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Manipal-based public sector lender Syndicate Bank today reported 25.2% decline in net profit to Rs 380 crore for the third quarter ended December 2013 compared to Rs 508 crore in the corresponding quarter last year.
The total income of the Bank increased 11.60% to Rs 5,011 crore as against Rs 4,490 crore in the year ago period.
“Our profits would have been higher during the third quarter but for the non-availability of MAT credit. In the third quarter of last fiscal, we had availed a MAT credit of Rs 141 crore. If the same is excluded, there is an increase of Rs 13 crore in net profit in the third quarter of 2013-14,” said Sudhir Kumar Jain, chairman and managing director, Syndicate Bank.
The Bank’s operating profit stood at Rs 806 crore in December quarter as against Rs 864 crore in the year ago period, a decline of 6.71%. The net interest income showed a marginal decline of 2.92% to Rs 1,359 crore against Rs 1,400 crore in the December quarter of 2012-13.
The net interest margin (NIM) at 2.76% in December 2013 was lower than 3.29% in the year ago quarter. “This was mainly on account of the stress in the economy and more non-performing assets in the industry as well as in our bank”, Jain said.
Return on average assets annualized came down drastically to 0.68% as against 1.10% in December 2012, due to lower net profit and non-availability of MAT credit.
Gross NPA ratio stood at 2.80% in December quarter as against 2.31% in the year ago period due to slippage in the current fiscal.
Capital adequacy ratio under Basel-III stood at 11.26% as at December 2013. The Bank received a capital infusion of Rs 200 crore from the government during the third quarter, Jain said.
During the third quarter, the Bank’s global deposits increased 18.92% year-on-year to Rs 195,120 crore as against Rs 164,075 crore a year ago. Global advances increased to Rs 157,378 crore in December quarter from Rs 136,648 crore in the third quarter of 2012-13, a growth of 15.17% year-on-year.
CASA deposits (domestic) increased from Rs 48,323 crore as at December 2012 to Rs 52,324 crore as at December 2013, showing a growth of 8.28%.
