Oriental Bank of Commerce posts Q2 net loss at Rs 1,750 cr as provisions increase 4-fold

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.Loan book on sequential basis degrew by 0.3 percent.

Provisions and contingencies more than doubled to Rs 3,281.3 crore, compared with Rs 1,469.5 crore in previous quarter and rose more than four-fold compared with Rs 774.54 crore in corresponding year.

Gross non-performing assets as a percentage of gross advances were higher at 16.3 percent in Q2, from 14.83 percent in Q2FY18 but net NPAs were lower at 9.44 percent from 9.56 percent QoQ.

In absolute terms, gross NPAs during the quarter increased to Rs 26,432 crore against Rs 24,409 crore, but net NPAs fell to Rs 14,129 crore from Rs 14,809 crore quarter-on-quarter.

Other income (non-interest income) spiked 81.55 percent to Rs 1,059.24 crore and operating profit jumped 62.3 percent to Rs 1,551.4 crore compared with same quarter last fiscal.

At 15:02 hours IST, the stock price was quoting at Rs 127.10, down Rs 8.50, or 6.27 percent on the BSE.