By IANS,
Bangalore: State-run Syndicate Bank posted a net profit of Rs.262 crore for the first quarter this fiscal, registering a whopping growth of 198 percent year-on-year from Rs.88 crore in the like period last year.
“We have nearly trebled our net profit in the first quarter on a healthy 16.4 percent growth in net interest income (NII) to Rs.586 crore from Rs.503 crore a year ago and better management of treasury operations,” bank executive director V.K. Nagar told reporters here Friday.
Taking advantage of the opportunities in the debt market, the bank boosted its other income to Rs.416 crore from Rs.147 crore, with treasury income accounting for Rs.270 crore as against Rs.28 crore a year earlier.
Income from commission and exchange, however, declined marginally to Rs.60 crore from Rs.63 crore, while miscellany income went up to Rs.86 crore from Rs.53 crore.
“We have earned Rs.223 crore from the sale of government securities and the balance (Rs.47 crore) from equity and other investments during the quarter. Our total investments in debt and equity market has increased to Rs.39,229 crore in the quarter from Rs.26,903 crore in the like period a year ago,” Nagar said.
Due to pressure on margins, the bank’s net interest margin (NIM) declined marginally to 2.23 percent from 2.34 percent a year ago.
The bank’s total income grew by 31 percent to Rs.2,975 crore from Rs.2,279 crore and interest income increased by 20 percent to Rs.2,559 crore from Rs.2,132 crore.
Global business increased by 28 percent to Rs.199,686 crore in the June quarter from Rs.155,722 crore a year ago. Domestic deposits grew by 25 percent to Rs.109,257 crore, with core deposits growing by 43 percent to Rs.12,096 crore.
Similarly, domestic advances increased to 75,366 crore from Rs.58,976 crore, registering 28 percent growth. As a result, credit-deposit ratio increased to 72 percent from 70 percent year ago.