Corporation Bank, Syndicate Bank post losses in Q3

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The poor performance of public sector banks (PSBs) in the country is back in the news again, with both Corporation Bank and Syndicate Bank registering losses in their Q3 results. While the net loss reported by Corporation Bank for the quarter stands at Rs.1,240.49 crore, Syndicate Bank saw a net loss of Rs.869.77 crore in the same quarter.

Corporation_Bank
Corporation Bank posted a loss of Rs.1,240.49 crore in its Q3 report.

Bad loans and an increase in their non-performing assets (NPAs) were the primary reasons for losses by both banks.

Corporation Bank’s total income for the quarter stood at Rs.4,841.37 crore, down from Rs.5,839.56 crore in the same quarter the previous year. 15.92 per cent of its loans were termed as NPAs, posing a serious challenge to the management.

Syndicate Bank, which had registered a Rs.93.56 crore net profit in Q3 of 2016-17, saw its total income dip to Rs.5,945.15 crore during Q3 FY17-18. Gross NPAs stood at 9.62 per cent of all loans provided by the bank, as against 8.69 per cent in Q3 of 2016-17.

The net interest income (NII) of Corporation Bank during the quarter saw a 2.7 per cent increase over the NII of the same quarter in the previous year, with it touching Rs.1,263.47 crore. The bank also managed to raise a sum of Rs.1,300 crore through bonds in the quarter.

The quarter has been especially hard on public sector banks, with United Bank of India and Bank of India also registering losses of Rs.637 crore and Rs.2,341 crore respectively. The combined loss suffered by PSBs in the quarter exceeds Rs.15,000 crore, with these losses negating any profit made by private banks in the same period.

Among the private banks HDFC Bank registered a profit of Rs.4,642 crore, with ICICI Bank and Axis Bank registering profits of Rs.1,650 crore and Rs.726 crore respectively.

Read More: Rs.20,000 crore debt written off by SBI in last fiscal

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