Oriental Bank of Commerce - A weak performance - Kotak

OBC delivered a weak business performance in 3QFY13 with earnings declining 8% yoy (28% yoy at PBT level). Loan impairment was high on slippages and fresh restructuring. NIM showed a marginal expansion as cost decline is picking up pace.

Retain REDUCE as we expect (1) return ratios to remain weak to factor elevated provisions and expenses for wage settlement and (2) weak revenue growth to continue on the back of slower loan growth and negligible NIM expansion.

Source : Equity Bulls

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