InCred Equities - AU Small Finance Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	80,116	88,678	109,446	133,366
Total Non-Interest Income (Rsm)	25,263	30,739	34,124	41,767
Operating Revenue (Rsm)	105,379	119,416	143,569	175,133
Total Provision Charges (Rsm)	(17,926)	(18,600)	(19,288)	(19,518)
Net Profit (Rsm)	21,059	25,582	32,704	43,436
Core EPS (Rs)	2.83	3.44	4.39	5.83
Core EPS Growth	17%	21%	28%	33%
FD Core P/E (x)	249.83	205.66	160.87	121.13
DPS (Rs)	1.00	1.60	2.05	2.72
Dividend Yield	0.14%	0.23%	0.29%	0.39%
BVPS (Rs)	23.1	26.4	30.7	36.3
P/BV (x)	30.65	26.74	23.05	19.47
ROE	14.2%	13.9%	15.4%	17.4%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	80,116	88,678	109,446	133,366
Total Non-Interest Income	25,263	30,739	34,124	41,767
Operating Revenue	105,379	119,416	143,569	175,133
Total Non-Interest Expenses	(59,572)	(66,593)	(80,558)	(97,546)
Pre-provision Operating Profit	45,807	52,824	63,011	77,587
Total Provision Charges	(17,926)	(18,600)	(19,288)	(19,518)
Operating Profit After Provisions	27,881	34,223	43,723	58,070
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	27,881	34,223	43,723	58,070
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	27,881	34,223	43,723	58,070
Exceptional Items
Pre-tax Profit	27,881	34,223	43,723	58,070
Taxation	(6,821)	(8,642)	(11,018)	(14,634)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	21,059	25,582	32,704	43,436
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	21,059	25,582	32,704	43,436

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	85.2%	84.4%	82.1%	80.6%
Avg Liquid Assets/Avg Assets	97.7%	97.9%	98.0%	98.1%
Avg Liquid Assets/Avg IEAs	106.5%	106.1%	105.8%	105.8%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	1.99%	1.58%	1.37%	1.16%
Provision Charge/Avg Assets	1.34%	1.06%	0.91%	0.76%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	1,070,925	1,278,022	1,530,694	1,835,013
Liquid Assets & Invst. (Current)	378,475	497,506	613,479	761,095
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,449,400	1,775,528	2,144,173	2,596,108
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	1,449,400	1,775,528	2,144,173	2,596,108
Intangible Assets
Other Non-Interest Earning Assets	25,268	29,059	33,417	38,430
Total Non-Interest Earning Assets	34,393	39,096	44,458	50,575
Cash And Marketable Securities	94,664	102,615	124,550	151,235
Long-term Investments
Total Assets	1,578,457	1,917,239	2,313,181	2,797,918
Customer Interest-Bearing Liabilities	1,242,686	1,540,930	1,879,935	2,293,520
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	1,349,285	1,658,189	2,014,782	2,448,595
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	47,509	52,260	60,099	69,114
Total Liabilities	1,396,794	1,710,449	2,074,882	2,517,709
Shareholders Equity	171,663	196,790	228,300	270,209
Minority Interests
Total Equity	171,663	196,790	228,300	270,209

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	55.4%	10.7%	23.4%	21.9%
Operating Profit Growth	82.1%	15.3%	19.3%	23.1%
Pretax Profit Growth	34%	23%	28%	33%
Net Interest To Total Income	76.0%	74.3%	76.2%	76.2%
Cost Of Funds	7.11%	6.60%	6.35%	6.25%
Return On Interest Earning Assets	13.1%	11.7%	11.5%	11.5%
Net Interest Spread	5.99%	5.05%	5.18%	5.26%
Net Interest Margin (Avg Deposits)	7.58%	6.37%	6.40%	6.39%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	39%	35%	31%	25%
Interest Return On Average Assets	6.00%	5.07%	5.17%	5.22%
Effective Tax Rate	24.5%	25.3%	25.2%	25.2%
Net Dividend Payout Ratio	4.7%	4.7%	4.7%	4.7%
Return On Average Assets	1.58%	1.46%	1.55%	1.70%

(91) 22 4161 1551 bhavik.shah@incredresearch.com