Q1 Results: Syndicate Bank Expects Earnings To Improve From Second Quarter
Syndicate Bank expects its financial performance to improve starting next quarter. Here’s why.
Syndicate Bank expects its financial performance to improve starting next quarter as the fruits of its newly implemented strategies begin to bear.
“The first quarter is a quarter where the efforts are generally at the beginning stage. Depending on our year-end target, we initiate strategies,” said Mrutyunjay Mahapatra, managing director and chief executive officer of the public lender. “And these strategies start yielding results only from second quarter onwards.”
This comes as the bank’s provisions more than doubled in the quarter ended June to Rs 2,085 crore. It’s bad loan ratios also continue to remain high.
However, Mahapatra expects the lender’s asset quality to turn around now. “I believe we’ll be able to contain our slippages and provisioning at the guidance level and start giving you better results in the second quarter onwards.”
Key earnings highlights:
- Net interest income rose 19 percent at Rs 1,792 crore (YoY).
- Net loss at Rs 980.4 crore versus net loss of Rs 1,281.4 crore (YoY).
- Provisions at Rs 2,085.3 crore versus Rs 831.2 crore (QoQ).
- GNPA at 11.76 percent versus 11.37 percent. (QoQ).
- NNPA at to 5.96 percent from 6.16 percent (QoQ).
Watch the interaction here: