Oriental Bank of Commerce to raise Rs 1,000 cr from bonds

State-owned Oriental Bank of Commerce (OBC) today said it plans to raise up to Rs 1,000 crore from bonds to fund its growth.
The bank intends to raise Tier II capital to the extent of Rs 1,000 crore through issue of Basel III compliant Tier II bonds on private placement basis, OBC said in a BSE filing.
The government infused Rs 150 crore by way of preferential allotment in December. This lead to increase in government shareholding in the bank to 59.13 per cent from 58 per cent.
OBC posted 31.2 per cent decline in net profit at Rs 224.30 crore in the third quarter ended December 2013.

The bank had a net profit of Rs 326.40 crore in the October-December quarter of 2012-13.
The gross non-performing assets of the bank rose to 3.87 per cent from 2.98 per cent in the December quarter of 2012-13 fiscal.
Its net NPAs also rose to 2.91 per cent from 2.14 per cent in the same quarter of 2012-13.