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Oriental Bank of Commerce Key Financial Ratios

NSE:ORIENTBANK | BANKS

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Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2018 - FY 2019

Oriental Bank of Commerce's revenue grew 1.8% to 205.37B and net profit grew 100.9% to 549.94M YoY in FY2019, indicating modest business momentum.

Understanding Company Performance

In FY 2019, Oriental Bank of Commerce's revenue grew by 1.8% year-over-year. Revenue = interest earned + other income. Gross Profit = revenue minus interest expenditure. Net Profit is the bottom line after all expenses, provisions, and taxes. Consistent growth across all three signals a healthy, expanding bank.

Net Interest Margin (NIM)

2-year trend showing profitability efficiency

FY 2018 - FY 2019

Oriental Bank of Commerce's NIM of 2.7% in FY2019 indicates adequate interest spreads.

Understanding Net Interest Margin

In FY 2019, Oriental Bank of Commerce reported a NIM of 2.73%. NIM = (Interest Earned - Interest Paid) / Average Earning Assets. For Indian banks, 2.5-4% is typically healthy. Higher NIM indicates better spread management between lending rates and deposit costs. Consistent or improving NIM suggests strong pricing power.

Net NPA Ratio

2-year trend showing asset quality

Oriental Bank of Commerce's net NPA ratio of 5.9% in FY2019 indicates significant asset quality deterioration.

Understanding Net NPA Ratio

In FY 2019, Oriental Bank of Commerce reported a net NPA ratio of 5.93%. Net NPA Ratio = (Gross NPAs - Provisions) / Total Loans. Measures bad loans after provisions as a percentage of total loans. Below 2% is healthy for Indian banks; above 3-4% signals stress. A declining trend indicates improving asset quality and effective risk management.

Return on Assets (ROA) & Return on Equity (ROE)

2-year trend showing profitability efficiency

Oriental Bank of Commerce's ROA of 0.0% in FY2019 indicates weak asset efficiency, with ROE at 0.3%.

Understanding ROA & ROE

In FY 2019, Oriental Bank of Commerce reported an ROA of 0.02% and an ROE of 0.3%. ROA = (Net Income / Total Assets) x 100; ROE = (Net Income / Equity) x 100. The gap between ROE and ROA reveals leverage impact. For Indian banks, ROA of 0.8-1.5% and ROE of 12-18% are healthy. ROA is the primary indicator as it cannot be inflated by leverage.

Loan to Deposit Ratio

2-year trend showing liquidity and lending efficiency

Oriental Bank of Commerce's loan-to-deposit ratio of 68.5% in FY2019 indicates conservative lending — deposits are underutilised.

Understanding Loan to Deposit Ratio

In FY 2019, Oriental Bank of Commerce reported a loan-to-deposit ratio of 68.5%. LDR = (Total Loans / Total Deposits) x 100. Optimal range is 70-85% for Indian banks. Above 90% signals liquidity risk; below 65% suggests deposit underutilisation. A stable trend indicates balanced lending practices and adequate liquidity management.

Financial Leverage Ratio

2-year trend showing capital structure efficiency

Oriental Bank of Commerce's financial leverage of 14.4x in FY2019 indicates slightly above typical range but manageable.

Understanding Financial Leverage Ratio

In FY 2019, Oriental Bank of Commerce reported a financial leverage ratio of 14.4x. Financial Leverage = Total Assets / Total Equity. Expressed as a multiple (e.g., 10x). For Indian banks, 10-15x is typical. Higher leverage amplifies returns but increases risk. Regulatory capital requirements set upper limits. Compare with peers for context.

Borrowings to Networth Ratio

2-year trend showing leverage and financial stability

Oriental Bank of Commerce's borrowings-to-networth ratio of 74.7% in FY2019 indicates moderate borrowing levels.

Understanding Borrowings to Networth Ratio

In FY 2019, Oriental Bank of Commerce reported a borrowings-to-networth ratio of 74.7%. Borrowings/Networth = (Total Borrowings / Shareholders' Equity) x 100. Lower is better — indicates less reliance on debt. Banks naturally carry higher leverage than other industries. Consistent increases may signal aggressive growth or capital constraints. Compare with peer banks for context.

Stock Dilution

Year-over-year change in diluted shares outstanding

Oriental Bank of Commerce's diluted shares increased 103.4% YoY in FY2019 — significant dilution that warrants concern.

Over 2 years (FY2018–FY2019), diluted shares increased 103.4% from 349.31M to 710.33M, indicating cumulative dilution. Extreme dilution of this magnitude is often caused by mergers, large rights issues, or corporate restructuring — review the company's history before drawing conclusions.

Understanding Stock Dilution

In FY 2019, Oriental Bank of Commerce's diluted shares increased by 103.4% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2019