Slump in Q3 Results for Syndicate Bank During FY 2015-16

The PSU bank, Syndicate Bank fell 5% to Rs 70.35 at 14:34 IST on BSE after the bank reported a net loss of Rs 119.67 crore in Q3 December 2015 compared with net profit of Rs 304.99 crore in Q3 December 2014.

The result was announced during trading hours today, 28 January 2016. Meanwhile, the BSE Sensex was up 59.67 points, or 0.24%, to 24,552.06.

On BSE, so far 9.24 lakh shares were traded in the counter, compared with an average volume of 1.61 lakh shares in the past one quarter. The stock hit a high of Rs 75 and a low of Rs 69 so far during the day. The stock hit a 52-week high of Rs 127.50 on 4 March 2015. 

The stock hit a 52-week low of Rs 68.50 on 21 January 2016. The stock had underperformed the market over the past one month till 27 January 2016, sliding 14.79% compared with 5.21% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 23.82% as against Sensex's 10.13% fall.

The mid-cap company has an equity capital of Rs 662.06 crore. Face value per share is Rs 10. Syndicate Bank's total Income rose 4.50% to Rs 6188.25 crore in Q3 December 2015 over Q3 December 2014.

The bank's gross non-performing assets (NPA) edged higher to Rs 9602.80 crore as on 31 December 2015 from Rs 7734.41 crore as on 30 September 2015 and Rs 6723.99 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.61% as on 31 December 2015, compared with 3.72% as on 30 September 2015 and 3.60% as on 31 December 2014.

The bank's ratio of net non-performing assets (NPAs) to net advances stood at 3.04% as on 31 December 2015, compared with 2.37% as on 30 September 2015 and 2.38% as on 31 December 2014. Provisions and contingencies rose 201.38% to Rs 875.23 crore in Q3 December 2015 over Q3 December 2014. The provisioning coverage ratio as on 31 December 2015 stood at 58.67%.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.91% as on 31 December 2015, compared with 10.46% as on 30 September 2015 and 10.46% as on 31 December 2014. CASA (current and savings account) deposits (domestic) increased 9% to Rs 68036 crore as on 31 December 2015 compared with Rs 62445 as on 31 December 2014. Domestic CASA deposits stood at 30.22% of total domestic deposits as at 31 December 2015. Government of India holds 69.24% stake in Syndicate Bank (as on 31 December 2015).