Syndicate Bank standalone net loss at Rs2,195.10cr in Q4FY18, vs net profit of Rs103.84cr yoy : Misses Estimates

The bank’s standalone NII stood at Rs1,678.80cr, down 9.79% yoy but up 3.43% qoq.

May 16, 2018 03:05 IST India Infoline Research Team

Syndicate Bank Q4FY18

Standalone Results Q4FY18: ( cr)

Q4FY18 YoY (%)
NII 1,678.80 [9.8]
NPA (%) 11.5 303
Provisions 3,937.30 210.5
Net Loss (adjusted) 2,195.10 -
***NPA change is bps

Syndicate bank revenue has declined by 12.5% yoy to Rs6,046cr. Its NII for the quarter came at Rs1,678.8cr as against Rs1,861cryoy. The bank has reported net loss of Rs2,195.1cr for the quarter, against profit of Rs103.8cr reported in corresponding quarter last year. Its GNPA for Q4FY18 stood at 11.53% as against 9.62% qoq which has increased by 191 bps. NNPA for the quarter came at 6.28% against 5.44% qoq which has increased by 84 bps. 

  • For FY18, total advances improved by 8% yoy to Rs2.23 lakh cr, whereas retail advances have increased by 7% yoy to Rs35,919cr and RAM advances increased by 5% to Rs97,047cr.
  • The net loss of Rs3,223cr during FY18 is due to higher provisioning, reduction in Treasury Income and MTM depreciation.
  • NII for FY18 increased by 4% to Rs6,552cr from Rs6,276cr in FY17.
  • Domestic Net Interest Margin (NIM) improved to 2.85% in FY18 from 2.7% in FY17.
  • Domestic CASA share as on FY18 end improved to 33.33% from 32.32% in corresponding period last year.
  • Cash Recovery during FY18 was Rs3,331cr as compared to Rs2,709cr in FY17.
  • Provision Coverage Ratio improved to 60.71% for FY18, up 56.37% yoy.
  • Capital Adequacy Ratio as per Basel III norms improved to 12.24% as on FY18 end, up 12.03% yoy, with CET 1 ratio at 7.56% & Tier I ratio at 9.41%.
  • During FY18, the Bank raised Rs5,040cr. Total capital (comprising infusion from Government of India of Rs2,839cr, QIP of Rs1,151cr and additional Tier-I bonds of Rs450cr and Tier-II bonds of Rs500cr).
Technical View:

Syndicate Bank ended at Rs. 49.80, down by 1.65 points or 3.21% from its previous closing of Rs. 51.45 on the BSE.
The scrip opened at Rs. 50.85 and touched a high and low of Rs. 52.30 and Rs. 49.10 respectively. A total of 43,55,161 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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