Oriental Bank says under India central bank ‘corrective action’ over bad loans

Oriental Bank of Commerce posted a net loss for the June quarter, with net NPA rising to 9.56 percent. (Reuters)
Updated 08 October 2017
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Oriental Bank says under India central bank ‘corrective action’ over bad loans

MUMBAI: Oriental Bank of Commerce, a mid-sized Indian state-run lender, said the nation’s central bank has initiated “prompt corrective action” against the bank over its high amount of net non-performing assets (NPA).
Oriental Bank is the seventh state-run lender to be put under a corrective action plan, which requires a bank to enact curbs on hiring, branch expansion and taking on new loans.
“This action will not have any material impact on the performance of the bank and will contribute in overall improvement in its risk management, asset quality, profitability and efficiency,” the lender said in a stock exchange filing late on Saturday.
The bank posted a net loss for the June quarter, with net NPA rising to 9.56 percent.


In Trump rebuke, US Senate votes to reimpose ban on China’s ZTE

Updated 42 min 46 sec ago
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In Trump rebuke, US Senate votes to reimpose ban on China’s ZTE

  • ZTE has been on life support ever since Washington said it had banned US companies from selling crucial hardware and software components to the company for seven years.
  • ZTE's fiberoptic networks depend on US components and its cheap smartphones sold en masse abroad are powered by US chips and the Android operating system.

WASHINGTON: The US Senate defied President Donald Trump by voting Monday to overrule his administration’s deal with Chinese telecom firm ZTE and reimpose a ban on high-tech chip sales to the company.
Senators added an amendment targeting ZTE into a sweeping, must-pass national defense spending bill that cleared the chamber on an 85-10 vote.
The company has been on life support ever since Washington said it had banned US companies from selling crucial hardware and software components to ZTE for seven years, after staffers violated trade sanctions against Iran and North Korea.
It was fined $1.2 billion for those violations, but earlier this month the Trump administration gave ZTE a lifeline by easing sanctions in exchange for a further $1.4 billion penalty on the company.
The Senate measure nullifies that action, proposing an outright ban on the government buying products and services from ZTE and another Chinese telecoms firm, Huawei.
“We’re heartened that both parties made it clear that protecting American jobs and national security must come first when making deals with countries like China, which has a history of having little regard for either,” a bipartisan group of senators said.
The lawmakers, who introduced the amendment, include top Democrat Chuck Schumer and Republican Marco Rubio.
Providing $716 billion in funding for national defense for fiscal year 2019 and giving policy guidance to the Pentagon, the bill is not a done deal.
The House of Representatives passed its own version of the measure, and the two chambers must now hash out a compromise.
“It is vital that our colleagues in the House keep this bipartisan provision in the bill as it heads toward a conference,” Schumer and Rubio said.
ZTE, which employs 80,000 people, said recently that its major operations had “ceased” after the ban, raising the possibility of its collapse.
Its fiberoptic networks depend on US components and its cheap smartphones sold en masse abroad are powered by US chips and the Android operating system.