The Hindu Business Line : Syndicate Bank net climbs 23 pc; plans tier II bonds

Mr Michael Bastian, CMD, Syndicate Bank, taking a final look at the first quarter results just ahead of the press conference in Bangalore on Monday. -- G. R. N. Somashekar

Bangalore , July 19

SYNDICATE Bank's net profit rose 23 per cent to Rs 125.24 crore during the first quarter of 2004-05. Total income too rose nearly 23 per cent to Rs 1,075.57 crore.

At a press conference, the bank's Chairman and Managing Director, Mr Michael Bastion, said global business rose 42.29 per cent to Rs 66,608 crore during the first quarter while global deposits grew 44.18 per cent to Rs 44,752 crore.

Mr Bastian said net NPA to net advances ratio was 3.28 per cent while gross NPA was Rs 1,787 crore for the same period. The bank has set a target of Rs 85,000 crore of business during the current year. The bank will pursue a strategy of gaining market share with focus on profitability, he said.

In the farm sector, the bank has fixed a target of Rs 4,500 crore by March 2005 and 1,067 rural and semi-urban branches have been identified to implement the agricultural credit plan. It is also giving thrust to finance solar home lighting systems with interest subsidy from the United Nations Environment Programme.

The bank has also launched gold card for exporters under the SyndExport Gold Card scheme. Gold card exporters will get preferential terms of credit on interest rates, concession in service charges and a simplified credit delivery system.

Tier II bonds soon

Syndicate Bank proposes to raise Rs 200 crore of tier II bonds to meet its capital requirements for expanding its business.

Mr Bastian said the board took the decision to issue tier II bonds at its meeting on Monday. It will carry a green shoe option of Rs 50 crore. He did not specify when the bonds would be issued.

The bank has also restructured its operations and set up a three-tier structure consisting of the branch, regional office and corporate office. Mr Bastian said this was being carried out for quick response time, fast decision-making to benefit the customers and to reduce cost of operations.

He said the bank recruited 10 marketing personnel through the direct recruitment process. It plans to recruit 100 specialists through campus interview to build a cadre of specialists. It has also made a need-based analysis of skills requirements and is in the process of matching skills required as identified by the corporate office and the training needs as identified by the staff.

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