Views on Syndicate Bank 3QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP- Research – Banking, Angel Broking) on Syndicate Bank 3QFY2014 results:

"Syndicate Bank reported subdued operating performance for the quarter. NII for the bank de-grew 3% yoy (vs. domestic advance growth of 7% yoy), while Non-interest income grew moderately by 9% yoy. At the pre-provisioning profit level, the bank reported 7% yoy decline. On the asset quality front, the bank witnessed stability, as absolute Gross and net NPA levels remained largely flat sequentially. Gross NPA ratio decreased by 8bp to 2.8%, while Net NPA ratio remained flat qoq. Provisioning expenses for the bank declined 13% yoy, which resulted in PBT level earnings growth of 4% yoy. However, the bank had much lower tax reversals during the quarter as compared to what it had in 3QFY2013 (at Rs. 33cr in 3QFY2014 vs. Rs. 174cr in 3QFY2013), which resulted in PAT de-growth of 25% yoy. We seek management comments on asset quality performance during the quarter and the outlook on asset quality and tax rate going ahead. Until then, we maintain our Neutral Rating on the stock."

Source : Equity Bulls

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