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Government equity in Syndicate Bank to come down to 74 per cent

Government equity in Syndicate Bank will come down to 74.5 per cent after the initial public offering of 12.5 crore equity shares of Rs 10 each for cash at par aggregating Rs 125 crore.

The issue due to open on October 25 will be managed by SBI Capital Markets, bank chairman and managing director K V Krishnamurty said. 'This will be the first offering by public sector bank at par,' he added.

Addressing reporters here, the bank cmd said the issue is being made to augment the capital base to meet future capital adequacy requirements and to augment its long-term resources.

Post-issue, the CAR will be 10.2 per cent from the current 9.57 per cent. The bank's non-performing assets are 3.93 per cent, among the lowest of public sector banks, Krishnamurty said.

The earning per share of the bank was Rs 4.11 with book value of Rs 20.13 at the end of 1998-99 fiscal.

The bank has Rs 19,914 crore deposits, Rs 9,313 crore advances and total business base of over Rs 29,000 crore spread over 1,670 branches by the end of March 1999.

"The net profits would be Rs 236 crore by the end of March 2000, a 65.5 per cent growth," Krishnamurty said. As on March 31, 1999, the net profits increased by 73 per cent to Rs 142 crore while the operating profits grew by 37.42 per cent at Rs 186 crore.

UNI

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