OBC slips after credit rating revision

Oriental Bank of Commerce (OBC) slipped 2.39% to Rs 65.30 after CARE Ratings revised the rating outlook of tier I & tier II bonds from 'stable' to 'under credit watch with developing implications'.

CARE Ratings said the revision came after the Ministry of Finance's announcement regarding the proposed amalgamation of Oriental Bank of Commerce and United Bank of India with Punjab National Bank.

In a press briefing on 30 August 2019, Finance Minister Nirmala Sitharaman announced that Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank of India will be merged. The combined entity will be second largest PSU bank in India with business of Rs 17.94 lakh crore. It will have second largest banking network in India with 11,437 branches. The merged entity will be 2nd largest PSU bank in India.

All three banks share a common CBS (core banking software), Finacle, which will enable quick realisation of gains.

On the BSE, 66407 shares were traded in the OBC counter so far compared with average daily volumes of 24 lakh shares in the past one quarter. The stock hit a high of Rs 66.5 and a low of Rs 65.1 so far during the day.

The stock hit a 52-week high of Rs 119 on 01 Apr 2019. The stock hit a 52-week low of Rs 58.1 on 09 Oct 2018.

OBC reported net profit of Rs 112.68 crore in Q1 June 2019 as against net loss of Rs 393.21 crore in Q1 June 2018. Total income rose 19.1% to Rs 5,634.98 crore in Q1 June 2019 over Q1 June 2018.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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