Syndicate Bank's revenue grows 183 per cent in Q1


Syndicate Bank Executive Directors V K Nagar and                       R Ramachandran at the conference in Bangalore DH Photo

The company attributed the spurt in net profit  primarily due to an increase in treasury income from Rs 28 crore in the previous fiscal to Rs 272 crore, primarily from G-Secs.

There was also a dip in provisions from Rs 314.16 crore in June 2008 quarter to Rs 22 crore in the June 2009 quarter, primarily due to a write-back of mark-to-market provisions of Rs 62 crore.

Bank’s total income in the June 2009 quarter at Rs 2974.86 crore 183 per cent higher than the same quarter last year. Interest income for the quarter under review increased to Rs 2558.74 crore from Rs 2131.97 crore in the previous year. Net interest income of the bank increased by 16.38 per cent to Rs 585 crore from Rs 503.27 crore as on June 30, 2008.

But net interest margin decreased marginally to 2.23 per cent as against 2.34 per cent due to pressures on margins as interest rates have been brought down from 14 per cent to 12.50 per cent.

The bank’s global deposits reached Rs 1,16,319 crore with a y-o-y growth of 26.85 per cent as of 30 June 2009. The domestic deposits reached a level of Rs 1,09,257 crore as on 30 June registering a y-oy growth of 24.65 per cent. The highlight of the quarter was the bank’s growth under core deposits which increased by 41.97 per cent and simultaneously shedding its high-cost deposit segment by Rs 12,096 crore (42.73 per cent) over the June 2008 level.

The gross NPA level fell to Rs 1,588 crore from Rs 1,821 crore in the previous year primarily due to cash recovery, upgradation of accounts and over-the-counter settlements.

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