According to a recent press report Mr. Nagesh Pydah, Chairman and Managing Director, Oriental Bank of Commerce has said that the bank is expecting a 20 per cent growth in its bottom line this fiscal with higher credit growth and enhanced focus on average interest bearing assets.
He also said that the 20 per cent net profit growth expected by the bank will be after providing for the transitional pension liability of about Rs 170 crore for the current fiscal. OBC had recorded a net profit of about Rs 1,500 crore in the last fiscal.
Mr. Pydah said that the bank wants to run a balance-sheet that is good on profits and that they are aiming at a net interest margin of over 3 per cent. He said that the bank does not have any plans to raise capital till 2014. He also said that the bank had received capital infusion from the Government in March 2011, amounting to Rs 1,740 crore and that the bank has sufficient liquidity of Rs 6,000 crore.
He added saying that the bank also has headroom to raise Rs 6,800 crore of Tier-II capital.
Recently the bank has announced that it does not have immediate plans to increase lending rates. This has made the bank’s borrowers of home loan and other loans happy.