Syndicate Bank Q3 net soars 50% on tax refund

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Bangalore based state-owned lender Syndicate Bank's third quarter (October-December, FY13) net profit surged more than 50.3% year-on-year to Rs 508 crore, boosted by a one-off  tax refund of Rs 141 crore.

"We have got the tax write-back based on our exposure in rural credit," M G Sanghvi, CMD, Syndicate Bank told moneycontrol.com.

"We may continue to get this benefit in the March quarter as well. All state-owned banks also get the same advantage. We are shifting focus to retail and mid corporate lendings. We do not see any fresh threat on asset quality. In between April 1 and December 31, our loans expanded 9%," he said.

However, if one excludes the tax credit component, net profit would have risen by just 8.50% y-o-y to Rs 367 crore.

During the quarter, the net interest income or the difference between interest earned and paid out, grew nearly 6% to Rs 1,400 crore.

Syndicate's global loan book scaled up more than 17% y-o-y to Rs 1.37 lakh crore while the domestic credit rather recorded a bit muted growth just at 13% y-o-y at Rs 1.16 lakh crore. Retail credit accounts for more than 17% of the domestic loan book.

Gross non-performing asset (NPA) ratio declined 16 basis points to 2.31% quarter-on-quarter. Net non-performing ration stood at 0.85% as against 0.92% a quarter back.

Provisions against bad loans upped at Rs 530 crore compared with Rs 480 crore in previous quarter. During the quarter, the lender restructured loans a little less than Rs 1,000 crore. Total restructured book was at about Rs 10,000 crore.

Restructuring means dilution of orginal terms and conditions of a loan due to likely non-repayment of dues.

"Our loan recoveries and upgradations have been prety strong. It is because of this, we have seen fall in NPAs. On nine month basis, we have recovered loans worth Rs 838 crore versus Rs 534 crore as on March 31, 2012. Similarly, upgradations rose from Rs 613 crore to Rs 844 crore during the same time," Sanghvi said.

Capital adequacy ratio stood at 11.38% in December quarter and it has approached the government of India, its major stake holder, to infuse more capital.

Syndicate Bank shares on Wednesday dropped more than 5% to close the day's trading at Rs 132 on NSE on concern of higher restructuring and slippages of loans.

saikat.das@network18online.com

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