Syndicate Bank net slumps 34% to Rs 76 cr

Syndicate Bank's net profit for the quarter ended September 2004 fell 34 per cent compared with the corresponding period last year to Rs 75.58 crore.

The fall was primarily owing to the 21.8 per cent increase in total expenditure to Rs 786.56 crore during the quarter compared with the second quarter last fiscal.

Simultaneously, total income, year-on-year grew by just 13.6 per cent to Rs 1,042.38 crore from Rs 917.44 crore. Other income (read treasury operations) fell to Rs 115.13 crore during the period from Rs 195.42 crore.

In the first half, the bank's net profit at Rs 200.82 crore slid 7.2 per cent compared with first-half last year. While total expenditure at Rs 1,609.13 crore in the first six months of the year grew 19.26 per cent over the same period last year, total income was up by 17.96 per cent to 2,117.95 crore.

As a result, the return on assets (annualised) fell from 1.83 per cent to 1.21 per cent. As on September 2004, the bank's capital adequacy ratio improved to 12.88 per cent from 12.05 per cent registered during the same period last year.

The net non-performing assets stood at Rs 623.92 crore (Rs 780.59 crore), while gross NPAs increased to 1,763.52 crore (Rs 1553.77 crore).

Net NPA's as a per centage of total advances decreased to 2.78 per cent (4.89 per cent), and gross NPA's too fell to 7.48 per cent of total advances from 9.28 per cent.

A statement from the bank said the net worth of the bank for the half year ended September 2004, improved by 23.71 per cent year-on year to Rs 1904 crore. Also, the banks total business grew 39.05 per cent during the period to Rs 68,751 crore.

The statement added that business per employee increased significantly in first half improved to Rs 2.57 crore from Rs 1.82 crore recorded in September 2003.

The bank said that it will launch SyndKisan Samruddhi credit card to cater to farmers and Syndmahila to take care of the credit requirements of women.