Syndicate Bank Q3 net falls 25%

A 9 per cent decline in yield on advances on year on year (YoY) basis and non-availability of one-time credit led to 25.19 per cent drop in net profit of Syndicate Bank for the third quarter ended December 2013 (Q3) to Rs 380 crore, despite 13.39 per cent lower provisioning for bad loans.

The bank had reported Rs 508 crore in the corresponding quarter in the previous financial year. It said that it availed of minimum alternate tax credit of Rs 141 crore in the third quarter of 2012-13, which was not available during Q3 and therefore accentuated the fall in net profit in the third quarter.

Net interest income  fell 2.93 per cent to Rs 1,359 crore in Q3, from Rs 1,400 crore in the year-ago period. Net non-performing assets (NPAs) spiked to 1.66 per cent of the total advances in Q3, as against 0.85 per cent in the corresponding period in 2012.13.

Cost of deposits decreased marginally to 6.66 per cent in Q3 from 6.51 per cent in the corresponding quarter of 2012-13, yield on advances fell to 9.69 per cent in Q3 from 10.67 per cent (YoY).