Syndicate Bank Q2 net increases 5%

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Published: October 29, 2015 12:17:28 AM

Manipal-based public sector lender Syndicate Bank on Wednesday reported 5% rise in net profit at Rs 332 crore for the second quarter ended September 30, 2015 compared to R316 crore in the corresponding quarter last fiscal.

Manipal-based public sector lender Syndicate Bank on Wednesday reported 5% rise in net profit at Rs 332 crore for the second quarter ended September 30, 2015 compared to R316 crore in the corresponding quarter last fiscal.

The total income of the bank for the quarter rose 17.4% to R6,670 crore as against R5,681 crore. The operating profit for the quarter went up 28.4% to R1,225 crore from R954 crore a year ago.

Lower provisions towards non-performing assets and good growth in net interest income helped the bank register a modest growth in profits during the quarter. The net interest income went up 12% year-on-year to R1,595 crore in September quarter this year as against R1,428 crore in the same period last year. The bank’s provisions declined 18.2% to R440 crore as against R538 crore a year ago.

“The bank had to provide R140 crore towards wage arrears pertaining to prior periods paid on final implementation of the 10th bipartite wage settlement during the current quarter,” Arun Shrivastava, managing director and chief executive officer, Syndicate Bank, said in a statement to BSE.

Return on assets (annualised basis) dipped to 0.45% in Q2 as against 0.50% in the year ago quarter. The yield on advances also dropped to 9.02% in Q2 as against 9.63% in the second quarter last year. The domestic net interest margin dropped to 2.88% from 2.96% a year ago.

Capital adequacy ratio under Basel-II improved marginally to 10.46% from 10.42% in September 2014. The bank’s net NPAs increased to 2.37% in Q2 as against 2.20% in the year ago quarter. Provision coverage ratio declined to 63.37% in Q2 from 65.38% in Q2 last year.

Syndicate Bank has received shareholders’ approval to raise equity capital up to R2,000 crore to augment its capital base by way of qualified institutional placement issue, rights issue of follow on public issue to comply with Basel-III norms and cater to its growing business during the year, Shrivastava said.

State Bank of Hyderabad net up 21%

State Bank of Hyderabad on Wednesday reported a 21.87% increase in its net profit to R375 crore for the second quarter of current fiscal, as a portion of bad loans were sold to ARCs. The associate bank of SBI had registered a net profit of R311 crore in the corresponding quarter of previous fiscal. Total income of the bank also increased to R3,945.48 crore as of September 30, 2015 as against R3,675.24 crore earned in the same period year ago, the bank said in a filing on the BSE. The provisioning for bad loans and contingencies were reduced to R242.70 crore in the ensuing quarter from R312.06 crore a year ago. fe Bureau

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