Bengaluru: Syndicate Bank net bleeds in Q3

Bengaluru, Jan 28 (IANS) State-run Syndicate Bank on Thursday reported net loss of Rs.119 crore for third quarter of 2015-16 as against net profit of Rs.305 crore in same period last fiscal, suffering a whopping 119 percent decline year-on-year due to higher provisioning for NPAs.

The Manipal-based bank’s operating profit for quarter under review (Q3) was, however, positive with 11 percent growth to Rs.929 crore from Rs.838 crore in same period year ago.

“The gross non-performing assets (NPA) ratio increased to 4.61 percent from 3.60 a year ago, and net NPA ratio rose to 3.04 percent from 2.38 percent a year ago,” the bank said in a statement here.

Gross NPA shot up 43 percent to Rs.9,603 crore from Rs.6,724 crore while net NPA jumped 42 percent to Rs.6,210 crore from Rs.4,370 crore.

During first nine months of this fiscal, NPAs went up to Rs.1,053 crore despite recovering Rs.2,019 crore in cash.

“We held three Bruhat Synd Adalats to accelerate recoveries under NPA and made one-time settlement of Rs.491 crore,” the bank noted.

Interest income declined 2.5 percent to Rs.5,499 crore from Rs.5,637 crore and net interest income slumped 12.8 percent to Rs.1,322 crore from Rs.1,516 crore year ago.

Net interest margin, however, was up marginally to 2.32 percent from 2.25 percent.

Global business increased 6 percent to Rs.464,087 crore from Rs.438,099 crore and domestic business grew 5 percent to Rs.391,664 crore from Rs.372,660 crore.

Similarly, global advances increased 12 percent to Rs.208,194 crore from Rs.186,630 crore and domestic advances also grew 12 percent to Rs.166,521 crore from Rs.148,825 crore.

Global deposits, however, grew marginally (2 percent) to Rs.255,893 crore from Rs.251,469 crore, while domestic deposit growth remained flat (1 percent) at Rs.225,143 crore as against Rs.223,835 crore.

“Provision coverage ratio stood at 58.67 percent as against 62.96 percent in same period year ago,” the statement added.

As a result of its poor performance on key parameters, the bank’s earning per share (EPS) turned below its face value of Rs.10 per share to Rs.7.12 in third quarter as against Rs.23.61 in like period year ago.

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