A public sector lender, Syndicate Bank posted an increase in the net profit by 50 per cent at Rs 508 crore in the third quarter which ended on December 31st, 2012 against Rs 338 crore for the corresponding period of the previous year.

The increase in net profit was driven by improvement in yields, reduction in cost of deposits and good recoveries, said Mr. M G Sanghvi, Chairman and Managing Director of Syndicate Bank.

 The net interest income grew 9.6 per cent to Rs 4109 crore, while advances and deposit also grew by 17.3 per cent and 14.6 per cent respectively.

The net interest margin (NIM), however declined marginally to 3.28 per cent against 3.33 per cent for the last financial year. The Total business of Syndicate Bank has crossed the Rs 3 lakh crore mark.

The net non-performing assets (NPAs) declined marginally to 0.85 per cent against 0.86 per cent for last year.

The Bengaluru based Syndicate Bank will mainly target on pushing up credit to the retail and mid-corporate segments, Mr. Sanghvi said.

Advances and deposits, he said, could grow at 17 per cent and 15 per cent respectively. "We are hopeful of maintaining the NIM at the current level for the full year," Mr. Sanghvi added.

Mr. M. Anjaneya Prasad, Executive Director, also said that the number of branches would be increased to 3,000 by March end this year from the current 2,761 branches.

Hiring of 1,400 clerks and 1,500 officers is on the cards through the Institute of Banking Personal Selection (IBPS) selection, Mr. Sanghvi added.