Public sector lender Syndicate Bank reported profit of Rs 251 crore for the July-September quarter against a loss of Rs 1,542.5 crore in same period last year.
In the June quarter, it had posted a loss of Rs 980.46 crore. Steep fall in provisions, a sharp rise in other income and operating income support profitability.
Net interest income during the quarter under review stood at Rs 1,739.2 crore, up 10.6 percent YoY, with 6.9 percent credit growth. Net interest margin expanded 27 bps YoY to 2.65 percent in Q2.
Asset quality was stable at the end of the September quarter. Gross non-performing assets (NPA), as a percentage of gross advances, declined 31 bps QoQ to 11.45 percent, though net NPAs increased 2 bps QoQ to 5.98 percent.
Slippages at the end of the quarter stood Rs 2,185 crore, down 6.8 percent compared to Rs 2,344 crore in June quarter.
"Exposure of one corporate account worth Rs 400 crore slipped in Q2," the bank said.
Provisions and contingencies fell significantly to Rs 639 crore in Q2 FY20, down 67.5 percent QoQ and 71 percent YoY.
Tax expenses for the quarter were at Rs 66.4 crore against tax credit of Rs 104.6 crore in July-September period of 2018.
Other income or non-interest income shot up sharply by 52.3 percent YoY to Rs 745.85 crore and pre-provision operating profit increased 67.8 percent to Rs 956.36 crore compared to year-ago period.
The stock was quoting at Rs 30.80, up Rs 2.50, or 8.83 percent on the BSE at 1510 hours IST.
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