Oriental Bank of Commerce share price rises 5% post Q2 earnings

Oriental Bank of Commerce (OBC) share price rose up to 5% on Wednesday after the PSU lender reported a 23.5% rise in net profit at Rs 126 crore for the second quarter ended September on the back of rise in net interest margin and lower fresh slippages on bad loans.

The scrip gained 4.97% to Rs 52.75 on the BSE, and 5.26% to Rs 52.95 on NSE.

On BSE, the stock opened with a gap up chart pattern and rose 4.48% to Rs 52.50, against the last closing price of Rs 50.25. The stock has gained 4.7% in the last 2 sessions. OBC shares trade higher than 5-day moving averages but lower than 20, 50, 100 and 200-day simple moving averages. Although the stock price has given 1.77% returns to investors in one week, it has deteriorated 21% share value in one month and 45% since the beginning of this year.

The bank posted a net profit of Rs 102 crore in the corresponding July-September period last fiscal. The state-owned lender's total income rose 15% to Rs 5,702 crore year on year, while it recorded a 13.9% year-on-year rise in interest income to Rs 4,878 crore in the three months ended September.

OBC's gross non-performing loan or bad loans came down to 12.53% of the gross advances as on September 30, 2019, from 17.24% in the corresponding period a year ago. Its net NPAs fell 413 bps to 5.94%, the bank said in a filing with the exchanges.

OBC's provisioning coverage ratio (PCR), the amount set aside to cover NPAs, has increased 77.13% as of September-end, compared to an 11.8% rise registered in the corresponding period a year ago.

Yesterday, OBC stock closed 1.4% or 0.7 points higher at Rs 50.25 on BSE and 1.8% up at Rs 50.40 on NSE, prior to its results published after market hours.

As of 1245 IST, the shares of Oriental Bank of Commerce traded 2.39% higher on BSE and gained 2.29% on NSE.

By Rupa Burman Roy

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