Oriental Bank of Commerce Share Price

From the reviewed financial results for the first quarter of the financial year spanning 2018-2019, we can see the following:

1. The total interest earned by the bank in the quarter was Rs.4,269.24 crore. This was an increase from the results of the previous quarter which was Rs.4,246.63 crore.
2. The other income of the bank increased from Rs.442.49 crore in the previous quarter to Rs.460.34 crore in the current quarter.
3. The total income of the bank in the final quarter of FY18 was Rs.4,689.12 crore while it was Rs.4,729.58 crore in the next quarter.
4. Operating expenses decreased from Rs.1,136.54 crore in the previous quarter to Rs.1,073.71 crore in the current quarter.
5. The net loss for the period was Rs.393.21 crore compared to Rs.1,650.22 crore in the previous quarter. This shows an improvement in the bank's performance.
6. The percentage of gross NPAs (non-performing assets/accounts) increased slightly from 17.63% in the previous quarter to 17.89% in the current quarter.

Annual Report 2017-2018

From the annual report released by the bank for the financial year spanning 2017-2018, we can see the following:

1. The interest income of the bank dipped from RS.18,422.33 crore in FY17 to Rs.17,398.89 crore in FY18.
2. Other income rose from Rs.2,765.52 crore in FY17 to Rs.2,782.36 crore in FY18.
3. The total income of the bank for the current year dropped to Rs.20,181.25 crore from Rs.21,187.85 crore in the previous year.
4. The interest paid by the bank decreased from Rs.13,512.83 crore in the previous year to Rs.12,888.13 crore in the current year.
5. Operating expenses increased from Rs.3,504.89 crore in FY17 to Rs.3,589.94 crore in FY18.
6. While total expenses did decrease from Rs.17,017.72 crore in FY17 to Rs.16,478.07 crore in FY18, operating profit still decreased from Rs.4,170.13 crore the previous year to Rs.3,703.18 crore in the current year.
7. The bank made a net loss after exceptional item of Rs.1,094.07 crore in the previous year. This decreased to Rs.5,871.74 crore in the current year indicating a change in the way the bank was managed.

Q4 Results FY18

From the audited financial results for the final quarter of the financial year ending March 2018, we can see the following:

1. The total interest earned by the bank was Rs.4,246.63 crore compared to Rs.4,262.08 crore in the previous quarter. This shows a decrease in the interest earned by the bank.
2. The other income of the bank was Rs.442.49 crore whereas it was Rs.493.92 crore in the previous quarter.
3. The total income of the bank was Rs.4,689.12 crore in the current quarter and it was Rs.4,756.00 crore in the previous quarter. This indicates that the total income of the bank has reduced over the quarter.
4. Operating expenses increased from Rs.769.02 crore to Rs.1,136.54 crore. While rent, taxes, lighting, and other operating expenses decreased, the cost incurred through employees increased by a lot. This is shown by the fact that the employees cost was Rs.290.28 crore in the previous quarter versus Rs.672.57 crore in the current quarter.
5. The total expenditure of the bank while excluding provisions and contingencies was Rs.4,288.42 crore while it was lesser in the previous quarter at Rs.4,013.18 crore.
6. The operating profit before provisions and contingencies was Rs.400.70 crore, a decrease from Rs.742.82 crore in the previous quarter.
7. The net loss for the period was Rs.1,650.22 crore compared to Rs.1,985.42 crore in the previous quarter. While this was a minimal decrease in the loss, it was still an improvement in performance.
8. The percentage of gross NPAs (non-performing assets/accounts) was 17.63% in the current quarter versus 16.95% in the previous quarter. This indicates that there was an increase in the percentage of gross NPAs over the quarter.

Oriental Bank of Commerce Stock Trends in 2018

1. In January of 2018, the stock began trading at about Rs.121. The stock touched its highest price for the month by the beginning of the last week of the month but dropped after. The final price for the month was about Rs.117.
2. The stock dipped over the course of February 2018 with the final price for the month being about Rs.100.
3. In March 2018, the stock went below the Rs.100 mark. While the stock appeared to go slightly over the Rs.100 mark during the course of the month, it kept reducing after. The final price for the month was about Rs.91.
4. The highest price of the stock in April 2018 was about Rs.101. The share price reached this level by the middle of the second week of the month. The share price declined again later and the final price for the month was about Rs.93.
5. In May 2018, the stock began at about Rs.93 and over the course of the month, dipped below the Rs.90 mark. In fact, the final price for the month was about Rs.80.
6. The stock went below Rs.80 initially in June 2018 and appeared to recover a little. The stock remained slightly over Rs.80 over the course of most of the month but dipped again towards the last week. The final price for the month was about Rs.75.
7. The stock did not perform better in July 2018 and the final price for the month was about Rs.80.
8. In August 2018, the stock remained slightly over Rs.80 for the most part and the final price for the month was about Rs.84.
9. The stock saw a decline in prices over the course of September 2018 and the final price for that month was about Rs.61. This was an almost Rs.20 decline in prices.
10. The stock did not breach the Rs.70 mark in the first couple of weeks of October 2018.

Oriental Bank of Commerce Stock Trends in 2016 and 2017

Stock trends in 2016

1. In January 2016, the stock began trading at about Rs.140. From then, till the end of the month of February 2016, the stock declined in price. In March 2016, the stock appeared to recover a little in March 2016 with the stock recovering up to Rs.91.
2. April 2016 marked a period of fluctuation for the share price. In May 2016, the stock saw mostly declines in prices. But in June 2016, the stock gained again and by a lot. A final 7% dividend was announced on 15 June 2016. The final price for June 2016 was about Rs.108.
3. The stock had gained even more in price over the course of July 2016 and the final price for that month was about Rs.117. The stock gained some more in August, going over Rs.120. In September 2016, the stock even briefly went over the Rs.130 mark but dropped a little to close at about Rs.125 for the month.
4. The stock fluctuated a lot between two points over the month of October 2016 but did not drop or increase by much. There was a net drop in November 2018 and this drop was steeper during December 2016 with the final price for the year being about Rs.106.

Stock trends in 2017

1. The stock increased in price over the course of January 2017. While the stock dropped a little in February, there was an increase in March 2017 and the final price for the month was about Rs.140.
2. The stock increased even more in price over the course of April 2017 and the final price for that month was about Rs.170. The stock hit its peak price during the initial days of May 2017 and declined over the course of the rest of the month. The final price for the month was about Rs.149. The stock dipped to about Rs.141 by the end of June 2017.
3. The stock increased a lot during the course of July 2017 and hit its peak for the month during the last week at about Rs.151. Then, the stock declined again and the final price for the month was about Rs.148. The stock dipped to below Rs.130 in August 2017 and about Rs.119 in September 2017.
4. There was a steep increase in prices over the course of October 2017 and decreases in November and December 2017. The final price for the year was about Rs.120.

Should You Invest in Oriental Bank of Commerce?

1. The bank is a state-owned bank, giving it a measure of safety compared to investing in a private bank.
2. The bank has partnered with SBI for credit cards.
3. In addition to physical banking centres, the bank also offers internet banking and mobile banking to cater to the newer generation.
4. The bank has begun Grameen projects in order to reduce poverty in the country. Through this project, the bank aims to empower women and provides loans of amounts as low as Rs.75. Also, through this project, the bank aims to train people in rural areas in the art of making better use of local produce in order to make money. This is done in order to help the women become more self-sufficient and to provide them with a source of employment.
5. Yet another rural project undertaken by the bank is the Comprehensive Village Development Programme. The aim of this programme is to provide finance for the development of infrastructure in rural areas and to help improve the income derived by the people living in rural areas. This plan also focuses on women and credit delivery to them.
6. The bank has managed to improve its metrics with solid increases in interest income earned and total income. In addition to this, the bank seems committed to reducing its operational expenses. This has reduced the net loss of the bank. Therefore, we can see that the bank is on a path to make profits. But as long as the NPA issue remains unaddressed, it might be a bit difficult for the bank to perform better and it will take some time before the profits come in.
7. Considering all this information, it might be lucrative to invest in Oriental Bank of Commerce shares. But, before investing, it would be a good idea to consider your personal financial situation and other commitments. Also, it would be best to perform in-depth personal research before investing.

Company Information

As of the end of June in the year 2017, the bank has a customer base of over 2.2 crore. To service this large customer base, the bank has 2,376 branches across India. The bank also has 2,607 ATMs around the country. The bank also has an office in Dubai. As of 2016, the bank had 21, 469 employees on its rolls. The bank offers services such as investment banking, consumer banking, commercial banking, retail banking, private banking, asset management, pensions, mortgages, and credit cards. This business mix of the bank totals over Rs.3.79 lakh crore.

History of the Company

Oriental Bank of Commerce was founded in Lahore in the year 1943. After four years of its existence, India got partitioned and the bank shifted its base from Lahore to Amritsar. At present, the headquarters of the bank is located in Gurgaon. The bank, in a goodwill gesture, honoured the commitments made to depositors from Pakistan. Another unique fact about the bank is that in the 1970s, the bank's profit was almost nil. During this time, the owners of the bank were of the opinion that they should sell it but the employees and the people who were in the top management convinced the owners to not sell. This caused a turnaround in the bank's history. In the year 1980, the bank was nationalised, that is, the Indian Government took control of the bank. In the year 1997, two banks were acquired by Oriental Bank. These two banks were Bari Doab Bank and Punjab Cooperative Bank. In 2010, the bank became the seventh largest public sector bank in India when it crossed the landmark Rs.2 lakh crore point through its business mix. In 2004, the bank amalgamated the Global Trust Bank. This gave Oriental Bank an additional 103 branches.

Management of the Company

The bank is headed by the following individuals:

1. Sh. Mukesh Kumar Jain - Managing Director and Chief Executive Officer
2. Sh. Himanshu Joshi - Executive Director

The Board of Directors of the company comprises the following individuals:

1. Sh. S. Ganesh Kumar
2. Sh. Prashant Goyal
3. Smt. Mala Srivastava
4. Shri. Sanjay Kapoor
5. Sh. Desh Deepak Khetrapal
6. Sh. Ashok Kumar Sharma
7. Sh. Madan Mohan Lal Verma

The top management team at the bank comprises the following individuals:

1. Smt. Vidyavati Rudra
2. Sh. Navleen Kundra
3. Sh. Charanjit Singh
4. Smt. Shashi Jain
5. Sh. P. Sreedhar
6. Sh. H.K. Batra
7. Sh. Pradeep Chauhan
8. Sh. Surender Singh
9. Sh. Ashwani Kumar
10. Sh. Kuldeep Bhalla
11. Sh. Harish Kumar Bhanga
12. Sh. Swarup Saha
13. Sh. B. S. Jaitawat
14. Sh. Brij Mohan Sharma
15. Sh. Ashutosh Choudhury
16. Sh. Sukesh Gupta
17. Sh. Joginder Singh
18. Sh. Rajneesh Karnatak
19. Sh. S. K. Dixit
20. Sh. Binay Kumar Gupta
21. Sh. Mahesh Dhawan
22. Sh. Amit Srivastava

The Managing Director and CEO, Shri. Mukesh Kumar Jain began serving in his current position in the year 2017. He first assumed charge in the mid-month of July that year. He has a post-graduate degree from Delhi School of Economics. In addition to this, he is a chartered accountant. He began his career in the international division of Oriental Bank of Commerce in 1986 and then moved to Dena Bank as the manager for credit in the year 1987. He has over three decades of experience in both operations and administration of banks.

Oriental Bank of Commerce Listing in NSE, BSE, and Other Indices

The bank is listed on the BSE and NSE under the following codes:

BSE: 500315

NSE: ORIENTBANKEQ

IND: Finance - Banks - Public Sector

ISIN Code: INE141A01014

SECT: Banks

The bank is included in the following indices:

1. Nifty 500
2. Nifty Full Smallcap 100
3. Nifty MidSmallcap 400
4. Nifty PSU Bank
5. Nifty Smallcap 100
6. Nifty Smallcap 250
7. Nifty Smallcap 50
8. S&P BSE 250 SmallCap Index
9. S&P BSE 400 MidSmallCap Index
10. S&P BSE 500
11. S&P BSE AllCap
12. S&P BSE Dollex - 200
13. S&P BSE Finance
14. S&P BSE MidSmallCap
15. S&P BSE PSU
16. S&P BSE SmallCap

In addition to being listed on the BSE and the NSE, the bank is also listed on the following stock exchanges:

1. Bangalore Stock Exchange Limited
2. Calcutta Stock Exchange Association Limited
3. Cochin Stock Exchange Limited
4. Delhi Stock Exchange Association Limited
5. Ludhiana Stock Exchange Association Limited
6. Madras Stock Exchange Limited
7. MCX Stock Exchange
8. Over The Counter Exchange of India Limited
9. Uttar Pradesh Exchange Association Limited

Registered Office

The registered office of the bank is located at the following address:

Oriental Bank of Commerce, Corporate Office, Plot No. 5, Institutional Area, Sector - 32, Gurgaon - 122 001

Stocks vs. Mutual Funds: here's what we recommend

Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio

DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.