Absence of MAT credit and higher provisions for bad loans have dragged down Syndicate Bank’s profits by 31 per cent to ₹409.30 crore for the fourth quarter of 2013-14.
Total income of the bank in Q4 is higher by 12.06 per cent at ₹5,357.40 crore while the EPS (basic) was at ₹6.58 (₹9.84).
Operating profits of the bank rose 11 per cent to ₹998 crore for the fourth quarter.
Sudhir Kumar Jain, Chairman and Managing Director, Syndicate Bank told newspersons that the main reason for decline was non-availability of MAT credit of ₹114 crore accounted in the Q4 quarter of last year, and increase in NPA provisions to ₹331 crore.
The gross non performing assets (NPA) were ₹4,611.13 crore compared with ₹2,978.50 crore during the same period last year. Percentage of gross NPA stood at 2.62 per cent compared with 1.99 per cent last year.
NIM down Net NPA of the bank was ₹2,720.60 crore which is more than double of what it was during the same period. Accordingly, percentage of net NPA stood at 1.56 per cent compared with 0.76 per cent during the same period last year.
Net interest income (NII) of the bank increased ₹1,433 crore from ₹1,354 crore in the corresponding quarter of last year and net interest margin (NIM) was at 2.79 per cent in the current quarter compared to 2.97 per cent in the corresponding quarter last year.
Provisions and contingencies in Q4 increased by 73.58 per cent to ₹631.49 crore from ₹363.79 crore in the corresponding quarter of the previous year.
The Return on Average Assets (RoA) annualised stood at 0.70 per cent in Q4 against 1.19 per cent in 2012-13.
This was again due to non availability of MAT credit during the year. This fiscal, the bank is hopeful of increasing the ROA to 0.90 per cent. The bank’s domestic deposits is up 12 per cent to ₹1.86 lakh crore from ₹1.67 lakh crore during the same period last year.
Advances have also increased by 16 per cent to ₹1.43 lakh crore ₹1.24 lakh crore in the same period last year.
Domestic CASA deposits increased to ₹55,911 crore from ₹51,926 crore . Domestic CASA deposits stood at 29.90 per cent of total domestic deposits.
Capital Adequacy Ratio(Basel III) stood at 11.41 per cent as at March 31, 2014.
To raise ₹1,500 cr through QIP
Syndicate Bank plans to raise ₹1,500 crore through Qualified Institutional Placements.
The bank’s board of directors, at its meeting held today, approved raising of capital through Qualified Institutional Placements (Domestic and Foreign financial institutions) /Rights Issue /Follow on Public /or any other mode approved by Reserve Bank of India at an appropriate time.
The board also approved to raise Basel III complaint tier-II capital up to ₹1,150 crore, as per eligibility at an appropriate time.
The bank’s Board has also recommended a final dividend of ₹3 per share (in addition to interim dividend of ₹2.50 per share paid during January) for 2013-2014 subject to shareholder approval.