OBC posts Q1 net loss of Rs486 crore
New Delhi: 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.
Total income of the bank also fell to Rs5,204.45 crore for the quarter under review from Rs5,397.92 crore in the year-ago period. On asset front, challenges persisted during the quarter, as gross non-performing assets (NPAs) rose to 14.83% of gross advances, as against 11.45% year ago.
Net NPAs also rose to 9.56% of net advances as of June 2017, against 8.11% a year ago. The rise in bad loans proportion led to higher provisioning of Rs1,591.48 crore for the quarter ended June 2017 as against Rs1,147.49 crore in the year-ago period. Shares of OBC closed 7.09% down at Rs117.90 on BSE.