BackSyndicate Bank September quarter net nearly flat at `470 crore
Syndicate Bank's total income rises to `4,850.35 crore, from `4,546.33 crore a year ago
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New Delhi: Public sector lender Syndicate Bank on Monday reported a marginal 1.4% increase in net profit to ₹ 470.12 crore for the July-September quarter due to higher provisioning. It had posted net profit of ₹ 463.37 crore for the same period of last fiscal 2012-13.
The provision of the bank rose to ₹ 341 crore in September quarter 2013-14 as compared to ₹ 318 crore in the same period a year ago, Syndicate Bank chairman and managing director S.K. Jain said here.
The total income in Q2 2013-14 increased to ₹ 4,850.35 crore, from ₹ 4,546.33 crore in the year-ago period.
Asked if the bank is considering to raise money from market, Jain said, the board has given approval for raising up to ₹ 1,500 crore through qualified institutional placement (QIP) last year.
“We are yet to decide about the quantum of the fund raising to be done apart from the what government has committed for this fiscal," he said. The decision on quantum would be taken by the end of next month, he added.
Last week, the finance ministry decided to infuse ₹ 200 crore capital in the Syndicate Bank during the current fiscal.
The net interest margin (NIM) of the bank declined to 2.89% in the second quarter as against 3.26% at the end of September. On margin outlook, Jain said the bank expects NIM to be at 3% in the entire fiscal.
During the first half of the current fiscal, the bank’s net profit rose by just 2.1% at ₹ 922.40 crore, as against ₹ 903.59 crore in H1, 2012-13.
The total income rose to ₹ 9,576.53 crore in the first six months of FY14 from ₹ 9,024.39 crore in the year-ago period.
Operating profit of the bank in the six-month period of FY14 increased from ₹ 1,684.23 crore to ₹ 1,759.71 crore in the same period of the previous fiscal.
As of 30 September 2013, Syndicate Bank’s portfolio quality deteriorated further, with gross non-performing assets (NPAs) rising to 2.88% of gross advances, as against 2.47% a year ago. It’s net NPAs during Q2 2013-14 also rose from 1.66% from 0.92%.
Shares of the bank closed 0.34% down at ₹ 73.35 apiece.
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