Housing Development Finance Corp (HDFC), India's leading mortgage lender, on Friday posted an increase of slightly more than 17 per cent in standalone net profit to Rs 1,173 crore for the April-June quarter of 2013.

The private sector mortgage lender's net interest income (NII) - the difference between interest it earned and it paid out - also jumped at a similar rate to settle at Rs 1,794 crore.

Analysts, polled by CNBC TV18, had projected a growth of 20 per cent each for both the company's net profit and NII.

HDFC failed to report any profit on sale of investments for the quarter under review. In the April-June quarter of 2012, the company had pocketed Rs 20 crore as profit on sale of investments.

It was the nonexistence of investment profits that corroded the company's profit margin, and dragged it down below analysts' average expectation.

During the quarter, HDFC made a provision of Rs 1,326 crore according to norms directed by housing finance regulator National Housing Bank (NHB).

HDFC said in a statement, "The balance in the provision for contingencies account as at June 30, 2013 stood at Rs 1,801 crore. This is equivalent to 1.02 percent of the portfolio. Thus the Corporation carries an additional provision of Rs 475 crore over the regulatory requirements."

The lender's consolidated net profit jumped 34 per cent to Rs 1,707 crore, while gross non-performing loan ratio stood at 0.77 per cent of the credit book.

HDFC shares slipped 3 per cent to close at Rs 803 apiece on the Bombay Stock Exchange (BSE) on Friday.