Syndicate Bank [Merger] - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above financial results were reviewed by the Audit Committee of the Bank and approved by the Board of Directors of the Bank at the meetings held on February 02, 2019. The results have been subjected to “Limited Review" by Statutory Central Auditors of the Bank.

2. There is no change in the Accounting Policies adopted during the nine months ended December 31, 2018 as compared to those followed in the annual financial statements for the year ended March 31, 2018.

3. Financial results for the nine months ended December 31, 2018 have been arrived at after considering provisions for Standard Assets, Non Performing Advances, provision for exposure to entities with unhedged foreign currency and Depreciation / Provision on Investments as per Reserve Bank of India guidelines. Provision for Income Tax including Deferred Tax, Depreciation on Fixed Assets and other necessary and usual provisions have been made on estimated basis and are subject to adjustment, if any, at the year end.

4. In terms of RBI circular dated July 01, 2015, banks are required to make Pillar 3 disclosures under Basel III Capital requirements. These disclosures are being made available on the Bank’s website. These disclosures have not been subjected to Limited review.

5. During the quarter, the Bank has allotted on preferential basis 18,36,99,217 equity shares of face value of Rs. 10 each at a premium of Rs. 29.63 aggregating to Rs. 728 Crore to the Government of India.

6. During the quarter, the Government of India has contributed Rs. 1632 Crore towards preferential allotment of Equity shares. Pending allotment as on December 31, 2018, the Bank has accounted Rs. 1632 Crore under the head "Share Application Money - pending for allotment" and is treated as a part of CET 1 capital as on December 31, 2018.

7. Pending settlement of the Bipartite agreement on wage revision (due from November 2017), an adhoc amount of Rs. 66 crore has been provided during the current quarter towards wage revision and Cumulative provision held as on December 31, 2018 for wage revision is Rs. 308 crore.

8. RBI vide its circular dated June 6, 2018 permitted Banks to continue the exposures to MSME borrowers to be classified as standard assets where the dues between September 1, 2017 and December 31, 2018 are paid not later than 180 days from their respective original due dates. In accordance with the provisions of the circular, the Bank has not recognised interest income of Rs. 7.82 crore and is maintaining a standard provision of Rs. 35.21 crore as on December 31, 2018. The Provision Coverage Ratio as on December 31, 2018 stood at 64.81%.

9. During the quarter, the Bank has made payment of interest of Rs. 99.50 crore on IPDI / AT 1 bonds by drawing from Statutory Reserves while routing the expenses through profit and loss account as per RBI circular dated 2nd February, 2017.

10. Figures of previous period / year have been reclassified / regrouped / recast wherever considered necessary to make them comparable with the period under review.

Mrutyunjay Mahapatra
Managing Director & CEO

Ajay Vipin Nanavati