By IANS,
Bangalor: State-run Syndicate Bank reported net profit of Rs.206 crore for the third quarter of fiscal 2009-10 against Rs.356 crore in the same period last year, a dip of 42 percent over the last 12 months.
In a regulatory filing Saturday, the Manipal-based bank said its total income for the quarter under review also declined marginally by three percent year-on-year (YoY) to Rs.2,677 crore from Rs.2,759 crore in the same period a year ago.
Around 13 percent (Rs.377 crore) decline YoY in combined interest earned during the quarter (Rs.2,456 crore) from advances and discount on bills, other income and balances with the Reserve Bank of India against Rs.2,833 crore year ago affected the total income.
Net interest fell by 5.15 percent YoY to Rs.718 crore from Rs.757 crore.
Steep provisioning of Rs.207 crore towards bad loans and contingencies for the quarter as against Rs.23 crore made in the same period of last fiscal also impacted the bottomline.
In spite of higher provisioning, the gross non-performing assets (NPA) shot up to Rs.2,018 crore (2.43 percent) from Rs.1,762 crore (2.39 percent) YoY.
Similarly, the net NPA increased to Rs.836 crore (1.02 percent) from Rs.622 crore (0.86 percent) YoY.
As a result, return on assets (RoA) declined to 0.64 percent from 0.87 percent on annualised basis.
Revenue from corporate and wholesale banking operations declined to Rs.1,071 crore in the quarter from Rs.1,614 crore in the corresponding quarter year ago and resulted in profit lowering to Rs.222 crore from Rs.335 crore year ago.
Though income from treasury operations increased marginally to Rs.589 crore from Rs.528 crore year ago, the bank suffered a higher loss of Rs.22 crore as against a lost of Rs.10 crore in the same period of last fiscal.
Hence, operating profit declined 5.4 percent YoY to Rs.488 crore from Rs.514 crore.
In the listed bank, the government continues to be the majority shareholder with 66.5 percent of equity holding.