Syndicate Bank Q2 net profit up 43% at Rs 463 cr

Syndicate Bank has reported a 43.3 per cent increase in its net profit for the second quarter ended September 30, 2012, at Rs 463 crore helped by tax reversal of Rs 100 crore received in the quarter. The bank had a net profit of Rs 323 crore during the same quarter of the previous fiscal.

If for the tax reversal amount, the net profit of the bank comes to Rs 363 crore, a growth of 12.4 percent over a year ago period. The bank had paid tax of Rs 61 crore in the second quarter of previous financial year 2011-12.

This was aided by a marginal rise of 5.94 per cent in the bank’s net interest income at Rs 1,391 crore as against Rs 1,313 crore in the previous fiscal’s same period quarter. However, the bank’s operating profit took a hit down 5.38 per cent at Rs 843.20 crore (Rs 891 crore in the previous).

The bank’s net interest margin also saw a slight dip at 3.33 per cent (3.44 per cent previous), while the cost of deposits rose to 7 per cent in the reporting quarter as against 6.69 per cent in previous fiscal’s same period quarter.

The bank’s total income increased to Rs 4,546.33 crore in the July-September quarter, from Rs 4,015.64 crore in the same period a year-ago. However, gross NPAs rose marginally to 2.47 per cent of loan assets as on September 30, 2012 as compared to 2.38 per cent at the end of second quarter of the previous fiscal.

The bank has made provisions of Rs 479 crore in the quarter ended September 2012 as against Rs 513 crore in previous quarter.