Syndicate Bank Q2 net rises slightly; NPAs up

Total income increases 6.6% to Rs 4,850 crore as against Rs 4,546 crore year ago quarter

Government-controlled Syndicate Bank reported a marginal 1.5 per cent rise in net profit to Rs 470 crore for the quarter ended September, compared to Rs 463 crore in the same period last year. Operating profit declined 3.8 per cent to Rs 811 crore for the quarter, compared to Rs 843 crore in the same period last year. Treasury profit was lower and there was absence of interest income, on account of refund of income tax.

Total income for the quarter increased 6.6 per cent to Rs 4,850 crore, as against Rs 4,546 crore in the year-ago period.

Net interest income for the Manipal-headquartered lender grew only 1.4 per cent, to Rs 1,411 crore. The net interest margin declined to 2.89 per cent as against 3.26 per cent in the September quarter last year.

The rates of gross non-performing assets to the total ratio rose to 2.88 per cent, as against 2.47 per cent in the corresponding period last year, as a few big loans turned bad due to the economic slowdown, the bank said.

The provision coverage ratio declined to 70.6 per cent as against 82.3 per cent in the same quarter last year. Return on average assets diminished to 0.89 per cent as against 1.03 per cent in the year-ago quarter. Last year, the net profit was higher due to Minimum Alternate Tax credit.

The capital adequacy ratio under the Basel-III rules was 11.58 per cent as on September 30.

Global deposits increased 22.4 per cent year-on-year to Rs 1,90,820 crore as against Rs 1,55,854 crore a year ago. Global advances increased 20.6 per cent year-on-year to Rs 1,55,336 crore as against Rs 1,27,795 crore in the second quarter last year.