State-owned lender Punjab & Sind Bank (PSB) today reported 33 per cent dip in net profit at Rs 91.63 crore for the third quarter ended December 31, 2011, due to rise in bad loans.

The lender had posted a net profit of Rs 135.30 crore for the corresponding quarter last fiscal.

The bank's gross NPAs increased to 1.28 per cent at the end of third quarter from 0.91 per cent in December, 2010. Its net NPAs also went up to 0.88 per cent during the three-month period from 0.44 per cent during the first quarter of 2010-11.

However, the total income of the lender rose to Rs 1,754.44 crore during the October-December period from Rs 1,352.48 crore in the same period a year ago, PSB Chairman D P Singh told reporters here.

The interest earned of the bank rose to Rs 1,660.87 crore during the reporting quarter from Rs 1260.88 crore in the third quarter of the previous fiscal.

Total business of the bank rose by 12.52 per cent to Rs 1,01,855 crore at the end of December, 2011.