Bharat Helps Syndicate Bank Register A Rise In Deposits

Syndicate Bank’s efforts to increase growth in rural and semi-business branches has finally paid off with both deposits and advances growing substantially.

“Business in our semi-urban and rural branches, which today constitute roughly about 64 per cent of the bank’s branch network, was significantly better compared to the metro and urban branches,” said Mrutyunjay Mahapatra, Managing Director and CEO, Syndicate Bank.

In CASA, the bank’s business grew from 33.33 per cent in March 2018 to 34.93 per cent in December 2018. In March 2019, it went further up to 36.77 per cent.

On the deposits front, term deposits moved from bulk deposits to retail term deposits. “In September 2018, 56.54 per cent of our total term deposits were retail term deposits. This has moved up to 66.45 per cent during the March 2019 quarter. This also shows a significant growth in retail term deposits from March 2018, when it was at 56.56 per cent. So, there was a 10 per cent uptick of retail term deposits vis-a-vis the term deposits from the bulk customers,” he said.

On the retail loan book front, according to Mahapatra, the bank saw a 5.42 per cent rise in the last quarter and in the retail credit it was 4.8 per cent; agriculture at 3.10 per cent and MSME at 5.42 per cent on amount basis growth.

He further said: “Industry-wise, we were very well-diversified exposure-wise and our exposure in the infrastructure sector, which was at nearly 13 per cent as in the December quarter, came down to 12 per cent and the NBFC sector remained at 11.5-12 per cent, while exposure in metal and metal products came down to 3 per cent from 4 per cent.”