Overseas Bank of Commerce Q1 net rises 116 pc

Mumbai, July 28 (UNI) Oriental Bank of Commerce has posted a growth of 115.98 per cent in the net profit at Rs 94.02 crore for the quarter ended June 30 this year as compared to Rs 43.53 crore for the corresponding quarter last year.

Announcing the results, the bank said its total income has increased by 20.39 per cent to Rs 1,304.02 crore for quarter ended June 30, 2006, from Rs 1,083.1 crore for the quarter ended June 30, 2005.

Capital Adequacy Ratio of the bank stands at 12.1 per cent as against 14.18 per cent in the corresponding quarter of 2005-06.

On June 24, the bank decided to enter the life insurance business.

The bank was looking for JV partners for its life insurance foray from both the domestic and international arena.

Oriental Bank of Commerce had on July five, planned to raise Tier II capital by issuing Upper Tier-II bonds on private placement basis.

These bonds will be promissory notes in the nature for Rs 500 crore (Rs 250 crore with a green shoe option of Rs 250 crore) for 15 years, with call option at the end of ten years bearing coupon at 9.25 per cent per annum, payable annually for initial ten years and thereafter at 9.75 per cent a year for remaining five years in case call option is not exercised by the bank.

UNI SN SSS SKB1954