ICRA has assigned ‘AA+’ rating with stable outlook to Rs 1,200 crore Lower Tier II Bonds Programme of Oriental Bank of Commerce (OBC). The credit rating agency also has ‘AA+ (stable)’ rating outstanding on Rs 1,000 crore Lower Tier II Bonds Programme and ‘AA (Stable)’ rating outstanding on Rs 1,250 crore Upper Tier II and Perpetual Bonds Programme of the company.
OBC’s ratings are supported by bank’s sovereign ownership (Government of India holds 58% stake in the bank), comfortable capitalization (CRAR of 12.06% and Tier 1 capital of 9.69% as on September 30, 2012), good operating efficiency (operating expenses at 1.4% in relation to average assets in FY 2012), and comfortable liquidity profile of the bank.
OBC had 1,850 branches as on September 30, 2012 and 12 extension counters. For the six months ending September 30, 2012 OBC reported a PAT of Rs 694 crore on an asset base of Rs 186,969 crore as on September, 2012. OBC’s Capital adequacy ratio (CRAR) was 12.06% as on September 30, 2012 with a Tier 1 capital of 9.69%.
