Back

Analyst Meet / AGM - Analyst Meet

Expects to reduce GNPA to 3% and NNPA to 2% by end March 2015

Syndicate Bank

11-Nov-2014, 07:29
Syndicate Bank conducted the analyst meet on 11 October 2014 to discuss the financial performance of bank for the quarter ended September 2014. Anjaneya Prasad, Executive Director of the bank addressed the meet:
Highlights:

Bank posted healthy 18% growth in the operating profit in Q2FY2015, but higher NPAs and tax provision hit the net earnings of the bank.
Bank crossed Rs 4 lakh crore business mark in the quarter ended September 2014.
Bank expects advances growth in the range of 15-20% by end March 2015.
Bank has maintained the CASA ratio amid strong deposits growth, while reduced the bulk deposits to 10.4% of total deposits at end September 2014 from 11.6% a quarter ago and 16.4% a year ago.
Bank proposes to improve CASA ratio to above 31% by end March 2015.
Bank plans to raise Rs 1100 crore through issuance of Tier II bonds in Q3FY2015. Thus, the CRAR ratio of the bank would rise to 11% by end December 2014.
Fresh slippages of advances stood elevated at Rs 1683 crore in Q2FY2015, while NPA reductions were lower at Rs 869 crore. Bank expects fresh slippages to ease, while NPA reductions to improve, going forward.
As per the bank, about Rs 800 crore of advances to eight accounts were classified as NPAs in Q2FY2015 due to delay in restructuring. However, the restructuring would be implemented in Q3FY2015 and these accounts would be upgraded.
Also, bank expects upgradations of about Rs 250 crore of agricultural NPAs from Andhra Pradesh and Telangana states by end March 2015 after implementation of government agriculture debt waiver package.
Bank conducts NPA recovery camps under Synd Brihat Adalat on quarterly basis recovering about Rs 250 crore of NPAs.
Bank proposes to reduce the GNPA to below 3% and NNPA below 2% by end March 2015.
Fresh restructuring of advances was stable at Rs 228 crore in Q2FY2015. Bank has restructuring pipeline of Rs 300 crore.
The outstanding securities receipts on the banks book against assets sold to Asset Reconstruction Companies (ARCs) stood at Rs 900 crore at end September 2014.
Bank is in the consolidating its business in the overseas operations. Bank expects to improve overseas NIM to 0.8% by end March 2015 from 0.47% in Q2FY2015.