For the three month period ended December 2010, HDFC's net profit grew by 33% to Rs 891 crore as against Rs 671 crore during the same period of 2009.

The company recorded this growth on account of increase in disbursements as well as sturdy returns from sale of investments.

Keki Mistry, vice-chairman and MD, HDFC, stated that the company kept on maintaining its margin at more than 4% regardless of the augmentation in the rates of interest, and the demand for individual loans remained up with sanctions as well as disbursals rising at 39% and 38%, respectively.

On December 31, 2010, the company's loan book remained at Rs 1.09 lakh crore as compared to Rs 90,410 crore during 2009.

In the last 12 month period, loans sold remained at Rs 5,387 crore.

The earnings for the three month period under review were along the lines of Dalal Street's projections.

Analysts were anticipating the profits to be in the region of Rs 840 crore, factoring in a lesser growth in treasury profits.

A report by Deutsche Bank stated, "HDFC's net profit came in at Rs 891 crore, 9.6% higher than our estimate and 4.3% above Bloomberg Finance LP consensus."

According to Mistry, an augmentation in rates of interest would not affect margins or the loan demand.

"Our buyers are almost entirely those who are buying homes to live in and such decisions are not deferred because of a 25 basis point interest rate hike," he said. When asked about his interest rate expectations from the forthcoming monetary policy, Mistry said, "I hope they ( RBI) do not raise interest rates. You cannot fight food inflation by raising rates, but higher rates will hurt the economy."