Syndicate Bank Q1 net dips 74%

Syndicate Bank Q1 net dips 74%

Total income up Rs 6,419.12 cr

Syndicate Bank Q1 net dips 74%

 Manipal-based Syndicate Bank on Thursday reported a whopping 74% drop in net profit, at Rs 79.13 crore, for the first quarter ended June 30, 2016, on account of higher provisioning and lower operating profit.

The bank had reported a net profit of Rs 301.98 crore in the corresponding quarter, last year. In a filing to BSE, the bank stated, “Previous quarter results are not comparable with the current quarter, since there was an exceptional item of writeoff on account of fraud at three branches of Jaipur region.

Transactions of these three branches are under investigation, pending which, no additional provision is considered necessary during the quarter.”However, the bank’s total income increased marginally to Rs 6,419.12 crore, against Rs 6,323.42 crore in the year-ago period. Operating profits of the bank were also lower by 24.6%, at Rs 783.70 crore, against Rs 1,039.48 crore during the same period, last year.

Gross NPAs were 7.53% of gross advances in the June quarter of the current fiscal. In the year-ago period, it was 3.72%. Net NPAs stood at 5.04%, it stood at 2.36% in April-June quarter of 2015-16.

Syndicate Bank said that it has upgraded NPAs of Rs 220.42 crore, and also made recoveries of Rs 444.70 crore.

“Out of the total cash recovery, the cash recovery in domestic NPAs amounted to Rs 444.70 crore. which includes cash recovery in prudentially written-off accounts amounting to Rs 82.35 crore,” it said.