Friday, October 30, 2009

Syndicate Bank net down 32 percent in second quarter

State-run Syndicate Bank posted a net profit of Rs.178 crore for the second quarter this fiscal, a 32 percent decline compared to the Rs.262 crore earned in the corresponding period last fiscal.

In a regulatory filing Friday, the Manipal-based bank said its total income, including interest on advances and discount on bills, however, increased to Rs.2,821 crore during the quarter under review from Rs.2,527 crore, posting a 12 percent year-on-year (YoY) growth.

Operating profit declined 5.2 percent to Rs.443 crore from the Rs.458 crore notched in the year-ago period.

"A decline of 17.3 percent YoY in net interest income to Rs.618 crore and an increase of 42 percent YoY in provisions to Rs.195 crore from Rs.138 crore year ago, reduced the net profit for the quarter," the bank said in a statement later.

An increase of 20 percent YoY in tax outgo of Rs.70 crore also put pressure on net profit.

The bank's other income grew a record 65 percent to Rs.260 crore from Rs.157 crore a year ago, helping it boost its total income by 12 percent YoY.
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