Syndicate Bank net dips in 2014-15

State-run Syndicate Bank posted net profit of Rs.1,523 crore for 2014-15, down 11 percent against Rs.1,711 crore in the previous fiscal.

"Our net profit for the fiscal under review declined due to higher provisions for NPA (non-performing assets) which increased on annualised basis in 12 months in gross and net terms," Syndicate Bank executive director T.K. Srivatsa told reporters here on Saturday.

Though total income for 2014-15 increased 18.9 percent year-on-year (YoY) to Rs.23,725 crore from Rs.19,945 crore, operating profit grew 12.5 percent YoY, as expenditure was 20 percent higher YoY at Rs.19,717 crore as against Rs.16,382 crore year ago.

Gross NPA for the fiscal shot up a whopping 40 percent to Rs.6,442 crore from Rs.4,611 crore and net NPA 41 percent to Rs.3,844 crore from Rs.2,721 crore.

In percentage terms, gross NPA increased to 3.13 from 2.62 and net NPA to 1.90 from 1.56 year ago.

"In fourth quarter, our gross and net NPAs, however, declined in percentage and value terms sequentially from third quarter as recovery was good," Srivatsa claimed.

Gross NPA for Q4 dipped to Rs.6,442 crore from Rs.6,724 crore and net NPA to Rs.3,844 crore from Rs.4,370 crore. In percentage terms, gross NPA declined marginally to 3.13 from 3.60 in Q4 and net NPA to 1.90 from 2.38 though they were higher over the same period year ago.

"Flat net interest income during the quarter (Q4) also impacted net profit, which was two percent up at Rs.417 crore from Rs.409 crore year ago," he noted.

Total income for Q4 increased 23 percent YoY to Rs,6,599 crore from Rs.5,357 crore, while operating profit was up 20 percent YoY to Rs.1,201 crore from Rs.998 crore.

Net interest income was marginally lesser at Rs.1.423 crore from Rs.1,433 crore in same period quarter year ago, while net interest margin was down at 2.29 percent from 2.79 percent in like period year ago.

Advances grew 17 percent YoY in Q4 to Rs.2,05,804 crore from Rs.1,76,241 crore, while deposits increased 20 percent YoY to Rs.2,55,388 crore from Rs.2,12,343 crore.

Provisions increased 13 percent YoY to Rs.715 crore from Rs.631 crore year ago. Though cost of deposits increased 18 basis points to 6.73 percent from 6.55, yield on advances declined 42 basis points to 9.23 percent from 9.65 points year ago.