Q3 Results: Syndicate Bank Targets 5% Credit Growth For March Quarter
The state-run lender’s net profit jumped four times on a yearly basis to Rs 435 crore.
Syndicate Bank Ltd. expects credit to grow 5 percent in the ongoing quarter, driven by higher exposure to infrastructure and non-bank lenders.
Non-banking financial companies and infrastructure firms are contributing the most to the growth in advances, Mrutyunjay Mahapatra, managing director and chief executive officer at Syndicate Bank, told BloombergQuint. “Within infra, we are funding a hybrid annuity model and engineering procurement and construction projects.”
He, however, said capacity expansion in the manufacturing sector is not happening up to the expected levels. “Generally, when capacity utilisation touches around 70-75 percent, new capacity is planned. But it has only been in the 50-60 percent in the last two quarters.”
The state-run lender reported its third-quarter results on Tuesday. Net profit of the bank jumped four times on a yearly basis to Rs 435 crore, according to its exchange filing.
This, according to Mahapatra, was primarily on account of higher other income and recoveries to the tune of Rs 2,216 crore.
Other Highlights (YoY):
- Net interest income rose 15.6 percent to Rs 1,871.4 crore.
- Other income jumps 48 percent to Rs 914 crore.
- Pre-provision operating profit jumped 110 percent to Rs 1,336 crore.
- Gross NPAs at 11.33 percent versus 11.45 percent (QoQ).
- Net NPAs at 5.94 percent versus 5.98 percent (QoQ).
Shares of the Bengaluru-based firm declined 1.9 percent intraday to Rs 23.85 each.
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