income of Rs.989 crore during Q2 of FY 2011-12 and Rs.2008 crore during Half Year ended 30th September,2011.

IMPORTANT RATIOS

>          Gross NPA ratio is at 2.95% as at 30th September, 2011 and Net NPA ratio is at 1.90 %.

>          Provision Coverage Ratio at 63.77%.

>          Net Interest Margin (NIM) at 2.79% for Half Year ended 30th September, 2011. (2.64% for Q2 of FY 2011-12) .

>          Return on Assets (RoA) at 0.64% for Half Year ended 30th September, 2011.

>          Cost of Deposit is at 7.63 % for Q2 of FY 2011-12 and 7.43% for Half Year ended 30th September, 2011.

>          Yield on Advances is at 11.65% for Q2 of FY 2011-12 and 11.54% for Half Year ended 30th September, 2011.

>          Cost to income ratio is at 40.15% for Q2 of FY 2011-12.

>          Book Value Per Share at Rs. 364.28 as on 30th September, 2011 as against Rs. 320.52 as on 30th September, 2010.

>          CRAR of the Bank is at 12.59 % under BASEL-II (Tier-I Capital: 9.92%; Tier -II Capital: 2.67%).

>          Business per Branch increased to Rs. 151 crore from Rs. 138 crore registering a growth of 8.96 % (YoY).

>          Business per Employee increased to Rs. 15 crore from Rs. 13 crore registering a growth of 16.49% (YoY).

DELIVERY CHANNELS

>          Bank's branch network stood at 1692 Branches with 23 extension counters.

>          48 Branches have been opened by the Bank during Q2 of FY-2011-12 and 72 Branches have been opened during Half Year ended 30th September, 2011.

>          Installed 22 ATMs during Q2 of FY-2011-12 for our 29.51 lac card holders. The total number of ATMs as on 30th September, 2011 stood at 1242 (including 7 Mobile ATMs, 325 offsite ATMs and 3 Biometric ATMs).

>          3.99 lac internet banking users and 18.73 lac customers availing SMS facility.

>          79.40% of eligible cash transactions are happening through ATMs.

RETAIL CREDIT

>          Retail loans (including Indirect Housing) at Rs. 11,477 crore constituted 10.87% of Total Advances and grew by 7.19 % on YoY basis (Retail Loans excluding indirect Housing stood at Rs.8726 crore and constituted 8.26% of Total Advances).

o Education loan Portfolio grew by 9.82 % (YoY) to reach Rs. 1173 crore as

on 30th September, 2011 from Rs. 1068 crore as on 30th September, 2010. o Vehicle Loan Portfolio grew by 25.72 % (YoY) to reach Rs. 981 crore as

on 30th September, 2011 from Rs. 781 crore as on 30th September, 2010. o Direct Housing loan portfolio grew by 15.27% (YoY) to reach Rs. 4760 crore as on 30th September, 2011 from Rs. 4130 crore as on 30th September, 2010.

PRIORITY SECTOR

>          PS Advances grew by 24.53% (YoY) to Rs. 36,778 crore as on

30th September, 2011 from Rs. 29,535 crore as on 30th September, 2010.

o Agricultural advances grew by 23.62% (YoY) to Rs. 12,893 crore as on

30th September, 2011 from Rs.10,430 crore as on 30th September,2010. o Bank issued 34392 Kisan Credit Cards (KCCs) during the Quarter ended 30th September, 2011 with an amount of Rs. 792 crore. Total number of KCCs as on 30th September, 2011 was 3,87,650 KCCs with an amount of Rs. 7220 crore.

ICRO, SMALL & MEDIUM ENTERPRISES

>          Number of MSE (Micro & Small Enterprises) Accounts increased to 1,69,735 from 1,61,046 and Bank's Fund Based exposure under MSE to Rs. 15,513 crore from Rs. 11,837 crore thereby registering a growth of Rs. 3676 crore and an increase of 31.05 % (YoY).

>          Number of MSME (Micro, Small & Medium Enterprises) Accounts increased to 1,70,722 from 1,62,069 and Bank's Fund Based exposure under MSME to Rs. 17,506 crore from Rs. 13,605 crore thereby registering a growth of Rs. 3901 crore and an increase of 28.67 % (YoY).

>          During Q2 of FY 2011-12, 5309 MSE Accounts with an amount of Rs. 451 crore & 5361 MSME accounts with an amount of Rs. 471 crore were opened.

>          During the Half Year ended 30th September,2011, 11127 MSE Accounts with an amount of Rs. 1156 crore & 11252 MSME accounts with an amount of Rs.1223 crore were opened.

>          17 MSME Specialised Branches and 45 MSME focused Branches were functional as on 30th September, 2011.

FINANCIAL INCLUSION

>          1,96,607 NO FRILLS Accounts were opened during Q2 of FY 2011-12 taking the total number of NO FRILLS Accounts to 19,78,078 as on 30th September,2011 with an outstanding balance of Rs. 384 crore .

>          574 villages have been allotted to the Bank with population of more than 2000, out of them 313 villages (300 Villages through BC Model & 13 Villages through Branch/Mobile Branch Model) have been covered as on 30th September, 2011. Rest of the villages shall be covered during the next half of FY 2011-12.

>          1,60,388 Households have been enrolled in 313 covered villages upto 30th September,2011. 1,10,909 Biometric Cards have been activated till 30th September, 2011 and 68,202 transactions made during Half Year ended 30th September, 2011.

INSURANCE JOINT VENTURE

>          During the Quarter ended 30th September, 2011, the Bank marketed 7006 policies with first premium collection aggregating Rs. 24.74 crore and earned a Gross Commission of Rs. 3.11 crore.

>          During the Half Year ended 30th September, 2011, the Bank marketed 10485 policies with first premium collection aggregating Rs. 39.91 crore and earned a Gross Commission of Rs. 7.48 crore.

HR INITIATIVES

>          Bank recruited 663 personnel including 375 Probationary Officers & 208 Specialist Officers during Q2 of FY-2011-12.

>          During Half Year ended 30th September, 2011, Bank recruited 738 personnel including 375 Probationary Officers & 225 Specialist Officers.

>          1735 Clerks are likely to join by November, 2011.

NEW INITIATIVES

>          The Bank has operationalised a Mobile Branch for Palwal District of Haryana.

This Mobile Branch is attached to B/O Aurangabad in Palwal District in Haryana and is providing Banking Services to the residents of 9 (Nine) adjoining villages at their doorsteps. Mobile branch envisages extension of Banking facilities through a well equipped van for providing Banking Services such as account opening, transaction facilities, remittance facilities, accepting loan applications, etc.

>          The Bank has launched "ORIENTAL BANK MEDICLAIM POLICY" in collaboration with the Oriental Insurance Company Ltd. for its customers. It is a Family floater Scheme covering 4 family members in the age group of 3 months to 79 years with Insurance cover ranging from Rs. 1 Lac to Rs. 5 Lacs. It will also help the Bank in increasing its CASA base.

>          The Bank has launched a co-branded Credit Card in the name of SBI-Oriental Bank of Commerce Credit Card which is in collaboration with SBI Cards. The card is available in two variants - Platinum and Gold for customers of the Bank.

IT INITIATIVES

>          The Bank has launched its First E-Lobby at Nehru Place, New Delhi. This State of Art unmanned E-Lobby provides wide ranging 24x7 Banking facilities to its customers on a self-service basis which include:

All ATM Services including Cash Withdrawal, Balance Inquiry, Mini Statement, Pin Change, Funds Transfer, Income Tax Payment, Cheque Status Inquiry, SMS Registration, Stop Payment request etc through ATM by the Bank's own customers as well as other Bank Customers.

Deposit of Cheques and Drafts through the Cheque Deposit Machine through which acknowledgement for deposit and copy of cheque will be available to the customer. Internet Banking Kiosk for undertaking Internet Banking transactions in the E-Lobby.

>          Implemented e-tendering and reverse auction process.

>          Implemented Intra Bank Mobile Payment Service with NPCI which facilitates instant Funds Transfer across other Banks.

>          Implemented SMS alerts, in compliance of RBI guidelines with respect to putting the system of online alerts for all types of transactions irrespective of the amount, involving usage of Debit cards at various channels.

AWARDS & ACCOLADES DURING THE QUARTER ENDED SEPTEMBER,2011

> The Bank was awarded the Most Cost Efficient Operator' at FIBAC-2011 organised

by Indian Banks Association (IBA) & Federation of Indian Chamber of Commerce &

Industry (FICCI).

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 five Districts, viz., Jaipur, Sriganganagar, Ferozepur ,Dehradun & Palwal. Since inception, a total of 685 training programmes have been conducted benefiting 23010 candidates. During the Quarter ended 30th September,2011 38 training programmes have been conducted benefiting 920 candidates.

>          The Bank has opened 4 Financial Literacy & Credit Counselling (FLCC) Centres in Karnal and Palwal districts of Haryana, Sriganganagar in Rajasthan & Ferozpur in Punjab. A total of 4923 persons were counselled in these FLCCs, out of which 89 cases were referred for debt restructuring.

>          A Project for extending social welfare schemes such as NREGA, Pension, etc. has been launched in 5 Districts viz. Sriganganagar in Rajasthan, Amritsar, Gurdaspur and Muktsar in Punjab and Jind in Haryana. A total number of 2,77,659 smart cards have been issued to the beneficiaries in these 5 districts.