Oriental Bank of Commerce (OBC) may go in for a rights issue this fiscal to raise capital to support business growth, its Chairman and Managing Director S.L.Bansal has said.
“We are keen on a rights issue. But a final call will be taken around September or October,” Bansal told Business Line soon after a Board meeting here.
OBC on Thursday reported a 16.33 per cent increase in net profit for the financial year ended March 31, 2013 at Rs 1,327.95 crore (Rs 1,141.56 crore).
The Board of Directors has declared a dividend of 92 per cent (Rs 9.2 for every share of Rs 10 each).
Bansal said that the bank is aiming at a net interest margin of 2.9 per cent for 2013-14. It had achieved a NIM of 2.82 per cent in 2012-13. For the current fiscal, the bank is eyeing deposit growth of 17 per cent and advances growth of 15 per cent.
In 2012-13, OBC saw its advances increase by 15 per cent and deposits go up by 17 per cent. Bansal expects RBI Governor D. Subbarao to cut the repo rate by at least 50 basis points on Friday.
The street expectation is, however, for a 25 basis point cut in repo rate.