Oriental Bank of Commerce(OBC) Q4 loss widens on rising bad loans

Public sector lender Oriental Bank of Commerce’s (OBC) net loss widened to Rs1,650.22 crore for the quarter ended March of 2017-18. The bank had made a net loss of Rs1,218.01 crore during the corresponding quarter of the preceding fiscal ended March 2017.

Total income of the bank during January-March quarter of 2017-18 came down to Rs4,689.12 crore as against Rs5,093.84 crore, OBC said in a BSE filing.

Asset quality of the bank worsened with net non-performing assets (NPAs) rising to 10.48% of the net advances as on 31 March 2018 against 8.96% reported a year ago.

Public sector lender reported a divergence of Rs968 crore in its gross NPAs for 2016-17. As per the bank, its gross NPAs as on 31 March 2017 stood at Rs22,859.27 crore, while the same as assessed by RBI for the reported year stood at Rs23,827.17 crore, OBC said in a BSE filing. The divergence in the gross NPAs for 2016-17 stood at Rs967.90 crore.

As per an Reserve Bank of India (RBI) directive in April 2017, banks have been advised to make disclosure in a prescribed format of the divergence in the asset classification and provisioning.

Gross NPAs or bad loans as a percentage of gross advances at the end of March 2018 stood at 17.63%, up from 13.73% a year ago. Bank’s provisioning for bad loans stood at Rs2,419.47 crore in the quarter under review against Rs3,050.60 crore a year ago.

Without naming anyone, Oriental Bank of Commerce said, in respect of two gems and jewellery borrower group, where fraud was declared by some banks, the bank has fully provided for the entire funded exposure.

Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems are wanted in connection with the alleged over Rs13,000 crore fraud at Punjab National Bank (PNB). Other banks too have declared direct/indirect exposure to Nirav Modi and Gitanjali Gems. Their role in the alleged fraud is being investigated by multiple agencies.

For the full financial year, the bank reported a net loss of Rs5,871.74 crore. It had registered a net loss of Rs1,094.07 crore in the preceding 2016-17 fiscal. Total income in the entire 2017-18 fiscal stood at Rs20,181.25 crore, lower from Rs21,187.85 crore a year ago.

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Oriental Bank of Commerce(OBC) loan fraud: Delhi diamond exporter booked for Rs389cr scam

After Nirav Modi and Mehul Choksi, the Central Bureau of Investigation (CBI) has registered a case against a Delhi-based diamond jewellery exporter for an alleged bank loan fraud to the tune of Rs389.85 crore towards Oriental Bank of Commerce.

The CBI has booked Dwarka Das Seth International Pvt Ltd for the alleged fraud.

Six months after the public sector bank filed a complaint with the CBI, the agency booked the company, and Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh — all directors of the firm — and another company named Dwarka Das Seth SEZ Incorporation.

The company has availed various credit facilities from OBC between 2007-12, which swelled to Rs389 crore during the period.

It was found by the bank that the company was using letters of credit (LoCs) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions, the bank complaint, now part of the CBI FIR, alleged.

The company was also engaging in business transactions with non existent entities, it said.

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Oriental Bank of Commerce(OBC) Q3 result, net loss widens

Public sector Oriental Bank of Commerce  on Tuesday said its net losses widened to Rs1,985.42 crore in the third quarter ended 31 December, mainly due to uptick in bad loans that required higher allocation as reserve money.

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One of PSB announce to cut allowance to retrieve from PCA

In our recent article SBI has taken good step for their employees to introduce bereavement leave . Now SBI is the first PSU bank who have given this type of leave.

On the other side India's another Public Sector Bank announce to cut some allowances of employees to retrieve from PCA. Currently this bank is under PCA due to high NPA.

Oriental Bank of Commerce(OBC) announces to discontinuation of  payment of expenses of cleansing material at residence of employees.

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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.

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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.

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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. 

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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.

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