Oriental Bank of Commerce (OBC) has reported a growth of 21.1% in its net profits to Rs 2.8 bn for the FY00 on an interest income of Rs 24 bn over the previous year.
Although operating profits of the bank increased by 22.2% to Rs 7.1 bn, margins have declined due to more than proportionate increase in the interest expenditure.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Provision & Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share
The net non performing assets (NPAs) of the bank have declined from 4.5% in FY99 to 3.5% in FY00 and the capital adequacy ratio (CAR) at 12.7% is higher than the ratio stipulated by RBI.
The deposits of the bank witnessed a growth of 31% to Rs 220.9 bn and the advances grew by 21% to Rs 93.3 bn.
At current market price of Rs 33.9, OBC is trading at a P/E of 2.3 times its FY00 earnings with a Price/Book value ratio of 0.5 times. In the past the bank has enjoyed Price/Book value ratio more than 2 times.
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