Syndicate Bank Q3 up 21%

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

Disclosing this to the press 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 crore as on December 31, 2006 to Rs 722 crore.

Net Non-Performing Assets had gone up from 0.90 per cent 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 crore as on December 31, 2007, he explained.

Replying to queries, he said year-on-year growth was 13.36 per cent in global business which stood at Rs 1,41,658 crore as against Rs 1,24,962 crore 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 crore as on December 31,2006 to Rs 1,32,881 crore.

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 crore 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 I and Tier II for 175 million US Dollar.

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