Fitch affirms Oriental Bank of Commerce

Fitch Ratings said it affirmed Oriental Bank of Commerce Ltd.'s long-term foreign-currency issuer default rating at BB+.

The outlook is stable.

The rating reflects the bank's weaker performance, compared to the higher-rated Indian banks, after the merger with Global Trust Bank in 2005, Fitch said.

The ratings also reflect its high tier 1 ratio, which provides comfort as its asset quality could come under pressure given its rapidly increased restructured loans and higher concentration risk, the agency said.

Fitch noted that the ratings could come under pressure if this capital cushion is eroded due to rapid loan growth and falling profitability.

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