Syndicate Bank earns net profit of Rs 227.58 Cr in Q2

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Bangalore, Oct 26 (UNI) Public Sector Syndicate Bank has posted a net profit of Rs 227.58 crores for the quarter ended September 30 as against Rs 205 crore earned during the corresponding period previous year, thus achieving a growth of 11 per cent.

Announcing this to newsmen here Bank's Chairman and Managing Director C P Swarnkar said that the total income of the bank increased to Rs 2155 crores during the second quarter from Rs 1595 crores against second quarter of last year, an increase of 35 per cent mainly contributed by the growth in interest income. The Net Non Performing Asset had gone up from 0.89 per cent as on September 30, 2006 to .95 on September 30, this year.

He said the global business of the bank grew by 17 per cent and stood at Rs 1,37,333 crores as against Rs 1,17,233 crores as on September 30, last year. On the domestic business front, the growth crossed 19 per cent with an increase from Rs 1,06,993 crores as on September 30 last year to Rs 1,27,521 crores during the second quarter of this year, he pointed out.

Replying to queries, he said the Centre had approved raising of eight crores shares following a recommendation from the Board of Directors. However, the market would be studied carefully before entering, he added saying that the government' equity would come down from 66.34 per cent to 57.4 per cent once it was done. The bank had also obtained permission for raising USD 125 million (Rs 500 crores) through Medium Term Notes and it would take at least 10 weeks to make further progress. There was also sufficient leg room to raise funds on domestic front, he added.

He said the bank had last week launched online submission of loan applications facility by Small and Medium Enterprises and for higher education loan through the Bank's website. Similar facility would be launched soon for professional, and self employed people, traders corporates agriculturists and individuals desiring to avail housing loans, he added.

He said the bank added 18.75 lakh new accounts in the last six months. The bank was progressing well on all parameters and the expected growth rate of about 25 per cent to 30 per cent would be realised during this year, he hoped.


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