SyndBank PAT inches up 5.3% to Rs 332.4 crore

SyndBank PAT inches up 5.3% to Rs 332.4 crore

 Manipal-based nationalised lender Syndicate Bank on Wednesday reported a 5.3 per cent increase in its net profit to Rs 332.37 crore for the second quarter ended September 30, 2015, as compared with Rs 315.6 crore for the corresponding quarter last year.

Net Interest Income (NII) of the bank jumped by 12.1 per cent to Rs. 1,594.8 crore for the current quarter as compared with Rs 1,422.5 crore in the corresponding quarter last year. Total income increased by 17.4 per cent to Rs 6,670.19 crore during the second quarter from Rs 5,680.96 crore earned in the year-ago period, according to the bank’s filings with the BSE. The bank’s provisioning for loan losses on contingencies reduced by 18.1 per cent Rs 440.29 crore during the period from Rs 537.79 crore a year ago. However, the bank's asset quality slipped with gross non-performing asset (NPA) ratio rising to 3.72 per cent of gross advances during the reported quarter, from 3.43 per cent a year ago.

T K Srivastava, Executive Director, attributed the slight increase in profit to provisioning. When asked about the concentration of NPAs, which are proving to be painful for the bank, Syndicate Bank CEO and MD Arun Shrivastava stated that the bank is restructuring its loan portfolio by trimming down its corporate loans with a relative increase in MSME and retail loans. 

Likewise, net NPA ratio too increased to 2.37 per cent of net advances, as against 2.20 per cent in the same quarter last year. The annualised earnings per share of the company decreased by 25.3 per cent to Rs 19.15 per share in the reported quarter as compared with Rs 25.65 per share last year.

The Capital Adequacy Ratio  of the bank stood at 10.46 per cent in the reported quarter compared with 10.42 per cent last year as per the Basel-III norms. The bank’s shares closed 1.80 per cent, down at Rs 95.45 apiece on the BSE.

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