Syndicate plans third public offer

Syndicate Bank is planning for its third public offering by the end of this financial year.

Speaking at a press meet in Kolkata today, K Devananda Upadhyaya, the new general manager of the bank's Kolkata region, said, "We have the approval from the board of directors and are waiting for the clearances from the Reserve Bank of India (RBI) and Sebi."

Although he declined to divulge further details regarding the timeframe, he said the procedure is expected to be completed by the end of this financial year.

"Our sources at the bank suggested that the bank is looking to bring down government holding from 66.47 per cent to 57.64 per cent, which implies a dilution of 10 per cent," he added.

The bank's last issue was in July 2005, when it raised Rs 165 crore.

The bank has reported a net profit of Rs 277.6 crore for the quarter ended September 2007 up from Rs 205.1 crore registered a year earlier.

The total business of the bank as on September 2007 stood at Rs 1,37,333 crore with Rs 83,849 crore and Rs 53,484 crore as deposits and advances respectively.

The current capital adequacy ratio (CAR) of the bank was reported to be at 12.19 per cent.

In the Kolkata region, which comprises seven states, the total business of the bank stood at Rs 4,400 crore, with deposits and advances constituting Rs 2,800 crore and 1,600 crore respectively.

The bank has introduced online loan schemes, particularly for SMEs and the education sector. It has taken up campaigning through mobile van for opening bank accounts by individuals at their doorstep as a part of the financial inclusion process.

"We have introduced a mobile van in the city and a few more would be rolled out within the next few months," said Upadhyaya.

The bank has 28 branches in the city and plans to open five more by the end of this financial year, including a corporate finance branch.

"The corporate finance branch would exclusively be for the corporates who have a different set of requirements," he added.