Syndicate Bank has reported net loss of Rs 263.19 crore for the June quarter of the current fiscal due to a sharp increase in provisioning for bad loans. In comparison, the public sector bank had reported net profit of Rs 79.13 crore in the April-June quarter of 2016-17.
In comparison, the Bengaluru-based bank had reported net profit of Rs 79.13 crore in the April-June quarter of 2016-17.
Total income during the first quarter of 2017-18 also fell to Rs 6,171.49 crore from Rs 6,419.12 crore in the corresponding period of the previous year, the bank said in a regulatory filing.
Provisioning to cover for bad loans jumped by 79 per cent to Rs 1,385.66 crore during the quarter under review, as against Rs 774.41 crore a year ago. The bank's earnings from corporate and wholesale banking fell to Rs 2,088.98 crore during the quarter, from Rs 2,562.28 crore in 2016.
Revenues from retail banking operations were only marginally up at Rs 1,984.67 crore for the quarter, from Rs 1,973.66 crore a year earlier.
Asset quality of the bank slipped with gross non-performing assets (NPAs) rising to 9.96 per cent of the gross advances by June 30, 2017 from 7.53 per cent of the gross loans disbursed as on June 30, 2016.
Net NPAs were 6.27 per cent of the net loans as at end-June this year, from 5.04 per cent in June 30, 2016.
The provision coverage ratio as on June 30, 2017 stood at 54.80 per cent.