State-run Syndicate Bank posted net profit of Rs 206 crore during the three month period ended Dec 2009 as against Rs 356 crore in December 2008.

The banking institution recorded a marginal fall in its quarterly total income, which stood at Rs 2,677 crore as compared to Rs 2,759 crore earlier.

Net interest of the bank declined 5.15% YoY to Rs.718 crore as against Rs 757 crore.

Sharp provisioning of Rs 207 crore towards bad loans and emergencies during the quarter as against Rs 23 crore made during the corresponding period of last financial also affected the end result.

Despite higher provisioning, bank’s NPA increased to Rs 2,018 crore from Rs 1,762 crore.

In the same way, the net NPA surged to Rs.836 crore as against Rs 622 crore on annualised basis.

Accordingly, return on assets (RoA) dropped to 0.64% as compared to 0.87% YoY.

Revenue from business and wholesale banking operations dropped to Rs.1,071 crore during the quarter as against Rs 1,614 crore during the same quarter of 2008 and led to profit lowering to Rs 222 crore as against Rs 335 crore year ago.

Though income from treasury operations surged slightly to Rs 589 crore, Syndicate Bank experienced a higher loss of Rs 22 crore from Rs 10 crore during 2008.

Hence, operating profit fell 5.4% YoY to Rs 488 crore as compared to Rs 514 crore.