Despite a sluggish economic environment, Oriental Bank of Commerce (OBC) has reported a double-digit growth both in profits and interest income for the second quarter of the year. A sharp rise in operating margins aided the bank in reporting better than expected financial performance.

The cut in the bank rate has taken a toll on returns in fixed income instruments. Already there is talk of Reserve Bank of India (RBI) lowering the rate on its relief bonds. Fixed deposit (FDs) rates of several bluechip companies have witnessed a cut. Insurance companies have also taken the cue and will soon lower rates on their assured return products.

Reflecting the downturn in industry, Gas Authority of India Ltd. (GAIL) has reported a much subdued sales growth for 2QFY02. In the same quarter of the previous fiscal the company accrued benefits arising from commissioning of the polymer plant in FY00. In the current fiscal the company is operating on a like to like basis resulting in lower growth.

Global Trust Bank (GTB) is facing one of the toughest times. The bank's profits dropped sharply by 84% and interest income fell by 18%. A huge drop in operating margins affected overall performance of the bank in the September quarter.

Dr. Reddy has recorded an exciting 104% growth in sales and a 420% growth in profit before tax for 2QFY02. Operating margins have leapfrogged to 49.4% in the concerned quarter from 25.9% last year. The performance of the company is much above market expectations. The figures for the current quarter is on a consolidated basis with Cheminor drugs and American Remedies. To provide meaningful comparison, previous quarter numbers are also on a consolidated basis. The surge in revenues and profits was mainly fuelled by generic fluoxetine and other export formulations.

Cadbury India seems to have been affected by the difficult market conditions finally. As against an 11% topline growth in the June quarter, the company's sales have grown by only 5% in 3QFY02. The company's bottomline has shown 12% growth (excluding extraordinary items) during the same period.