Interest income declined to Rs 1,800.02 crore from Rs 2,070.94 crore.
The lender witnessed deterioration in its asset quality as the gross non-performing assets (NPAs) swelled to 14.34 per cent of the gross advances as on June 30, 2020, compared to 12.88 per cent a year ago.
In absolute value terms, the gross NPAs or bad loans were at Rs 8,848.06 crore, compared to Rs 8,885.86 crore.
Net NPAs, however, were down at 7.57 per cent (Rs 4,326.41 crore), as against 7.77 per cent (Rs 5,062.36 crore).
The bank''s provisions for bad loans and contingencies for June quarter of FY21 were raised to Rs 382.56 crore from Rs 334.53 crore.
However, the provision made only for bad loans stood at Rs 330.80 crore in the first quarter this fiscal, as against Rs 211.13 crore in the year-ago period.
"Bank has reported in one loan account in the road projects under borrowal fraud category to RBI during quarter four of financial year 2019-20 involving amount of Rs 38.19 crore outstanding as on December 31, 2019. The account was already under NPA category since October 31, 2016 and provision of Rs 15.27 crore was held till December 2019," it said.
The bank said it has made a provision of Rs 26.73 crore till June 30, 2020 against this account, and balance of Rs 11.46 crore has been deferred to be provided in next the two quarters of 2020-21.
With regard to Delhi Airport Metro Express Pvt Ltd (DAMEPL) account, it said in terms of the Supreme Court order and RBI guidelines, the bank has kept DAMEPL as standard account.
Following the order, the bank has not treated an amount of Rs 147.07 crore as NPA, but made the necessary provisions of Rs 36.77 crore towards the same.
The bank''s provision coverage ratio and liquidity coverage ratio as on June 30, 2020 stood at 69.20 per cent and 220.80 per cent, respectively.
On COVID-19 related moratorium provisions, the bank has made provision of Rs 100 crore as per the RBI guidelines, which is more than minimum, it said.
PSB shares closed flat at Rs 13.32 apiece on the BSE.