A stock exchange filing said total income fell 2.4 percent to 3.5 billion rupees.
The banking group's interest income fell 13.5 percent to 2.5 billion rupees while interest expenses fell 23.6 percent to 1.4 billion rupees enabling net interest income to rise 3.2 percent to 1.1 billion rupees.
Non-interest income rose 42 percent to just over a billion rupees, driven by a rise in other income and that from quoted and non-quoted securities.
The accounts showed a reversal in provisioning for bad loans of 15 million rupees in the September 2010 quarter compared with a provision of 37 million rupees the year before.
"The stringent policies adopted by the bank to maintain a high quality portfolio resulted in the bank’s ratio of Non Performing Loans (NPLs) to the gross lending portfolio improving from 2.58 percent as at December 31, 2009 to 2.08 per