Oriental Bank of Commerce (OBC), which posted a 47 per cent growth in net profit for the quarter ending September 30, would look to raise deposit rates by December. It will, however, refrain from increasing the lending rates.
On the back of increasing demand for loans from both retail customers and corporates, the public sector bank has posted a profit of Rs 398 crore for the second quarter. Even as its bad loans rose from 0.66 per cent to 0.70 per cent in the three-month period, OBC's total income increased 14 per cent to Rs 3,206 crore.
OBC, which posted a 14 per cent rise in advances for the quarter, is targeting overall credit growth of around 20-22 per cent for the fiscal. For deposits, which grew 17 per cent in the period, it is aiming to end the year with 23-25 per cent growth. Meanwhile, the net interest margin (NIM) for the second quarter touched 3.30 per cent, against 2.02 per cent in the corresponding period last year. OBC is aiming at an NIM of 3.20-3.25 per cent in the current fiscal.
The bank has also sought an infusion of Rs 1,000 crore from the Government, which has a 51 per cent stake in OBC.
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