OBC drops on profit booking after 3-day 12.2% rally

Oriental Bank of Commerce fell 1.15% to Rs 236.50 at 10:43 IST on BSE, with the stock sliding on profit booking after 3-day 12.27% rally triggered by the state-run bank announcing good Q1 results.

Meanwhile, the BSE Sensex was down 70.66 points or 0.41% to 17,186.72.

On BSE, 3,656 shares were traded in the counter as against average daily volume of 39,722 shares over the past one quarter.

The stock hit a high of Rs 238.95 and a low of Rs 236 so far during the day. The stock had hit a 52-week low of Rs 190.10 on 2 January 2012. The stock had hit a 52-week high of Rs 350 on 2 August 2011.

The stock had underperformed the market over the past one month till 1 August 2012, falling 5.4% compared with the Sensex's 0.99% fall. The scrip had, however, outperformed the market in past one quarter, rising 3.91% as against Sensex's 0.35% fall.

The state-run bank has an equity capital of Rs 291.76 crore. Face value per share is Rs 10.

Shares of Oriental Bank of Commerce's (OBC) rallied 12.27% in three trading sessions to settle at Rs 239.25 on Wednesday, 1 August 2012, from a recent low of Rs 213.10 on 27 July 2012, after the state-run bank during trading hours on Monday, 30 July 2012 announced good Q1 results.

OBC's net profit rose 10.3% to Rs 391.42 crore on 19.8% growth in total income to Rs 4695.57 crore in Q1 June 2012 over Q1 June 2011.

OBC's Capital Adequacy Ratio (CAR) (as per Basel II norms) stood at 12.29% as on 30 June 2012, lower than 12.69% as on 31 March 2012 and 13.64% as on 30 June 2011. The bank's gross non-performing assets (NPA) ratio stood at 2.97% of gross advances as on 30 June 2012, lower than 3.17% as on 31 March 2012 but higher than 2.07% as on 30 June 2011. The net NPA ratio was at 2.05% of net advances as on 30 June 2012, lower than 2.21% as on 31 March 2012 but higher than 1.09% as on 30 June 2011.

OBC's provisions and contingencies rose 5.6% to Rs 332.12 crore in Q1 June 2012 over Q1 June 2011.

The Government of India (GoI) holds 58% stake in Oriental Bank of Commerce (as per the shareholding pattern as on 30 June 2012).

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