OBC - Q4FY13 Result Review - Angel Broking

During 4QFY2013, Oriental Bank of Commerce posted healthy growth in net profit at 16.2% yoy to Rs. 308cr, however, it was below ours' as well as streets' expectations. On the operating front, while the NII grew by 13.6% yoy to Rs. 1,214cr, aided by 34.3% yoy growth in non-interest income to Rs. 462cr, operating profits were higher strongly by 25.5% yoy to Rs. 947cr. The bank's asset quality deteriorated sequentially, with both gross and net NPA ratios witnessing an increase of 23bp and 13bp, respectively to 3.2% and 2.3%.

At the CMP, the stock is trading at 0.5x FY2015 ABV. We maintain our Accumulate rating on the stock with a target price of Rs. 282.

Source : Equity Bulls

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