State-owned Syndicate Bank on Monday said its net losses have widened to Rs 12.81 billion during the first quarter ended June, as bad loans rose. Its loss in the corresponding April-June period of 2017-18 was at Rs 2.63 billion. Its income also fell to Rs 56.37 billion during the June quarter of 2018-19, as against Rs 61.71 billion a year ago. The bank said in a regulatory filing that its interest income fell to Rs 52.57 billion from Rs 54.84 billion.
Besides, there was significant fall in interest earned on balances with RBI and other inter-bank funds.
The asset quality was dented further to 12.59 per cent of the gross non-performing assets (NPAs) or bad loans as on June 30, 2018, from 9.96 per cent a year ago. It was 11.53 per cent in the preceding quarter ended March.
Net NPAs too worsened to 6.64 per cent, from 6.27 per cent as on June 30, 2017 and 6.28 per cent by March-end this year.
In value terms, the gross NPAs stood at Rs 263.61 billion at June 30 this year, as against Rs 201.83 billion a year ago. Net NPAs were at Rs 130.10 billion vis-a-vis Rs 121.88 billion."Based on legal opinion given by an independent expert, pending issuance of final NCLAT order, an amount of Rs 1 billion recovered in an NPA account is considered as eligible credit for the calculation of NPA provision," Syndicate Bank said in the filing.
Due to rise in portion of bad loans, the bank parked aside a higher provisioning amount for NPAs at Rs 17.74 billion in June quarter, as against Rs 13.85 billion a year ago. Overall provisioning and contingencies were at Rs 23.26 billion, up from Rs 13.33 billion.
Stock of Syndicate Bank closed 2.65 per cent down at Rs 44.10 on BSE.