Syndicate Bank Q3 net loss at Rs 119 cr

The Bank stock closed 5.13 per cent down at Rs 70.25 on the BSE

Syndicate Bank today reported net loss of Rs 119.67 crore for third quarter ended December 31, 2015-16, on account of provisioning for deferred tax.

The public sector bank had posted a net profit of Rs 304.99 crore in the same period of last financial year.

Syndicate Bank parked a substantial amount towards deferred tax liability and provisions that led to the loss on its books.

"Total income has increased to Rs 6,188.25 crore for the quarter ended December 31, 2015 from Rs 5,921.58 crore for the quarter ended December 31, 2014," it said in a BSE filing.

For the third quarter of the current fiscal, the bank made provisioning and contingencies to the tune of Rs 875.23 crore as against Rs 290.41 crore in the corresponding period of previous fiscal, 2014-15.

The bank's gross non-performing assets (NPAs) or bad loans rose to 4.61 per cent of the gross advances as of December 2015 from 3.6 per cent in the year-ago period.

Net NPAs were at 3.04 per cent of the net advances for the quarter under review, up from 2.38 per cent a year ago.

"As advised by RBI, bank has decided to recognise deferred tax liability (DTL) in respect of difference in valuation of held to maturity (HTM) securities between accounting income and taxable income.

"The bank has estimated and provided an amount of Rs 423.18 crore towards the same during the nine months ended December 2015.

"Similarly, following the opinion of expert advisory committee of ICAI, the bank has recognised deferred tax asset (DTA) on the difference in the provision for NPA...And the DTA of Rs 258.87 crore has been recognised as on December 2015", the bank said in the filing.

Syndicate Bank stock closed 5.13 per cent down at Rs 70.25 on the BSE.