Manipal-headquartered public sector lender Syndicate Bank has reported a 32 per cent rise in net profit at Rs 338 crore for the third quarter-ended December 31, 2011 compared to the corresponding quarter last year. The operating profit for the quarter also rose 30 per cent to Rs 923 crore as against the same period last year.
Its total income for the quarter has increased by 33.5 per cent to Rs 4,214 crore as against the same period last year. The rise in profits is attributed to a 15 per cent rise in net interest income at Rs 1,325 crore for the third quarter compared to the year ago period. The bank’s yield on advances improved to 11.11 per cent as compared to 9.57 per cent in the year ago period. However, its net interest margin has taken a hit to drop at 3.45 per cent as against 3.58 per cent in the third quarter last fiscal.
The bank’s provisions went up by 27 per cent to Rs 544 crore during the third quarter as against Rs 427 crore made in the third quarter last fiscal.
The gross non-performing assets and net non-performing assets ratio of the stood at 2.29 per cent and 0.86 per cent respectively for the third quarter. The capital adequacy ratio has dropped to 11.48 per cent as against 11.78 per cent in the year ago period.
The Return on Assets has increased from 0.75 per cent as on December 31, 2010, to 0.85 per cent as on December 31, 2011.