New Delhi, Jan 30 (PTI) Public sector Oriental Bank of Commerce today said its net losses widened to Rs 1,985.42 crore in the third quarter ended December 31, mainly due to uptick in bad loans that required higher allocation as reserve money.
The banks net loss was at Rs 130.01 crore in the same quarter of the previous fiscal.
The bank put aside Rs 2,340.21 crore as provisioning for non-performing assets for the quarter under review, substantially higher from Rs 1,429.62 crore in same period of 2016-17, the bank said in a regulatory filing.
However, it was lower sequentially as compared to Rs 3,146.92 crore provisioning in second quarter ended September this fiscal.
The gross non-performing assets (NPAs) as a ratio of gross loans as on December 31, 2017 rose to 16.95 per cent, up from 13.80 per cent in the same period a year ago.
Value-wise, gross NPAs stood at Rs 27,550.88 crore in October-December period of 2017-18, as against Rs 20,492.18 crore in same quarter of 2016-17.
Net NPAs, however, fell to 9.52 per cent of the net loans by end of third quarter from 9.68 per cent a year ago.
In absolute terms, net bad loans were at Rs 14,195.07 crore from Rs 13,688.09 crore.
The bank said it was required to make additional provision for select accounts covered under the provisions of Insolvency and Bankruptcy Code, 2016. It reserved Rs 868.41 crore as provisioning against those accounts over and above the norms and to be spread proportionately till March 31, 2018.
However, as against the required proportionate provision of Rs 578.94 crore up to December 31, 2017, the bank had provided for the entire amount of said additional provision of Rs 868.41 crore during the second quarter ended September 2017, it added.
Besides, under the resolution of stressed assets, the bank is required to make additional provision over and above the norms in respect of identified accounts for amount of Rs 460.88 crore by March-end.
Oriental Bank of Commerce (OBC) said it will make the said provision during the quarter ending March 31, 2018.
The provision coverage ratio of the bank stood at 62.09 per cent as on December 31, 2017.
Total income of the bank also fell to Rs 4,699.06 crore in the third quarter of 2017-18, from Rs 5,416.37 crore earnings in third quarter 2016-17.
The banks income from other sources also fell to Rs 436.98 crore during the three months to December from Rs 977.35 crore a year ago same period.
Shares of OBC fell 2.46 per cent at the close to Rs 117.10 on BSE. PTI KPM BAL
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