Oriental Bank of Commerce (OBC) on Monday reported a 3.4 per cent increase in net profit for the first quarter ended June 30 at ₹365 crore (₹353 crore in the corresponding year-ago period).

Total income for the quarter under review grew 6 per cent to ₹5,576 crore (₹5,255 crore).

The 3 per cent growth in bottomline has come despite a sharp increase in overall slippages from ₹764 crore in same quarter last fiscal to ₹1,431 crore during the quarter under review, SL Bansal, Chairman & Managing Director, OBC, told BusinessLine .

There was also some increase in interest reversal that impacted the bottomline performance, he noted.

Provision for non-performing assets (NPAs) increased to ₹478 crore (₹345 crore). Bansal said that OBC was looking at a net profit of ₹1,300 crore for current fiscal as compared with ₹1,139 crore recorded in 2013-14.

The latest quarter has seen sharp deterioration in asset quality with gross NPAs at ₹5,983 crore (4.33 per cent of advances) as on end-June 2014. This is against gross NPA of ₹4,303 crore (3.36 per cent of advances) in end-June last fiscal.

Capital mop-up OBC is looking to raise capital of about ₹3,500 crore this fiscal to fund its business growth, Bansal said when asked about capital raising plans.

Besides a qualified institutional placement of ₹500 crore, the public sector lender has also requested the Government to infuse ₹500-crore capital into the bank.

Plans are afoot to mobilise ₹1,000 crore through Tier-II bonds and ₹1,500 crore through Tier-I bonds or fresh equity shares, he said.

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