The performance of HDFC Bank during the first quarter of FY 2010-11 has been promising. The bank has booked a rise in its loan book without compromising on its asset quality.

The loan book of the company has grown by 23% on a year on year basis as per Q1 results. This result is a follow up of the 22% growth in the March '10 quarter and 18% in the quarter before.

There has been a marginal improvement in the bank's non performing asset (NPA) level from 0.58% a year ago to 0.54%.

HDFC reported a 23% profit growth in the June '10 quarter.

The bank had to face serious competition some time back from the largest lender of the country, State Bank of India. But the bank has managed to wade its way smoothly through these hurdles.

In the upcoming times, it is expected that the bank would be able to reach even better heights. With signs of economic recovery, the inclination towards unsecured lending is again opening up.