Public sector lender Syndicate Bank today reported 75.3 per cent decline in net profit at Rs 82.4 crore for the second quarter ended September 30, as provision for bad loans almost doubled.
The bank's net profit in the July-September quarter of the previous fiscal stood at Rs 332.37 crore.
Total income also declined to Rs 6,574.93 crore during the second quarter from Rs 6,670.19 crore earned in the year-ago period, the bank said in a regulatory filing on stock exchanges.
The bank's asset quality slipped with gross non-performing assets (NPAs) or bad loans more than doubled to 7.72 per cent of gross advances during the reported quarter, from 3.72 per cent a year ago.
Net NPAs also increased to 5.03 per cent of net advances as against 2.37 per cent in the same quarter last year.
As a result, provisions and contingencies rose to Rs 864.14 crore during the period from Rs 440.29 crore a year ago.
Private sector Axis Bank today reported 83 per cent plunge in net profit for the July-September quarter at Rs 319 crore mainly due to higher provisioning for bad loans.
The bank had posted a net profit of Rs 1,915.64 crore for the July-September period of FY2015-16.
Axis Bank in a regulatory filing said that net profit in the first half of the current fiscal declined by 52 per cent to Rs 1,875 crore.
"The Bank has posted a net profit of Rs 3,190.80 million for the quarter ended September 30, 2016 as compared to Rs 19,156.40 million for the quarter ended September 30, 2015," the filing said.
Total Income increased to Rs 13,698.7 crore in the period under review from Rs 12,001 crore for the quarter ended September 30, 2015.
The Bank said its Gross NPAs and Net NPAs rose to 4.17 per cent and 2.02 per cent respectively in the second quarter of 2016-17 fiscal.
"As on September 30, 2016, loans outstanding on the Bank's Watch List reduced 32 per cent over the previous quarter and stood at Rs 13,789 crore.
"The reduction in the Watch List primarily represents slippages to NPAs amounting to Rs 7,288 crore, which comprises 89 per cent of the total corporate credit slippages," Axis Bank said.
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