Net profit rose to 12.8 billion rupees in the December quarter compared with 11.4 billion rupees a year earlier, HDFC said on Wednesday.
Income from operations increased 16.3 percent in the fiscal third quarter, while profit from sale of investments fell to 346.2 million rupees from 963.2 million a year earlier.
Total expenditure rose about 15 percent, largely driven by interest charges, it said.
HDFC faces an intensifying battle for business and market share as banks aggressively push home loans.
The lender has said it is betting on increased loan demand in smaller cities to boost growth in a slowing economy.
Net interest margin for the nine months ended December was at 4 percent, HDFC said. A year-ago comparison was not immediately available.