Syndicate Bank Q2 profit up 5.3% to Rs 332 crore

Net interest income up 12% at Rs 1,595 crore; operating profit up 28% at Rs 1,225 crore

Syndicate Bank had profit growth of 5.3 per cent to Rs 332 crore in the September quarter, on higher interest income and lower provisioning for non-performing assets (NPAs). The Manipal-headquartered lender had net profit of Rs 316 crore in the same period last year.

Net interest income, the difference between interest earned and expended, grew 12 per cent to Rs 1,595 crore from Rs 1,422 crore in the July to September period last year. Operating profit was up 28 per cent to Rs 1,225 crore, against Rs 954 crore in last year’s quarter.

“We expect credit growth will pick up in the next quarter,” said Arun Shrivastava, managing director.

Gross non-performing assets grew to Rs 7,734 crore (3.7 per cent of total advances) for the quarter against Rs 6,045 crore (3.4 per cent) in the corresponding quarter last year. Net non-performing assets were up at Rs 4,854 crore (2.4 per cent of the advances) against Rs 3,825 crore (2.2 per cent) earlier. The provision coverage ratio was 63.4 per cent.

The bank raised Rs 1,000 crore of Tier-II bonds compliant with Basel-III regulations in September, said the MD.

The scrip closed at Rs 95.45, down Rs 1.75 or 0.8 per cent on Wednesday at the BSE exchange.