Vice-chairman and chief executive Keki Mistry said the bottomline was boosted by a very strong show by the life insurance business.
Consolidated profit growth is low despite on a standalone basis the company reported 18 per cent growth in profit and all the subsidiaries reported a healthy numbers.
Net profit of the life insurance business stood at Rs 215.34 crore from Rs 183.74 crore.
Profit in the general insurance was Rs 60.52 crore from Rs 36.27 crore.
On standalone basis, net profit rose 18 per cent to Rs 1,605 crore, primarily boosted by dividend from its banking subsidiary HDFC Bank, Mistry said.
The mortgage player provided Rs 719 crore of tax, which included Rs 83 crore as deferred tax liability on special reserves.
The net interest margin in the quarter stood at 3.95 per cent as against 4 per cent in the year-ago quarter.
"There is marginal decline in net interest margin despite the fact that the spread has widen compared to the previous year. The reason for this is the interest rate that is prevailing in the system," he said.
The net interest income, including dividend, was Rs 2,501 crore, an increase of 21 per cent from Rs 2,059 crore crore last year same period crore.
"The growth in NII has come from the fact that in the quarter we received dividend from HDFC Bank," Mistry said.
Gross non-performing loans stood at 0.71 per cent. The non-performing loans of the individual portfolio stood at 0.53 per cent while that of the non-individual portfolio stood at 1.12 per cent.