National bank OBC to pay 33% dividend for FY15
Pulled down by higher provisioning, Oriental Bank of Commerce (OBC) on Thursday reported a net loss of Rs 178.44 crore in the March quarter of financial year 2015. The bank, however, had posted a net profit of Rs 310.32 crore in the fourth quarter of 2013-14 fiscal.
It has reported a high provisioning for bad loans at Rs 1,106.57 crore during the quarter up from Rs 930.71 crore in the March quarter of previous fiscal. Gross non-performing assets (NPA) of the bank as a percentage to total advances rose to 5.18 per cent at the end of <g data-gr-id="22">fourth</g> quarter from 3.99 <g data-gr-id="19">per cent</g> in the same period a year ago. Interest income during March quarter rose to Rs 5,090.86 crore from Rs 4,900.82 crore in the <g data-gr-id="20">year ago</g> period.
Total income increased to Rs 5,719.39 crore during the quarter from Rs 5,655.36 crore in the same period last year. For the full fiscal, the bank’s net profit dipped 56.37 per cent to Rs 497.08 crore. It had a net profit of Rs 1,139.41 crore in 2013-14 fiscal. Total Income increased to Rs 22,082.78 crore in 2014-15 from Rs 20,962.75 crore for the year ended March 31, 2014. Despite posting a loss in the fourth quarter, OBC has declared a 33 per cent dividend or Rs 3.30 per share of face value of Rs 10 for <g data-gr-id="21">year</g> ended March 31, 2015.
During the fiscal, the Net Interest Margin (NIM) was 2.61 per cent. Capital Adequacy of the bank under BASEL III was 11.41 <g data-gr-id="18">per cent</g> as compared to 11.01 per cent as of March 2014. The bank raised capital of Rs 1,000 crore by way of issue of BASEL-III compliant Tier-2 Bonds in last year and Rs 500 crore through Additional Tier-I BASEL-III compliant perpetual bonds this year.
Shares surge 10% as gross NPAs decline
Commerce surged 10 <g data-gr-id="80">per cent</g> on Thursday after the company’s gross <g data-gr-id="79">non performing</g> assets declined in the March quarter of financial year 2015. The bank’s scrip rose sharply by 9.89 per cent to settle at Rs 212.80 on the BSE. During the day, it gained 11.36 per cent to Rs 215.65.
At the NSE, it ended 9.75 per cent higher at Rs 212.70. In terms of volume, 24.78 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day. Pulled down by higher provisioning, Oriental Bank of Commerce (OBC) on Thursday reported a loss of Rs 178.44 crore in the March quarter of financial year 2015.