Oriental Bank of Commerce – Q1 Financial Results

July 30, 2012

 FINANCIAL RESULTS FOR Q1 OF FY-2012-13
                                                                           Amt.                            (YoY Growth) 

                                      Business Mix           Rs. 2,72,100 crore      (12.06%)

                                      Deposits                     Rs. 1,58,200 crore      ( 9.41%) 

                                      Core Deposits          Rs. 1,16,200 crore      (19.61%)

                                      Advances                  Rs. 1,13,900 crore      (15.97%)

                                      Net Profit                    Rs. 391.42 crore         (10.35%)

CD RATIO AT 72.21%

GROSS NPA AT 2.97%

NET NPA AT 2.05%

                                                                                    

Performance Highlights for the First Quarter of FY 2012-13

Ø  Yield on Advances increased by 76 bps (Q1 to Q1) to reach 12.38% from 11.62%.

Ø  Interest Income increased by 19.20% (Q1 to Q1).

Ø  Non Interest Income increased by 26.11% (Q1 to Q1) mainly due to recovery of Rs. 196.73 crore in Technical Write Off Accounts.

Ø  Net Interest Margin (NIM) stood at 2.79% (Sequential Increase of 11 bps over Q4 of FY 2011-12).

Ø  CRAR of the Bank is at 12.29% under BASEL-II (Tier-I Capital: 9.92%; Tier –II Capital: 2.37%).

Ø  Bulk Deposits reduced from Rs. 47,180 crore to Rs. 41,478 crore showing a reduction of 12.08%.

Ø  Provision Coverage Ratio has improved to 64.42%.

Ø  Total Delivery Channels: 3100 (1808 Branches/ECs plus 1292 ATMs).

PROFIT

Ø  Net Profit of the Bank stood at Rs. 391.42 crore for Q1 of FY 2012-13 as compared to a profit of Rs. 354.70 crore for Q1 of FY 2011-12, showing an increase of              Rs. 36.72 crore and 10.35% (YoY).

Ø  Operating Profit of the Bank stood at Rs. 896.54crore for Q1 of FY 2012-13 as compared to a profit of Rs. 801.37 crore for Q1 of FY 2011-12 showing an increase of   Rs. 95.17 crore and 11.88% (YoY).

BUSINESS

Ø  Total Business of the Bank increased to Rs.2,72,048 crore as on                            30^th June, 2012 from Rs. 2,42,770 crore as on 30^th June, 2011, registering a YoY growth of 12.06 %.

Ø  Total Deposits increased to Rs. 1,58,152 crore as on 30^th June, 2012 from                  Rs. 1,44,554crore as on 30^th June, 2011, registering a YoY growth of 9.41%.

Ø  Core Deposits increased to Rs. 1,16,247 crore as on 30^th June, 2012 from                  Rs. 97,192crore as on 30^th June, 2011, registering a YoY growth of 19.61%.

Ø  Retail Term Deposits increasedto Rs. 52,012 crore as on 30^th June, 2012 from                  Rs. 40,614crore as on 30^th June, 2011, registering a YoY growth of 28.06%.

Ø  Advances of the Bank increased to Rs. 1,13,896 crore as on 30^th June, 2012 from Rs. 98,216 crore as on 30^th June, 2011, registering a YoY growth of 15.97%.

Ø  CASA Deposit increased by Rs. 4235 crore to Rs. 37,990 crore as on 30^th June, 2012 from Rs. 33,755 crore as on 30^th June, 2011, registering a YoY growth of 12.55% .

Ø  CASA Deposits to Total Deposits at 24.02%.

Ø  Credit Deposit Ratio at 72.21%. 


INCOME

Ø  Total Income during Q1 of FY 2012-13 increased by 19.77% to Rs. 4696 crore from Rs. 3920 crore in Q1 of FY 2011-12 due to healthy growth of 19.20 % in Interest Income which reached Rs. 4287 crore and 26.11% growth in Non Interest Income.

Ø  Non Interest Income during Q1 of FY 2012-13 increased by 26.11% to                        Rs. 408 crore from Rs. 324 crore in Q1 of FY 2011-12 mainly due to recovery of Rs. 196.73 crore in Technical Write Off Accounts.

Ø  Net Interest Income during Q1 of FY 2012-13 increased by 10.56% to                         Rs. 1126 crore from Rs.1018 crore in Q1 of FY 2011-12.


IMPORTANT RATIOS

Ø  Gross NPA ratio stands at 2.97% as at 30^th June, 2012 and Net NPA ratio at         2.05%.

Ø  Provision Coverage Ratio at 64.42%.

Ø  Net Interest Margin (NIM) at 2.79% (Sequential Increase of 11 bps over Q4 of  FY 2011-12) .

Ø  Return on Assets (RoA) at 0.87 %.

Ø  Cost of Deposit is at 7.98% for Q1 ofFY 2012-13.

Ø  Yield on Advances is at 12.38% for Q1 ofFY 2012-13.

Ø  Cost to Income Ratio is at 41.57%.

Ø  Book Value Per Share at Rs. 377.24 as on 30^th June, 2012 as against                        Rs. 337.93  as on 30^th June,2011.

Ø  CRAR of the Bank is at 12.29% under BASEL-II (Tier-I Capital: 9.92%; Tier –II Capital: 2.37%).

Ø  Business per Branch increased to Rs. 151.64 crore from Rs. 147.67 crore registering a growth of 2.69 % (YoY).

Ø  Business per Employee stood at Rs. 14.72 crore.



DELIVERY CHANNELS

Ø  Bank’s Branch Network stood at 1794 Branches besides 14 Extension Counters.

Ø  17 Branches opened and 5 Extension Counters upgraded by the Bank during Q1 of FY-2012-13.

Ø  Bank Installed 22 New ATMs during Q1 of FY-2012-13. The total number of ATMs as on 30^th June, 2012 stood at 1292 (including 09 Mobile ATMs, 333 offsite ATMs and 06 Biometric ATMs).

Ø  ATM Coverage isat 72% vis-à-vis Branch Network.

Ø  Over 1 lac ATM Cards were issued during the quarter taking the total ATM customer base to 33.72 lac.

Ø  4.70 lac internet banking users and 27.51 lac customers availing SMS facility.

Ø  82.42% of eligible cash transactions happening through ATMs 


RETAIL CREDIT

Ø  Retail loans at Rs. 11,872 crore constituted 10.42% of Total Advances and grew by 16.98 %(YoY).

o   Vehicle Loan Portfolio grew by 29.21% (YoY) to reach Rs. 1230 crore as on 30^th June, 2012 from Rs. 952 crore as on 30^th June, 2011.

o   Education loan Portfolio grew by 4.79% (YoY) to reach Rs. 1173 crore as on30^th June, 2012 from Rs. 1120 crore as on30^th June, 2011.

o   Direct Housing Loan Portfolio grew by 19.36% (YoY) to reach                          Rs. 5481 crore as on 30^th June, 2012 from Rs. 4592 crore as on 30^th June, 2011 .

 PRIORITY SECTOR

Ø  PS Advances grew by 10.35% (YoY) to Rs. 40,244 crore as on 30^th June, 2012 from Rs. 36,469 crore as on 30^th June, 2011.

o   Agricultural advances grew by 11.91% (YoY) to Rs. 15,010 crore as on                    30^th June, 2012 from Rs. 13,412 crore as on 30th June, 2011.

o   Bank issued 24,198 Kisan Credit Cards (KCCs) during the Quarter ended                      30^th June, 2012 with an amount of Rs. 550 crore. Total number of KCCs as on 30^th June, 2012 was 4,32,242 KCCs with an amount of  Rs. 9007 crore.

MICRO,SMALL & MEDIUM ENTERPRISES

Ø  Number of MSE (Micro & Small Enterprises) Accounts increased to 1,83,996 from 1,69,137and Bank’s Fund Based exposure under MSE to Rs. 17,900 crore from            Rs.15,886 crore thereby registering a growth of Rs. 2014 crore i.e. an increase of 12.68% (YoY).

Ø  Number of MSME (Micro, Small & Medium Enterprises) Accounts increased to 1,85,963 from 1,70,142 and Bank’s Fund Based exposure under MSME to                    Rs. 20,288 crore from Rs. 17,716 crore thereby registering a growth of                        Rs. 2572 crore i.e. an increase of 14.52 % (YoY).

Ø  During Q1 of FY 2012-13, 4896 MSE Accounts with an amount of Rs. 343 crore & 4951 MSME accounts with an amount of Rs. 370 crore were opened.

Ø  17 MSME Specialised Branches and 51 MSME focused Branches were functional as on 30^th June, 2012.

FINANCIAL INCLUSION

Ø  1,09,183 NO FRILLS Accounts were opened during Q1 of FY 2012-13 taking the total number of NO FRILLS Accounts to 22,44,482 as on 30^th June, 2012 with an outstanding balance of Rs. 426.29 crore.

Ø  569 Villages have been allotted to the Bank with population of more than 2000 and all of them were already covered during the last Financial Year itself.

Ø  4,89,522 No Frill/ Other Savings Accounts have been opened in 569 covered villages  up to 30^th June, 2012 covering 3,35,038 households.

Ø  2,16,997 Biometric Cards have been issued in FIP allotted villages and 4,51,030 transactions have been done through the same.

Ø  A campaign was launched on 16.05.2012 to ensure at least one bank account of each household in 569 villages allotted to the Bank under Financial Inclusion Plan.  Under the campaign, a structured survey of all households in villages allotted under FIP was carried to identify all households without a bank account. Simultaneously, accounts have been opened preferably in the name of head of the family during the survey. Under the campaign, a total number of 30,486 new accounts were opened completing coverage of 100% households in 569 FIP allotted villages.

 HR INITIATIVES

Ø  Bank recruited 187 personnel including 20 Specialist Officers during Q1 of                   FY-2012-13.

Ø  The process for recruitment of 325 Probationary Officers and 100 Agriculture Officers is under process.

Ø 

NEW INITIATIVES

Ø  Bank came out with Attractive Features in Oriental Home Loan & Oriental Vehicle Loan Schemes with reduction in Rate of Interest, Lowest EMI, Higher Loan Eligibility, Flexible Repayment Period and special concessions in interest rate to loyal customers.

Ø  Leading initiative was taken by the Bank in waiving the NEFT Charges on transactions up to Rs. One Lac. This initiative of the Bank was also appreciated by Shri Pranab Mukherjee, the then Hon’ble Finance Minister during his meeting with the Chief Executives of Public Sector Banks and Financial Institutions on 12.06.2012.

Ø  The Bank has recently launched ORIENTAL DOUBLE DEPOSIT SCHEME where as per the existing interest rates the money gets doubled in 90 Months (Senior Citizens) and in 96 Months (Others).

Ø  An MoU was signed on 18^th June,2012 with E-Billing Solutions Pvt. Ltd (EBS) for offering aggregator services.  EBS is a neutral payment gateway solution for merchants to facilitate online shopping across a spectrum of banks debit & credit cards and Utility Bill Service provider’s viz. IndiaIdeas.com Ltd (BillDesk), Techprocess Ltd, CCAvenue, and IRCTC thereby facilitating Net Banking customers to make online payments. 

IT INITIATIVES

Ø  Unclaimed Deposits / Inoperative Accounts displayed at Bank’s website in compliance with RBI Guidelines.

Ø   Loan EMI Payment – The new functionality will enable our retail Net-Banking customer to make online payment of their Loan EMI installments.

Ø   Payment gateway to Haryana Urban Development Authority (HUDA) and SGSITS Indore.

Ø   Online CBS Connectivity through Laptops at Mobile Branches & Ultra Small Branches.

Ø   Implementation of Centralized MIS project.

Ø  SMS alert for customers for SMA/NPA Accounts.

Ø  M/S STQC, a wing of Ministry of Information Technology has renewed “ISO27001” certification. It confirms that our Bank is adopting international best practices for processes and security framework for Data Centres.

Ø  At Mewat District field test has been successfully completed for inter-operability of Smart Cards for Financial Inclusion.

CSR INITIATIVES

Ø  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 and Palwal. Since inception, a total of 793 training programmes have been conducted benefiting 27,285 candidates. During the Financial Year 2012-13, 40 training programmes have been conducted benefiting 1,437 candidates.

Ø  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 14,635 persons were counselled in these FLCCs, out of which 91 cases were referred for debt restructuring.

Ø  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 2,75,766 smart cards have been issued and activated up to 30^th June, 2012.

Ø  A Skill Development Program for probable women entrepreneurs on tailoring & embroidery has started in FIP village Marora, District Mewat, Haryana. Initially, 40 women are undergoing training for a period of 30 days.

Ø  Installation of 8 solar lights in Village Rasoolpur Jatan, District Muzaffarnagar, UP and construction of toilets at Primary School.

Ø  Tri-cycle was provided to a physically challenged student of primary school, FIP village Kasmandi Kalan, Block Malihabad, District Lucknow. Ceiling fans were provided to Panchayat Bhawan and Primary School in that village.