DSIJ Mindshare

OBC posts poor asset quality performance in Q2FY18

Oriental Bank of Commerce (OBC) has reported extremely poor performance in Q2FY18. Its asset quality deteriorated further with steep rise in its GNPAs and poor earnings.

The NII for the quarter rose by 9.2 per cent YoY to Rs 1252 crore in Q2FY18. This was largely due to 2.8 per cent QoQ decline in interest expended and muted interest income at Rs.4452 crore for Q2FY18 as against Rs.4437 crore in previous quarter.

Provisions for the quarter saw steep rise of 123 per cent QoQ to Rs 3281 crore in Q2FY18 as compared to Rs 1146 crore in the previous quarter. This resulted in an increase in net loss for the quarter to Rs.1749 crore from Rs.486 crore in Q1FY18.

The asset quality of the bank saw major slump in the quarter. The GNPAs for the quarter rose by 147 bps to 16.31 per cent, while NNPAs for the quarter saw some improvement with 12 bps decline in Q2FY18 to 9.44 per cent as compared to 9.56 per cent in the previous quarter.

The advances and deposits edged up by 5 per cent and 6 per cent YoY, respectively, to Rs 149,844 crore and Rs 214,487 crore for Q2FY18.

The Oriental Bank stock opened today at Rs 136.5 and closed 5.9 per cent down at Rs 127.5.

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