To raise Rs 1,500 cr via QIP or rights issue
Syndicate Bank’s net profit increased 50 per cent at Rs 508 crore in the third quarter ended December 31, 2012, against Rs 338 crore in the year-ago period.
The increase in profit was driven by reduction in cost of deposits, improvement in yields and good recoveries, M. G. Sanghvi, Chairman and Managing Director, Syndicate Bank, told newspersons here on Wednesday.
The net interest income rose 9.6 per cent to Rs 4,109 crore, while advances and deposits grew by 17.3 and 14.6 per cent respectively.
The net interest margin, however, declined marginally to 3.28 per cent (3.33 per cent).
The total business of the Bengaluru-based bank has crossed the Rs 3-lakh crore mark.
The net non-performing assets declined marginally to 0.85 per cent (0.86 per cent).
“Our board has approved raising Rs 1,500 crore equity via Qualified Institutional Placement or a rights issue,” Sanghvi said.
The process, subject to regulatory approvals, is likely to be completed by March.
In addition, the board’s nod was also obtained for mobilising tier–II capital of up to Rs 2,000 crore, he added.
Syndicate Bank will focus on pushing up credit to the retail and mid-corporate segments, Sanghvi said.
Advances and deposits, he said, could grow at 17 per cent and 15 per cent respectively. “We are hopeful of maintaining the NIM at the current level for the full year,” he added.
M. Anjaneya Prasad, Executive Director, said the number of branches would be increased to 3,000 by end-March this year from the current 2,761.
Recruitment of 1,400 clerks and 1,500 officers was on the cards through the Institute of Banking Personal Selection, he added.
Syndicate Bank’s scrip lost 5.27 per cent to end at Rs 132.25 on the Bombay Stock Exchange on Wednesday.