Syndicate Bank Q1 profit down 74% at Rs79 crore
The first quarter numbers, however, were an improvement from the Rs2,158 crore loss that Syndicate Bank reported in the January-March period
Mumbai: State-owned Syndicate Bank on Thursday said net profit in the June quarter fell 74% from a year ago, as it set aside more money against soured loans.
Provisions rose to ₹ 673.5 crore, up 40% from a year ago, while net profit fell to ₹ 79 crore from ₹ 302 crore in the same period.
The first quarter numbers, however, were an improvement from the ₹ 2,158 crore loss that the bank reported in the January-March period. While announcing the loss last quarter, the bank had blamed an exceptional item worth ₹ 882.64 crore, over and above the total provisions worth ₹ 2,411.83 during the quarter. The exceptional item was due to a fraud that the bank reported during the March quarter.
The bank’s gross non-performing asset (NPA) ratio during the first quarter rose to 7.53%, as compared with 6.7% in the January-March period. As an absolute number, gross NPAs in the period were ₹ 15,434.26 crore, up 11.6% from the fourth quarter of the last financial year.
Net NPA ratio during the first quarter rose 56 basis points (bps) on a quarter-on-quarter basis to 5.04%.
Net interest income (NII), or the difference between the interest earned on loans and that paid on deposits, rose 4.74% year-on-year to ₹ 1,412 crore. The bank’s non-interest income rose to ₹ 554.5 crore, up 10.7% from ₹ 500.77 crore a year ago.
Syndicate Bank’s net interest margin during the quarter remained at 2.22%, as compared with 2.21% last year.
Total advances as on 30 June stood at ₹ 2.05 lakh crore, almost unchanged from ₹ 2.02 lakh crore a year ago. Total deposits fell 2% year-on-year to ₹ 2.64 lakh crore.
On Thursday, Syndicate Bank stock closed at ₹ 76.65 on the BSE, up 1.32% from its previous close.
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