Public sector lender
Syndicate Bank
has posted a loss of Rs 2,158.2 crore in January-March quarter against
profit of Rs 416.92 crore in year-ago period, hit by sharp increase in
provisions and exceptional loss.
The stock rallied more than 8 percent
intra day after the bank said balance sheet has been cleaned up.
Net interest income, the difference between interest earned and interest
expended, grew by 2.7 percent to Rs 1,461.82 crore in Q4 compared to Rs
1,423.05 crore in corresponding quarter of last fiscal.
"Global net interest margin declined to 2.14 percent in Q4 compared to
2.29 percent in year-ago period and domestic net interest margin fell to
2.5 percent from 2.6 percent in same period," the bank said.
Provisions increased significantly by 237.2 percent year-on-year and
175.6 percent quarter-on-quarter to Rs 2,411.83 crore in quarter gone
by.
Syndicate Bank said exceptional loss of Rs 882.65 crore was on account
of major fraud discovered at three branches of the bank in Jaipur
region.
Other income (non-interest income) rose 6 percent to Rs 842.28 crore
while operating profit declined 15.5 percent to Rs 1,015.35 crore
compared to same quarter last fiscal.
The bank has tax write-back of Rs 121 crore for the quarter against
expenses of Rs 69.1 crore in corresponding period of last fiscal.
On sequential basis, gross non-performing assets of gross advances
jumped sharply to 6.7 percent from 4.61 percent and net NPA climbed to
4.48 percent from 3.04 percent.
The scrip of Syndicate Bank closed at Rs 66.50, up 4.72 percent on
Bombay Stock Exchange.
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