Syndicate Bank Q2 net up 1.4%, asset quality worsens

Moneycontrol Bureau

Public sector lender Syndicate Bank's second quarter (July-September) net profit rose 1.4 percent on yearly basis to Rs 470 crore, but the asset quality worsened further while provisions declined significantly.
Net interest income - the difference between interest earned and expended - increased 1.5 percent to Rs 1,411.3 crore in three months period ended September 2013 from Rs 1,391 crore in a year ago period.
Gross non-performing advances (NPAs) as a percentage of gross advances jumped 50 basis points sequentially (up 41 basis points year-on-year to 2.88 percent and net NPAs as a percentage of net advances climbed 47 bps Q-o-Q (up 74 bps Y-o-Y) to 1.66 percent in the quarter gone by.
In absolute terms, gross NPAs increased 25.8 percent on sequential basis (up 41 percent on yearly basis) to Rs 4,472 crore during September quarter while net NPAs surged 45 percent Q-o-Q (up 119 percent Y-o-Y) to Rs 2,547 crore during second quarter.
Provisions and contingencies dropped 30.5 percent Q-o-Q (down 29 percent year-on-year) to Rs 340 crore in three months period ended September 2013.
Capital adequacy ratio (as per Basel III) stood at 11.58 percent in September quarter as against 11.49 percent in June quarter.
Advances during the quarter grew 20.5 percent on yearly basis to Rs 1.53 lakh crore while deposits jumped 22 percent Y-o-Y to Rs 1.9 lakh crore.
At 13:35 hours IST, the stock was trading at Rs 73.10, down 0.68 percent on the BSE.