Public sector lender Syndicate Bank today registered a net profit of Rs 289 crore for the quarter ended March 31, a 72 per cent rise compared with the Rs 168-crore net profit in the year-ago period. The jump in net profit primarily due to higher core earnings.
The bank's total income rose 24.6 per cent to Rs 3,416.6 crore from Rs 2,742.2 crore in the same period last year. Operating profit increased by 21.7 per cent to Rs 672 crore, compared with Rs 552 crore reported a year earlier. Net interest income in the fourth quarter increased by 35 per cent to Rs 1,161 crore, against Rs 861 crore a year ago.
For the year ended March 31, 2011, the bank registered a 29 per cent growth in its net profit at Rs 1,048 crore, compared with Rs 813 crore in the previous financial year. Total income in 2010-11 registered a 10.3per cent rise at Rs 12,368 crore, compared with Rs 11,214 crore in 2009-10.
The bank's operating profit rose 47 per cent to Rs 2,750 crore in 2010-11 from Rs 1,873 crore reported a year earlier. While net interest income increased by 60 per cent to Rs 4,383 crore, compared with Rs 2,740 crore in the year-ago period, net interest margin rose to 3.40 per cent in 2010-11 from 2.35 per cent in 2009-10.
“Current account, savings account (Casa) deposits increased by 15 per cent in the last financial year, accounting for 31 per cent of the total deposits,” the bank said. The yield on advances increased by 12 basis points to 9.52 per cent and the cost of deposits declined by 71 basis points to 6.14 per cent by the end of March, the bank said.
The bank's total business increased by 17 per cent to Rs 243,946 crore in the last financial year. While deposits rose 15.9 per cent to Rs 135,596 crore, the bank's advances increased by 18.5 per cent to Rs 108,350 crore.
On the quality of assets, gross non-performing assets (NPAs) increased marginally to 2.40 per cent in 2010-11, compared with 2.19 per cent a year ago. However, net NPA ratio declined to 0.97 per cent from 1.07 per cent. Provision coverage ratio improved to 77.18 per cent in 2010-11, compared with 73.31 per cent in the year-ago period. The company's capital adequacy ratio increased to 13.04 per cent in the last financial year from 12.70 per cent in 2009-10.