Moneycontrol
Last Updated : May 16, 2018 12:50 PM IST | Source: Moneycontrol.com

Syndicate Bank hits 9-year low on reporting big net loss for March quarter

For the full year ended March 2018, the bank reported a net loss of Rs 3,222.84 crore against a net profit of Rs 358.95 crore in 2016-17.

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Syndicate Bank share price hit fresh 9-year low of Rs 44.05, falling 12 percent intraday Wednesday after reporting big net loss for the quarter ended March 2018. Not only Syndicate, but also largely other PSU banks also posted losses during the quarter.

Public sector lender Syndicate Bank on Tuesday reported a net loss of Rs 2,195.12 crore in the last quarter ended March 31, due to high bad loans that required higher provisioning. The bank had posted a net profit of Rs 103.84 crore in the corresponding January-March quarter of 2016-17. In December quarter, there was a net loss of Rs 869.77 crore.

The bank's provisioning requirement for bad assets were raised by nearly three times during the March quarter to Rs 3,544.68 crore as against Rs 1,192.54 crore in the same period previous fiscal, it said in a regulatory filing.

Income during January-March period came down to Rs 6,046 crore from Rs 6,913.09 crore earned in same period of previous fiscal.

For the full year ended March 2018, the bank reported a net loss of Rs 3,222.84 crore against a net profit of Rs 358.95 crore in 2016-17.

Income for the year fell to Rs 24,581.85 crore from Rs 26,461.18 crore.

Asset quality of the bank worsened as gross non-performing assets (NPAs) hit 11.53 percent of gross advances (Rs 25,758.60 crore) by end of March 2018 from 8.50 percent (Rs 17,609.31 crore) as on March 31, 2017.

Net NPAs grew to 6.28 percent (Rs 13,239.46 crore) from 5.21 percent (Rs 10,410.98 crore).

Detailing about the NPA divergence for 2016-17, the bank said its balance sheet has witnessed a gap of Rs 2,336.70 crore in terms of gross NPAs (Rs 1,724.20 crore for net NPAs), while for divergence for provisioning it stood at Rs 612.50 crore.

This divergence resulted in adjusted loss of Rs 253.55 crore for the fiscal ended March 2017.

At 11:04 hours IST, the stock price was quoting at Rs 44.75, down Rs 5.25, or 10.50 percent on the BSE.

(With inputs from PTI)
First Published on May 16, 2018 12:17 pm
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