Manipal-based public sector lender Syndicate Bank on Thursday reported a net loss of Rs 120 crore during the third quarter ended December 2015.
During the same quarter last year, the Bank had reported a net profit of Rs 305 crore. The total income was up 4.5% to Rs 6,188 crore during the December quarter as against Rs 5,922 crore during the same quarter a year ago.
The loss during the quarter was mainly due to a whopping 202% rise in provisions, which stood at Rs 875 crore as against Rs 290 crore in the year ago quarter. The Bank’s net interest income declined 12.8% to Rs 1,322 crore from Rs 1,516 crore in December 2014.
The net interest margin, however, improved to 2.32% from 2.25%. The operating profit in the third quarter went up 11% to Rs 929 crore as against Rs 838 crore in the corresponding quarter last year.
Syndicate Bank’s capital adequacy ratio under Basel-III norms improved to 10.91% from 10.46% a year ago.
The net non-performing assets went up at 3.04% from 2.38% in the year ago period. In absolute value terms, net NPAs jumped to Rs 6,210 crore as against Rs 4,370 crore in the year ago quarter, showing a rise of 42% year on year.
The return on assets on annualised basis stood at minus 0.16% (0.16) as against 0.44% in Q3FY15.
The Bank’s global deposits grew 2% to Rs 2,55,893 crore, while advances went up 12% to Rs 2,08,194 crore during the December quarter.