Manipal-based public sector lender Syndicate Bank has reported a seven per cent rise in net profit at Rs 309 crore for the quarter ended March 31, compared to the corresponding quarter of the previous financial year.
The bank’s total income for the quarter rose 29.5 per cent to Rs 4,424 crore, against Rs 3,416 crore in the-year ago period.
The operating profit for the quarter rose 18 per cent to Rs 790 crore, against Rs 672 crore in the fourth quarter of the previous financial year.
“Higher provisioning towards non-performing and stressed accounts has led to a marginal growth in net profit during the fourth quarter. We have made a provision of Rs 542 crore towards, which is 53 per cent higher than the corresponding quarter last year. Even though it was not required, we have made provisions for stressed accounts also,” said Chairman and Managing Director M G Sanghvi.
During the fourth quarter, the bank’s net interest income grew 15 per cent to Rs 1,336 crore and the net interest margin improved to 3.60 per cent from 3.43 per cent in the corresponding quarter last year. The yield on advances went up to 11.01 per cent, against 9.85 per cent in the year-ago period.
The capital adequacy ratio has dropped to 12.24 per cent from 13.04 per cent in the year fourth quarter last fiscal. The Tier-I capital was 8.94 per cent and Tier-II stood at 3.30 per cent. The return on assets has also declined to 0.76 per cent, against 0.84 per cent in the fourth quarter last year. The bank is awaiting the government’s approval to make a preferential allotment for raising Rs 539 crore, Sangvhi said.
The net non-performing assets stood at 0.96 per cent as against 0.97 per cent last year.
During 2011-12, the bank restructured accounts to the tune of Rs 3,149 crore. It witnessed growth of 14 per cent in advances at Rs 1,10,954 crore during the previous financial year.
For the year 2012-13, the bank is aiming at a credit growth of 20 per cent.