Our Bureau
Bangalore, May 4
Despite a 57 per cent increase in net interest income, Syndicate Bank's net profits fell 18.5 per cent during the fourth quarter of financial year 2009-10.
A bank release said that net profits were lower “mainly due to higher provisions towards wage arrears, taxes, etc”.
The provision made towards taxes during the quarter at Rs 121.07 crore (Rs 26.56 crore), up almost 4.6 times. The bank has also made provision of Rs 34 crore (Rs 15 crore) towards arrears of wages during the quarter.
The board of directors has recommended a 30 per cent dividend for the year. On Tuesday, the bank's shares ended down 2.48 per cent at Rs 90.35 on the BSE.
The bank's NPA coverage ratio is 73.3 per cent.
For the fiscal ended March 31, 2010, the bank's net profit was down 11 per cent at Rs 813.32 crore (Rs 912.82 crore), mainly due to higher provisions towards taxes at Rs 360.71 crore (Rs 111.92 crore) and wage arrears at Rs 220 crore (Rs 75 crore).
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