SyndicateBank Q2 net up 43% to Rs 463 crore

Public sector lender SyndicateBank has reported a net profit of Rs 463 crore for the second quarter and `904 crore for the first half of FY2012-13, a growth of 43.34% and 35.71% respectively.

Chairman and Managing Director of the bank, MG Singhvi, attributed the high net profit to sizeable reduction in cost of deposits and certificate of deposits. Further, the nank’s NPAs were down at 0.92% with an NPA provision coverage ratio at 82.26%.  However, operating profit for the quarter declined 5.38% at Rs 843 crore, as against Rs 891 crore registered in September 2011.

The bank reported a gross NPA of 2.47% as against 2.38% in the quarter. Net interest income stood at Rs 1,391 crore as against Rs 1,313 crore, a growth of 5.94% .

Bank’s Executive Director, Anjeneya Prasad, said that the bank’s global business improved to 2,84,649 crore from Rs 2,55,286 crore, registering a growth rate of 11.50%. In their domestic business, their savings deposits had increased by 10.89% to Rs 36125 crore, while domestic CASA deposits increased by Rs 3,478 crore, constituting 32.39% of total domestic deposits.

Regarding overseas branch in London, the bank had grown by 51.08% to Rs 29,249 crore from Rs 19,353 crore.

“Capital adequacy ratio has marginally come down to 11.33% from 11.80%. However, it is maintained well above the benchmark of 9%,” Prasad said.