Millennium Post

Syndicate Bank July-Sept net up 1.4% to Rs470 cr

Public sector lender Syndicate Bank on Monday  reported a marginal 1.4 per cent increase in net profit to Rs 470.12 crore for the July-September quarter due to higher provisioning. It had posted net profit of Rs 463.37 crore for the same period of last fiscal, 2012-13.

The provision of the bank rose to Rs 341 crore as compared to Rs 318 crore in the same period a year ago, Syndicate Bank chairman and managing director S K Jain said here. The total income in Q2, 2013-14 increased to Rs 4,850.35 crore, from Rs 4,546.33 crore in the year-ago period.

Asked if the bank is considering to raise money from market, Jain said, the board has given approval for raising up to Rs 1,500 crore through qualified institutional placement last year. 'We are yet to decide about the quantum of the fund raising to be done apart from what the government has committed for this fiscal,' he said.

The decision on quantum would be taken by the end of next month, he added.

Last week, the Finance Ministry decided to infuse Rs 200 crore capital in the Syndicate Bank during the current fiscal. The net interest margin (NIM) of the bank declined to 2.89 per cent in the second quarter as against 3.26 per cent at the end of September.
On margin outlook, Jain said the bank expects NIM to be at 3 per cent in the entire fiscal.
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