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Oriental Bank of Commerce (OBC), a public sector bank, on Saturday reported a net loss of Rs 130.01 crore for the quarter ended December 2016.
This was lower than the net loss of Rs 424.69 crore. recorded in the same quarter last fiscal.
However, this latest performance compared poorly to the net profit of Rs 153.27 crore recorded in the previous quarter ended September 30, 2016.
For the nine months period ended December 31, 2016, OBC has reported a net profit of Rs 123.94 crore, lower than net profit of Rs 134.46 crore in the same nine month period in the previous fiscal, according to the filing with Bombay Stock Exchange today.
The bank's financial performance for the quarter under review was weighed down by sharp increase in provisions including those for Non-performing assets at Rs 1327.08 crore ( Rs 1183.05 crore). Besides, the tax provision also shot up to Rs 83 crore ( Rs 8 crore).
Operating profit of the bank for the quarter under review saw substantial jump at Rs 1280.07 crore (Rs 766.36 crore).
Total income of the bank for the quarter under review increased to Rs 5,415.97 crore (Rs 5,350.48 crore).
Commenting on the Q3 financial performance, Animesh Chauhan, Managing Director & CEO, OBC, said the bank had in line with RBI guidelines not recognised unrealised interest of Rs 98.17 crore on accrual basis for the third quarter in respect of certain strategic debt restructuring (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A) accounts.
Also, as much as Rs 138.07 crore being the unrealised interest upto nine months ended September 2016 has been reversed during the December quarter, Chauhan said.
"But for this reversal, the bank would have been in the black during the third quarter. However, our performance at the operating level has been quite robust", Chauhan told BusinessLine soon after the Q3 results announcement.
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