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Total income fell 11 percent to 8.99 billion rupees, the bank's accounts showed.
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Interest income fell 14 percent to 7.6 billion rupees and interest expenses fell at a faster 28 percent to 3.94 billion allowing net interest income to rise by seven percent to 3.
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66 billion rupees.
Basic earnings per share were down nine percent to 2.76 rupees.
Fee income rose 16 percent to 1.
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39 billion rupees but forex income fell 16 percent to 181 million rupees while other income rose 23 percent to 1.
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2 billion rupees.
HNB's performing loans and advances had fallen three percent to 157.
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3 billion rupees in the March quarter from December, with gross loans down one percent 171.9 billion rupees.
Loan loss provisions were 30 percent lower at 49 million rupees.
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Non-performing loans rose 17 percent to 14.
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6 billion rupees.
HNB's gross non-performing loans ratio net of interest in suspense rose to 7.
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40 percent as at March 2010 from 6.17 percent at the beginning of the year.
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Its interest