Oriental Bank of Commerce Q3 net loss widens to Rs1,985.40 crore
Mumbai: Oriental Bank of Commerce (OBC), which has been placed under prompt corrective action by the Reserve Bank of India (RBI), on Tuesday reported a net loss of Rs1,985.40 crore during the third quarter of current financial year, up 13% from Rs1,750 crore previous quarter.
The losses widened on account of a fall in total income.
During the October-December quarter last fiscal, the bank’s net loss stood at Rs130 crore. The public sector lender’s total income fell about 15% to Rs4,699 crore in the third quarter from Rs5,512 crore a year ago. The fall in total income was led by drop in interest income which stood at Rs2,945 crore as on 31 December, 2017 as against Rs3,190 crore in the previous quarter.
The bank’s gross non-performing assets (NPAs) ratio also rose sequentially from 16.30% to 16.95% quarter-on-quarter. On a quarterly basis, its net NPA ratio rose to 9.52% from 9.44%. Provisions, however, fell from Rs3,281 crore to Rs2,712 crore.
The public sector lender which is expected to receive Rs3,571 crore under the recapitalization plan of the government was able to narrow its losses in the corporate banking segment on sequential basis from Rs2,880 crore to Rs1,935 crore.
OBC was placed under PCA by the regulator in October 2017. Under RBI’s new PCA framework, breaching a net NPA ratio of 6% invites action. Under the old rules, net NPA ratio had to breach 10% for taking action. So far, 11 banks have been placed under RBI’s corrective action.
- Indian scientists using artificial intelligence to predict early onset of Alzheimer’s
- People need to make preventive measure a habit if India is to become malaria-free by 2027: home insecticides makers
- Bollywood is in love with biopics. But will it last?
- Flipkart wins relief over tax on discounts
- Why homebuyers can’t expect any RERA relief soon