Oriental Bank drops after RBI puts it under prompt corrective action

Oriental Bank of Commerce dropped 3.4% to Rs 119.30 at 9:30 IST on BSE after the bank said that the Reserve Bank of India has put the bank under prompt corrective action in view of high net non performing assets.

The bank made the announcement on Saturday, 7 October 2017.

Meanwhile, the BSE Sensex was up 72.20 points, or 0.23%, to 31,886.42. The S&P BSE Mid-Cap index was up 55.71 points, or 0.35%, to 15,895.86.

On the BSE, 32,994 shares were traded in the counter so far, compared with an average volume of 3.28 lakh shares in the past one quarter. The stock had hit a high of Rs 119.95 and a low of Rs 119 so far during the day. The stock had hit a 52-week high of Rs 190.80 on 5 May 2017. The stock had hit a 52-week low of Rs 101.70 on 27 December 2016.

The stock had risen 3.39% in four sessions to settle at Rs 123.50 on 6 October 2017, from a close of Rs 119.45 on 29 September 2017.

The stock had underperformed the market over the past one month till 6 October 2017, falling 2.45% compared with the Sensex's 0.48% gains. The stock had also underperformed the market over the past one quarter, declining 14.94% as against the Sensex's 1.42% rise. The scrip had also underperformed the market over the past one year, dropping 4.15% as against the Sensex's 13.19% rise.

The mid-cap state-run bank has an equity capital of Rs 346.17 crore. Face value per share is Rs 10.

Oriental Bank of Commerce said that this 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.

Oriental Bank of Commerce reported net loss of Rs 486.20 in Q1 June 2017 compared with net profit of Rs 100.69 crore in Q1 June 2016. Total income fell 3.6% to Rs 5204.45 crore in Q1 June 2017 over Q1 June 2016.

Government of India holds 58.38% stake in Oriental Bank of Commerce (as on 30 September 2017).

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