Syndicate Bank has posted a declining net profit of Rs.4.03 billion for the fiscal year (FY) 2004-05, resulting in a negative growth of 7.14 percent over the previous fiscal at Rs.4.34 billion.

The setback in the bottom-line was due to the Rs.3.82 billion provided for depreciation on investments made in government securities and transferred to the hold-to-maturity (HTM) category and a one-time hit of Rs.920 million towards wage revision, bank chairman and managing director N. Kantha Kumar told reporters here Monday.

"For the same reasons, the operating profit also declined to Rs.9.94 billion from Rs.10.54 billion, posting a negative growth of 5.69 percent," Kumar said.

The bank's board of directors has recommended a final dividend of 14 percent for FY 2005. With an interim dividend of six percent announced mid-year, the total dividend payout is 20 percent.

The bank's business grew 15.15 percent to Rs.740.31 billion from Rs.642.90 billion a year ago.

In the light of higher credit off-take, the Manipal-based leading public sector bank's total advances witnessed a quantum jump of 27.69 percent year-on-year (YoY) to Rs.277.36 billion from Rs.217.05 billion.

In the domestic sector, advances shot up by 32.47 percent to Rs.243.77 billion from Rs.184.02 billion in the previous fiscal.

Retail credit continued to strongly grow with an increase of 40.93 percent YoY to Rs.79.36 billion (Rs.56.31 billion).

"Retail credit constitutes 37.72 percent of our total domestic advances. The net interest income grew by 18.54 percent to Rs.16.94 billion from Rs.14.29 billion," Kumar said.