Syndicate Bank profit rises 36%

Manipal-based public sector lender Syndicate Bank on Saturday reported a 36 per cent rise in net profit to Rs 323 crore for the second quarter ended September, compared to the same quarter last financial year. The operating profit for the quarter rose 14 per cent to Rs 891 crore, as from Rs 779 crore in the same quarter last year.

The bank reported a year-on-year growth of 35 per cent in its total income to Rs 4,015 crore during the second quarter. The rise in profits during the quarter was mainly due to an 18 per cent rise in its net interest income at Rs 1,313 crore, compared to Rs 1,108 crore in the same quarter last year.

Its net interest margin, however, declined marginally by 11 basis points to 3.44 per cent. The cost of deposits went up to 6.69 per cent, as against 5.13 per cent in the year-ago period. The yield on advances increased to 10.90 per cent, as against 9.39 per cent in the corresponding quarter previous year. The return on assets improved to 0.83 per cent, as against 0.71 per cent in the second quarter last year. While the net non-performing assets (NPAs) increased to Rs 1,052 crore, as against Rs 917 crore in the year-ago period, the percentage of net NPA declined marginally to 0.93 per cent, as against 0.97 per cent in the same period last year.