Money & Banking

Syndicate Bank Q2 net down 33% at Rs 315 cr; to raise Rs 1,100 cr through QIP

G Naga Sridhar Hyderabad | Updated on November 07, 2014 Published on November 07, 2014


Syndicate Bank's net profit declined 33 pc at Rs 316 crore in the second quarter ended September 30, 2014 compared to Rs 470 cr in the corresponding quarter last year.

The decrease in net profit was mainly on account of higher provisioning at Rs 537 crore.

"Actually, there was good growth of operating profit at 18 per cent. But movement of non performing assets resulted in higher rovisioning", M. Anjaneya Prasad, Executive Director, Syndicate Bank said here on Friday.

Though the Gross NPAs and Net NPAs had gone up to 3.43 per cent (2.88 per cent) and 2.20 per cent (1.66 per cent) espectively, they were lowest among the banks, he said.

The NPA increase was mainly from textiles, paper industry and hotel industry, among others.

The net interest margin decreased to 2.96 per cent (3.38 per cent).

The net interest income was almost flat at Rs 1,422 cr (Rs 1,411 cr). The total business of the bank crossed Rs 4 lakh cr.

QIP:

The bank had received approval to go for Qualified Institutional Placement (QIP) to raise Rs 1,100 crore capital besides Rs 500 crore by tier II bonds. "This will be done by December this year, " the ED said.

The total headroom available for bank now is Rs 3,250 cr. The Government stake in bank is 67.39 per cent.

The Capital Adequacy ratio (Basel III) stood at 10.42 per cent (11.58 per cent) last year.



Published on November 07, 2014
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