Syndicate Bank reports net profit in Q2FY20

Syndicate Bank reported a net profit of Rs 251.05 crore in Q2 September 2019 over a net loss of Rs 1,542.54 crore in Q2 September 2018.

Total income rose 4.49% to Rs 6,153.10 crore on a 10.62% increase in net interest income (NII) to Rs 1,739.25 crore in Q2 September 2019 over Q2 September 2018.

The bank's gross non-performing assets (NPAs) stood at Rs 25,382.26 crore as on 30 September 2019 as against Rs 25,402.74 crore as on 30 June 2019 and Rs 27,131.14 crore as on 30 September 2018.

The ratio of gross NPAs to gross advances stood at 11.45% as on 30 September 2019 as against 11.76% as on 30 June 2019 and 12.98% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 5.98% as on 30 September 2019 as against 5.96% as on 30 June 2019 and 6.83% as on 30 September 2018.

The bank's provisions and contingencies fell 71.18% to Rs 638.94 crore in Q2 September 2019 over Q2 September 2018. Of this, provisions for NPAs fell 59.77% to Rs 652.67 crore in Q2 September 2019 over Q2 September 2018.

Provision coverage ratio of the bank stood at 68.64% as on 30 September 2019.

The board of directors in its meeting held on 13 September 2019 has considered and accorded it's 'in principle approval' for amalgamation of Syndicate Bank into Canara Bank subject to all applicable approvals.

On September 20,2019 vide taxation laws (Amendment) Ordinance 2019,the Government of India inserted Section 115BAA in the Income Tax Act 1961, which provides domestic companies a non reversible option to pay corporate tax at reduced rates effective 1 April 2019 subject to certain conditions. The Bank is currently in the process of evaluating this option.