Syndicate Bank 2000-01 Net At Rs 235 Crore

Syndicate Bank has recorded a net profit of Rs 235 crore for 2000-01 compared with Rs 216 crore during the previous year. It has also decalred a dividend of 12 per cent fot the year on a par issue.

Syndicate Bank's chairman and managing director D T Pai told newspersons that the net profit would have been higher but for an outgo of Rs 91.28 crore towards voluntary retirement scheme.

He said the operating profit of the bank which stood at Rs 281 crore during 2000-01, would have been higher by 38.68 per cent if the expenditure on VRS had not been taken into account.

He said the net profit of the bank is expected to grow by 20 per cent during the next fiscal. The capital adequacy ratio rose to 11.72 per cent during 2000-01 from 11.45 per cent during 1999-2000.

The earnings per share went up to Rs 4.497 from Rs 4.58 while the profit per employee imrpoved to Rs 0.81 lakh from 0.66 lakh while the productivity per employee rose to Rs 1.34 crore during 2000-01 compared with Rs 1.11 crore during 1999-2000.

Pai said the net worth of the bank increased to Rs 1,010 crore during 2000-01 compared with Rs 838 crore during the previous year.

Its net NPA as a percentage of its net advances was 4 per cent. Its global business exceeded Rs 38,750 crore with deposits of Rs 25,095 crore and advances of Rs 13,660 crore.

The average domestic deposit rose by 11.5 per cent while the average domestic advances increased by 13.86 per cent.

Investments rose to Rs 10,558 crore during 2000-01 compared with Rs 9,831 crore during the previous year.

Pai said the average cost of deposits declined to 6.83 per cent during 2000-01 from 7.40 per cent during 1999-2000 while the average yield on advances rose to 13.18 per cent from 12.58 per cent during the same period.

The net interest margin was higher for March 2001 at 3.85 per cent as compared with 3.28 per cent in March 2000. The yield on investments was maintained at 11.94 per cent.

Pai said the bank carried out extensive organisational restructuring during the year to boost its operational efficiency. The four-tier structure was pruned to a three-tier structure.