Syndicate Bank close to new high

Syndicate Bank posted a good set of numbers for Q2FY18, with improvement in both asset quality as well as profitability.

The Bank’s net profit rose 28% (YoY) at Rs.105 crore while NII was up 7% at Rs.1650 crore.

In terms of asset quality, which is what the market is happy about was better. Gross NPA improved marginally from 9.96% to 9.39% (QoQ) while Net NPA too rose from 6.27% to 5.76%.

Its provisions came down from Rs.1334 crore to Rs.891 crore. The Bank’s provision coverage ratio as on 30 September stood at 56.21%. Referring to the RBI advised initiation of insolvency resolution process in respect of 12 accounts under the provisions of Insolvency and Bankruptcy Code, Syndicate Bank said it has made pro rata provisions of Rs173 crore during the current quarter.

The market has reacted positively to these numbers, figuring among the top three gainers and the stock price rose 14% to Rs.94, which is literally inches away from its 52-week high of Rs.94.90.