Oriental Bank of Commerce share price target

OBC yet again disappointed with elevated slippages as high as 9.3%. The saving grace was that relapse from the restructured book contributed 44% to overall slippages. The operating performance remained dismal with elusive loan growth and NIMs dented by high interest reversals negating the impact of lower CoF. One-offs from provisions write back on restructured assets and high trading gains aided profitability.

8 OBC reported a loss of Rs 1.5bn at PBT level, however it managed to report meagre profitofRs216mnduetotaxwritebackofRs1.7bn. 8 NIIwasweak(+4%yoy)duetomutedcreditgrowth(2.5%yoy)andtepidNIMof2.65%....

OBC reported net loss (Rs 4.2bn) with weak PPOP (-24/23% YoY/QoQ) and higher LLP (Rs 14.5bn, 3.8% ann). Unlike most PSB peers (barring BoB), the bank implemented 80% of the RBI?s asset quality review (AQR) in 3Q. Slippages were elevated at ~Rs 40bn (10.5% ann. vs. 2.1% ann).

8 Preprovision profits declined (25%) led by weak NII, decline in noninterest income, and18%increaseinoperatingexpenses. 9 Assetquality deteriorated sharply as slippages amounted to Rs 39.8bn (Rs 7.7bn in...

Negative asset quality surprise; Growth remains moderate; Cut earnings by 50% OBC reported net loss of INR4.2b led by weak PPoP (-24% YoY) and sharp rise in credit costs (3.9% v/s 1.3% in 2Q). During 3QFY16, staff expenses (+30% YoY)...

OBC beat estimates across business parameters, led by (1) Gross stress additions (Rs 10.6bn) at a multi-quarter low, (2) Stable asset quality, with slippages of just Rs 7.7bn, (3) 200bps rise in PCR, (4) Negligible restructuring of Rs 2bn under the 5:25 scheme, (5) NIM expansion of ~11bps QoQ, (6) CASA improvement of 75bps QoQ to 25%, and (7) Core/net earnings 8/34% ahead of estimates.

on the noncorporate loan segment (retail, agriculture, and MSME). Consequently, overall creditgrowthisexpectedtoremainsubduedat~7%inFY16duetoweakcreditofftakein the corporate loan book. We expect NIM at 2.6% in FY16 and 77% CAGR in earnings over...

OBCs results were a mixed bag with net earnings higher than estimates despite elevated slippages.

OBCs results were a mixed bag with net earnings higher than estimates despite elevated slippages. Key positives were (1) NIM expansion of ~7bps QoQ, (2) Infra book decline QoQ, (3) stable CASA ratio at 24% and (4) stable PCR despite asset quality spikes. However, OBC disappointed with a sharp rise in slippages (Rs 16bn) driven by delinquencies from the restructured book, higher restructuring (Rs 10bn) & refinancing (Rs 14bn) under the 5:25 scheme and faster RWA growth vs. loan growth.

were Rs 8.4bn these comprised of a logistic and trading related account). Fresh Source:PhillipCapitalIndiaResearch restructuring in Q1 was at Rs 10bn comprising Rs 4.5bn of agri loans. It has a ...

Y15 performance was subdued and RoA dipped by 30bps to a mere 22bps. Asset quality was weak and in line with peers given poor macros. This along with some bank specific issues impacted the overall performance. We believe the new top-management has a clean slate and relatively better Tier-I. The tepid growth over FY14-15 is an added advantage.

OBC reported a net loss of Rs 1.8bn led by (1) income reversal of Rs 2.8bn on account of sale to ARCs in FY14 and (2) incremental provision of Rs 2bn to reach 15% wage hike. Post a series of disappointments, asset quality was a positive surprise with slippages at 2.1% ann. vs. 2.8% ann. seen in the last six qtrs.

OBC reported a loss of Rs 1.78bn (due to reversal of gain on sale of NPA to ARC against SecurityreceiptinFY14afterRBIobjection)againstprofitexpectationofRs1.8bn,excluding the oneoff, PBT was at Rs 1.1bn (76% yoy) below our expectation of Rs1.8 bn owing to...