Syndicate Bank net up 21% on high other income

Manipal-based public sector Syndicate Bank today reported 21 per cent increase in net profit to Rs 273.20 crore for the third quarter ended December 31, 2007, compared with the corresponding quarter of the last financial year. The bank's operating profit for the quarter rose 16.5 per cent to Rs 372.6 crore on a y-o-y basis.

The rise in net profit was mainly on account of a massive jump of 98 per cent in other income to Rs 278.63 crore and lower provisions and contingencies during the quarter. Fee-based income, commission on forex, treasury income are the three main components that gave the impetus to other income.

The bank made a provision of Rs 43.7 crore during the quarter compared to Rs 139.5 crore in the corresponding quarter of last year.

Total income for the quarter went up by 27.5 per cent to Rs 2,266 crore compared to the same quarter last year. The net interest income for the period, however, declined by 14.5 per cent to Rs 475 crore.