The bank reported earnings of 1.94 rupees for the quarter. The stock traded at 54.60 rupees, up 80 cents Friday.
HDFC Bank reported return on assets or pre-tax profits compared to total assets of 2.36 percent, down from 2.83 percent in the December 2011 quarter. Return on equity fell to 12.0 percent from 15.58 percent.
Interest income rose 47 percent to 854 million rupees and interest expenses rose at a slower 27 percent to 420 million rupees allowing the bank to grow net interest income 74 percent to 433 million rupees.
The interest margin increased to 6.11 percent from 5.11 percent.
Fee income fell 32 percent to 13.8 million rupees.
Loans remained flat at 14.64 billion rupees by end March from 14.63 billion in December 2012.
The bank had a gross non performing loan ratio of 18.68 percent in the March quarter from 22.2 percent in December.
Housing loans can be taken against balances of Sri Lanka's state-managed Employment Provident Fund, a forced savings scheme and defaults off-set against the EPF balance.
Non-performing loans without EPF secured loans were 10.62 percent, down from 11.54 percent.
The bank provided 14.6 million rupees for loan losses in the quarter, against a provision reversal of 6.5 million rupees last year.
Gross assets slipped to 19.4 billion rupees by end March 2012 from 19.6 billion in December 2011. Net assets rose to 2.25 billion rupees from 2.1 billion rupees.
The bank had a total capital adequacy ratio of 21.5 percent by end March 2012, up from 21.3 percent in December, higher than the required 10 percent.