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Friday, May 3, 2013

Syndicate Bank profit jumps 91.42%

Syndicate Bank profits shot up 91.42 per cent to Rs 592.34 crore for the fourth quarter of 2012-13, compared with Rs 309.43 crore posted in the same period the previous year.

The bank’s total income for Q4 is up 8.05 per cent to Rs 4,780.75 crore (Rs 4,424.33 crore). The EPS stood at Rs 9.84 in Q4, over Rs 5.39 for the last fiscal.

M.G. Sanghvi, CMD, told reporters that the bank has pursued the strategy of reducing dependence on high-cost bulk deposits. “We have shed Rs 3,718 crore during the year 2012-13 (11.12 per cent) and brought down the level to Rs 29,715 crore from a high of Rs 33,433 crore.”


Considering the profitability and taxable positions in subsequent years, the bank management has recognised the MAT credit entitlement of Rs 573.59 crore (previous year – nil and during the quarter Rs 114.02 crore) as assets by crediting to profit and loss.

The bank’s operating profit before provisions and contingencies increased by 2.34 per cent to Rs 901.13 crore, over Rs 880.45 crore last year. As for the asset quality, gross NPAs were at Rs 2,978.50 crore (Rs 3,182.70 crore), while the gross NPA ratio fell to 1.99 per cent from 2.53 per cent.

Net NPAs stood at Rs 1,124.77 crore (Rs 1,185.43 crore), while the net NPA ratio declined to 0.76 per cent from 0.96 per cent.

The net interest income (NII) for the quarter is marginally lower at Rs 1,336.66 crore from Rs 1,344.34 crore in the previous corresponding quarter. Net Interest Margin (NIM) was at 2.97 per cent in Q4, against 3.6 per cent in the corresponding quarter last year. Provisions and contingencies other than tax were reduced to Rs 363.79 crore from Rs 671.49 crore in the similar previous quarter.

Total business increased by 18.06 per cent to Rs 3,34,779 crore at the end of this fiscal (March 31, 2013) over last year.

Capital adequacy

Deposits increased by 17.36 per cent to Rs 1,85,356 crore. Total advances went up by 18.95 per cent to touch Rs 1,49,423 crore.

In terms of capital adequacy, the bank raised capital of Rs 1,000 crore in the form of Tier II bonds during 2012-13 and is comfortable with capital requirements under the forthcoming Basel III norms.

Source: thehindubusinessline


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