The private sector lender had registered a profit of Rs 440.64 crore in the year-ago period.
Total income, however, improved to Rs 3,941.36 crore during the third quarter as against Rs 3,738.22 crore a year ago, Federal Bank said in a regulatory filing.
Gross non-performing assets (NPAs) declined to 2.71 per cent of the total advances during the quarter, compared to 2.99 per cent at the end of the third quarter of 2019-20.
Net NPAs of the bank also fell to 0.60 per cent of the total assets in October-December 2020 as against 1.63 per cent a year ago.
Despite the decline in bad loans, provisions other than tax and contingencies increased more than two-fold to Rs 420.62 crore as against Rs 160.86 crore during the same period last fiscal.