PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.
The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.
Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.
Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.
Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.
Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.
The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.
A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.
“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.
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Syndicate Bank consolidated net profit rises in Q3


Syndicate Bank on Tuesday said its net profit in December quarter 2019 grew manifold to Rs 434.82 crore as bad loans shrank. The public sector lender had registered a profit of Rs 107.99 crore in the year-ago period.

Total income during the quarter increased to Rs 6,316.57 crore from Rs 6,077.62 crore in the same period of 2018-19, Syndicate Bank said in a regulatory filing.

Gross bad loans or non-performing assets (NPAs) came down to 11.33 per cent of gross advances as on December 31, 2019 from 12.54 per cent at the end of the same month a year ago.

In absolute terms, gross NPAs stood at Rs 25,330.10 crore as compared to Rs 26,184.66 crore in the year-ago period.

Net NPAs were 5.94 per cent (Rs 12,514.32 crore), down from 6.75 per cent (Rs 13,211.17 crore).

However, the bank made a higher provisioning of Rs 1,286.64 crore for bad loans during the quarter as compared to Rs 909.82 crore in the year-ago period.

The overall provisions and contingencies stood at Rs 1,044.98 crore as against Rs 497.14 crore a year ago.

The bank said it restructured 14,574 MSME accounts, as per RBI directive on relief, worth Rs 465.84 crore during January 1 to December 31, 2019.

On disclosure about divergence of bad loans for 2018-19, the bank said the net loss during the year was adjusted to Rs 3,358.56 crore, higher than Rs 2,588.29 crore reported earlier.

The divergence in gross NPAs in 2018-19 came in at Rs 5 crore as the bank reported it to be at Rs 24,680.37 crore, while the RBI assessed it at Rs 24,685.37 crore.

There was a fall of Rs 1,179 crore in net NPA divergence for the year as the bank reported it to be at Rs 12,627.73 crore and the RBI's assessment stood at Rs 11,448.73 crore.

The divergence in provisioning for 2018-19 stood at Rs 1,184 crore.

Out of the reported divergence in provisioning, Rs 724 crore has been provided and the balance Rs 460 crore is under review by the regulator, Syndicate Bank said.

"The board of directors in its meeting held on September 13, 2019 has considered and accorded its 'in-principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals and the process is in progress," the bank said in the filing.

The provision coverage ratio as on December 31, 2019 stood at 69.28 per cent.
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Syndicate Bank reports net profit in Q2FY20

Syndicate Bank reported a net profit of Rs 251.05 crore in Q2 September 2019 over a net loss of Rs 1,542.54 crore in Q2 September 2018.

Total income rose 4.49% to Rs 6,153.10 crore on a 10.62% increase in net interest income (NII) to Rs 1,739.25 crore in Q2 September 2019 over Q2 September 2018.

The bank's gross non-performing assets (NPAs) stood at Rs 25,382.26 crore as on 30 September 2019 as against Rs 25,402.74 crore as on 30 June 2019 and Rs 27,131.14 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 11.45% as on 30 September 2019 as against 11.76% as on 30 June 2019 and 12.98% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 5.98% as on 30 September 2019 as against 5.96% as on 30 June 2019 and 6.83% as on 30 September 2018.

The bank's provisions and contingencies fell 71.18% to Rs 638.94 crore in Q2 September 2019 over Q2 September 2018. Of this, provisions for NPAs fell 59.77% to Rs 652.67 crore in Q2 September 2019 over Q2 September 2018.

Provision coverage ratio of the bank stood at 68.64% as on 30 September 2019.

The board of directors in its meeting held on 13 September 2019 has considered and accorded it's 'in principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals.


On September 20,2019 vide taxation laws (Amendment) Ordinance 2019,the Government of India inserted Section 115BAA in the Income Tax Act 1961, which provides domestic companies a non reversible option to pay corporate tax at reduced rates effective 1 April 2019 subject to certain conditions. The Bank is currently in the process of evaluating this option.
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Syndicate Bank Q1 result, loss narrows as NPA falls


State-run Syndicate Bank on Wednesday reported narrowing down of its net loss to Rs 980.46 crore in the quarter ended June 2019 due to a fall in provisioning for bad assets.

The bank had posted a net loss of Rs 1,281.77 crore in the same April-June quarter of the previous fiscal ended March 2019. Total income during the June quarter of 2019-20 rose to Rs 6,080.69 crore from Rs 56,37.51 crore in the year-ago period, Syndicate Bank said in a regulatory filing.

The bank’s asset quality witnessed a slight improvement with the gross non-performing assets (NPAs) falling to 11.76 per cent of the gross advances by the end of June 2019 quarter, from 12.59 per cent as on June 2018. Net NPAs or bad loan ratio fell to 5.06 per cent, as against 6.64 per cent a year ago period.

The overall provisioning for bad loans and contingencies for the quarter fell to Rs 1,969.09 crore from Rs 2,326.82 crore a year ago. The bank’s provision coverage ratio as on June 30, 2019, stood at 69.02 per cent. The lender said that it has restructured 5,065 MSME accounts and treated them as standard assets amounting to Rs 172.81 crore up to June end 2019.
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Syndicate Bank Q4 result, profit rise

Syndicate Bank on Friday reported a profit of 128.02 crore for the March quarter of 2018-19 financial year on a modest rise in core income and slight improvement in bad loan ratio.
The public sector lender posted a loss of2,195.12 crore during January-March quarter of 2017-18.
During December quarter of the previous fiscal, the bank logged a profit of 107.99 crore.
Total income during the quarter under review was at 6,345.22 crore as compared to 6,046 crore in the same period a year ago, the lender said in a regulatory filing.
Interest income was at 5,610.26 crore during the period, as against 5,357.24 crore a year ago.
For entire 2018-19, the bank reported a net loss of 2,524.20 crore. In the previous fiscal, the loss stood at 3,111.69 crore.
Total income for the fiscal gone by was down at 24,012.75 crore from 24,691.28 crore in 2017-18.
The bank's gross non-performing assets (NPAs) were 11.37% of the gross advances by end of fiscal 2018-19, as against 11.53% at end-March 2018.
Net NPAs too came down marginally at 6.16 per cent from 6.28%.
Provisions for bad loans were pruned to831.22 crore for the March quarter 2018-19 from 3,544.68 crore parked aside in the year-ago period.
Syndicate Bank said it has restructured 4,340 MSME accounts and treated them as standard assets amounting to 137.87 crore during the quarter, as per RBI directive, and maintained provision at 5.25% amounting to 7.24 crore.
The provision coverage ratio as on March 31, 2019 stood at 66.43%.

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Syndicate Bank Recruitment for Assistant Manager & Manager Posts 2019


Syndicate Bank has published Advertisement for below mentioned Posts 2019. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below in the advertisement.


Posts:
Specialist Officer - Asst. Manager (Certified Ethical Hacker): 02 Posts
Specialist Officer - Asst. Manager (Cyber Forensic Analyst): 02 Posts
Specialist Officer - Asst. Manager (Application Security Tester): 02 Posts
Specialist Officer - Manager (Application/web security personnel): 02 Posts
Specialist Officer - Manager (Computer/Digital Forensic Specialist): 02 Posts
Specialist Officer - Manager (IT Security Specialist): 04 Posts

Total No. of Posts: 14

Educational Qualification: Please read Official Notification for Educational Qualification details.

Age Limit:


  • For Asst. Manager - Certified Ethical Hacker / Cyber Forensic Analyst / Application Security Tester: 20 to 30 years
  • For Manager - Application/web security personnel / Computer/Digital Forensic Specialist / IT Security Specialist: 25 to 35 years




Selection Process: Bank reserves the right whether to conduct online test and/or GD/interview depending on the number of eligible candidates applying for the posts indicated. For the purpose of GD/interview, adequate number of eligible candidates as decided by the Bank will be shortlisted and will be called for GD / interview. Candidates possessing more than prescribed work experience in the relevant discipline and acquired relevant certifications shall get preference. Merely satisfying the eligibility norms do not entitle a candidate to be called for GD/Interview. The Bank reserves the right to call only the requisite number of candidates for the GD/Interview after preliminary screening / short-listing with reference to candidates qualifications, suitability, experience, etc., prescribed for the post. Wherever online test is conducted, candidates shall be called for GD and /or
interview on the basis of their performance in the online test.

Scanned copy of the application should be mailed to E-mail ID: horecruitments@syndicatebank.co.in on or before: 22.05.2019



Important Dates:

Starting Date of Online Application: 08-05-2019
Last Date to Apply Online: 22-05-2019


How to Apply: Interested Candidates may Apply Online Through official Website.

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Application Form: Click Here
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Syndicate Bank Recruitment for Specialist Officer Posts 2019

Syndicate Bank has published Advertisement for below mentioned Posts 2019. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.


Ref. No.: HRD.HRMD.0088.2845

Posts:
Senior Manager (Risk Management): 05 Posts
Manager (Risk Management): 50 Posts
Manager (Law): 41 Posts
Manager (IS Audit): 03 Posts
Security Officer: 30 Posts

Total No. of Posts: 129


Educational Qualification: Please read Official Notification for Educational Qualification details.

Age Limit: 25 to 35 years

Application Fee: Gen/ OBC – Rs. 600 + GST as applicable (application fee + intimation charges)
SC/ ST/ PWD – Rs. 100 + GST as applicable (intimation charges only)

Selection Process: Candidates will be selected based on an interview.

How to Apply:  Interested Candidates may Apply Online Through official Website.


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Apply Online - Click here


Important Dates
Starting Date of Online Application:29-03-2019
Last Date to Apply Online: 18-04-2019
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Syndicate bank posts profit in Q3FY19

Reversing its loss-making spree during the past four quarters, Syndicate Bank on Saturday announced a net profit of Rs 108 crore during the October-December quarter of financial year 2018-19. The bank’s CASA (current and savings account) percentage for domestic deposits increased to 34.96 per cent during the December quarter of FY19 from 33.49 per cent during the September quarter. 

Also read- Q3FY19 Results of all Public & Private Sector banks in India 


The global business of the bank stood at Rs 4,67,911 crore. The gross NPA ratio improved to 12.54 per cent in the third quarter, compared to 12.98 per cent in the second quarter, while the net NPAs stood at 6.75 per cent in Q3FY19, against 6.83 per cent in Q2FY19. 
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First PSU bank who offers Limitless credit card

Public Sector Syndicate Bank has launched the Rupay Version of Credit Card  i.e. Rupay Select Card. Syndicate Bank Rupay Select Credit Card, will facilitate the segmentation of the Credit Card product to attract High Net Worth (HNI) Customers requiring higher Credit Limit. No Upper Limit for Syndciate Bank Select Rupay Credit Card with Rs 10,00,000 Insurance coverage by NPCI Free of Cost.


SyndicateBank Rupay Select Credit Card is offering a bunch of welcome offers in association with the NPCI. The Rupay Select Credit Card is having minimum Rs 1 lakh limit with no Maximum Limit. The transaction fees on Rupay Select Credit Card will be much lower than the competitors like MasterCard & VISA.It would lead to lower cost of clearing and settlement and will drive usage of cards in the industry.

Syndicate Bank Rupay Select Credit Card is having following features:
Minimum Credit Limit  – Rs 1,00,000
Maximum Credit Limit – None
Issuance Charges – Free

Syndicate Bank Rupay Select Credit Card Offers

Welcome Offers : 
Syndicate Bank Rupay Select Card is offering vouchers & Discount Coupons on issuance of Card. Few of these are :
  • Rs. 500 Gift Voucher from Croma (infiniti Retail Ltd)
  • Discount Coupon from Apollo Pharmacy.
  • Snapdeal Offer – Rs. 100 off on first two transactions.
Rupay Select Cash Back Offers
5% cash back on payment of Utility Bills-  applicable for both online and POS terminals with maximum discount of Rs. 50/- per month

Free Lounge Access
Domestic Airport – Two free access per quarter – covers 30 lounges across 11 cities in India
International Airport – Four Free Access per Year – covers 500+ lounge across 300+  cities worldwide.


Insurance Coverage at No Cost
Rs. 10.00 lakh cover for Death Due to Personal Accident and Permanent Disability effective after card is activated by doing the transaction. The Premium for the insurance coverage will be  borne by NPCI. 
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Syndicate Bank reported huge net loss in Q2 on higher bad loan provisions

State-owned Syndicate Bank Wednesday reported a net loss of Rs 1,542.54 crore in second quarter ended September 30, mainly due to rise in provisioning for bad loans. The bank had posted a net profit of Rs 105.24 crore in the same quarter of the previous fiscal. Its net loss stood at Rs 1,281.77 crore in the first quarter this fiscal.

Total income of the bank also fell to Rs 5,888.87 crore for the reported quarter, as against Rs 6,419.21 crore in the same period a year ago, Syndicate Bank said in a regulatory filing.


The bank's bad loans rose for the quarter with gross non-performing assets (NPAs) hitting 12.98 per cent of the gross advances at September-end 2018 from 9.39 per cent at the same time in 2017. Net NPAs also rose to 6.83 per cent as against 5.76 per cent a year ago.

In value terms, the gross bad loans (or NPAs) stood at Rs 27,131.14 crore as on September 30, 2018 as against Rs 20,176.64 crore by end of September 2017. Net NPAs were at Rs 13,321.30 crore as against Rs 11,894.30 crore. Thus, the provisions for bad loans during the quarter rose to Rs 1,622.46 crore in this fiscal from Rs 734.64 crore for the same quarter of 2017-18.

The overall provisions and contingencies was at Rs 2,217.26 crore for the quarter, up from Rs 891.16 crore a year ago. Provision coverage ratio was at Rs 64.02 per cent as on September 30, 2018, the bank said.


Meanwhile, the board also approved increase in the limit to raise capital up to Rs 500 crore by issuing and allotting up to 30 crore equity shares to eligible employees under Employee Stock Purchase Scheme (ESPS), the bank said.

"This includes the earlier approval of the shareholders in the extra-ordinary general meeting held on October 29 to raise capital aggregating to Rs 250 crore by issuance and allotment of 9 crore equity shares," it added. 
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PNB and Canara bank were on government's list for next merger, with which bank?



Bank of Baroda’s healthier financials, strong brand, technology and international presence helped the finance ministry settle for it as the anchor for an amalgamation with Dena bank and Vijaya Bank, instead of Canara Bank and Punjab National Bank, among others, which were considered for carrying forward the first consolidation exercise in the public sector space.

PNB was ruled out as its recovery is seen to be a few quarters away after a Rs 14,000-crore fraud, allegedly orchestrated by Nirav Modi and Mehul Choksi, leaving Canara Bank as the other option to anchor the amalgamation. But it was seen to be weak on a few financial parameters. Besides, the new entity would have been focused more on south India.


Financial services secretary Rajiv Kumar said, “We did not want consolidation for the sake of it. The first guiding principle was to create a healthy bank that was large in size. The second principle was to have an entity that had a strong brand, technology and a good reach.”

The merger of the three banks is one of the many ways through which the government is trying to deal with the bank NPA crisis. The merger of three banks clearly unveils a formula -  that the government decided to merge the three banks in accordance with their financial health. Among the three, Bank of Baroda has least NPA problem, followed by Vijaya Bank and Dena Bank. The bank merger formula, thus, will be Very big bank+ better bank+worst bank. 

In Dena bank, Vijaya and BoB, the government found the right fit. “Dena bank has a strong CASA base with a good retail and MSME presence. Vijaya Bank has been sensible in its lending, while BoB offers a good international presence, a strong brand and a good tech platform. It’s a win-win deal for the three banks and will result in a massive cost rationalisation,” the secretary added.


While consolidation has been on the government’s radar, the fraud at PNB pushed back the plan by a few months. But it has been in the making for at least four-five months, with the team at the department of financial services looking at various permutations and combinations. A source said, “It was an in-house exercise. Secrecy had to be maintained at all costs.”

Two sets of probable bank mergers in future. It said that the government is mulling the merger of more banks. However, this year there will not be any further merger as the amalgamation of the first lot of three banks will itself take 3-6 months. 

1. Punjab National Bank, Indian Bank, Indian Overseas Bank
The current business of PNB, Indian Bank and Indian Overseas Bank range in Rs 10,45,650 crore, Rs 3,74,550 crore and Rs 3,61,928 crore respectively. The deposits in three banks are Rs 630311 crore, Rs 210170 crore, Rs 213168 crore respectively. 

The Net NPA of PNB is 10.58%, Indian Bank 3.80% and Indian Overseas Bank 15.10%. The number of branches of these three banks are 6,993, 2,819 and 3,326 respectively. 


2. Canara Bank, Syndicate Bank and UCO Bank 
The total business of Canara Bank, Syndicate Bank and UCO Bank is Rs 8,63,359 crore, Rs 4,74,976 crore and Rs 2,76,784 crore respectively. Deposits in the three banks are Rs 5,00,866 crore, Rs 4,05,939 crore and Rs 1,78,211 crore.


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Syndicate Bank Q1 net loss widens nearly 5 times, NPAs soar



State-owned Syndicate Bank today said its net losses have widened to Rs 1,281.77 crore during first quarter ended June of the current fiscal as bad loans rose. 

Its loss in the corresponding April-June period of 2017-18 was at Rs 263.19 crore. Its income also fell to Rs 5,637.51 crore during the June quarter of 2018-19, as against Rs 6,171.49 crore a year ago. 

The bank said in a regulatory filing that its interest income fell to Rs 5,257.19 crore, from Rs 5,484.13 crore. Besides, there was significant fall in interest earned on balances with RBI and other inter bank funds. 


The asset quality was dented further to 12.59 per cent of the gross non-performing assets (NPAs) or bad loans as on June 30, 2018 from 9.96 per cent a year ago. 


It was 11.53 per cent in the preceding quarter ended March. Net NPAs too worsened to 6.64 per cent, from 6.27 per cent as on June 30, 2017 and 6.28 per cent by end March this year. In value terms, the gross NPAs stood at Rs 26,361.52 crore at June 30 this year, as against Rs 20,183.85 crore a year ago. 

Net NPAs were at Rs 13,010.80 crore vis-a-vis Rs 12,188.30 crore."Based on legal opinion given by an independent expert, pending issuance of final NCLAT order, an amount of Rs 100.86 crore recovered in an NPA account is considered as eligible credit for the calculation of NPA provision," Syndicate Bank said in the filing. 

Due to rise in portion of bad loans, the bank parked aside a higher provisioning amount for NPAs at Rs 1,774.11 crore in June quarter, as against Rs 1,385.66 crore a year ago. Overall provisioning and contingencies were at Rs 2,326.82 crore, up from Rs 1,333.88 crore. 
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Syndicate Bank reports huge net loss in Q4 due to higher provisioning

Public sector lender Syndicate Bank today reported a net loss of Rs 2,195.12 crore in the last quarter ended March 31, due to high bad loans that required higher provisioning.

The bank had posted a net profit of Rs 103.84 crore in the corresponding January-March quarter of 2016-17. In December quarter, there was a net loss of Rs 869.77 crore.

The bank's provisioning requirement for bad assets were raised by nearly three times during the March quarter to Rs 3,544.68 crore as against Rs 1,192.54 crore in the same period previous fiscal, it said in a regulatory filing.


Income during January-March period came down to Rs 6,046 crore from Rs 6,913.09 crore earned in same period of previous fiscal. For the full year ended March 2018, the bank reported a net loss of Rs 3,222.84 crore against a net profit of Rs 358.95 crore in 2016-17.

Income for the year fell to Rs 24,581.85 crore from Rs 26,461.18 crore. The current MD and CEO of Syndicate Bank Melwyn Rego was last month booked by the CBI along with several others in the Rs 600 crore IDBI loan default case.

Rego has earlier worked as Deputy Managing Director of IDBI Bank.On consolidated basis, the Manipal-headquartered lender suffered a net loss of Rs 3,111.69 crore against net profit of Rs 517.45 crore a year ago.Full year provisioning for bad loans rose to Rs 7,620.08 crore from Rs 3,545.44 crore.

Asset quality of the bank worsened as gross non-performing assets (NPAs) hit 11.53 per cent of gross advances (Rs 25,758.60 crore) by end of March 2018 from 8.50 per cent (Rs 17,609.31 crore) as on March 31, 2017.Net NPAs grew to 6.28 per cent (Rs 13,239.46 crore) from 5.21 per cent (Rs 10,410.98 crore).


In respect of certain NPA accounts under Insolvency and Bankruptcy Code (IBC), the requirement of provisions is reduced from 50 per cent to 40 per cent. The bank, however, has maintained the provision at 50 per cent in respect of secured portion, it said.

Detailing about the NPA divergence for 2016-17, the bank said its balance sheet has witnessed a gap of Rs 2,336.70 crore in terms of gross NPAs (Rs 1,724.20 crore for net NPAs), while for divergence for provisioning it stood at Rs 612.50 crore.This divergence resulted in adjusted loss of Rs 253.55 crore for the fiscal ended March 2017.
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Syndicate Bank posts standalone net loss in Q3

Syndicate Bank posts standalone net loss at Rs869.8cr in Q3FY18 vs. net profit of Rs93.60cr yoy. Syndicate Bank's revenue for Q3FY18 declined by 9.3% yoy to Rs5,945cr. Its NII for the quarter came at Rs1,623cr as against Rs1,391cr yoy. The bank has reported net loss of Rs869.8cr for the quarter, against profit of Rs93.6cr reported in corresponding quarter last year. Its GNPA for Q3FY18 stood at 9.62% as against 9.39% qoq, which has increased by 23bps. NNPA for the quarter came at 5.44% against 5.76% qoq, which has declined by 32bps.
  • The provision for the quarter came at Rs2,090cr as against Rs785cr yoy.
  • Its capital adequacy ratio for Q3FY18 end stood at 11.88%.


Standalone Results Q3FY18: (Rs. in crore)

Q3FY18YoY (%)
NII1,62316.7
NPA (%)9.693
Provisions2,090166.2
Net Loss (adjusted)869.800


***NPA change is bps



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