Syndicate Bank earns a net profit of Rs 273 crores in Q3

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Bangalore, Jan 29 (UNI) Public Sector Syndicate Bank has earned a net profit of Rs 273 crores in the third quarter ending December 2007, an increase of 21 per cent as compared to the corresponding period last year.

Disclosing this to newsmen here Bank Chairman and Managing Director C P Swarnkar said the cumulative net profit for nine months increased by 18 per cent from Rs 612 crores as on December 31, 2006 to Rs 722 crores. The net Non Performing Asset had gone up from 0.90 as on December 31, 2006 to 1.27 per cent. The bank had maintained sufficient cushion towards provision requirement to cover up unexpected defaults. The Bank had a floating provision to the extent of Rs 303.57 crores as on December 31, 2007, he explained.

Replying to queries he said the year on year growth was 13.36 per cent under global business which stood at Rs 1,41,658 crores as against Rs 1,24,962 crores as on December 31,2006. The Bank registered a higher growth of 17.09 per cent under domestic business which increased from Rs 1,13,489 crores as on December 31,2006 to Rs 1,32,881 crores. The bank would lay more emphasis on core deposits including low cost deposits, he added saying there would be limitation on raising bulk deposits.

Answering a question Mr Swarnkar said the bank was awaiting clearance from the centre for a follow on issue in the domestic sector of eight crores equity shares of Rs 10 each. The issue price would be decided depending upon the market situation, he revealed.

The bank was also contemplating to go in for a Medium Term Note both tier one and tier two for US Dollars 175 million (Rs 700 crores approximately).

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