InvestorQ : I am having shares of Oriental Bank of Commerce (OBC) bought at Rs.75 and I am sitting on profits. Should I exit the stock after the latest quarter results?
Riya Dwivedi made post

I am having shares of Oriental Bank of Commerce (OBC) bought at Rs.75 and I am sitting on profits. Should I exit the stock after the latest quarter results?

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rhea Babu answered.
2 years ago
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The stock of OBC is currently quoting at Rs.94 so you are sitting on a pretty profit and that is the good part of the story. If you look at the March quarter results, they have recorded impressive profits of Rs.201 crore for the last quarter. Even the total income in the quarter was up by nearly 25% at Rs.5712 crore. The bank had a made huge loss of Rs.1650 crore in the March 18 quarter and that largely means that the bank is gradually getting a hang of its NPA situation. Gross NPAs are substantially down from 17.63% last year to just about 12.66% this year. While that is still far from comfortable, it is showing signs of improvement. Net NPAs nearly halved to 5.9% in the March quarter.

Since you have bought the stock at an attractive price and the latest results are really good, you must look to hold on. Don’t be in a hurry to add more of the stock but if the NPA cycle has really bottomed out then you should get to see much better traction in the coming days.

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