Comments
Syndicate Bank reported a 38 per cent drop in net profits at ₹302 crore for the June quarter, over the corresponding previous period’s ₹485 crore, on a sharp increase in tax expenses.
Net interest income, the difference between interest earned and expended, for the Manipal-headquartered bank grew 5 per cent to ₹1,412 crore during the quarter (₹1,351 crore).
Total income for the June quarter increased to ₹6,323 crore (₹5,523 crore). Operating profit grew a mere 3 per cent to ₹1,040 crore from ₹1,014 crore. Net interest margins stood at 2.21 per cent (2.47 per cent). Tax expenses registered a four-fold increase to ₹256.75 crore (₹60.64 crore). The bank’s asset quality weakened during the quarter, with the gross non-performing assets (NPAs) ratio increasing to 3.72 per cent from 2.97 per cent in the previous similar quarter. In absolute terms, gross NPAs rose to ₹7,545.64 crore (₹5,243).
The net NPA ratio also rose to 2.36 per cent (1.88 per cent). Net NPAs in absolute terms increased to ₹4,721 crore (₹3271 crore). The provision coverage ratio stood at 63.24 per cent (67.56 per cent).
Lending to the priority sector rose 14 per cent.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.