Syndicate Bank Q2 profit up 11%

BANKING SCORECARD

Manipal-headquartered public sector Syndicate Bank has failed to meet its own expectations for the second quarter ended September 30, 2007, with just 11 per cent rise in net profit at Rs 227.58 crore compared to the corresponding period last financial year.

"High cost of deposits due to a major shift from savings bank to term deposits by our customers, slower growth in advances and a drop in demand from the corporate sector resulted in slower growth during the second quarter," Syndicate Bank Chairman and Managing Director C P Swarnkar said.

The bank's total income for the period grew by 35 per cent to Rs 2,155 crore on a y-o-y basis. Its interest income also increased by 35 per cent to Rs 1,939 crore.

But net interest income growth was flat at Rs 489.11 crore, up just 0.93 per cent from the year-ago period. Operating profit for the quarter stood at Rs 326.02 crore, up 10.43 per cent on the same period last year.

The return on assets marginally decreased to 0.96 per cent compared to 0.99 per cent in the same period last year. The earnings per share rose to Rs 17.18 from Rs 14.78 last quarter.

The net non-performing assets have gone up from 0.89 per cent as on September 30, 2006, to 0.95 per cent as on September 30, 2007.

Capital adequacy ratio stood at 12.19 per cent. By the end of FY08, the bank aims to achieve 25 per cent growth in both credit and deposits, Swarnkar said.