On Monday, one of India's leading private sector bank, HDFC bank said that it has seen a 34 per cent rise in its quarterly profit.

This is inline with the street estimates and has happened because of strong sales on the corporate and retail loan segment pushed by a fast growing Indian economy.

HDFC bank, which is also listed on New York has seen a 40 per cent growth in the field of gross advance during the April-June quarter as compared to the same quarter during last year. In money terms , it stood at $31 billion.

The outlook for the sector as a whole is healthy as the other two biggest banks, State Bank of India and ICICI Bank has also seen growth on the loan side.

Analysts have also said that the 3G auction is also another reason why the banks have seen a sudden increase in demand as the telecom players came forward for spectrum money.

During the auction, government was able to raise $14.3 billion which is double of its target.

On the non-food growth side, HDFC Bank saw a 20 per cent rise in 2010-11.