Mumbai: Syndicate Bank on Wednesday reported 75.2% decline in its net profit for the September quarter due to higher provisioning towards bad loans. Fall in net profit was also due to drop in net interest income and rise in employee cost.
Net profit for the quarter was Rs.82.42 crore as compared to Rs.332.37 crore a year ago. According to estimates of two Bloomberg analysts, the bank was expected to post a net profit of Rs.157.40 crore.
Net interest income (NII), or the core income a bank earns by giving loans, fell 3.2% to Rs.1,544.48 crore in the September quarter from Rs.1,594.75 crore last year.
Other income increased 28.84% to Rs.791.87 crore from Rs.614.61 crore in the same period last year. Employee cost rose 46.7% from a year ago to Rs.878.28 crore.
Gross non-performing assets (NPAs) at Syndicate Bank rose 4.03% to Rs.16,056.73 crore at the end of the September quarter from Rs.15,434.26 crore in the June quarter. On a year-on-year basis, gross NPAs jumped 107.60% from Rs.7,734.41 crore. As a percentage of total loans, gross NPAs were at 7.72% at the end of the September quarter as compared to 7.53% in the previous quarter and 3.72% in the year-ago quarter.
Provisions and contingencies rose 30.1% to Rs.864.14 crore in the quarter from Rs.664.19 crore a quarter ago. On a year-on-year basis, provisions jumped 96.27% from Rs.440.29 crore. Net NPAs were at 5.03% in the September quarter compared to 5.04% in the previous quarter and 2.37% in the same quarter last year.
Total deposits rose 0.6% from a year ago to Rs.2.65 trillion, while total advances fell 1.5% to Rs.2.02 trillion
At 12.57pm, Syndicate Bank was trading at Rs.77.70 on the BSE, up 0.84% from its previous close, while India’s benchmark Sensex index fell 1% to 27,825.84 points.