Comments
Oriental Bank of Commerce (OBC) has raised capital of ₹1,000 crore to fund business growth, it’s Managing Director and Chief Executive Officer Animesh Chauhan said.
The capital mop-up has come in the form of Basel-III compliant tier-2 bonds, Chauhan told BusinessLine .
The bonds — which had a AA+ rating from ICRA and CARE— have been issued at a coupon rate of 8.34 per cent with a tenure of 10 years, he said, adding that OBC has no plan to raise tier-2 capital in the next six-nine months.
As for tier-I capital, Chauhan said the bank was comfortable on this front. “We expect the government to allocate some tier-I capital to us in 2015-16 (under Indradanush) though we have no default position arising for March 2016. We are waiting for the government’s decision,” he said.
On non-performing assets, Chauhan said asset quality had improved in infrastructure in segments such as roads, gas-based power projects and ports. “Steel remains a concern,” he said.
The bank has, in the recent months, been focusing on the RAM sector (Retail, Agriculture and MSME) by launching several schemes. The public sector lender’s broad strategy is to rebalance at both ends — advances and deposits. While pruning bulk deposits, OBC is also looking to reduce exposure to large corporates.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.