Syndicate Bank posts 3% growth in Q1 PAT

Profit from treasury operations that spurted almost four-fold on year-on-year (YoY) basis enabled Syndicate Bank to post 2.72 per cent growth (YoY) in net profit to Rs 452 crore in the first quarter ended June 30, 2013 (Q1).

The net profit was Rs 440 crore in the corresponding period of last fiscal.

Treasury income was Rs 85 crore in Q1, up 269 per cent from Rs 23 crore in the year-ago period, the bank's CMD Sudhir Kumar Jain told reporters here on Monday.

Net interest income was Rs 1,338 crore in Q1, up 1.44 per cent from Rs 1,319 crore in the corresponding period last fiscal. Yield on advances at 9.71 per cent in Q1 was lower from 10.73 per cent  YoY. Net interest margin was 2.83 per cent.

However, due to fresh slippages of Rs 1,055.59 crore in bad loans during the quarter, net NPAs as a percentage of total assets went up to 1.19 per cent in Q1, from 0.93 per cent in the year-ago period. The bank provided Rs 170 crore for bad loans in Q1. It also restructured assets for Rs 883 crore in Q1, taking the total restructured advances to Rs 9,657 crore.  CAR as per Basel III norms was 11.49 per cent. The bank plans to seek Rs 1,830 crore capital infusion.