The Hindu Business Line : Syndicate Bank Q1 net up 30 pc

SYNDICATE Bank has announced a 30 per cent rise in net profit for the first quarter to Rs 163.11 crore compared to the corresponding previous period. Operating profits increased to Rs 280.32 crore (Rs 253 crore).

The net profit rose despite a reduction in profit on sale of investments to Rs 38.30 crore for the quarter from Rs 124.25 crore in the year-agoperiod, after making an additional provision of Rs 30 crore during the quarter towards wage revision.

Interest income went up to Rs 953.42 crore (Rs 880.39 crore), a 38 per cent growth. The surge in credit-deposit ratio to 66 per cent is instrumental in the increased interest income, according to the bank.

The bank's net advances increased to Rs 27,678 crore, a 33 per cent rise over the corresponding previous period. During the quarter, the bank has also focussed on restructuring its investment portfolio, with a reduction in the investment portfolio to Rs 15,948 crore to insulate the portfolio from interest rate fluctuations.

The net interest income also improved as a result as funds released from the portfolio were utilised to pay off the high-cost bulk deposits.

Gross NPA decreased to 5.1 per cent, while net NPAs declined to 1.54 per cent. CAR improved to 12.65 per cent.

The bank has obtained the RBI approval to establish a venture capital fund, to be formed as a trust and the board of the bank has approved the incorporation of a subsidiary as an AMC for the trust.

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