Syndicate Bank on Tuesday said its net profit in December quarter 2019 grew manifold to Rs 434.82 crore as bad loans shrank.
The public sector lender had registered a profit of Rs 107.99 crore in the year-ago period.
Total income during the quarter increased to Rs 6,316.57 crore from Rs 6,077.62 crore in the same period of 2018-19, Syndicate Bank said in a regulatory filing.
"...the large number of initiatives that we took over the period of last one year, which included the organisational restructuring, reward and recognition programme, bringing more focus and adding MoU with verticals and vertical profitability contributed to this success," said the Syndicate Bank MD and CEO Mrutyunjay Mahapatra at a press conference.
Gross bad loans or non-performing assets (NPAs) came down to 11.33 per cent of gross advances as on December 31, from 12.54 per cent at the end of the same month a year ago.
Commenting on the NPAs, Mahapatra said, "Our gross NPA is lower than March 2019. We have created a specific vertical called Space Assets Management Group to deal with this".
The bank, said Mahapatra, has identified some large NPAs such as DHLF and Religare Finvest.
In absolute terms, gross NPAs stood at Rs 25,330.10 crore as compared to Rs 26,184.66 crore in the year-ago period.
Net NPAs were 5.94 per cent (Rs 12,514.32 crore), down from 6.75 per cent (Rs 13,211.17 crore).
However, the bank made a higher provisioning of Rs 1,286.64 crore for bad loans during the quarter as compared to Rs 909.82 crore in the year-ago period.
The overall provisions and contingencies stood at Rs 1,044.98 crore as against Rs 497.14 crore a year ago.
The bank said it restructured 14,574 MSME accounts, as per RBI directive, worth Rs 465.84 crore during January 1 to December 31, 2019.
On disclosure about divergence of bad loans for 2018-19, the bank said the net loss during the year was adjusted to Rs 3,358.56 crore, higher than Rs 2,588.29 crore reported earlier.
The divergence in gross NPAs in 2018-19 came in at Rs 5 crore as the bank reported it to be at Rs 24,680.37 crore, while the RBI assessed it at Rs 24,685.37 crore.
There was a fall of Rs 1,179 crore in net NPA divergence for the year as the bank reported it to be at Rs 12,627.73 crore and the RBI's assessment stood at Rs 11,448.73 crore.
The divergence in provisioning for 2018-19 stood at Rs 1,184 crore.
Out of the reported divergence in provisioning, Rs 724 crore has been provided and the balance Rs 460 crore is under review by the regulator, Syndicate Bank said.
"The board of directors in its meeting held on September 13, 2019 has considered and accorded its 'in-principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals and the process is in progress," the bank said in the filing.
The provision coverage ratio as on December 31, 2019 stood at 69.28 per cent.
Syndicate Bank stock closed at Rs 24.10 on the BSE, up 0.84 per cent from the previous close.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)