Provisions for bad loans turn Syndicate Bank into red

Higher provisions for bad loans and contingencies turned state-run Syndicate Bank into red, with a whopping Rs.2,158 crore net loss for fourth quarter of 2015-16 from net profit of Rs.417 crore in like period year ago on standalone basis.

"Total income, including interest for quarter under review also decreased marginally (1.1 percent) to Rs.6,525 crore from Rs.6,599 crore in same period year ago on standalone," the Manipal-base bank said in a statement here on Tuesday.

For 2015-16 too, the bank posted a net loss of Rs.1,644 crore as against net profit of Rs.1,523 crore in 2014-15 on standalone basis.

"Total income for fiscal under review, however, increased 8.4 percent to Rs.25,707 crore from Rs.23,725 crore year ago," the statement said.

On consolidated basis, net loss for 2015-16 was Rs.1,517 crore as against net profit of Rs.1,664 crore in FY 2015.

Total income (consolidated), however, increased to Rs.25,831 crore for FY 2016 from Rs.23,865 crore in 2014-15.

"Provisions (other than tax) and contingencies shot up 237 percent year-on-year to Rs.2,412 crore in fourth quarter from Rs.715 crore in like period year ago and 116 percent YoY to Rs.4,348 crore for fiscal from Rs.2,011 crore in FY 2015 on standalone basis," the bank said in its profit-and-loss statement.

Gross non-performing assets (GNPAs) ratios for the last quarter and fiscal doubled to 6.7 percent from 3.13 percent in like period year ago and net performing assets (NPAs) ration zoomed to 4.48 percent from 1.90 percent in same period year ago.

"Cash recovery in NPA was Rs.2,702 crore in FY 2016 as against Rs.2,195 crore in FY 2015," the statement added.

--IANS

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