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					                                                                                              Regd off: 4th Floor, Competent House, F-14, Connaught Place, New Delhi - 01
ORIENTAL BANK OF COMMERCE                                                                     E-Mail:    mbd@obc.co.in
                                                                                              Web site: www.obcindia.co.in
                                                                                              Telephone: (011) 2332 0796 Fax: (011) 2373 9768
BANKING                                                                   GOVERNMENT          Tr agent: MCS, Sri Venkatesh Bhawan, W-40, Okhla Indl. Area, New Delhi - 20
Chairman: Alok K. Misra (MD)                                                    SEC: Vikram Kochhar (GM)                                AUD: Hingorani M. & Co.
Yr of Inc   B. Code      BL. Code      F.V.         Price        % ch 1-m       % ch 12-m       P/E      P/CF            Yield         Mkt cap                Vol.             ISIN
 1943   500315             OBC:IN      10           184.6          11.7            12.4         4.0          5.1          4.0          46,249.7              159.0        INE141A01014
SHAREHOLDING                                                      FX Transaction (FY09)                              ADJUSTED DAILY SHARE PRICE DATA
Indian Promoters           : 51.1%                Exports (fob)          Rs m        0                (Rs)
Foreign collaborators      :   0.0%               Imports (cif)          Rs m        0
Indian inst/Mut Fund       : 30.9%                Fx inflow              Rs m        0          380
FIIs/GDR                   :   9.6%               Fx outflow             Rs m        0                                                                        DAILY
Free float                 :   8.4%               Net fx                 Rs m        0
Shareholders               : 123,284                                                                                                                          100 DMA

                           No. of months                   12            12            12       280
                             Year ending             31/03/07      31/03/08      31/03/09
EQUITY SHARE DATA
High                                   Rs                 280            320           218
Low                                    Rs                 146            158           120
Income per share                       Rs               206.2          272.5         353.5      180
Earnings per share                     Rs                23.2           14.1          36.1
Cash flow per share                    Rs                72.1           95.2          80.5
Dividends per share                    Rs                4.70           4.70          7.30
Avg Dividend yield                     %                  2.2            2.0           4.3
                                                                                                 80
Book value per share                   Rs               223.5          230.5         295.5
Shares outstanding (eoy)               m              250.54         250.54        250.54        Aug-06              Jun-07            Feb-08            Nov-08                Aug-09
Bonus/Rights/Conversions                                     -              -             -
Avg Price / Income ratio               x                   1.0            0.9           0.5                               No. of months                 12            12             12
Avg P/E ratio                          x                   9.2          17.0            4.7                                 Year ending           31/03/07      31/03/08       31/03/09
                                                                                               CASH FLOW
Avg P/CF ratio                         x                   6.5          19.3            3.0
Avg Price/Bookvalue ratio              x                  1.0             1.0           0.6    From Operations                         Rs   m      14,153            27,889      21,696
Dividend payout                        %                 20.3           33.3          20.2     From Investments                        Rs   m        -265              -772      -1,258
Avg Mkt Cap                            Rs m            53,365        59,879         42,341     From Financial Activity                 Rs   m       5,947               -62        -335
No. of employees                       `000                15             15            15     Net Cashflow                            Rs   m      19,835            27,055      20,104
Total wages & salary                   Rs m             5,209          5,494         7,562
Avg. income/employee                   Rs Th          3,506.4        4,611.7       6,042.9                                       INTERIM RESULTS
Avg. wages/employee                    Rs Th            353.6          371.1         516.0                                           2QFY09  3QFY09              4QFY09         1QFY10
Avg. net profit/employee               Rs Th            394.3          238.6         617.8     Operating income            Rs    m    21,518  24,028              23,481         24,042
                                                                                               Gross Profit                Rs    m     5,216   5,678               4,603          4,841
INCOME DATA                                                                                    Gross profit margin         %            24.2     23.6               19.6           20.1
Interest income                        Rs     m        51,649        68,272        88,565      Net profit                  Rs    m     2,369   2,522               1,958          2,574
Other income                           Rs     m         6,033         6,277        10,713      Net profit margin           %            11.0     10.5                 8.3          10.7
Interest expense                       Rs     m        34,736        51,562        68,600
Net interest income                    Rs     m        16,913        16,710        19,965                                            KEY DATA
Operating expense                      Rs     m         9,979        10,796        13,828      Parameters                          Unit              FY07             FY08        FY09
Gross profit                           Rs     m         6,934         5,914         6,137      Branches                            nos.              1,233            1,309       1,401
Gross profit margin                    %                 13.4            8.7           6.9     Employees                           nos.             14,064           14,236      14,656
Provisions/contingencies               Rs     m         2,436          -429         5,249      Business / branch                   Rs m                877            1,006       1,191
Profit before tax                      Rs     m        10,531        12,619        11,601      Profit / employee                   Rs m                 0.4              0.2         0.6
Extraordinary Inc (Exp)                Rs     m        -2,460        -4,877              0     NIM                                 %                    2.7              2.1         2.5
Minority Interest                      Rs     m             0              0             0
                                                                                                                                      NOTES
Prior Period Items                     Rs     m             0              0             0
Tax                                    Rs     m         2,263         4,210         2,546     Oriental Bank of Commerce (OBC) had historically enjoyed the repute of being one
Profit after tax                       Rs     m         5,808         3,532         9,055     of the most efficient public sector banks in the country. However the merger with GTB
                                                                                              in FY05 took a toll on the bank's asset quality and margins. As against most of its
Net profit margin                      %                 11.2            5.2         10.2
                                                                                              peers, OBC has not been able to capitalise on the credit boom during the last three
BALANCE SHEET DATA                                                                            fiscals primarily on account of having lower CAR (capital adequacy ratio) post GTB
                                                                                              acquisition. With a market share of approximately 2.4% (of the total non food credit
Advances                               Rs     m      441,385        545,658       685,004     disbursements in the country), the bank's credit portfolio is skewed towards the large
Deposits                               Rs     m      639,960        778,567       983,688     corporate segment. OBC having written off all the GTB losses in FY08 itself,
Credit/Deposit ratio                   x                69.0           70.1          69.6     managed to clock higher profit growth in FY09.
Yield on advances                      %                 7.5             8.9           9.5
Cost of deposits                       %                  5.2            6.3           6.6    In FY09, OBC reported 30% YoY growth in Interest income led by 24% YoY growth
Net Interest Margin                    %                  2.7            2.1           2.5    in advances, while net profit reported whopping 156% YoY growth. The bank's
Net fixed assets                       Rs     m        3,827          3,875        13,839     bottomline growth was supported by 74% YoY growth in non fund based income
Share capital                          Rs     m        2,505          2,505         2,505     primarily due to the absence of GTB write-offs. OBC witnessed 0.4% expansion in net
Free reserves                          Rs     m       38,926         39,792        40,005     interest margin (NIM) to 2.5% due to higher yield on assets. NIMs were also
                                                                                              supported by the bank's strategy to reduce its exposure to high cost bulk deposits to
Net worth                              Rs     m       56,003         57,759        74,034
                                                                                              fund the advances. Net non-performing assets Net non-performing assets stood at
Borrowings                             Rs     m        6,226          7,220         7,220
                                                                                              0.7% of advances in FY09 and capital adequacy ratio stood at 13.0%.
Investments                            Rs     m      198,084        239,507       284,890
Total assets                           Rs     m      739,363        907,053     1,125,826     OBC is targeting low cost deposits to comprise 35% of total deposits. It also plans to
Debt/equity ratio                      x                11.5           13.6          13.4     open 100 branches during the current fiscal (FY10) which may sustain its operating
Return on assets                       %                  0.8            0.4           0.8    cost at the current levels. However, the bank's inability to capitalise on its pan-India
Return on equity                       %                10.4             6.1         12.2     presence coupled with poor efforts on increasing the proportion of low cost deposits
Capital adequacy ratio                 %                12.5           12.1          13.0     and sustainable fee income may dampen its prospects of long term profitability.
Net NPAs                               %                  0.5            1.0           0.7    Having said that, efforts at improving NIM and improving asset quality may bring
                                                                                              better times for the bank going forward.

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posted:11/6/2010
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