Punjab National Bank, India's fifth-biggest lender by assets, said quarterly net profit fell 62% as provisions for bad loans were sharply higher.
The New Delhi-based bank said standalone net profit plunged to Rs 307 crore ($48 million) for its fiscal fourth quarter to end-March, from Rs 806 crore a year earlier.
Analysts on average had expected a net profit of Rs 836 crore, according to data compiled by Thomson Reuters.
Gross bad loans as a percentage of total loans rose to 6.55% from 5.97% in the previous quarter and 5.25% a year earlier. Provisions, including for bad loans, surged 79% to Rs 3,834 crore from a year earlier.
Shares in Punjab National Bank fell more than 6% after the results.