Syndicate Bank announces Q1 results for FY 2019- 20

L to R: Executive directors Ajay K. Khurana, S. Krishnan, MD, CEO Mrutyunjay Mahapatra, OSD Y. Nageswara Rao, CFO Uday Shankar Majumdar seen in picture during the press meet to announce Syndicate Bank's Q1 results in Bangalore on Wednesday.

•Global business of the bank stood at Rs 4,75,225 Crores as on30.06.2019

•The Operating Profit for Jun-2019 quarter increased by 45% Y-o-Y at Rs.810 crore as against Rs.558 crore reported in Jun-2018quarter.

•The Net Interest Income (NII) has improved by 19%, from Rs.1506 Crore in Jun-2018 quarter to Rs.1792 Crore in Jun-2019quarter.

•Domestic NIM has increased by 57 bps from 2.60% in Jun- 18 Quarter to 3.17% in Jun-19Quarter.

•Overall Cost to income ratio has declined from 70.38% as on Quarter ended Jun-18 to 65.21% as on Quarter endedJun-19.

•Gross NPA Ratio stood at 11.76% as on 30.06.2019 declined from 12.59% as on30.06.2018

.•Net NPA Ratio stood at 5.96% as on 30.06.2019 declined from 6.64% as on 30.06.2018.

•Provision Coverage Ratio has improved from 63.04% as on Jun-18 to 69.02% as onJune-2019.

•Bank has reported Net Loss of Rs 980 crore in Q1 FY 2019-20 as against Net Loss of Rs. 1282 crore in Q1 of FY2018-19

•The CRAR Ratio as on June-19 stood at 13.70% improved from 11.84% as on June 18. CET has improved from 7.01 as on Q1-FY 2018-19 to 8.85 as on Q1- FT2019-20.

•The share of Retail Term Deposits as a percentage to Total Term Deposits has also improved from 59.16% as on Jun- 18 to 67.09% as onJun-19.

•The Bank’s credit portfolio continues to be diversified with share of Retail, Agriculture, MSME (RAM) at 56% of the domesticadvances. 

Performance Highlights for the First Quarter of FY 2018-19

Interest Income:

The interest income for quarter ended Jun-2019 increased to Rs.5,545 crore from Rs.5,257 crore in its corresponding period of previous year due to the increase in the interest income of corporate advances on account of realisation of unbooked interest made through Recoveries in the Quarter. The Up-stick will continue in the coming quarters owing to recoveries in NPA and expected resolutions in NCLT referred accounts.Other Income:The other income increased by 41% to Rs.536 crore for the quarter ended Jun-2019 from Rs.379 crore as against corresponding period of previous year. The increase is mainly due to increase recovery in written off accounts and increase in treasury income on account of increase in profit on sale of investments.

Interest Expenses:The Interest expenses for the Jun-2019 quarter remains flat at Rs 3,753 crore against Rs.3,751 crore as compared to corresponding quarter of previous year Jun- 2018.

Net Interest Income (NII):The NII for Jun-2019 quarter increased to Rs.1,792 Crore against Rs.1,506 Crore in its corresponding period of previous year.Operating expenses:The operating expenses for the quarter ended Jun-2019 quarter was Rs.1,518 crore against Rs.1,328 crore in its corresponding period of previous year.Operating Profit:The operating Profit for Jun-2019 quarter stood at Rs.810 crore as against Rs.558 crore reported in Jun-2018.Provisions & Contingencies:The Bank has made provision and contingencies of Rs.1,790 crore during Jun-2019 quarter against Rs.1,840 crore during Jun-2018 quarter.Net Profit/Loss:The Bank made net loss of Rs. 980 crores for the Quarter ended Jun-2019 against a net loss of Rs.1,282 crores during Jun-2018 quarter due to increased NII.

Other Financial Ratio:Quarter Ended Comparison

Parameter

Q 1,Ended

FY2018-19

Q 1,Ended

FY2019-20

Cost of Deposits (%)

5.06

5.12

Cost of Funds (%)

4.99

4.98

Yield on Advances (%)

7.02

7.49

Yield on Funds (%)

6.99

7.35

Net Interest Margin (NIM) (Ann) (%)

2.30

2.72

Cost to income Ratio (%)

70.38

65.21

Earnings Per Share (Ann.) Rs.

-36.18

-14.63

Return of Assets (Ann.) (%)

(1.70)

(1.30)

Business Parameters:Business:The Bank’s Total Business stood at Rs.4,75,225 crore as on June of 2019 as against Rs.4,74,976 crore recorded in June of 2018. The Domestic Business declined to Rs.4,02,837 crores as on June 2019 as compared to Rs.4,10,870 crore reported in its earlier corresponding period i.e. June 2018 mainly due to reduction of bulk deposits.Deposits:The Bank’s Total deposits stood at Rs.2,59,223 crore as on Mar 2019 as against Rs. 2,65,664 crore in its corresponding period of a year ago.Advance:The total Advance as on June 2019 stood at Rs.2,16,002 crore increased from Rs.2,09,312 crore in its corresponding period of a year ago. Retail and Agriculture advances has shown growth of 5% and 5% respectively. Corporate and MSME advances have come down marginally.Priority Sector Advance: (Rs. in Crore)

Sectoral Advance

30.06.2018

31.03.2019

30.06.2019

% of ANBC

Priority Sector

70,681

73,733

71,142

40.59

Agriculture

31,881

34,439

33,271

18.98

Other Priority Sector

38,800

39,294

37,871

21.61

Investments:Investment Portfolio stood at Rs 69,326 crore as on June 2019 against Rs.80,041 crore during corresponding period of previous year i.e. June 2018.

Other Performance

Indicators:Capital Adequacy Ratio (CAR):The CAR (Basel III) stood at 13.70 %as on June 2019 as against 11.84 % in its corresponding period of previous year. The Tier 1 capital has improved from 7.01% as on June 2018 to 8.85% as on June 2019.

Net Interest Margin(NIM)

Domestic NIM improved by 57 bps from 2.60% in Jun 2018 quarter to 3.17% in Jun 2019 quarter. Global NIM improved by 42 bps from 2.30% in Jun 2018 quarter to 2.72% in Jun 2019 quarter.NPA Management:The Gross NPA declined to Rs.25,403 crore as at June 2019 from Rs.26,362 crore during June 2018 and in percentage terms, the Gross NPA ratio is 11.76% as at June2019against12.59%inJune2018.ItwasatRs.24,680croreand11.37%asat Mar 2019.The Net NPA declined to Rs.12,086 crore as at June 2019 from Rs.13,011crore during June 2018 and in percentage terms, the Net NPA ratio is 5.96% as at June 2019 against 6.64% in June 2018. It was at Rs.12,628 crore and 6.16% as at Mar 2019.

(In %)

Period

Gross NPA

Net NPA

PCR

June-18

12.59

6.64

63.04

March-19

11.37

6.16

66.43

June-19

11.76

5.96

69.02

Net worth:

The Net worth of the Bank stood at Rs.11,898 crore as on June 2019 in comparison to Rs 10,013 crore as on June 2018 and Rs. 12,488 crore as on Mar 2019.


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