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Analyst Meet / AGM - Analyst Meet

Expects to contain GNPA ratio below 3.6% at end March 2015

Syndicate Bank

12-Feb-2015, 09:35
Syndicate Bank conducted the analyst meet on 12 February 2015 to discuss the financial performance of bank for the quarter ended December 2014. TK Srivastava, Executive Director of the bank addressed the meet:
Highlights:

Bank posted strong 58% growth in the pre-tax profit in Q3FY2015, but as the bank returns to normal tax bracket the higher tax expenses caused decline in the net profit in Q3FY2015.
Bank has exhibited accelerated business growth of 24% drive by strong 29% surge in deposits and 19% increase in advances at end December 2014. Bank expects advances growth in the range of 15-20% by end March 2015.
Net interest margins (NIM) of the bank declined sharply to 2.25% in Q3FY2015. As per the bank, the NIM has touched the bottom in Q3FY2015 and would only improve, going forward.
Fresh slippages of advances declined to Rs 1340 crore in Q3FY2015, while NPA reductions were lower at Rs 665 crore.
Bank expects fresh slippages to ease to around Rs 800-900 crore in Q4FY2015. Bank expects to contain GNPA ratio below 3.6% at end March 2015.
Fresh restructuring of advances was negligible at Rs 199 crore in Q3FY2015. Bank has restructuring pipeline of lower than Rs 200 crore for Q4FY2015.
During the quarter, the bank has received government capital infusion of Rs 460 crore, which mainly allocated to the bank on basis of performance indicators. Bank also has plans to issue tier I bonds and QIP.
Bank has strongly expanded branch network adding over 200 branches in nine months ended December 2014.