The Hindu Business Line : Syndicate Bank Q4 net rises to Rs 280 cr

SYNDICATE Bank has reported a 7.14 per cent drop in net profit for 2004-05. However, the bank reported a Rs 280-crore net profit for the fourth quarter, against a loss of Rs 78 crore in the third quarter.

Speaking to newspersons, Mr N. Kantha Kumar, Chairman and Managing Director, said that on account of the good fourth-quarter results, the bank has declared final dividend of 14 per cent, which takes the total dividend to 20 per cent for the year.

Syndicate Bank's net profit for the year stood at Rs 402.90 crore, down from the previous year's Rs 434.13 crore.

Operating profits also dropped 5.69 per cent to Rs 994 crore (Rs 1,019.25 crore).

The drop in profits was largely on account of the large provisioning by the bank.

Total provisions for the year stood at Rs 561 crore (Rs 314.58 crore). Depreciation accounted for Rs 382 crore.The large provisions also allowed the bank to bring down its net NPA ratio to 1.59 per cent from 2.58 per cent.

During the year, the bank's gross income was Rs 4,322.18 crore (Rs 3,861.25 crore), despite a drop in treasury profits of Rs 250 crore.

This drop was partially offset by increase in interest earnings on advances, which rose to Rs 2,042.10 crore (Rs 1,591.60 crore).

Large cash recoveries of NPAs also helped the bank post healthy profits.

Interest recoveries of the NPAs are credited to the profit and loss account and principal recoveries to the capital reserves.

The bank's cash recoveries last year were about Rs 363 crore, amounting to about 22 per cent of the gross NPAs.

During the year, Syndicate Bank was also able contain the cost of deposits to 4.58 per cent against 4.96 per cent earlier.

Gross expenditure was Rs 3,328 crore (Rs 2,842 crore). Interest expenditure rose to Rs 2,063 crore from Rs 1,655.60 crore.

Mr Kantha Kumar said that the bank was finalising its Rs 50-crore public issue and was awaiting clearance from the Securities and Exchange Board ofIndia this week. The issue would be used to sustain its credit growth of 33 per cent for the current fiscal.

This year the bank also proposes to start two new subsidiaries - a venture capital fund for rural development and a BPO centre.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Banks to take part in Krishi Mahotsav

Capital adequacy norms for RRBs likely

Creditable initiatives from RBI

Rupee weakens; gilts range-bound

Allahabad Bank mulls foray into insurance, realty fund — Annual profit Rs 542 cr; to pay 30 pc total

Syndicate Bank Q4 net rises to Rs 280 cr

Housing: Plea to modify FEMA

Bajaj Allianz's first premium income up by 380 pc

Insurers face paucity of trained manpower

Karur Vysya Bank in pact to be co-promoter in NCDEX arm

Andhra Bank eyes Rs 56,000-cr biz

Karnataka Bank cuts FCNR (B) rates