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Syndicate Bank net dips 60% on Rs 260-cr depreciation
Mr George Joseph
Our Bureau
Bangalore, July 29 Public sector Syndicate Bank’s net profit dropped 60 per cent in the first quarter (Q1) of the current financial year, 2008-09, weighed down by depreciation in investments.
Syndicate Bank’s Executive Director, Mr George Joseph, said, “Depreciation in Q1was Rs 260 crore.” The bank’s investment portfolio in Q1 2009 was Rs 26,903 crore, of which 23 per cent was marked to the market.
The high provisioning was despite the bank’s reduction in investments over the previous year. In the previous financial year (2007-08), its investment portfolio amounted to Rs 27841 crore.
Net profits for Q1 were Rs 87.89 crore as against Rs 221.03 during Q1 2008. If the gross provisions of Rs 314.36 were included, the bank actually ended Q1 with a loss of Rs 20.40 crore, as against a gross profit of Rs 266.37 crore the same previous quarter. The bank had projected a profit for the current financial year of Rs 1,100 crore. However, Mr Joseph was not prepared to make any estimates, given the current direction of G-Sec yields.
He said the hikes in the Cash reserve Ratio and the repurchase rate by the Reserve Bank were likely to further impact the banks’ investment portfolios.
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Syndicate Bank net rises to Rs 221 cr
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