For the quarter ended June 30, Housing finance major HDFC Ltd has registered an increase of 23% in its net profit, which stood at Rs 695 crore as against Rs 565 crore during the same period of 2009.

Mr. Keki Mistry, CEO and Vice-Chairman, stated that the increase in profits was owing to augmentation in interest income as HDFC had nil profit from sale of investments in the just-ended period.

Mr. Keki also said that during the three month period ended June 2009, HDFC had made an inflow of Rs 51 crore from sale of investments.

"Our net interest income increased by 30 per cent to Rs 1,077 crore, from Rs 830 crore last year," Mr. Mistry said.

According to company's release, lower interest rates persisting in the market also resulted into a small 1.7% decline in total income to Rs 2,802 crore as against Rs 2,849 crore a year earlier.

Because of lower interest rates, HDFC's Q1 interest expenses declined 12.4% to Rs 1,720 crore as compared to Rs 1,963 crore during the corresponding period of last year.

During the period under review, the company's gross non-performing loans stood at 0.89% of its loan portfolio as against 0.98% during 2009.

The statement said, "Based on a six months overdue basis, the non-performing loans as at June 2010 stood at 0.54% of the loan portfolio."

While speaking at the company's AGM, Mr. Deepak Parekh, Chairman, HDFC, stated that there is too much supply of commercial property owing to which rents and rates have come off from the upper levels.

On Wednesday, the shares of the company ended the day at Rs 3,077.6 after surging 0.47% as against its last closure of Rs 3,063.2, on the Bombay Stock Exchange.