Syndicate Bank Share Price

Syndicate Bank Stock Trends in 2018

1. The opening stock price of Syndicate Bank on January 2, 2018, was Rs.80 on the NSE. Since the start of the year, the shares have been highly bearish and have gradually gone down, month-after-month. The shares lost a little over 9% to end the month of January at Rs.72.55.
2. The fall was far more noticeable in the month of February owing to turbulence in the international markets. The scrip lost another 15% in a matter of a couple of weeks to descend into the Rs.60 region. However, over the course of March, the Syndicate Bank stock price attempted to stabilize at levels above Rs.55. In this period, the stock price never went past the Rs.60 mark. The closing price on March 28 was Rs.55.45 on the NSE.
3. Through the months of April and May, the shares lost further to descend further into the Rs.40 region. There were a couple of instances when the share price of Syndicate Bank went below the Rs.45 mark, although they were fairly quick to recover.
4. The prices moved up marginally in June to ascend to their previous levels at Rs.50. However, this rise was soon followed by a gradual fall that, once again, took the shares back into the Rs.40 region. This time, the stocks were seen trading below the Rs.45 mark.
5. Things didn't change for the better over the course of July and August. The stock price continued to move down in a gradual manner. The prices took a sharp hit in the month of September when the stocks hit their 52-week low at Rs.30.60. Since the start of the year, the Syndicate Bank stock price had gone down by roughly 60%.

Syndicate Bank Stock Trends in 2016 and 2017

1. At the start of 2016, the stock price of Syndicate Bank was seen varying at levels slightly above Rs.85. Over the course of the first month, the shares shed more than 30% to descend into the Rs.50 region. It wasn't until the month of March that the prices recovered albeit, they gained just enough to touch the Rs.70 mark.
2. Through most of April and May, the Syndicate Bank shares were seen trading at levels varying from Rs.65 - Rs.72. In the final week of May, however, the stocks lost marginally to go down further close to the Rs.60 level. In June, the prices moved up, once again, and this time, they made it back to their previous levels above Rs.80.
3. Over the months of July, August, and September, the Syndicate Bank stock price maintained its momentum at levels well above Rs.70. While the shares didn't incur any sharp losses in this period, the investors did manage to benefit from this newly found momentum.
4. This positive rally was soon followed by a bear run in the final quarter of the calendar year. The stocks lost their previously made gains to descend into the Rs.60 region once again. The demonetisation phase led to the shares lose a little over 10% sharply. The closing price on December 30, 2016, was Rs.61.25 on the NSE.
5. 2017 turned out to be a rather positive year for the investors. The scrip commenced the year trading at levels close to Rs.60 on the NSE and BSE. The first quarter of the calendar year was a rather dull one for the investors as the shares didn't gain considerably in this period. The closing price at the end of May was Rs.71.25.
6. Through the course of April, the Syndicate Bank shares continued to maintain their heading at levels above Rs.70. In May, however, the stock price spiked sharply to touch the Rs.90 region for the first time since 2015. In a matter of two weeks, the shares gained close to 30% driven by positive sentiments among the traders.
7. However, the shares failed to find momentum at those levels and consequently, they retreated back to their previous levels at Rs.70 gradually over the course of June and July. The scrip incurred another sharp fall in the month of August and this time, they were down into the Rs.60 region. Through most of September and October, the shares were seen trading hands at levels varying from Rs.65 - Rs.70.
8. In the final week of October, the prices spiked sharply and ascended back to their previous levels above Rs.90. This phenomenal rise was driven by positive developments in the bank and eventually, the scrip reached its 52-week high at Rs.95.90. The shares lost marginally in the month of December to end the year at Rs.81.70.

Should you invest in Syndicate Bank shares?

1. Syndicate Bank is a public-sector undertaking by the Government of India. Just like any other bank, it offers an array of banking and financial services to its customers, catering to NRI, business, corporate, and personal segments.
2. For the quarter ended on June 30, 2018, the bank reported a loss of Rs.1,281 crore, as against a loss of Rs.263 crore for the same quarter last year. This massive loss came on the account of a sizeable drop in the income and a 50% increase in the provisions and contingencies. For the same period, the bank's business recorded a marginal increase.
3. As for the bank's asset quality, Syndicate Bank reported its gross NPA (non-performing assets) to be at 12.59%, in comparison to 9.96% reported for the June quarter of the previous financial year. Its net NPA also grew from 6.27% to 6.64%. Needless to mention, its asset quality has worsened over the year and same is impacting the company's profitability.
4. The same has been reflected in the performance of the bank's shares. Since the start of 2018, the shares have lost more than 60% and as of late September, they were seen trading close to their 52-week low at Rs.30.60. However, in 2017, the shares did enjoy a decent bull run although, all of those gains have been effectively shed.
5. As the Reserve Bank of India boosts its effort to tackle the bad loans problem, we can expect the public sector bank such as this one to gradually report a reduction in its non-performing assets. However, this is likely to take some time and it may not be a while before we see Syndicate Bank report a healthy profit. Therefore, anyone who is looking to invest in Syndicate Bank shares needs to exercise patience.
6. Alternately, you can look into other banks with superior asset quality and healthier profits. Whatever may be the case, it is strongly recommended that you research thoroughly before investing.

Company Information

Syndicate Bank is a public-sector bank owned by the Government of India. It is one of the 13 nationalised commercial banks that offers an array of banking and financial services and products to the people. Its major offers are deposits, current and savings account, loans, insurance, mutual funds, DEMAT, and cash management services. It broadly caters to personal, corporate, business, and NRI segments. The bank currently employs a little over 35,000 people and has a strong presence throughout the country.

History of the Company

The roots of the bank can be traced back to the year 1925, when it was established in Udupi by three local visionaries. The idea behind setting up the bank was to provide financial assistance to the local weavers who were plagued by a crisis in the handloom industry. It started a Pigmy Deposit Scheme back in 1928 to promote the habit of saving among the people. Over the course of the next few decades, the bank expanded its operations and built a solid customer base in the country. The bank was eventually nationalised in 1969 by the Government of India. This was further followed with subsequent integration and expansion.

Management of the Company

Mr. Mrutyunjay Mahapatra - Managing Director & Chief Executive Officer

Mr. Mrutyunjay Mahapatra presently serves as the Managing Director and Chief Executive Officer of Syndicate Bank. He has held these positions since September 2018 and prior to this, he served as the Chief Information Officer and Deputy Managing Director of State Bank of India. In addition to this, he also served as the bank's Regional Head for its UK division. Along with his present duties, Mr. Mahapatra serves as a Director at the State Bank of India California and as a Non-Executive Director at SBI Mauritius Limited.

Mr. S. Krishnan - Executive Director

Mr. S. Krishnan presently serves as the Executive Director of Syndicate Bank - a post he has held since November 2017. He has been a part of the banking industry for more than 30 years now and is a qualified Cost Accountant. In addition to this, he is a Certified Associate of Indian Institute of Bankers. Over the course of his illustrious career, he has held several key roles in almost all areas of banking. He specialises in Corporate Credit and Risk Management - he, in fact, served as the Chief Risk Officer of the Bank.

Mr. Ajay Vipin Nanavati - Non-Executive Chairman

Mr. Ajay Vipin Nanavati currently serves as the Non-Executive Chairman of Syndicate Bank. He started his career in 1988 with 3M India as one of its first employees. Over there, he oversaw the task of forming the joint venture and built the company from the ground up. Over the course of the next 25 years or so with 3M, he held various responsibilities in different geographies. Eventually, he rose through the ranks to become the managing director of 3M Israel. He also served as the Director of Global Channel Services & US Atlantic Pacific Operations.

Syndicate Bank Listings in NSE, BSE, and Stock Market Indices

The equity shares of Syndicate Bank are available to the general public for trading. The shares are listed on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective call signs for the same are as follows:

1. BSE Code: 532276
2. NSE Code: SYNDIBANKEQ
3. Sector: Finance - Banks (Public Sector)
4. ISIN: INE667A01018

Coming to the stock market indices, Syndicate Bank comprises the following:

1. Nifty 500
2. Nifty Full Midcap 100
3. Nifty Smallcap 100
4. Nifty PSU Bank
5. S&P BSE 500
6. S&P BSE AllCap
7. S&P BSE Finance
8. S&P BSE PSU
9. S&P BSE SmallCap

Registered Office

Syndicate Bank

Corporate Office

II Cross, Gandhi Nagar

Bengaluru - 560009

Karnataka, India

Email: inrc@syndicatebank.co.in

DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.