Views on Oriental Bank of Commerce 3QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP- Research – Banking, Angel Broking) on Oriental Bank of Commerce 3QFY2014 results:

"Oriental Bank of Commerce (OBC) delivered subdued operating performance for the quarter, while asset quality witnessed moderate pressures. Net Interest Income for the bank remained largely flat yoy, while non-interest income de-grew by 10% yoy, leading to flattish operating income on a yoy basis. Pre-provisioning profit for the bank de-grew by 7% yoy. On the asset quality front, the bank witnessed moderate pressures, as the absolute Gross and Net NPA levels increased sequentially by 6% and 12% respectively. Provisioning expenses de-grew by 7% (though on a large base of 3QFY2013), thereby leading to PBT level earnings de-growth 8% yoy. Tax expense for bank came at Rs. 73cr (against tax reversal of Rs. 4cr in 3QFY2013). Overall earnings declined by 31% yoy. We await clarity from the management regarding the asset quality performance during the quarter and outlook on the same going ahead. We maintain our Neutral rating on the stock."

Source : Equity Bulls

Keywords