The Hindu Business Line : Oriental Bank: Pare exposures

INVESTORS in the stock of Oriental Bank of Commerce can consider booking profits. The stock is now trading at about 1.62 times its price to book value ratio. This is the highest among public sector banks. A value higher than book value may be justified, given the pending issue of return of capital.

In addition, Oriental Bank of Commerce's showing on the non-performing assets front too has been impressive in 2002-03. The bank also boasts of relatively larger spreads compared to other public sector banks. However, the bank's deposit and advances growth in 2002-03 were quite insipid. In this context, the significantly large premium over valuation of stocks of large public sector banks such as State Bank of India and Punjab National Bank are on the higher side. Investors as such can consider pare down their exposures to the stock.

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