Monday, May 7, 2012

SYNDICATE BANK = RESULTS = FOR Q4 FY 2012 = FY 2012 = Q4 NPT UP 7% YoY = FY 12 NPT UP 25.32% YoY


Syndicate Bank
NSE Symbol        SYNDIBANK
SYNDICATE BANK has declared results for Q4 FY 12, which is analysed below :

Interest on Advances in Q4 FY 12 stands at Rs.3299.59cr; up 2.71% from Q3 FY12 (Rs.3212.48 Cr); and up 27.23% from Q4 FY 11 (Rs.2593.32 cr).

Income on Investments       in Q4 FY 12 stands at Rs.755.27 cr; up 3.08% from Q3 FY12 (Rs.732.68 Cr); and up 31.66% from Q4 FY 11 (Rs.573.66 cr).

Interest Earned  in Q4 FY 12 stands at Rs.4124.66 cr; up      3.79% from Q3 FY12 (Rs.3973.94 Cr); and up 30.44% from Q4 FY 11 (Rs.3162.02 cr).

Other Income     in Q4 FY 12 stands at Rs.299.67 cr; up 24.65% from Q3 FY12 (Rs.240.41 Cr); and up 17.71% from Q4 FY 11 (Rs.254.58 cr).

Total Income       in Q4 FY 12 stands at Rs.4424.33 cr; up 4.98% from Q3 FY12 (Rs.4214.35 Cr); and up 29.5% from Q4 FY 11 (Rs.3416.60 cr).

Interest Expended in Q4 FY 12 stands at Rs.2788 cr; up       5.25% from Q3 FY12 (Rs.2648.97 Cr); and up 39.34% from Q4 FY 11 (Rs.2000.88 cr).

Net Interest Income in Q4 FY 12 stands at Rs.1336.66 cr; up 0.88% from Q3 FY12 (Rs.1324.97 Cr); and up 15.12% from Q4 FY 11 (Rs.1161.14 cr).

Total Expenditure(excl.provisions) in Q4 FY 12 stands at Rs.3633.89 cr; up 10.4% from Q3 FY12 (Rs.3291.59 Cr); and up  32.4% from Q4 FY 11 (Rs.2744.64 cr). Expenditure has gone up more than proportionately – compared to total income. This has affected profitability in the quarter.

Operating Profit in Q4 FY 12 stands at Rs.790.44 cr; Down(-)14.34% from Q3 FY12 (Rs.922.76 Cr); and up 17.63% from Q4 FY 11 (Rs.671.96 cr).

Provisions in Q4 FY 12 stands at Rs.542.18 cr; Down (-)0.28% from Q3 FY12 (Rs.543.72 Cr); and up         53.6% from Q4 FY 11 (Rs.352.98 cr).Provisions have increased steeply in last 2 quarters – indicating lower asset quality.

Profit  before tax in Q4 FY 12 stands at Rs.248.26 cr; Down(-)34.5% from Q3 FY12 (Rs.379.04 Cr); and Down(-)22.17% from Q4 FY 11 (Rs.318.98 cr).

Tax Expense in Q4 FY 12 stands at Rs(-)61.17 cr; compared to Q3 FY12 (Rs.40.92 Cr); and  Q4 FY 11 (Rs.29.69 cr).

Net Profit  in Q4 FY 12 stands at Rs.309.43 cr; Down (-)8.49% from Q3 FY12 (Rs.338.12 Cr); and up 6.96% from Q4 FY 11 (Rs.289.29 cr). Net Profit has not shown any increased trend in Q4.

Face Value stands at Rs.10; Paid-up Equity in Q4 FY 12 stands at Rs.601.95 Cr.

Capital Adequacy Ratio in Q4 FY 12 stands at 10.81%-against 11.48% in Q3 FY 12; and 11.2%  in Q4 FY 11.

Basic EPS in Q4 FY 12 stands at Rs.5.39; against Rs.5.9 in Q3 FY 12; and Rs.5.53 in Q4 FY 11.

Gross/Net NPA   in Q4 FY 12 stands at Rs.1185.43 cr; up 19.44% from Q3 FY12 (Rs.992.50 Cr); and up 15% from Q4 FY 11 (Rs.1030.84 cr).

 % of Gross/Net NPA in Q4 FY 12 stands at 0.96% ; against 0.86% in Q3 FY 12; and 0.97% in Q4 FY 11. Asset quality has slightly deteriorated.

Return on Assets in Q4 FY 12 stands at 0.76% - against 0.86% in Q3 FY 12; and 0.84% in Q4 FY 11.

Public holding (%)in Q4 FY 12 was 33.83% against 30.53% earlier.

ANNUAL RESULTS REVIEW

FY12 vs FY 11 vs FY 10

Interest on Advances in FY 12 is Rs.12371.28 Cr – up 34.51% from FY 11 (Rs.9197.24 Cr) ; and up 60.72% from FY 10 (Rs.7697.22 Cr).

Income on Investments in FY 12 is Rs.2736 Cr ; up 23.93% from FY 11 (Rs.2207.72 Cr) ; and up 20.63% from FY 10 (Rs.2268.02 Cr).

Interest on Balances With RBI in FY 12 is Rs.150.71 Cr; up 1305.88% from FY 11 (Rs.10.72 Cr); and up 195.74% from FY 10 (Rs. 50.96 Cr).

Interest Earned in FY 12 is Rs.15268.35 Cr; up  33.34%from FY11 (Rs.11450.86 Cr); up 51.97% from FY 10 (Rs.  10047.18. Cr).

Other Income in FY 12 is Rs.1075.97 Cr ; up 17.57% from FY 11 (Rs.915.14 Cr); and down  -7.84% from FY 10 (Rs.1167.48 Cr).

Total Income in FY 12 is Rs.16344.32 Cr;  up 32.17% from FY 11 (Rs.12366 Cr); and up 45.74% from FY 10 (Rs.  11214.66 Cr).

Interest Expended in FY 12 is Rs.10183.03 Cr; up 44.07% from FY 11 (Rs.7067.93 Cr) ; and  up 39.36% from FY 10 (Rs.7307.24 Cr).

Net Interest Income in FY 12 is Rs.5085.32 Cr ; up 16.03% from FY 11 (Rs.4382.93 Cr); up 85.60% from FY 10 (Rs.  2739.94 Cr). The improvement in in NII is impressive.

Employees cost in FY 12 is Rs.1891.98 Cr;  up    6.64% from FY 11 (Rs.1774.11 Cr) ; up 41.38% from FY 10 (Rs.1338.27 Cr).

Other Oprting Expenses in FY 12 is Rs.921.10 Cr; up  19.17% from FY 11 (Rs.772.94 Cr); up 32.72% from FY 10 (Rs.694.03 Cr).

Operating Expenses in FY 12 is Rs.2813.08 Cr; up 10.44% from FY 11 (Rs.2547.05 Cr); and up  38.42% from FY 10 (Rs.2032.30 Cr).

Total Expenditure (excl.provisions) in FY 12 is Rs.12996.11 Cr; up  35.17% from FY 11 (Rs.9614.98 Cr); and up 39.15% from FY 10 (Rs.9339.54 Cr).

Operating Profit  in FY 12 is Rs.3348.21 Cr; up 21.71% from FY 11 (Rs.2751.02 Cr); and  up  78.56% from FY 10 (Rs.1875.12 Cr). Improvement in OPT is very good.

Provisions in FY 12 is Rs.1919.47 Cr; up 31.08% from FY 11 (Rs.1464.36 Cr); and  up 174.34% from FY 10 (Rs.699.66 Cr). The Provision coverage Ratio as on 31.3.2012 is 80.06%.

Dividend of 38% has been recommended.

Profit before tax in FY 12 is Rs.1428.74 Cr; up 11.04% from FY 11 (Rs.1286.66 Cr); and up          21.55% from FY 10 (Rs.1175.46 Cr).

Tax Expense  in FY 12 is Rs.114.37 Cr; down (-)51.92% from FY 11 (Rs.237.88 Cr); and down(-)68.34% from FY 10 (Rs.361.20 Cr).

Consolidated NPT in FY 12 is Rs.1314.37 Cr; up 25.32%from FY 11 (Rs.1048.78 Cr); and up  61.42 % from FY 10 (Rs.814.26 Cr). There is good progress in Consolidated Net profit.

Reserves in FY 12 is Rs.7437.62 Cr; up 22.20% from FY 11 (Rs.6086.51 Cr); and up 58.22% from FY 10 (Rs.4700.89 Cr).

Capital Adequacy Ratio   strands at 12.24% in FY 12; against 11.2% in FY 11; and 11.2% in FY 10.

Gross/Net NPA in FY 12 is Rs.1185.43 Cr ; up 15.00% from FY 11 (Rs.1030.84 Cr); and up  21.24% from FY 10 (Rs.977.73 Cr). NPAs are not coming down in absolute numbers.

% of Gross/Net NPA in FY 12 is 0.96%; against 0.97% in FY 11; 1.07% in FY 10.

Return on Assets in FY 12 is 0.81%; against 0.76 in FY 11; and 0.62% in FY 10.

Basic EPS in FY 12 is Rs.22.91 in FY 12; Rs.20.04 in FY 11; and Rs.15.58 in FY 10. On a YOY Basis, there is a steady Growth in EPS.

The current price of the share is Rs. 94.35;while the 52 week high price is Rs.124.75 and the 52 week low price is Rs.67.40.

The PE Ratio works out to 4.12.

The Bank has allotted 2,86,64,284 shares to LIC – at a premium of Rs.104.15 on a FV of Rs.10. – Total amount :- Rs.327.20 Cr

BALANCE SHEET DETAILS (In Cr)

ITEM            = FY12=      =FY11=
Deposits      157941 =    135596
Borrowings  10590 =      9528
Investments          40815 =      35068
Advances     =123620=  106782

Domestic Deposits have improved to Rs.147707 cr, up by 16%.
Domestic Advances have improved to Rs.110954 cr, up by 14%.
Global Business improved to Rs.283558 cr, up by 16%
Savings Deposits have touched Rs.34295 cr.
Domestic CASA deposits  form 31.47% of total domestic deposits
Credit Deposit Ratio stands at 79.53% (against 79.91% last year)
Yield on Advances has gone up from 9.52% to 10.98%.
Net Interest Margin stood at 3.43%
Cost to Income ratio down from 48.1% to 45.68%
Book Value per share – up from 122.99 to 150.13
Return on Equity = 16.33%
Bank has more than 2700 Branches.
Target is 3000 Branches by 31.3.2013 with Business size of Rs.350000 Cr plus.
Overall – the future of Syndicate bank appears to be very good – taking into consideration, the relaxing of Interest Rates by RBI and lowering of CRR.

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