Syndicate Bank on Tuesday said its net profit in December quarter 2019 grew manifold to 434.82 crore as bad loans shrank.

The public sector lender had registered a profit of 107.99 crore in the year-ago period.

Total income during the quarter increased to 6,316.57 crore from 6,077.62 crore in the same period of 2018-19, Syndicate Bank said in a regulatory filing.

Gross bad loans or non-performing assets (NPAs) came down to 11.33 per cent of gross advances as on December 31, 2019 from 12.54 per cent at the end of the same month a year ago.

In absolute terms, gross NPAs stood at 25,330.10 crore as compared to 26,184.66 crore in the year-ago period.

Net NPAs were 5.94 per cent ( 12,514.32 crore), down from 6.75 per cent ( 13,211.17 crore).

However, the bank made a higher provisioning of 1,286.64 crore for bad loans during the quarter as compared to 909.82 crore in the year-ago period.

The overall provisions and contingencies stood at 1,044.98 crore as against 497.14 crore a year ago.

The bank said it restructured 14,574 MSME accounts, as per RBI directive on relief, worth 465.84 crore during January 1 to December 31, 2019.

On disclosure about divergence of bad loans for 2018-19, the bank said the net loss during the year was adjusted to 3,358.56 crore, higher than 2,588.29 crore reported earlier.

The divergence in gross NPAs in 2018-19 came in at 5 crore as the bank reported it to be at 24,680.37 crore, while the RBI assessed it at 24,685.37 crore.

There was a fall of 1,179 crore in net NPA divergence for the year as the bank reported it to be at 12,627.73 crore and the RBI's assessment stood at 11,448.73 crore.

The divergence in provisioning for 2018-19 stood at 1,184 crore.

Out of the reported divergence in provisioning, 724 crore has been provided and the balance 460 crore is under review by the regulator, Syndicate Bank said.

"The board of directors in its meeting held on September 13, 2019 has considered and accorded its 'in-principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals and the process is in progress," the bank said in the filing.

The provision coverage ratio as on December 31, 2019 stood at 69.28 per cent.

Syndicate Bank stock closed at 24.10 on the BSE, up 0.84 per cent from the previous close.

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