Housing Development Finance Corporation (HDFC) has recorded a growth of 23 per cent in net profit to Rs 671.25 crore in the third quarter of the current financial year from Rs 546.83 crore in the same period last year.

India's largest mortgage finance company also recorded a strong growth in its loan disbursements. Various banks in the housing loan segment have seen a rise in business due to attractive offers.

For the first nine months of the current financial year, the bank’s loan approvals recorded a growth of 22 per cent and amounted to Rs 41,110 crore against Rs 33,820 crore in the corresponding period last year.

Loan disbursements reached 23 per cent higher to Rs 33,527 crore for the period against Rs 27,211 crore during the corresponding period last year.

It converted 88% of approvals into disbursements in the December 2009 quarter against 85% in the previous quarter. Bank’s non-performing assets were marginally lower at 0.94% at the end of the third quarter from 1.01% in the year ago period.

The previous year was difficult for the bank as its profit fell by 15% because of high interest rates and sluggish loan demand. The wage bill and other operating expenses of the bank stayed flat on a year on year basis.

Analysts expect the bank to maintain its growth in the coming month and as the interest rates are expected to be stable in the near future the demand for loans is expected to be on the same levels as last six months.