* Q3 net profit 540 million shekels, vs 541 million forecast
* Bad debt provisions 290 mln shekels, vs 342 mln forecast
* Capital adequacy ratio 13.9 percent
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TEL AVIV, Nov 24 (Reuters) - Bank Hapoalim, Israel's second-largest bank, posted a 27 percent rise in quarterly net profit as higher interest rates boosted its margins and a stronger economy led to lower bad debt provisions.
Third-quarter net profit rose to 540 million shekels ($147 million), compared with a forecast 541 million in a Reuters poll.
Financing income before the doubtful debt provision increased to 2.05 billion shekels from 1.78 billion a year earlier. The provision for doubtful or bad debt fell to 290 million shekels from 629 million.
The bank was forecast to post financing income of 1.94 billion shekels and debt provisions of 342 million.
Its capital adequacy ratio rose to 13.9 percent from 13.6 percent in the second quarter, according to Basel II directives. (Reporting by Tova Cohen; Editing by Dan Lalor) ($1 = 3.67 shekels)