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BUZZ-India's Oriental Bank of Commerce falls; cenbank starts corrective action over bad loans
October 9, 2017 / 4:22 AM / 2 months ago

BUZZ-India's Oriental Bank of Commerce falls; cenbank starts corrective action over bad loans

** Mid-sized Indian state-run lender Oriental Bank of Commerce Ltd falls as much as 4.3 pct in early trade

** RBI initiated “prompt corrective action” (PCA) against the bank over its high amount of net non-performing assets

** Corrective action plan requires a bank to enact curbs on hiring, branch expansion and taking on new loans

** ORBC's managing director says as per a Times of India report that the bank has stopped taking 'risky exposure' to certain sectors and will restrict its fresh advances to cos with 'BBB' or higher ratings - bit.ly/2hWwBcD

** The bank’s chief said focus was on retail, farm and SME segment, which accounted for 50 pct of its loan book, the report added

** Stock hits lowest level since Aug. 16; posts biggest intraday pct loss since Sept. 22

** Bank posted a net loss for the June quarter, with net NPA rising to 9.56 pct

** Stock leads losses on Nifty PSU bank index which was up 0.29 pct

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