A sharp increase in provisioning for non-performing assets (NPAs) has dragged Oriental Bank of Commerce (OBC) into the red in the fourth quarter of 2016-17 as well as for the entire fiscal 2016-17.

This is even as the operating profit of the bank showed robust growth both for the fourth quarter as well as the entire fiscal 2016-17.

Oriental Bank of Commerce on Friday reported a net loss of Rs 1,218 crore in the fourth quarter ended March 31, 2017 compared to a net profit of Rs 21.62 crore in same quarter last fiscal.

For the entire fiscal 2016-17, OBC reported a net loss of Rs 1,094 crore against a net profit of Rs 156.08 crore in theprevious fiscal, according to the filings with the stock exchanges.

Operating profit for the fourth quarter increased to Rs 1017 crore (Rs 879 crore). For the entire fiscal 2016-17, operating profit grew to Rs 4,170 crore (Rs 3,682 crore).

Commenting on the financial performance, Animesh Chauhan, Managing Director & CEO said that the performance was weighed down by an increase in provision for non performing assets (NPA).

Chauhan also said that bank had taken steps to increase the provision coverage ratio to 53.61 per cent as of March 31,2017 from previous level of 49.4 per cent.

While provisions (other than tax) had gone up to Rs 2,841 crore (Rs 1,026 crore) in the fourth quarter, it had increased to Rs 5,693 crore (Rs 3,356 crore) for the entire fiscal 2016-17.

Meanwhile, Chauhan also said that the Board of Directors of the bank have approved capital raising of up to Rs 5,000 crore.The route for the capital raising has not yet been decided, he added.

"We need to raise fresh capital to fund the expected business growth. We expect credit growth this fiscal to touch 10 per cent from a level of about 9 per cent in 2016-17", Chauhan said.

Srivats.kr@thehindu.co.in

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