Syndicate Bank net drops 32% to Rs 177 cr

Public sector Syndicate Bank today reported a 32 per cent drop in net profit to Rs 177.8 crore for the second quarter ended September 30 as compared with the corresponding quarter of last year. Its operating profit for the second quarter declined 5.2 per cent to Rs 443.3 crore compared to the year-ago period.

Its total income was Rs 2,820.6 crore, a moderate growth of 11.6 per cent from the same period last year.

The drop in net profit was due to a 17.3 per cent fall in net interest income to Rs 617.8 crore and higher provisions, which stood at Rs 195.4 crore, an increase of 42 per cent. The bank’s higher tax outgo at Rs 70 crore, an increase of 20 per cent, added to the drop in net profit. Return on assets dropped to 0.55 per cent, compared to 0.99 per cent in the year-ago period. The capital adequacy ratio during the quarter stood at 13.26 per cent, compared to 12.54 per cent in the year-ago period.