Shares of Oriental Bank of Commerce have moved higher by 7% to Rs 207 on the NSE after the state-owned bank said that the bank’s assets quality improved during the quarter ended March 2015 (Q4) on a sequential basis.
The percentage of gross and net non-performing assets ratios stood at 5.18% and 3.34% during the March 2015 quarter from 5.43% and 3.68% respectively in the December 2014 quarter, Oriental Bank of Commerce said in a statement.
Meanwhile, the bank has reported a net loss of Rs. 178 crore in Q4FY15 due to an exceptional item of Rs 280 crore being the reduction in book value of security receipts as advised by the Reserve Bank of India (RBI) and lower net interest income. The bank had posted a net profit of Rs. 310 crore in the previous year’s corresponding quarter.
The bank’s net interest income (interest earned minus interest expended) declined marginally by 0.84% to Rs. 1,298 crore from Rs. 1,309 crore in the year-ago quarter. The provisions went up 19% to Rs. 1,107 crore during the March quarter compared to Rs. 931 crore a year ago.