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Our Bureau

Interest on advances up 58 pc at Rs 1,143.75 cr

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Bangalore Jan. 27 Syndicate Bank reported a net profit of Rs 226.12 crore for the third quarter of financial year 2006-07, an increase of 20.3 per cent over the corresponding period of the previous year.

Briefing reporters on the bank's results, the Chairman and Managing Director, Mr C.P. Swarnkar, said, "We have managed to grow our advances by 48 per cent in the year and push up employee productivity."

The gross profit for the third quarter was Rs 328.10 crore against Rs 290.76 crore in the corresponding period of the financial year.

Gross income rose to Rs 1,784.31 crore from Rs 1,165.21 crore. The increased income was driven by interest earnings that rose to Rs 1,635.3 crore, up from Rs 1,047.55 crore. The increase in interest income was partly contributed by hikes in lending rates during the period, Mr. Swarnkar said. Interest on advances, during the period, rose to Rs 1,143.75 crore from Rs 722.19 crore. Its gross expenditure also rose sharply to Rs 1,456.21 crore from Rs 874.45 crore, on account of higher cost of deposits. Interest expenditure rose to Rs 1,079.37 crore from Rs 512.66 crore.

Besides, it also managed to accelerate its deposit mobilisation efforts. Outstanding deposits were Rs 75,294 crore, a 52 per cent increase. But this also had an impact on the net interest margins that dropped to 2.69 per cent in the third quarter against 3.18 per cent in the beginning of this financial year.

The bank managed to cut its gross non-performing assets to 3.33 per cent of advances from 4.22 per cent. Outstanding gross NPAs were Rs 1,652 crore (Rs 1,421 crore).

More Stories on : Financial Performance | Public Sector Banks

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