Syndicate Bank posts ₹128-crore net profit in Q4 on lower provisioning

Syndicate Bank posts ₹128-crore net profit in Q4 on lower provisioning

Syndicate Bank posted a net profit of 128.02 crore for the fourth quarter of 2018-19, with lower provisions and improvement in income.

The lender made a net loss of 2,195.12 crore for the fourth quarter of 2017-18.

The bank’s total income for the January to March 2019 quarter rose by 4.94 per cent to 6,345.22 crore, against 6,046 crore in the same period a year ago.

Net interest income grew by 16.3 per cent to 1,952.28 crore in the fourth quarter of last fiscal, from 1,678.77 crore a year ago. Other income rose by 6.7 per cent to 734.96 crore in the quarter under review, from 688.76 crore in the corresponding period in 2017-18.

However, for the full fiscal year 2018-19, the lender posted a net loss of 2,588.30 crore. This was lower than the net loss of 3,222.84 crore it registered in 2017-18. On a consolidated basis, its net loss in 2018-19 was 2,524.20 crore.

The bank’s asset quality showed some improvement. The bank’s gross non-performing assets (NPAs) were 11.37 per cent of gross advances, or 24,680 crore as on March 31, 2019, against 11.53 per cent on March 31, 2018. Net NPAs were also marginally lower at 12,627.7 crore, or 6.16 per cent of net advances as on March 31, 2019.

Provisions for bad loans fell significantly to 831.22 crore in the fourth quarter of the fiscal, from 3,544.68 crore in the same period a year ago.

Syndicate Bank said it has restructured 4,340 MSME accounts and treated them as standard assets amounting to 137.87 crore during the fourth quarter.

The lender’s scrip gained 3.55 per cent and closed at 37.90 apiece on the BSE.

[“source=thehindubusinessline”]