Oriental Bank of Commerce (OBC) is not looking to raise any equity capital this fiscal in addition to the Centre’s proposed Rs 150 crore capital infusion into the bank.
Although the Centre has allowed banks to raise capital in addition to the promised capital infusion, OBC will not go in for any qualified institutional placement (QIP) this fiscal, S. L. Bansal, Chairman and Managing Director, OBC, said.
Finance Ministry had allowed banks to raise additional capital through the QIP route.
The board of directors of OBC will meet in the first week of December to allot shares on a preferential basis to the Government for a capital infusion of Rs 150 crore. Given that the trading price of the bank’s shares were much lower than the book value, OBC had recently conveyed to the Government that it was not keen on any capital infusion.
However, the Government had allocated Rs 150 crore to be pumped into OBC. This was much lower than the Rs 1,000-crore capital infusion sought early this year. Bansal also ruled out any reduction in lending rates for the next 45 days (to be counted from October 30).
DEPOSIT RATES
OBC has increased interest rates on term deposits under different maturity buckets for term deposits of less than Rs 1 crore.
For term deposits of 91 days to 179 days, the rate has been hiked by 25 basis points to 8.75 per cent. For depositsof ‘180 days to 269 days’ and ‘270 days to less than one year’, the rates have been revised upwards to 9 per cent from 8.5 per cent.