Syndicate Bank Q2 net up 11%, govt nod for public issue

Bangalore, Oct 26 (UNI) Syndicate Bank's net profit grew 11 per cent to Rs 227.58 crore in the second quarter ending September 30 as against Rs 205 crore earned in the same period last year,a top bank official today said.

Announcing the results to the media here, Bank Chairman and Managing Director C P Swarnkar said the total income rose to Rs 2,155 crore (Rs 1,595 crore) in the period signifying an increase of 35 per cent, mainly contributed by growth in interest income. However, the Net Non Performing Assets went up from 0.89 per cent as on September 30, 2006 to 0.95 per cent on September 30, this year. The bank's global business grew 17 per cent at Rs 1,37,333 crore (Rs 1,17,233 crore). Growth in domestic business crossed 19 per cent to Rs 1,27,521 crore (Rs 1,06,993 crore).

Replying to queries, he said the Centre had approved issuing eight crore shares following a recommendation from the Board of Directors. However, the market conditions would be studied carefully before a decision was taken, he said adding post-issue the government's equity would come down from 66.34 per cent to 57.4 per cent.

The bank had also obtained permission for raising 125 million US Dollar (Rs 500 crore) through Medium Term Notes and it would take at least ten weeks for the process to be completed.

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 professionals, self employed, traders, corporates, agriculturists and individuals desiring to avail housing loans, Mr Swarnker added.

The bank added 18.75 lakh new accounts in the last six months and was progressing well on all parameters.

The expected growth rate of about 25 to 30 per cent would be realised during this year, he said.

UNI