Syndicate Bank

The Bank for Q4 has posted dull set of numbers, both in terms of profitability and asset quality. Net profit for the quarter stood at Rs.417 crore, up 2% (YoY). Net interest income was at Rs.1423 crore v/s Rs.1433 crore (YoY), which is almost flat, down some 0.7%. It is other income which rose up at Rs.794 crore, up 72%. NIM fell from 3.23% to 2.6% (YoY). Net profit for the quarter was at Rs.417 crore, up 2%. Provision has risen 13% (YoY) and a huge 146% (QoQ) at Rs.715 crore. Thus it was the higher provisioning and the flat NII which capped the net profit growth at a mere 2%.

In terms of asset quality, Gross NPA (QoQ) was down from 3.6% to 3.13% and Net NPA fell from 2.38% to 1.9% but YoY there has been a sharp rise from 2.6% and 1.52% respectively. Recoveries during Q4 stood at Rs.767 crore though there were fresh slippages of Rs.820 crore. Higher NPAs in industrial sector to the tune of Rs2500 crore and Rs.842 crore in agriculture sector was seen in Q4. During the quarter, global advances rose 17% at Rs.2,05,804 crore, up 20% (QoQ) while deposits rose 20% at Rs.2,55,388 crore. Domestic CASA deposits grew 14% (YoY) to Rs 63,671 crore during the March quarter. Return on assets on annualized basis has slipped to 0.58% from 0.70%.