The Hindu Business Line : Syndicate Bank posts Rs 188-cr net in Q3

SYNDICATE Bank has registered a net profit of Rs 188 crore for the third quarter of the current financial year as against the loss of Rs 78 crore in the corresponding period of the previous financial year.

Addressing presspersons at Manipal in Udupi district on Wednesday, the Chairman and Managing Director of the bank, Mr N. Kantha Kumar, attributed this profit to the 80-year-old brand equity of the bank and the decision to exit from the investment portfolio.

The bank, which has completed the detailed restructuring exercise of the investment portfolio, has brought down the investment portfolio to Rs 16,634 crore from Rs 20,741 crore as on December 2004. The bank recorded a net profit of Rs 526 crore for the nine months period ended December 31, 2005, compared to Rs 123 crore reported for the corresponding period of the previous year.

The operating profit for third quarter of 2005-06, which grew by 33 per cent, was placed at Rs 291 crore, which is an increase from Rs 218 crore in the third quarter of 2004-05.

15 p.c. dividend: Mr Kumar said that the board of directors of the bank has also declared an interim dividend of 15 per cent. The bank has fixed February 3, as record date for the purpose of payment of interim dividend.

He said the net interest income for the third quarter, excluding one-off benefits, stood at Rs 508 crore as against Rs 395 crore in the corresponding period of the previous year. The one-off reversal of Rs 27 crore made under interest expenses was prudently used to absorb the amortised VRS expenses and IPO expenses amounting Rs 26 crore pertaining to Q4, he said.

The net NPA of the bank has come down to 1.22 per cent (2.52 per cent) during the period. "Our aim is to bring it down to 1 per cent by March 2006," he said. The gross NPA came down to 4.22 per cent (6.93 per cent), he added.

Mr P.P. Mallya, Executive Director of the bank, was present on the occasion. On Wednesday, the shares of the bank closed at Rs 95.2 on BSE, down by 2.91 per cent against the previous close of Rs 98.05.

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