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Syndicate Bank Q1 Net up 2.7 per cent to Rs 452.28 crore

Bangalore, PTI | Updated : 30 July 2013, 10:08 AM

Syndicate Bank has reported a marginal 2.7 per cent growth in net profit at Rs 452.28 crore for the first quarter ended June 30 due to NPA slippages and fall in yield on advances.

The bank had posted a net profit of Rs 440.22 crore in the corresponding period last year.

"The rise in net profit was almost flat as yield on advances came down this quarter," Syndicate Bank Chairman and Managing Director Sudhir Kumar Jain said.

"Also, Rs 1,300 crore of fresh NPA's have slipped during this quarter, mostly in the below Rs 10 lakh accounts category," he added.

The bank said its yield on advances has come down to 9.71 per cent from 10.73 per cent a year ago.

Total income of the bank during the quarter under review rose to Rs 4,726.18 crore, up from Rs 4,478.06 crore in the year ago period, and the operating profit was up by 13 per cent to Rs 949 crore against Rs 841 crore last year.

However, the net interest income of the bank declined by 1.44 per cent to Rs 1,319 crore during the quarter from Rs 1,338 crore in the same period last year.

On the question related to lendings to big corporates, he said, "There is not much increase in lending for them;... credit demand is driven by retail and mid corporate accounts."

The bank said it has requested Central Government for a fresh capital of Rs 1,830 crore during the year.

Stating that it has made a provision of Rs 170 crore for NPA, the bank said bulk deposits have come down to 14.05 per cent from 20.52 per cent.

"There is reduction of high cost bulk deposits from Rs 32,277 crore as on June 2012 to Rs 25,650 crore as on June 2013, a reduction of Rs 6,627 crore." Jain said.

First Published: Tuesday, July 30, 2013 10:06 AM
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