Syndicate Bank Q2 net declines 33% to Rs 315 crore

Higher tax expenses, provisioning for bad loans impact profit

Syndicate Bank today reported 33 per cent decline in net profit to Rs 315.60 crore for the quarter ended September as the state-run lender made higher provisioning towards bad loans and the tax expenses grew manifold.

The bank had registered net profit of Rs 470.12 crore during the July-September quarter of FY14, it said in a BSE filing.

The bank's tax expenses grew 100 times to Rs 100.48 crore as against Rs 1.08 crore in the year-ago period.

The provisioning towards bad loans or non-performing assets (NPAs) increased to Rs 537.79 crore during second quarter of 2014-15, while a year ago, it stood at Rs 339.96 crore.

The bank's total income increased from Rs 4,850.35 crore during the quarter ended September 2013 to Rs 5,680.96 crore during the quarter under review.

The gross NPAs were at 3.43 per cent of total advances as of September 2014, up from 2.88 per cent a year ago.

Net NPAs stood at 2.2 per cent during the September 2014 quarter from 1.66 per cent earlier.

Syndicate Bank shares were trading two per cent down at Rs 124.85 apiece during afternoon session on the BSE.