Syndicate Bank dips on disappointing Q1 results

The stock dipped 9% to Rs 90 after the bank reported 38% YoY fall in net profit at Rs 302 crore in June quarter.

Shares of Syndicate Bank has dipped 9% to Rs 90 on the NSE after reporting 38% year-on-year (YoY) fall in its standalone net profit at Rs 302 crore for the quarter ended June 30, 2015 (Q1), due to higher tax expenses. The government-owned bank had profit of Rs 485 crore in the same quarter last year.

The bank’s net interest income (interest earned minus interest expended) during the quarter under review grew 4.5% to Rs 1,412 crore against Rs 1,351 crore in the corresponding quarter of previous fiscal. Tax expense increased more than four-fold to Rs 257 crore against Rs 61 crore.

Asset quality of the bank has worsened on sequential as well as yearly basis. Gross non-performing assets (NPA) as percentage of gross advances rose to 3.72% in the June 2015 quarter from 3.13% in the March 2015 quarter and 2.97% in the June 2014 quarter. The bank's net NPAs during the quarter stood at 2.36% compared to 1.90% in the previous quarter and 1.88% in last year's corresponding quarter.

The stock hit a 52-week low of Rs 89 on the NSE in intra-day trade and has seen a combined 13.42 million shares changed hands on the counter till 03:27 PM on the NSE and BSE.