PRESS RELEASE

29-10-2010

SyndicateBank recorded 52% increase in its operating profit for the half year ended September 2010. The operating profit was ` 1366 crore for the H1 as against ` 896 crore recorded during the corresponding period of the previous year. Net Interest Income increased from ` 1163 crores for the half year ended September 2009 to ` 2071 crore for September 2010. However, the other income declined by 38% from ` 716 crore to ` 447 crore YoY mainly due to the decline in trading profit. The net profit for H1 is ` 502.47 crore as against ` 439.37 crore recording 14% growth in the first half year of 2010-11.

The Global Business of the Bank was at ` 2,12,027 crore as on 30.09.2010 as against ` 193488 crores as on 30.09.2009 registering a growth of 10%. The Global Deposits stood at ` 1,16,113 crore and Global Advances at ` 95,914 crore as on 30th September 2010. The CASA deposits grew from ` 32077 crores as on 30 the September 2009 to ` 40473 crore as on 30th September 2010 registering year-on-year growth of 26%.

The Return on Assets has increased from 0.68% as on 30.09.2009 to 0.76% as on 30.09.2010. The Net Interest Margin for the first half year ended 30.09.2010 improved to 3.32% from 2.12% recorded as on 30.09.2009. The reduction in high cost deposits and increase in CASA has resulted in reduction of cost of deposits to 5.20% from 6.54% as on September 2009.

The percentage of Gross NPAs of the Bank declined marginally to 2.24% in September 2010 as compared 2.25% in September 2009. However, the percentage of Net NPA increased to 0.97% as on September 2010 as compared to 0.91% as on September 2009. Provision Coverage Ratio is 73%, higher than the mandatory coverage ratio of 70%.

Quarterly Performance highlights of the Bank:

(`` crore)

Parameters / Quarter ended Sep 09 / Quarter ended
Sep 10
Operating Profit / 380 / 778
Net Profit / 176 / 237
Net Interest Income / 598 / 1108
Net Interest Margin (%) / 2.18 / 3.55
Capital Adequacy Ratio (%) / 13.26 / 12.21
Gross NPA Ratio (%) / 2.25 / 2.24
Net NPA Ratio (%) / 0.91 / 0.97
Earning per Share / 16.84 / 19.25
Business / 193488 / 212027
Deposits / 111129 / 116113
Advances / 82359 / 95914
Cost of Deposits (%) / 6.44 / 5.14
Yield on Advances (%) / 9.54 / 9.39
Cost to Income Ratio (%) / 45.75 / 45.77

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