OBC eyeing to raise Rs 1,000 crore through issue of bonds

Oriental Bank of Commerce (OBC) is eyeing to raise Rs 1,000 crore by issuing bonds that would be compliant with global capital adequacy norms. The bank intends to raise Tier 1 capital through private placement of Basel III compliant additional tier 1 bonds of Rs 10 lakh each at par aggregating to Rs 250 crore with an option to retain over-subscription of up to Rs 750 crore. The proposed issue has been rated as ‘A+’ with stable outlook by India Ratings and ‘A+ (Hyb)’ with negative outlook by ICRA.

The bank has reported 60.95% fall in its net profit at Rs 100.69 crore for the quarter ended June 30, 2016 as compared to Rs 257.84 crore for the same quarter in the previous year. Total income of the bank decreased by 3.16% to Rs 5392.70 crore for the quarter under review from Rs 5568.78 crore for the corresponding quarter of the previous year.

The bank’s gross NPA for the April-June quarter of the current fiscal increased to 11.45%, as compared to 5.85% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 8.11% in Q1FY17.