PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.
The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.
Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.
Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.
Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.
Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.
The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.
A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.
“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.
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Some PSU banks plan Diwali gifts after improved performance


Public sector banks (PSBs) here like the State Bank of India (SBI) and the Oriental Bank of Commerce (OBC) are planning to give festival gifts to their employees.

The two banks have announced a Diwali gift of sweets/dry fruits/chocolates for their staff worth Rs 1,000.

The competent authority in these two banks have issued instructions to distribute the Diwali gifts well ahead of the festival and that cash should not be given as gift in lieu of sweets/dry fruits/chocolates.

The SBI has instructed that the expenditure will be debited to the accounts of the respective offices and then appropriated from the Staff Welfare Fund for the year 2019-20, if and when allocated.

The OBC's General Manager for Human Resources Development Swarup Kumar Saha in a communication to all the branches and other offices cited the improved financial performance of the bank during the second quarter of 2019-20.

The OBC had posted a net profit of Rs 126 crore logging a growth of 23.53 per cent year-on-year. The operating profit has also increased by 20.99 per cent to Rs 1,176 crore.

The letter also said that the capital adequacy ratio and the asset quality of the banks have also improved and all these happened due to committed efforts of the staff members.

The expenses incurred on Diwali gifts will be debited to the Charges General (Staff Welfare), the OBC letter said.

While this is for the first time that Diwali gifts are given to the OBC staff, an officer association leader in SBI told IANS that it is for the second year in a row that the bank is planning to give festive gifts to their staff members.

When queried whether there is an option for non-Hindu employees to avail of the gift at a later date, for instance a Christian employee availing it during Christmas, the SBI union official refused to answer the question.

For the SBI with an employee base of about 257,000, the outgo towards Diwali gifts would be about Rs 25.7 crore.

A union official questioned the logic of giving gifts only during Diwali, that too by government banks where there are employees belonging to various faiths.

In this connection, DMK spokesperson and Member of Parliament T.K.S. Elangovan told IANS: "These banks are owned by the government of India where people of different religions work. The employees should be given the option of choosing the festival for which he would accept the gift."
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Oriental Bank of Commerce (OBC) Q2 profit rise QoQ


State-owned Oriental Bank of Commerce (OBC) posted net profit of Rs125.9 crore in the quarter-ended September, up 23% year-on-year, as fewer new loan accounts turned bad and on account of a rise in net interest margin. It had reported a profit of Rs112.7 crore in April-June quarter.


OBC’s interest income grew 13.9% year-on-year to Rs4,878 crore in the three months ended September. Gross non-performing assets (NPA) declined 471 basis points (bps) year-on-year to 12.53% in the September quarter, while net NPA fell 413 bps to 5.94%, the bank said in a filing with the exchanges. Bad loans declined due to lower fresh slippages.

The lender’s net interest income grew 14.7% to Rs1,456 crore. Its net interest margin—a key measure of profitability—grew 6 bps year-on-year to 2.62%.

OBC’s provisioning coverage ratio (PCR) increased to 77.13% as of September-end, up 11.8 percentage points from a year ago. PCR is the amount set aside to cover NPAs.


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Oriental Bank of Commerce (OBC) Q1 result, reports net profit


Oriental Bank of Commerce (OBC) posted a net profitof Rs 112.7 crore. The company had posted a loss of Rs 393.2 crore in the year ago period. Bank has posted a profit due to the better asset quality and less provisions. 

Gross NPA of bank stood at 12.56 percent as against 12.66 percent. Net NPA stood at 5.91 percent versus 5.93 percent QoQ.

Net interest income(NII) was up 2.6 percent at Rs 1,371.6 crore.

Provisions for the quarter under review stood at Rs 842.4 crore versus Rs 1,051.5 crore QoQ and Rs 1,539.5 crore YoY.
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Indian Bank opposes merger with OBC, says has well-laid out plan for 3 years

Oriental Bank of Commerce (OBC) may have floated the idea of a merger of two other state-run lenders – Indian Bank and Corporation Bank – into itself, but the Chennai-based bank doesn't seem to be interested. In a statement on Wednesday, Indian Bank said its board doesn't have any such proposal, showing its intent against any such potential merger into OBC should the government ask for its view. “There is no such proposal with the board of the bank,” it said. “The bank has a well-laid out business plan for the next three years, with a clear visibility on growth, earnings and asset quality that create significant value for all its stakeholders.”

Banking sources had told FE that OBC had sought the finance ministry's approval to combine with Indian Bank and Corporation Bank. The ministry would consider OBC's proposal and take a view soon, one of the sources had said.

OBC – which was facing restrictions under the central bank's Prompt Corrective Action (PCA) framework until early February – recorded a net profit of Rs 201.5 crore in the March quarter, compared with a net loss of Rs 1,650.22 crore a year earlier. Even sequentially, the profit surged 39%.

However, Corporation Bank's losses zoomed to Rs 6,581.49 crore during the fourth quarter of FY19, against Rs 1,838.39 crore a year before. Indian Bank saw a net loss of Rs 190 crore in the March quarter, against a net profit of Rs 132 crore in the same period last year.

While the headquarters of OBC is in Gurugram, those of Corporation Bank and Indian Bank are in Mangalore and Chennai, respectively.

Indian Bank's net NPA ratio was the lowest of the three – 3.75%, against OBC's 5.93% and Corporation Bank's 5.71%. At 11.29%, Indian Bank's tier-i capital was higher than OBC's 9.98% and Corporation Bank's 10.52%.
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Big bank theory: This two PSU Banks may merge into Oriental Banks of Commerce (OBC)

With a heavy mandate to push reforms, the BJP-led government may soon kick-start the next phase of consolidation in the public-sector banking space with an amalgamation of three lenders — Oriental Bank of Commerce (OBC), Indian Bank and Corporation Bank.

Banking sources told FE that OBC has sought the finance ministry’s approval to combine with Indian Bank and Corporation Bank. The ministry will consider OBC’s proposal and take a view soon, one of the sources said. However, there is no formal announcement from the finance ministry on the matter yet. Another source said the government may infuse `40,000-50,000 crore into public-sector banks (PSBs) this fiscal, having already provided `1,06,000 crore in FY19.

The merger, if implemented, will be part of the government's efforts to create a few but strong banks with much larger balance sheet to support the rising credit appetite of the fast-growing economy and enable optimum utilisation of resources.

The successful experience of merging State Bank of India with five of its subsidiaries and Bharatiya Mahila Bank, and the amalgamation of Bank of Baroda, Vijaya Bank and Dena bank have given the government confidence that more such consolidation exercises can be handled without any hiccups.

OBC — which was facing restrictions under the central bank's Prompt Corrective Action (PCA) framework until early February —recorded a net profit of Rs 201.5 crore in the March quarter from a net loss of Rs 1,650.22 crore a year earlier. Even sequentially, the profit surged 39%. However, Corporation Bank's losses zoomed to Rs 6,581.49 crore during the fourth quarter of FY19, against Rs 1,838.39 crore a year before.

Indian Bank saw a net loss of Rs 190 crore in the March quarter, against a net profit of Rs 132 crore in the same period last year. While the headquarters of OBC is in Gurugram, those of Corporation Bank and Indian Bank are in Mangalore and Chennai, respectively.

Earlier, there were reports of Punjab National Bank (PNB) amalgamating with OBC and some other smaller banks, such as Punjab & Sind Bank, Allahabad Bank and Andhra Bank. However, given that PNB is still not out of the woods, any such plan may wait until the bank's results for the first quarter of this fiscal are out. PNB recorded losses of Rs 4,750 crore in the March quarter, against a net loss of Rs 13,417 crore in the same quarter last fiscal when the Nirav Modi fraud came to light. It, however, had recorded a net profit of Rs 247 crore in the third quarter of FY19.

Upon amalgamation, the merged entity will have a combined deposits of `6.6 lakh crore and advances of Rs 4.8 lakh crore, said the sources. The net NPA ratio of OBC stood at 5.93%, while that of Corporation Bank and Indian Bank was 5.71% and 3.75%, respectively at the end of March.
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Punjab National Bank (PNB) likely to takeover two or three PSU banks

Punjab National Bank (PNB) is likely to takeover two to three smaller state-run banks -- Oriental Bank of Commerce (OBC), Andhra Bank and Allahabad Bank -- in the next three months, reports Reuters.

The government has been striving to revive the health of public sector banks. In February, it announced a recapitalisation tranche of Rs 48,239 crore for as many as 12 public sector banks in a bid to take them out of Reserve Bank of India’s (RBI) Prompt Corrective Action (PCA) framework. Their lending ability was constrained by RBI when they were put under this framework.

The 12 banks are Allahabad Bank, Corporation Bank of India, Bank of India, Bank of Maharashtra, Punjab National Bank, Union Bank of India, Andhra Bank, Syndicate Bank, Central Bank of India, United Bank of India, UCO Bank and Indian Overseas Bank.
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Oriental Bank of Commerce (OBC) back in black,reports profit in Q4

Oriental Bank of Commerce (OBC) on Monday reported a net profit of Rs 201.50 crore for the fourth quarter ended March 31, 2019. Thé public sector lender had reported a net loss of Rs 1,650 crore in the fourth quarter last fiscal.

For the entire fiscal 2018-19, OBC has reported a net profit of Rs 55 crore, a turnaround of sorts when compared to a net loss of Rs 5,872 crore in the previous fiscal.

The turnaround could largely be attributed to a 109 per cent increase in total recovery and upgradation at Rs 6,597 crore (Rs 3,161 crore) during fiscal 2018-19.

Net NPAs have decreased to 5.93 per cent (Rs 9,440 crore) as against net NPAs of 10.48 per cent at Rs 14,282 crore last year.

Commenting on the bank’s financial performance, Mukesh Kumar Jain, Managing Director & CEO, Oriental Bank of Commerce, attributed the turnaround to three main reasons—containment of slippages; sharp increase in recoveries to the tune of 108 percent on a year on year basis besides over 41 percent growth in retail advances.

Aided by spike in retail advances, the bank’s overall advances grew 15.75 percent in 2019-20. For the current fiscal, OBC is eyeing overall credit growth of 10-12 percent, Jain said.
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Modi govt may merge these three PSBs to create giant PSU lender

The government is weighing the possibility of the next phase of consolidation in the public sector banking space by amalgamating three lenders —Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and Punjab & Sind Bank (P&SB), sources told FE.

“An inter-ministerial group (called Alternative Mechanism) under Union minister Arun Jaitley will take a final call on this plan. The (merger) option is on the table but whether the government is going to bite the bullet ahead of polls and announce amalgamation or choose to wait is yet to be seen,” said one of the sources.

While the headquarters of PNB and Punjab & Sind Bank are in Delhi that of OBC is in Gurugram (Haryana).,

The amalgamation, if approved, will be a part of the government’s efforts to create a few but strong banks with much larger balance sheets to support the rising appetite for credit of the fast-growing economy and enable optimum utilisation of resources. Upon amalgamation, the merged entity will have a combined business of over Rs16.5 lakh crore, deposits of Rs9.6 lakh crore and advances of close to Rs7 lakh crore, said the sources.

It will pip Bank of Baroda (into which Vijaya Bank and Dena Bank have recently merged) to become the second biggest public sector bank.

The net NPA ratio of PNB and OBC stood at 8.22% and 7.15%, respectively, as of December quarter, having improved from 11.24% and 10.48% at the end of March 2018.

PNB surprised analysts by recording a 7% rise in net profit in the three months through December 2018 following losses in three previous quarters. The Reserve Bank of India (RBI) last week lifted various restrictions on OBC, which had been under the prompt corrective action (PCA) framework since October 2017. Although Punjab and Sind Bank has witnessed losses in the first two quarters of this fiscal, on top of the losses in the last fiscal, it hasn’t made into the central bank’s watch list and its net non-performing asset (NPA) ratio of 5.25% is relatively decent.

The successful experience of merging State Bank of India with five of its subsidiaries and Bharatiya Mahila Bank, and the amalgamation of Bank of Baroda, Vijaya Bank and Dena Bank have given the government confidence that another round of consolidation can be handled without hiccups. However, given that PNB, OBC and Punjab & Sind Bank, while witnessing an improvement in their finances are not out of the woods yet, the government may choose to wait until their recovery takes roots, said another source.


Presenting the Interim Budget 2019-20, finance minister Piyush Goyal said: “Amalgamation of banks has also been done to reap the benefits of economies of scale, improved access to capital and to cover a larger geographical spread.”

Source - The Financial Express
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First three PSU Banks which are removed from RBI's PCA list

A Reserve Bank of India (RBI) panel has decided to remove both Bank of India , Bank of Maharashtra and Oriental Bank of Commerce from its prompt corrective action plan (PCA) for state-owned banks that had high levels of bad debt and inadequate capital, a source directly aware of the development told Reuters on Thursday.
The source, who asked not to be named as the discussions are private, said the move follows improvements in the asset quality and capital ratios of both banks.
The RBI’s board for financial supervision took the decision at its meeting on Thursday after reviewing the December quarter performance of all banks on the PCA list, the source said.
In case of Oriental Bank of Commerce, it may also be removed from the list pending the outcome of a technical clarification from the bank, the source added. the net NPA has come down to less than 6 per cent as the government has infused sufficient capital, it said. Hence, it has been decided to remove the restrictions placed on Oriental Bank of Commerce (OBC) under PCA framework, subject to certain conditions and close monitoring, the apex bank added. 
The RBI put 11 state-owned lenders on the PCA list in the past few years. As a result, it barred them from issuing fresh big-ticket loans and expanding their operations, as well as putting their financial performance under close scrutiny.

RBI Press Release:-
Click on right corner of PDF to view large
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Oriental Bank of Commerce(OBC) posts net profit in Q3FY19


State-owned Oriental Bank of Commerce (OBC) on Tuesday reported a net profit of Rs 145 crore for the December 2018 quarter, on improvement in asset quality and increase in business efficiency.


It had posted a net loss of Rs 1,985 crore in the corresponding quarter of the previous financial year, OBC said in a regulatory filing.



Total income rose to Rs 5,128 crore during the third quarter, compared with Rs 4,756 crore a year ago.



The lender said it has improved on its efficiency with the net interest margin consistently rising from 1.95 per cent in the December quarter of 2017-18 to 2.80 per cent in the third quarter of this year. Sequentially, it increased from 2.58 per cent in the second quarter of this fiscal.



The bank's cost-to-income ratio also improved to 49.50 per cent in the quarter, from 50.87 per cent a year ago and 50.19 per cent in the second quarter.

Also read- Q3FY19 Results of all Public & Private Sector banks in India 


Net interest income, difference between interest earned and expended, increased to Rs 1,419 crore, compared with Rs 1,018 crore a year ago and Rs 1,275 crore in the previous quarter.

Meanwhile, OBC said it would issue more than 2.61 crore new equity shares under the employee purchase scheme at a price of Rs 71.76 per share.

The bank is expected to raise up to Rs 187.52 crore in this issue that is slated to offer for subscription by employees on January 31.

Moreover, the Gurugram-based lender also reported that its asset quality has also improved with gross non-performing assets (NPAs) falling to 15.82 per cent of the total advances in the quarter, against 16.95 per cent in the year-ago period.


Net NPAs stood at 7.15 per cent as compared with 9.52 per cent.

Value-wise, gross NPAs were Rs 24,352.98 crore in the December 2018 quarter, against Rs 27,550.88 crore a year ago. Net NPAs stood at Rs 9,972.61 crore as against Rs 14,195.07 crore. Provisions for bad loans, however, increased to Rs 4,082 crore in the quarter, from Rs 2,340 crore parked aside a year ago.

The bank said it made cash recovery of Rs 543 crore in written-off bad debt in the nine months to December 2018, up from Rs 149 crore during same period of the preceding fiscal.


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One bank may come out of PCA this week, Other two in feb

Bank of India has submitted proofs of improvement in parameters.
Close on the heels of recapitalisation, Bank of India, which received the highest infusion of Rs 10,086 crore last month, has submitted details of its three key parametres—net NPA, return on assets (RoA) and capital to risk weighted assets ratio (CRAR)—to the RBI to consider its performance to take the lender out of the PCA list.

Official sources said Bank of India (BoI) has submitted proofs of improvements in its three Prompt Corrective Action triggers to the Reserve Bank and now this would be placed before the RBI’s Board for Financial Supervision (BFS) meeting, expected in a day or two. In all probability, BoI would be out of the PCA framework this week. Sources also added Bank of Maharashtra (BoM) and Oriental Bank of Commerce (OBC) are also likely to approach the RBI on PCA triggers’ improvements later this week. As things stand, they also have a fair chance of coming out of the PCA framework this fiscal, even as early as February.
Once these three banks come out of PCA, lending by them can be expected to go up by at least 20-25 per cent, said a former bank chairman.
A banking source said BoI shareholders have through the employee stock purchase scheme (ESPS) made a capital infusion of Rs 845 crore, which has been added to the capital base of the bank and that has taken care of all the gaps in its capital shortfalls after counting the recapitalisation by the finance ministry.

Many public sector banks, including Allahabad Bank, Union Bank of India, United Bank of India, Canara Bank and Punjab National Bank, have availed of ESPS to raise funds by issuing shares to their own staff. The government, in March 2017, had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and as a means for raising capital. Syndicate Bank had raised Rs 500 crore through ESPS by allotting 30 crore new shares to its staff. Punjab National Bank mobilised Rs 500 crore through ESPS by issuing 10 crore shares to its employees.
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Oriental Bank of Commerce(OBC) posts profit in Q2

Oriental Bank of Commerce(OBC) on Thursday reported a profit of Rs 101.74 crore for the second quarter ended September 30, despite increase in bad loans. It had reported a net loss of Rs 1,749.90 crore in the corresponding July-September quarter of 2017-18, OBC said in a BSE filing.

However, total income of the state-owned lender declined to Rs 4,967.29 crore during the quarter, as against Rs 5,511.70 crore in the same period of 2017-18.

Asset quality dented further as gross NPAs, as a percentage of gross advances, hit 17.24 per cent by the reported quarter as against 16.30 per cent as on September 30, 2017. In absolute terms, NPAs stood at Rs 25,673.31 crore against Rs 26,431.86 crore.


Net NPAs rose to 10.07 per cent (Rs 13,795.23 crore) of the net loans by end of September quarter 2018-19 from 9.44 per cent (Rs 14,128.29 crore) in the year-ago period.

However, total provisioning eased to Rs 1,073.75 crore for the quarter, down from Rs 3,146.92 crore a year ago. At the end of the reported quarter, the capital adequacy ratio of the bank stood at 10.35 per cent as compared to 10.60 per cent in the same period a year ago.


The bank further said RBI grants banks an option to spread provisioning for mark to market (MTM) losses on investments held in bonds for the June quarter 2018 equally over up to four quarters, commencing with the first quarter.

"Accordingly, during the quarter and half-year ended September 30, 2018, Rs 144.34 crore and Rs 288.68 crore ,respectively have been charged to the profit and loss account towards such MTM losses and the balance unamortised MTM loss as on September 30 is Rs 288.68 crore," it said.
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OBC narrows Q1 loss; other income, operating profit fall sharply; NPA rises

Public sector lender Oriental Bank of Commerce has narrowed its loss at Rs 393.21 crore for the June quarter compared to loss of Rs 486.20 crore reported in same period last year.

Net interest income during the quarter grew by 17 percent year-on-year to Rs 1,337.6 crore, but non-interest income plunged 41 percent to Rs 460.34 crore and operating profit slipped 28 percent to Rs 724.25 crore YoY.
Provisions and contingencies for the quarter stood at Rs 1,539.5 crore, which increased 5 percent compared to year-ago but fell 34 percent sequentially. Provision coverage ratio improved a bit to 64.59 percent from 64 percent QoQ.
Asset quality weakened further with gross non-performing assets as a percentage of gross advances rising to 17.89 percent in Q1FY19 against 17.63 percent in previous quarter and net NPA climbing to 10.63 percent versus 10.48 percent QoQ.
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Six PSBs have given mandate to IBA to Settle 11th BPS up to Scale III only

Six Public Sector Banks have given their mandate to negotiate salary of all the employees of banks. The six banks which are State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Bank, Union Bank of India and Oriental Bank of Commerce have given conditional mandate to IBA to restrict negotiate up to Scale III or IV only.

Bank’s Union have shown their displeasure against the unconditional mandate of these banks. They have written to Department of Financial Services to relook the matter and lodged their protest against the bank’s management decision.


It’s difficult to say at this moment whether decision taken by banks are correct or not to settle salary only up to Scale III/IV in 11th Bipartite Settlement or not ?
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Govt. plans to make 2nd largest bank after SBI

The government is considering merging at least four state-run banks, including Bank of Baroda, IDBI Bank Ltd, Oriental Bank of Commerce and Central Bank of India, two people aware of the matter said. If the plan goes through, the merged entity will become the second-largest bank in the country after State Bank of India, with combined assets of ₹16.58 trillion.

With the merger, the government hopes to help stem the rise in bad loans in their books at a time when poor asset quality has crippled the lending ability of some of them. The merger will also allow the weak banks to sell assets, reduce overheads and shut money-losing branches.
The four banks that are being proposed to be merged are under pressure with combined losses of ₹21,646.38 crore in the year ended 31 March.
The department of financial services, under the finance ministry, is also simultaneously considering a 51% stake sale in IDBI Bank to a strategic partner, for ₹9,000-10,000 crore, the people said on condition of anonymity.
“Dilution of (government) stake in IDBI Bank could also be achieved through stake sale to private equity investors,” said one of the two people cited above. Queries emailed to IDBI Bank, Bank of Baroda, Oriental Bank of Commerce and Central Bank of India did not elicit any response.
On 21 May, IDBI Bank told the exchanges in a regulatory filling that a special resolution will be placed for further issue of capital at its board meeting of 25 May.

On the following day, IDBI Bank informed the exchanges about a scrutinizer report for an increase in the bank’s authorized capital from the existing ₹4,500 crore to ₹8,000 crore.
The increase in authorized capital could facilitate the sale of a stake of 51% or more, in the form of a preferential issue to investors.
Government officials declined to comment, saying the matter is highly market sensitive. In his 2016 budget speech, finance minister Arun Jaitley said that the government was considering reducing its stake in IDBI Bank to less than 50%.

Source- Livemint
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Oriental Bank of Commerce(OBC) Q4 loss widens on rising bad loans

Public sector lender Oriental Bank of Commerce’s (OBC) net loss widened to Rs1,650.22 crore for the quarter ended March of 2017-18. The bank had made a net loss of Rs1,218.01 crore during the corresponding quarter of the preceding fiscal ended March 2017.
Total income of the bank during January-March quarter of 2017-18 came down to Rs4,689.12 crore as against Rs5,093.84 crore, OBC said in a BSE filing.
Asset quality of the bank worsened with net non-performing assets (NPAs) rising to 10.48% of the net advances as on 31 March 2018 against 8.96% reported a year ago.

Public sector lender reported a divergence of Rs968 crore in its gross NPAs for 2016-17. As per the bank, its gross NPAs as on 31 March 2017 stood at Rs22,859.27 crore, while the same as assessed by RBI for the reported year stood at Rs23,827.17 crore, OBC said in a BSE filing. The divergence in the gross NPAs for 2016-17 stood at Rs967.90 crore.
As per an Reserve Bank of India (RBI) directive in April 2017, banks have been advised to make disclosure in a prescribed format of the divergence in the asset classification and provisioning.
Gross NPAs or bad loans as a percentage of gross advances at the end of March 2018 stood at 17.63%, up from 13.73% a year ago. Bank’s provisioning for bad loans stood at Rs2,419.47 crore in the quarter under review against Rs3,050.60 crore a year ago.
Without naming anyone, Oriental Bank of Commerce said, in respect of two gems and jewellery borrower group, where fraud was declared by some banks, the bank has fully provided for the entire funded exposure.

Nirav Modi and his uncle Mehul Choksi, the promoter of Gitanjali Gems are wanted in connection with the alleged over Rs13,000 crore fraud at Punjab National Bank (PNB). Other banks too have declared direct/indirect exposure to Nirav Modi and Gitanjali Gems. Their role in the alleged fraud is being investigated by multiple agencies.
For the full financial year, the bank reported a net loss of Rs5,871.74 crore. It had registered a net loss of Rs1,094.07 crore in the preceding 2016-17 fiscal. Total income in the entire 2017-18 fiscal stood at Rs20,181.25 crore, lower from Rs21,187.85 crore a year ago.
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Oriental Bank of Commerce(OBC) loan fraud: Delhi diamond exporter booked for Rs389cr scam

After Nirav Modi and Mehul Choksi, the Central Bureau of Investigation (CBI) has registered a case against a Delhi-based diamond jewellery exporter for an alleged bank loan fraud to the tune of Rs389.85 crore towards Oriental Bank of Commerce.


The CBI has booked Dwarka Das Seth International Pvt Ltd for the alleged fraud.
Six months after the public sector bank filed a complaint with the CBI, the agency booked the company, and Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh — all directors of the firm — and another company named Dwarka Das Seth SEZ Incorporation.
The company has availed various credit facilities from OBC between 2007-12, which swelled to Rs389 crore during the period.


It was found by the bank that the company was using letters of credit (LoCs) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions, the bank complaint, now part of the CBI FIR, alleged.
The company was also engaging in business transactions with non existent entities, it said.
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Oriental Bank of Commerce(OBC) Q3 result, net loss widens


Public sector Oriental Bank of Commerce  on Tuesday said its net losses widened to Rs1,985.42 crore in the third quarter ended 31 December, mainly due to uptick in bad loans that required higher allocation as reserve money.
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One of PSB announce to cut allowance to retrieve from PCA

In our recent article SBI has taken good step for their employees to introduce bereavement leave . Now SBI is the first PSU bank who have given this type of leave.

On the other side India's another Public Sector Bank announce to cut some allowances of employees to retrieve from PCA. Currently this bank is under PCA due to high NPA.

Oriental Bank of Commerce(OBC) announces to discontinuation of  payment of expenses of cleansing material at residence of employees.

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