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Syndicate Bank has reported a 33 per cent decline in net profit for the September quarter at Rs 316 crore on higher provisioning and flat interest income. The bank had reported a net profit of Rs 470.12 crore in the corresponding quarter last year.
Net interest income, the difference between interest earned and expended, saw a marginal growth at Rs 1,422 crore against Rs 1,411 crore in the corresponding quarter last year. Net interest margin declined to 2.52 per cent. Provisions increased by 58 per cent during the quarter to Rs 537.79 crore against Rs 339.96 crore in the corresponding period last fiscal.
The bank has reported fresh slippage of Rs 1,683 crore during the quarter. M Anjaneya Prasad, Executive Director, said a textiles unit with an outstanding of Rs 380 crore turned as NPA during the quarter. Net NPAs increased by 50 per cent to Rs 3,825.32 crore from Rs 2,546.56 crore. Gross NPAs stood at Rs 6,048.98 during the quarter.
Tracking the results, Syndicate Bank shares ended at Rs 126, down 1.1 per cent on the BSE.
Credit growth
Syndicate Bank has reported a 13.6 per cent growth in advances at Rs 1.76 lakh crore againstRs 1.55 lakh crore in the corresponding last quarter. "We expect credit growth to pick up in the second half of 2014-15 as industrial recovery gains momentum," Prasad said.
The bank is looking to raise about Rs 1,150 crore through Tier II bonds shortly, Prasad said. "Also we have sought the permission from the Government for capital infusion of Rs 1,100 crore through qualified institutional placement," he added.
The bank has recruited 1,905 probationary officers and 1,525 clerks so far in the current year. "We expect to recruit another 5,000 people, including 2350 officers during the year" Prasad added.
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