Manipal-based public sector lender Syndicate Bank on Saturday reported a 36% rise in net profit at Rs 323 crore for the second quarter ended September 2011 compared to the corresponding quarter last fiscal. The operating profit for the quarter rose by 14% to Rs 891 crore as against Rs 779 crore reported in the same quarter last year.
The bank reported a year on year growth of 35% in its total income at Rs 4,015 crore during the second quarter.
The rise in profits during the quarter was mainly due to an 18% rise in its net interest income at Rs 1,313 crore compared to Rs 1,108 crore in the corresponding quarter previous year.
Its net interest margin, however, declined marginally by 11 basis points to 3.44%. The cost of deposits went up to 6.69% as against 5.13% in the year ago period. The yield on advances increased to 10.90% as against 9.39%. The return on assets improved to 0.83% as against 0.71% in the second quarter last year.
While the net non performing assets increased to Rs 1,052 crore as against Rs 917 crore in the year ago period, the percentage of net NPA declined marginally to 0.93% as against 0.97% in the same period last year.