Syndicate Bank drops after weak Q4 numbers

Syndicate Bank lost 3.14% to Rs 103.50 at 13:10 IST on BSE after net profit declined 30.9% to Rs 409.30 crore on 12.06% growth in total income to Rs 5357.40 crore in Q4 March 2014 over Q4 March 2013.

The Q4 result was announced during trading hours today, 7 May 2014.

Meanwhile, the S&P BSE Sensex was down 98.95 points or 0.44% at 22,409.47.

On BSE, so far 5.67 lakh shares were traded in the counter as against average daily volume of 2.92 lakh shares in the past two weeks.

The stock hit a high of Rs 107.95 and a low of Rs 102.25 so far during the day.

Syndicate Bank attributed decline in net profit in Q4 March 2014 to non availability of MAT credit of Rs 114 crore accounted in Q4 March 2013 and increase in NPA provisions.

Domestic current and savings accounts (CASA) deposits rose 7.67% to Rs 55911 crore as on 31 March 2014, from Rs 51926 crore as on 31 March 2013. Domestic CASA deposits stood at Rs 29.9% of total domestic deposits as at 31 March 2014. Bank has taken various steps, campaigns to increase CASA performance, Syndicate Bank said in a statement.

Gross NPA ratio stood at 2.62% as on 31 March 2014 as against 1.99% as on 31 March 2013. Despite the stress in the economy and more NPAs in the industry, Syndicate Bank is able to maintain the gross NPA level below 3%, it said. However, compared to preceding quarter, it has come down from 2.8% and this is one of the lowest, the bank said in a statement.

Net NPA ratio stood at 1.56% as on 31 March 2014 as against 0.76% as on 31 March 2013. However, compared to preceding quarter, it has come down from 1.66% and this is one of the lowest, Syndicate Bank said in a statement.

Provision coverage ratio stood at 70.02% in Q4 March 2014 as against 83.41% in Q4 March 2013. However, this is one of the best in the industry, Syndicate Bank said in a statement.

Global net interest margin (NIM) stood at 2.79% in FY 2014 as against 3.19% in FY 2013. This is on account of the stress in the economy and more NPAs in the industry as well as in Syndicate Bank. Domestic NIM stood at 3.21% in FY 2014 as compared to 3.52% in FY 2013.

Syndicate Bank's net profit declined 14.61% to Rs 1711.46 crore on 9.01% growth in total income to Rs 19945.21 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

The Government of India holds 67.39% stake in Syndicate Bank (as per the shareholding pattern as on 31 March 2014).

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