GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

RBI Places Curbs on Oriental Bank of Commerce for Bad Loans

Net NPA of Oriental Bank of Commerce rose to 9.56 percent of net advances as of June 2017, against 8.11 percent a year ago.

PTI

Updated:October 7, 2017, 11:35 PM IST
facebookTwittergoogleskypewhatsapp
RBI Places Curbs on Oriental Bank of Commerce for Bad Loans
The RBI has initiated similar action against other public sector banks including IDBI Bank, Indian Overseas Bank, and UCO Bank.
New Delhi: The RBI has initiated a 'prompt corrective action' against state-owned Oriental Bank of Commerce (OBC) for high bad loans.

The move will place various restrictions on the public sector lender including on fresh loans and dividend distribution.

"The Reserve Bank of India...has put the Bank under Prompt Corrective Action in view of high Net NPA (non- performing asset)," the OBC said in a regulatory filing.

It, however, added that the action will not have "any material impact" on the performance of the bank and will contribute in overall improvement in its risk management, asset quality, profitability and efficiency.

Net NPA of the bank rose to 9.56 percent of net advances as of June 2017, against 8.11 percent a year ago.

The RBI has initiated similar action against other public sector banks including IDBI Bank, Indian Overseas Bank, and UCO Bank.

The Reserve Bank in April had issued a new set of enabling provisions under the revised PCA framework with a clause that if the bank does not show improvement then it could be either be merged or taken over by other bank.

OBC had reported a net loss of Rs 486.20 crore for the first quarter ended June due to lower income and higher provisioning for bad loans.

Its gross NPAs rose to 14.83 percent of gross advances, as against 11.45 percent year ago. The rise in bad loans proportion led to higher provisioning of Rs 1,591.48 crore for the quarter ended June 2017 as against Rs 1,147.49 crore in the year-ago period.

OBC's shares had traded last at Rs 123.50 a piece on BSE on Friday, up 1.31 percent over previous close.
Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Reliance 919.75 -1.75 -0.19
Kotak Mahindra 1,030.10 +5.45 +0.53
Vedanta 298.00 +13.45 +4.73
ICICI Bank 303.15 -1.20 -0.39
Yes Bank 315.90 +12.00 +3.95
Company Price Change %Gain
Kotak Mahindra 1,029.00 +4.00 +0.39
ICICI Bank 303.45 -1.10 -0.36
Bharti Airtel 519.00 -2.00 -0.38
Bombay Dyeing 266.70 +38.35 +16.79
Greenply Ind 335.50 +2.75 +0.83
Top Gainers
Company Price Change %Gain
Vedanta 298.00 +13.45 +4.73
Yes Bank 315.90 +12.00 +3.95
M&M 1,483.40 +51.80 +3.62
Coal India 271.00 +8.15 +3.10
Hindalco 242.75 +6.35 +2.69
Company Price Change %Gain
M&M 1,482.65 +50.95 +3.56
Coal India 271.05 +7.95 +3.02
Dr Reddys Labs 2,372.00 +58.30 +2.52
HDFC Bank 1,873.05 +35.85 +1.95
Adani Ports 401.95 +6.90 +1.75
Top Losers
Company Price Change %Gain
Tech Mahindra 500.75 -13.50 -2.63
Cipla 576.45 -14.00 -2.37
Bosch 19,730.30 -149.90 -0.75
ONGC 183.00 -1.35 -0.73
Power Grid Corp 198.85 -1.25 -0.62
Company Price Change %Gain
Cipla 575.85 -14.95 -2.53
ONGC 182.85 -1.60 -0.87
Asian Paints 1,119.95 -5.10 -0.45
TCS 2,547.85 -10.70 -0.42
SBI 312.75 -1.30 -0.41

Live TV

File is:/article-scroll-new.php