OBC extends Monday's gains on fund raising plan

Oriental Bank of Commerce rose 1.83% to Rs 172.30 at 11:07 IST on BSE, with the stock extending Monday's 1.23% gains triggered by the bank announcing its fund raising plan to the extent of Rs 1000 crore.

Meanwhile, the S&P BSE Sensex was up 79.45 points or 0.38% at 21,026.10.

On BSE, so far 35,000 shares were traded in the counter as against average daily volume of 2.18 lakh shares in the past one quarter.

The stock hit a high of Rs 172.90 and a low of Rs 169.85 so far during the day. The stock had hit a 52-week high of Rs 291.80 on 11 March 2013. The stock had hit a 52-week low of Rs 121.40 on 29 August 2013.

The stock had underperformed the market over the past one month till 3 March 2014, advancing 0.74% compared with the Sensex's 3.65% rise. The scrip had also underperformed the market in past one quarter, sliding 11.48% as against Sensex's 0.44% rise.

The mid-cap bank has equity capital of Rs 299.85 crore. Face value per share is Rs 10.

Shares of Oriental Bank of Commerce (OBC) have risen 3.08% in two trading sessions from Rs 167.15 on 28 February 2014 after the bank after market hours on 28 February 2014 said it intends to raise Tier II capital to the extent of Rs 1000 crore through issue of Basel III compliant Tier II Bonds on private placement basis. The stock had risen 1.23% to settle at Rs 169.20 on Monday, 3 March 2014.

Meanwhile, OBC after market hours on Monday, 3 March 2014 announced revision in interest rate on term deposits across various maturities with effect from today, 4 March 2014.

The interest rate on term deposits less than Rs 1 crore in the maturity bucket of 31 to 45 days has been hiked from 6% to 9.25%. Interest rate for 46 to 90 days maturity bucket has been increased to 9.5% from earlier 8.5% while the interest rate on 91 to 179 days bucket has been hiked from 8.75% to 9.75% with effect from today, 4 March 2014.

OBC's net profit declined 31.3% to Rs 224.30 crore on 4.5% growth in total income to Rs 5063.98 crore in Q3 December 2013 over Q3 December 2012.

The Government of India (GoI) holds 59.13% stake in OBC (as per the shareholding pattern as on 31 December 2013).

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