Syndicate Bank Q1 net up 7.3%

The net NPAs ratio went up to 1.88% as against 1.19% a year ago quarter

Manipal-based public sector lender Syndicate Bank has reported a 7.3 per cent rise in  its net profit at Rs 485 crore for the first quarter-ended June 30, 2014 compared to Rs 452 crore in the corresponding quarter last year.

The total income of the bank has increased 16.8 per cent to Rs 5,523 crore as against Rs 4,726 crore in the same quarter last year. The operating profit during the quarter was up 6.8 per cent to Rs 1,014 crore as against Rs 949 crore in the year ago quarter.

Lower provisions during the quarter, which stood at Rs 468 crore as against Rs 489 crore a year ago, showing a reduction of 4.3 per cent helped the bank to show better profits. Its net interest income was up 1 per cent at Rs 1,351 crore as against Rs 1,338 crore in the first quarter last year. The net interest margin declined to 2.47 per cent from 2.83 per cent a year ago.

Domestic CASA deposits increased from Rs 51,114 crore as at Q1, FY 2013-14 to Rs 55,430 crore as at Q1, FY 2014-15 (up 8.44 per cent Y-o-Y). Domestic CASA deposits stood at 29.55 per cent of total domestic deposits as at June 30, 2014.

The return on assets declined to 0.81 per cent from 0.89 per cent a year ago. Capital adequacy ratio under Basel-III declined to 10.80 per cent from 11.49 per cent in the first quarter last year.

The net non-performing assets ratio went up to 1.88 per cent as against 1.19 per cent in the year ago quarter. The Provision Coverage Ratio also came down to 67.56 per cent in Q1, FY 2014-15 as against 76.75 per cent in Q1, FY 2013-14.

The bank’s global business increased from Rs 3,31,896 crore during the first quarter of last year to Rs 3,91,305 crore as at end of first quarter this year, showing a growth of 17.90 per cent year-on-year.

Global deposits increased from Rs 1,82,513 crore as at Q1, FY 2013-14 to Rs 2,14,863 crore as at Q1, FY 2014-15, a growth of 17.72 per cent over the previous year. Global advances of the bank have shown a year-on-year increase of 18.11 per cent to Rs 1,76,442 crore in the first quarter compared to Rs 1,49,383 crore in the corresponding quarter last year.

The bank’s shares closed 0.63 per cent higher at Rs 144.65 per share on the close of trading at Bombay Stock Exchange on Friday.