| 
| 
Oriental Bank seeks Rs 1000-crore capital infusion
Last Updated: 2009-10-26 13:57:24
New Delhi: State-run Oriental Bank of Commerce has made an application to the government for capital infusion of Rs 1000 crore, its chairman said on Monday.
"This is to support growth for the next couple of years," T.Y. Prabhu told a news conference after the lender reported a forecast-beating 14 per cent rise in quarterly profit.
OBC has one of the highest proportion of high-cost deposits in the sector and this has squeezed its net interest margin in the low interest regime prevailing since the end of last year.
The bank has said it expects loans to grow by a fifth in the year to March 2010 and net interest margins to rise to 2 per cent.
In the September quarter, OBC's net profit rose to Rs 271 crore from Rs 237 crore a year ago. Total income grew 18.6 per cent to Rs 2801 crore.
More India business stories | Get the latest Sensex update
Shares in OBC, which the market values at Rs 6500 crore, were up by a third during the September quarter, outpacing both the sector index's one-fifth rise and the broader market's 18 per cent climb.
| 
|
| © Copyright Sify Technologies Ltd, 1998-2009. All rights reserved. India News Portal, Sify.com hosted at SifyHosting India's first Level 3 Internet Data Centre. Site optimized for Internet Explorer 5.5 and above. See Disclaimer | Privacy Policy & Parental Guidance on pornography | careers@sify | About Us | Feedback | Advertise |