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In the year ended December 31, 2011, interest income fell 1.
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4 percent to 43.2 billion rupees while interest expenses fell at a faster 6.
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5 percent to 30.1 billion rupees, enabling net interest income to rise 12.
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4 percent to 13.1 billion rupees.
The bank's interest margin fell to 3.
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8 percent from 4.4 percent the year before
NSB's non-interest income fell 39 percent to 4.7 billion rupees in 2011 from the year before.
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Provision for bad loans fell 25 percent to 78 million rupees.
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NSB also made provision of almost 1.2 billion rupees for the fall in the market value of investments.
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Total performing loans and advances grew 33 percent to 112 billion rupees as at December 31, 2011 from a year ago and total deposits rose 16 percent to 411 billion rupees.
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NSB aims to raise deposits from people in rural areas and give it back through housing and personal loans to the same people, he said.
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"In 2011 we disbursed more loans through our branches than in the past because we have decentrali