Syndicate Bank net down Rs50 crore

Our Banking Bureau
19 October 2004

Bangalore: Syndicate Bank has reported Rs49.66-crore drop in net profits in the second quarter (Q2) this year due to fall in investment and treasury profits.

Addressing a press conference here yesterday, K M Shet, executive director of the bank, said net profits fell despite improved operating profits during the period. The net profit for Q2 was Rs75.58 crore as against Rs125.24 crore during Q1 of this fiscal year.

However, during the same period, the operating profit rose from Rs252.98. Depreciation and drop in investment income during Q2 was around Rs122 crore, he said. Other income, that included profits from treasury operations, dropped to Rs115.13 crore from Rs195.18 crore in the first quarter.

During the same period, provisions and contingencies, which included depreciation in investments, rose to Rs135.24 crore from Rs55.26 crore during Q1 this year.

The bank, he said, had made the depreciation provision since the yield to maturity on the 10-year government security rose to 6.2 per cent, from 5.12 per cent during the end of the first quarter of this year.