HDFC Bank, India's third largest lender by assets, has cut back a little on corporate lending in order to protect margins, a senior official said.

"On wholesale side, while we continue to grow our book at 15%, we have cut back a little on corporate lending," Executive Director Paresh Sukthankar said on a conference call.

"If you look at marginal fixed deposit rates and marginal yield on short-term rates we thought it was not worthwhile from margin perspective," he added.

Earlier on Thursday, HDFC Bank reported a higher-than-expected 31.2% rise in quarterly net profit as a drop in loan-loss provisions and higher fee income made up for weak loan demand.