Syndicate Bank on Monday announced 1.51 per cent jump in its net profit to Rs 470 crore during second quarter in current financial year. Bank’s profit rose marginally for Rs 463 crore in Q2 FY13.
Commenting on the Q2 results, Bank’s Chairman and Managing Director, Sudhir Kumar Jain said, “While bank’s net profit rose by 1.51 per cent, our operating profit fell from Rs 843 crore in Q2 FY13 to Rs 811 crore in the second quarter this fiscal.”
The total income in Q2 FY14 increased to Rs 4,850.35 crore, from Rs 4,546.33 crore in the same quarter last financial year. While bank’s profit and income registered marginal jumps, its NPA rose to 2.88 per cent against 2.47 per cent in Q2 FY14.
“Bank’s net non performing assets (NPA) for the quarter stood at Rs 4,472 crore of which Rs 1,700 crore were new bad debts. Bank’s bad accounts come from companies in the shipping, jewellery and real estate sector,” Jain added.
Talking about fund raising plans, Jain said, “The board has given approval for rising up to Rs 1,500 crore through qualified institutional placement last year. We haven’t yet decided the quantum of the fund raising to be done apart from what Government has committed for this fiscal. The decision on quantum would be taken by the end of next month, he added.
During the first half of the current fiscal, the bank’s net profit rose by just 2.1 per cent at Rs 922.40 crore, as against Rs 903.59 crore in H1, 2012-13. The total income rose to Rs 9,576.53 crore in the first six month, from Rs 9,024.39 crore in the year-ago period.