Syndicate Bank Q4 net plummets 96%

Mangalore-based Syndicate Bank reported 96 per cent fall in its net profit for the fourth quarter ended March 2006 at Rs 10.31 crore from Rs 280.19 crore posted during the corresponding quarter in fiscal 2004-05.

Total income during the quarter went up by 11 per cent to Rs 1,262.7 crore against Rs 1,129 crore in the fourth quarter of the previous fiscal.

"The drop in net profit for the quarter was on account of increase in NPA provision by Rs 142 crore, dip in operating profit by Rs 65 crore and standard asset provision by Rs 40 crore, during the quarter," C P Swarnakar, chairman and managing director, told reporters while announcing the bank's quarterly and annual performance.

The net NPA ratio came down to 0.86 per cent as of 31st March 2006, from 1.59 per cent as of 31st March 2005.

"Owing to very good asset management efforts undertaken for recovery of NPA, this is for the first time that net NPA has come down below 1 per cent," Swarnakar added.

The net profit for 2005-06 grew by 33 per cent to Rs 536 crore against Rs 403 crore for 2004-05. Total income for the fiscal stood at Rs 4,642 crore in comparison with Rs 4,348 crore for the year ended 31st March 2005, a growth of 6 per cent.

Interest income for the year improved to Rs 4,050 crore from Rs 3,758 crore reported for the year ended March 31, 2005.

The profit on sale of investments was Rs 133 crore for the year ended March 31, 2006 against Rs 246 crore earned for the year 2004-05.

The investment portfolio came down to Rs 17,269 crore as on 31st March from Rs 20371 crore as on 31st March 2005.

Net worth of the bank went up to Rs 2,834 crore as on 31st March, 2006 from Rs 2m199 crore as on 31st March 2005.

The capital adequacy ratio as of 31st March 2006 improved to 11.73 per cent from 10.73 per cent as of 31st March 2005.

The bank also proposed a final dividend of 10 per cent, thereby taking the total dividend for the financial year to 25 per cent.

Swarnakar said by the end of the ongoing fiscal, the bank planned to bring 80 per cent of its business under core banking solution by adding 1,000 more branches under CBS.

Presently, Syndicate Bank has 529 branches under CBS.

This apart, the bank announced to open 150 new branches during the ongoing fiscal and take the total number of branches to 2256 branches.