Syndicate Bank Q2 net nearly flat at Rs 470 crore

Written by PTI | New Delhi | Updated: Oct 29 2013, 02:16am hrs
Syndicate BankShares of the bank closed 0.34 per cent down at Rs 73.35 apiece. (AP)
Public sector lender

Syndicate Bank today reported a marginal 1.4 per cent increase in net profit to Rs 470.12 crore for the July-September quarter due to higher provisioning.

It had posted net profit of Rs 463.37 crore for the same period of last fiscal, 2012-13.

The provision of the bank rose to Rs 341 crore as compared to Rs 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 Rs 4,850.35 crore, from Rs 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 Rs 1,500 crore through qualified institutional placement 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 Rs 200 crore capital in the Syndicate Bank during the current fiscal.

The net interest margin (NIM) of the bank declined to 2.89 per cent in the second quarter as against 3.26 per cent at the end of September.

On margin outlook, Jain said the bank expects NIM to be at 3 per cent in the entire fiscal.

During the first half of the current fiscal, the bank's net profit rose by just 2.1 per cent at Rs 922.40 crore, as against Rs 903.59 crore in H1, 2012-13.

The total income rose to Rs 9,576.53 crore in the first six months, from Rs 9,024.39 crore in the year-ago period.

Operating profit of the bank in the six-month period increased from Rs 1,684.23 crore to Rs 1,759.71 crore in the same period of the previous fiscal.

As of September 30, 2013, Syndicate Bank's portfolio quality deteriorated further, with gross non-performing assets (NPAs) rising to 2.88 per cent of gross advances, as against 2.47 per cent year a year ago.

It's net non-performing assets during Q2, 2013-14 also rose from 1.66 per cent from 0.92 per cent.

Shares of the bank closed 0.34 per cent down at Rs 73.35 apiece.