Syndicate Bank reports Q1 net loss due to bad loans

Public sector Syndicate Bank on Saturday reported a net loss of Rs263.19 crore for the June quarter of the current fiscal due to sharp increase in provisions for bad loans. In comparison, it had reported a net profit of Rs79.13 crore in the June quarter of last fiscal, 2016-17.
The total income during the first quarter of the fiscal also fell to Rs6,171.49 crore, as against Rs6,419.12 crore in the year-ago period, the bank said in a regulatory filing. The bank’s provisioning to cover for bad loans jumped by 79% to Rs1,385.66 crore for the quarter under review, as against Rs774.41 crore a year ago.

Its earnings from corporate and wholesale banking fell to Rs2,088.98 crore for the quarter, from Rs2,562.28 crore a year ago. Revenues from retail banking operations were only marginally up at Rs1,984.67 crore for the quarter, from Rs1,973.66 crore a year earlier.

Asset quality of the bank slipped with gross non-performing assets (NPAs) rising to 9.96% of the gross advances by 30 June from 7.53% of the gross loans disbursed as on 30 June 2016. Net NPAs were 6.27% of the net loans as at end-June this year, from 5.04% in 30 June 2016. The provision coverage ratio as on 30 June stood at 54.80%.
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