Analyst Meet / AGM - Analyst Meet

03-Aug-2015, 05:48
Syndicate Bank conducted the analyst meet on 31 July 2015 to discuss the financial performance of bank for the quarter ended June 2015. Arun Shrivastava, MD&CEO of the bank addressed the meet:

Highlights:

• Profitability of the bank was impacted by higher provisions in Q1FY2016 and deferred tax liability.

• Fresh slippages of advances jumped to Rs 1990 crore in Q1FY2016 compared with Rs 828 crore in the previous quarter. Bank witnessed fresh slippages of Rs 300 crore in the overseas branch, while the bank has started recovery process.

• Fresh restructuring of advances stood at Rs 209 crore in Q4FY2015. The outstanding restructured advances of the bank stood at Rs 10371 crore at end June 2015.

• Bank recorded healthy upgradations in the restructured advance book of Rs 615 crore in Q1FY2016.

• Of the restructured advances of Rs 10371 crore, about Rs 4073 crore relating to state electricity boards and aviation are government guaranteed.

• The slippages in the restructured advances book were moderate at Rs 221 crore.

• Bank did not conduct any asset sales to ARCs in Q1FY2016.

• Bank expects the asset quality improvement by end March 2016 from current levels.

• Bank has conducted refinancing of Rs 1000 crore of loans for five account under 5/25 scheme. Meanwhile, bank has pipeline of Rs 800-900 crore of refinancing for two accounts under 5/25 scheme.

• Bank has reduced the share of high cost deposits to 9.5% of total deposits at end June 2015 from 11.6% at end March 2014.

• Bank has exhibited strong business growth of 21% driven by deposits growth of 25%, while advances moved up 15% at end June 2015 over March 2014.

• Bank has shareholders approval for capital raising of Rs 5000 crore, while it is expecting capital allocation from government.

• About Rs 1000 crore restructured advances are coming out of moratorium in FY2016.

• The tax rate for the bank is expected to be 26% for FY2016.

• The expenses growth was moderate for the bank in Q1FY2016, as bank has already met employee wage hike arrear related provisions.

• Bank has recruited 1516 officers and 1688 clerks in the quarter ended June 2015.

• Bank plans to open 355 new branches in FY2016.

• Bank has planned to open about 100 branches as fast track branches, wherein business level is expected to be at least Rs 25 crore in a year.

• Bank also plans to open at least 8 state of the art branches, which would be of international standard in terms of infrastructure.

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