Syndicate Bank has registered a net profit of Rs.508.49 crore during the third quarter of the current financial year, up 50.29 per cent over Rs.338.12 crore in the corresponding period in the previous fiscal.
According to M. G. Sanghvi, Chairman and Managing Director of the bank, reduction in the cost of deposits, reduced dependence on high cost deposits and enhanced recovery mechanism are the key drivers of the growth. Savings of Rs.174.25 crore on account of tax, including a one-off tax refund provided by the government, boosted the net during the quarter.
With close to Rs.4,500 crore income during the quarter, the bank’s global business crossed the Rs. 3 lakh-crore mark, taking it into the big league.
Net interest income grew by 9.6 per cent to Rs.4,109 crore while advances and deposits registered an impressive growth of 17.3 per cent and 14.6 per cent, respectively. Overseas business, the London branch in particular, registered a 52.04 per cent rise from Rs.22,136 crore to Rs.33,654 crore.
The bank was hopeful of the Central Government considering its request for capital infusion of Rs.1,400 crore and it had raised lower Tier-II bonds for Rs.1,000 crore during December.
Mr. Sanghvi said the bank had no exposure to Deccan Chronicle or Kingfisher as it was cautious in extending corporate loans. The focus would be on expending the retail and mid-corporate segments.