India's banking industry has been hit by the government's shock cancellation in November of 86 percent of its currency in circulation, which forced many institutions to scramble to replace the high-value banknotes.The banking sector also continues to battle record sour assets with the regulator setting a March deadline for a clean up.Despite the banknote ban hitting credit demand in many sectors, HDFC Bank said its domestic advances as of end-December grew about 17.5 percent from a year earlier. That helped net interest income for the quarter grow 18 percent to 83.09 billion rupees, HDFC Bank said. Net interest margin for the quarter was 4.1 percent.Shares in HDFC Bank, which has a market capitalisation of about $47 billion, were flat after the results in a Mumbai market that was up 0.4 percent. ($1 = 68.1450 Indian rupees) (Reporting by Devidutta Tripathy; Editing by Randy Fabi)