The turnaround strategy seems to be working well for Catholic Syrian Bank, as it bounced back with a net profit of ₹95 lakh in the second quarter, after posting a net loss of ₹14 crore in the first quarter of FY18.

Chairman TS Anantharaman said the bank turned around in FY17, registering a net profit of ₹1.55 crore compared to a net loss of ₹149 crore in FY16, largely supported by treasury gains due to favourable yield movements.

However, in FY18, the challenge was to have growth in operating profit without the benefit of treasury gains.

Despite earning minimum treasury profit, the bank could register an operating profit of ₹9 crore in Q1 and ₹34 crore in Q2. “For Q1, we registered a net loss of ₹14 crore and in Q2 we were able to reverse the position and register a profit of ₹0.95 crore,” the chairman said.

On the non-performing assets (NPA) side, Anantharaman said the gross and net NPA percentages (as on March 31) were 7.25 per cent and 5.51 per cent, respectively, and these were below the industry average. In the first half of this fiscal also the bank could recover substantial amounts and this has helped contain NPAs.

As on September 30, the gross and net NPA ratios are down to 6.75 per cent (₹624 crore) and 4.73 per cent (₹428 crore), respectively.

In Q2, the bank logged total business of ₹24,000 crore (₹23,000 crore in Q1). Net interest income during the quarter crossed the ₹100-crore mark to reach ₹102.1 crore — a historical high for the bank. .

On capital infusion, CVR Rajendran, MD and CEO, said the bank plans to raise ₹400-600 crore through the book-building route.

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