Friday, November 7, 2014

#Syndicate Bank's Q2 net profit plunged 33% on higher provisioning

Manipal-based Syndicate Bank has reported a 33 per cent drop in its net profit at Rs 316 crore for the Q2 FY 2014-15 compared to Rs 470 crore for the same quarter FY 2013-14.

The decline in profit is mainly due to the massive rise in provisions towards non-performing assets. The  bank made a massive rise of 58.2 per cent in provisions to Rs 538 crore during the quarter against Rs 350 crore a year ago.

The size of gross NPAs increased 35 per cent to Rs 6,049 crore compared to Rs 4,472 crore in the year-ago period. The percentage of net NPAs increased to 2.2 per cent from 1.66 per cent in the year-ago period.Provision coverage ratio stood at 65.38 per cent in the second quarter, compared to 70.58 per cent in the same quarter last year.

Operating Profits increased to Rs.954 Cr in Q2,FY 2014-15 as against Rs.811 Cr in Q2,FY 2013-14,up by 18% y-o-y.Global Business increased to Rs. 415690 Cr as at Q2 FY 2014-15 from Rs.346156 Cr as at Q2 FY 2013-14.Book value per share increased from Rs.191.93 in Q2 FY 2013-14 to Rs.197.16 in Q2 FY 2014-15.Tne Bank will raise additional Tier-I bonds of Rs 1,000 crore and Tier-II bonds of Rs 1,150 crore.