Mumbai, Jan. 16 -- Strong loan growth, better asset quality, higher core income, and improved profitability helped Federal Bank report stellar performance for the quarter ended December.

The private sector bank's net profit rose 9% year-on-year and quarter-on-quarter to Rs.1,041 crore in Q3FY26.

While advances rose 9% year-on-year to Rs.2.65 trillion, led by strong momentum in the commercial and corporate banking segment, deposit growth outpaced at 15% to Rs.2.50 trillion.

Retail loans, which constitute 55% of the bank's customer assets, rose 9% year-on-year to Rs.94,886 crore. Commercial loan book rose 25% on year to Rs.28,177 crore and corporate rose 5% on year to Rs.1.42 trillion.

Asset quality of the bank also continued to improve...