The Hindu Business Line : Syndicate Bank Q1 net up 11 pc

HIGHER INTEREST INCOME: Mr C.P. Swarnkar (left), CMD, Syndicate Bank, and Mr George Joseph, Executive Director, at a press conference in Bangalore on Thursday. - G.R.N. Somashekar

Bangalore , July 27

Syndicate Bank has reported a net profit of Rs 180.58 crore for the first quarter of the current financial year, a 11-per cent increase over the corresponding period of the previous year.

Addressing reporters here on Thursday, the bank's Chairman and Managing Director, Mr C.P. Swarnkar said, "We have achieved the increase despite the drop in treasury income." Operating profits also rose during the period to Rs 302 crore from Rs 291 crore.

Gross income this year was Rs 1,365 crore (Rs 1,096 crore). The rise in income was largely driven by an increase in interest income.

Interest income during the period rose to Rs 1,231 crore from Rs 953 crore. Interest on advances rose to Rs 843 crore, up from Rs 592.58 crore. This jump mainly came from an increase in advances during Q1 and from repricing of some of the past advances, as a result of hardening interest rates.

Advances in Q1 were Rs 41,314 crore up from Rs 28,716 crore of the corresponding Q1 of the last financial year. During the same period treasury income dropped to Rs 24 crore, down from Rs 38 crore.

The gross expenditure this year was Rs 1,063.1 crore, up from Rs 805.26 crore. Interest income during the same period rose to Rs 724.94 crore, up from Rs 481.02 crore. The increase was contributed by a rise in deposit mobilisation.

Cash recovery

Deposits rose to Rs 63,829 crore up from Rs 43,449 crore during the corresponding period of the last FY. Mr Swarnkar said, "We have also taken some bulk deposits, though our primary focus will continue to be on retail deposits. Low-cost deposits rose to Rs 20,374 crore (Rs 16,602 crore)."

Mr Swarnkar said that what also contributed to the bank's profitability was the recovery of Rs 111 crore this year.

More Stories on : Financial Performance | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IOB to raise $200-m foreign currency loan

Rupee trades stronger

Lloyd's scholar prize

`Detariffing will trigger boom in retailing of insurance'

Lower treasury income drags down SBI Q1 net

LIC Housing net down 25 pc

Syndicate Bank Q1 net up 11 pc

Bonds end firm after shaky start

Union Bank's e- fund transfer service

4-year Govt stock fully subscribed

Call rates move up

Bank staff strike today

RBI employees' morcha today

Co-op bank staff to hold dharna today