Syndicate Bank sees 12% PBT decline

Manipal-based public sector lender Syndicate Bank reported a 12 per cent decline at Rs 334.24 crore in profit before tax for the quarter ended December 31, 2012 on a year-on-year (y-o-y) basis, but a credit of Rs 141 crore on account minimum alternate tax (MAT) lifted profit after tax.

The news resulted in the share price of the bank plunging 5.27 per cent from its previous day’s close on the BSE to close at Rs 132.25; compared to intraday high of Rs 144.65, the fall was almost 10 per cent.

Total income Q3 ending December 31, 2012 was Rs 4,489.90 crore, up 6.53 per cent compared to Rs 4,214.35 for Q3 ending December 31, 2011. Profit after tax was Rs 508.49 crore, up from Rs 338.12 crore for the quarter ended December 2011. The spike was mainly on account of Rs 174.25 crore tax credit that included MAT of Rs 140.78 crore. Interest income was up 6.20 per cent at Rs 4,220.59 crore, on y-o-y basis. The capital adequacy ratio was 11.38 per cent as on December 31, 2012. Deposits were up 14.6 per cent at Rs 1,64,075 crore as on December 31, 2012 compared to Rs 1,43,128 crore (December 31, 2011).  Advances stood at Rs 1,34,629 crore as on December 2012, up 17. 2 per cent. NIM was 3.28 per cent. Bank approved fund rasing of  Rs 3, 500 crore.