Syndicate Bank reported a 50.39 per cent jump in net profit to Rs 508.49 crore for the third quarter, up Rs 338.12 crore from the year-ago period.
Chairman and Managing Director M G Sanghvi said a host of steps, including reduction in cost of deposits, improved yields on assets, reduction and recovery in non-performing assets (NPAs) and growth in advances helped achieve higher profits. Total income rose to Rs 4,489.90 crore from Rs 4,214.35 crore in the year-ago period. The bank crossed the milestone of Rs 3-lakh crore business.
Sanghvi said the bank ceded Rs 7,000-crore worth of high-interest deposits and brought down the dependence on such costly deposits from 23 per cent to 16 per cent. It registered growth of 17 per cent in advances and 15 per cent in deposits. Net interest margin marginally came down to 3.28 per cent from 3.33 per cent. With the request for Rs 1,400 crore not figuring in the government’s capital infusion plan, the bank board has decided to pursue alternative routes. Sanghvi said the board had approved fund-tapping through the qualified institutional placement (QIP) or rights issue.
He added the bank plans to raise $500-million overseas debt as a medium-term loan through its London branch for Tier-II capital requirement, in addition to a similar amount raised during the third quarter.