Moody’s affirms ratings of 9 banks, downgrades IOB, Central Bank of India

Global rating agency Moody’s today affirmed ratings of nine banks, including Bank of India, Punjab National Bank and Axis Bank, at Baa3/Prime-3, and downgraded the ratings of Indian Overseas Bank and Central Bank of India to Ba3 from Ba1. Other banks whose rating was affirmed are Bank of Baroda, Canara Bank, Oriental Bank of Commerce, Syndicate Bank, Union Bank of India and ICICI Bank. “We continue to position the rated public sector banks in the “very high” government support bucket, reflecting the systemic importance of public sector banks in the country,” Moody’s said in a report.

Read More

Oriental Bank of Commerce posts Q2 net loss

Public sector lender Oriental Bank of Commerce has posted a net loss at Rs 1,750 crore for July-September quarter despite sharp increase in other income and operating profit, as provisions for bad loans increased more than four-fold.

The bank had reported profit at Rs 153.3 crore year-ago quarter.

Net interest income during the quarter fell 4.9 percent to Rs 1,251.7 crore year-on-year, with loan growth of 4.8 percent at Rs 1.49 lakh crore.

Read More

RBI imposes restrictions banking business on Oriental Bank of Commerce

The Reserve Bank of India (RBI) has imposed certain restriction on banking activities of government-owned Oriental Bank of Commerce which has suffered huge losses due to sharp rise in bad loan. This will be the seventh bank among the 21 PSU banks to be placed under restrictions since March this calendar year. 

Read More

Dena Bank, OBC, IOB and Central Bank of India could be the initial targets for Merger

The government’s decision to set up an ‘alternative mechanism’ to fast-track consolidation among public sector banks (PSBs) to create strong lenders will help the PSBs streamline costs and improve governance, but a continuous focus on risk management and capital infusion from the government are crucial for a turnaround, industry experts said.

Read More

Oriental Bank of Commerce(OBC) Q1 result, reported net loss

Public sector Oriental Bank of Commerce (OBC) on Friday reported a net loss of Rs486.20 crore for the first quarter ended June, due to lower income and higher provisioning for bad loans. The bank had posted a net profit of Rs100.69 crore in the April-June quarter of the previous fiscal.

Read More

Oriental Bank of Commerce(OBC) Q4 result, posts loss of Rs 1,218 crore

Public sector lender Oriental Bank of Commerce (OBC) has reported a net loss of Rs 1,218.01 crore for last quarter ended March 2017 on a huge jump in provisioning for bad loans.

The bank had made a net profit of Rs 21.62 crore during the similar quarter of preceding fiscal ended March 2016. Total income of the bank during January-March quarter of 2016-17 came down to Rs 5,093.84 crore as against Rs 5,488.27 crore, as per bank’s balance sheet.

Read More

Government appoints heads of 7 PSU banks; MDs of PNB, BoI shifted

In a major restructuring in the PSU banking space, the government today appointed heads of various public sector banks besides carrying out rejigs at PNB and Bank of India. PNB Managing Director Usha Ananthasubramanian has been shifted to relatively small Kolkata-based Allahabad Bank while head of Bank of India (BoI) Melwyn Rego will move to Syndicate Bank with immediate effect, according to an official statement.

Read More

Oriental Bank of Commerce(OBC) Q3 result, post net loss of Rs130 crore

Public lender Oriental Bank of Commerce’s net loss for the December quarter narrowed to Rs130 crore from Rs 424.70 crore in the year-ago period.

  

Total income has increased to Rs5,415.97 crore during the quarter ended 31 December 2016 from Rs5,350.48 crore in the same quarter a year ago, the bank said in a BSE filing.

The bank’s interest income also fell to Rs4,438.62 crore during October-December period as against Rs4,955.96 crore a year ago.

The asset quality of the bank deteriorated further, with gross non-performing assets (NPAs) rising to 13.80% of the gross advances during the quarter as against 7.75% a year earlier.

In absolute terms, the gross NPAs stood at Rs20,492.18 crore as against Rs11,824.90 crore year earlier. Net NPAs or bad loans soared to 9.68% of the net advances during the period from 4.99% during the October-December quarter last fiscal.

Read More

OBC Q2 result, net profit dips 49% to Rs 153 cr

State-owned Oriental Bank of Commerce   (OBC) today reported 49.1 per cent dip in net profit to Rs 153.27 crore for second quarter ended September 30, 2016-17, on higher provisioning for bad loans. The bank's net profit stood at Rs 301.31 crore in the July-September quarter of 2015-16. 

"Total income has decreased from to Rs 5,278.71 crore for the quarter ended September 30, 2016 as against Rs 5,454.13 crore in the same quarter of previous fiscal," the bank said in a regulatory filing. 

Provisioning, a bulk of which is reserved to cover bad loans and contingencies, was raised to Rs 774.54 crore during the quarter, from Rs 589.42 crore parked aside by the bank in the same period of 2015-16. 

The lender's asset quality slipped further with gross non-performing assets (NPAs) rising to 12.36 per cent of the gross advances as on September 2016 from 5.70 per cent a year ago. 

Net NPAs or bad loans as a percentage of net advances as on September 2016, rose to 8.93 per cent as against 3.55 per cent. In absolute terms, gross NPAs amounted to Rs 18,382.53 crore from Rs 8,557.96 crore. Net NPAs were Rs 12,748.16 crore, up from Rs 5,189.10 crore.

Read More

Oriental Bank of Commerce Q1 Result, Profit falls 61% to Rs100 crore

Oriental Bank of Commerce Bank on Friday reported a 60.94% decrease in its first quarter net profit.

Net profit declined to Rs.100.69 crore in the quarter ended 30 June from Rs.257.84 crore a year ago on account of higher provisions and lower operating profit.

Provisions increased to Rs.750.40 crore for the June quarter compared to Rs.577.65 crore last year, while operating profit declined from Rs.1,044.49 crore last June to Rs.917.09 crore this June.

Out of total provisions, the bank provided outstanding provision of Rs.36.04 crore for a loan availed by the government of Punjab under the food credit program in the first quarter for which the outstanding amount was Rs.740 crore as on 30 June.

The provision coverage ratio for the bank stood at 49.33% for the June quarter.

According to a Bloomberg poll of six analysts, the bank was expected to post a net profit of Rs.91.56 crore for the June quarter.

Read More

OBC posts net profit of Rs 21.62 cr in Q4

Public sector lender Oriental Bank of Commerce (OBC) today reported a profit of Rs 21.62 crore in March quarter as against a net loss of Rs 178.44 crore in the corresponding period of 2014-15, on the account of tax gain. 

Total income declined 4.68 percent to Rs 5,451.6 crore during the quarter from Rs 5,719.39 crore in the same period last year. 

The bank's provisioning for bad loans during the quarter under review stood at Rs 1,026.11 crore during the quarter, up from Rs 1,106.57 crore in the March quarter of the previous fiscal. 

The bank has reported a tax gain of Rs 169 crore for the quarter. However, its gross non-performing assets (NPA) of the bank as a percentage to total advances rose to 9.57 percent at the end of fourth quarter from 5.18 percent a year ago. 

Read More

OBC posts Q3 loss Rs 425 cr on high provisions, low other income

Public sector lender Oriental Bank of Commerce (OBC) disappointed analysts with third quarter earnings on Thursday with a loss of Rs 424.7 crore against profit of Rs 19.6 crore in year-ago period. 

Lower other income & operating profit and higher provisions hit bottom line. Net interest income, the difference between interest earned and interest expended, grew by only 0.9 percent to Rs 1,309.32 crore in quarter ended December 2015 compared to Rs 1,297.47 crore in same quarter last fiscal. 

Other income (non-interest income) declined 23 percent year-on-year to Rs 394.5 crore and operating profit fell 24.5 percent to Rs 766.4 crore in Q3. 

Provisions for bad loans shot up 33.7 percent (up 107.8 percent sequentially) to Rs 1,183 crore during the quarter compared to Rs 885.1 crore in same quarter last fiscal, especially after considering asset quality review carried out by the Reserve Bank of India. 

Read More

History of Oriental Bank of Commerce(OBC)

Oriental Bank of Commerce is an India-based bank established in Lahore (then the city of British India, and currently in Pakistan), is one of the public sector banks in India.

History

Rai Bahadur Lala Sohan Lal, the first Chairman of the Bank, founded OBC in 1943 in Lahore. Within four years of its coming into existence,OBC had to face Partition. The bank had to close down its branches in the newly formed Pakistan and shift its registered office from Lahore to Amritsar. Lala Karam Chand Thapar, the then Chairman of the Bank, in a unique gesture honoured the commitments made to the depositors from Pakistan and paid every rupee to its departing customers.

Read More