Syndicate Bank's June quarter net loss widens to Rs 1,282 cr; bad loans rise to 12.59%

New Delhi: State-owned Syndicate Bank on Monday said its net losses have widened to Rs 1,281.77 crore during first quarter ended June of the current fiscal as bad loans rose. Its loss in the corresponding April-June period of 2017-18 was at Rs 263.19 crore. Its income also fell to Rs 5,637.51 crore during the June quarter of 2018-19, as against Rs 6,171.49 crore a year ago. The bank said in a regulatory filing that its interest income fell to Rs 5,257.19 crore, from Rs 5,484.13 crore. Besides, there was a significant fall in interest earned on balances with RBI and other interbank funds. [caption id=“attachment_2664032” align=“alignleft” width=“380”] Syndicate Bank. Getty image.[/caption] The asset quality was dented further to 12.59 percent of the gross non-performing assets (NPAs) or bad loans as on 30 June, 2018 from 9.96 percent a year ago. It was 11.53 percent in the preceding quarter ended March. Net NPAs too worsened to 6.64 percent, from 6.27 percent as on 30 June, 2017 and 6.28 percent by end-March this year. In value terms, the gross NPAs stood at Rs 26,361.52 crore at 30 June this year, as against Rs 20,183.85 crore a year ago. Net NPAs were at Rs 13,010.80 crore vis-a-vis Rs 12,188.30 crore. “Based on legal opinion given by an independent expert, pending issuance of the final NCLAT order, an amount of Rs 100.86 crore 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 a portion of bad loans, the bank parked aside a higher provisioning amount for NPAs at Rs 1,774.11 crore in June quarter, as against Rs 1,385.66 crore a year ago. Overall provisioning and contingencies were at Rs 2,326.82 crore, up from Rs 1,333.88 crore. The stock of Syndicate Bank closed 2.65 percent down at Rs 44.10 on BSE.