InCred Equities - AU Small Finance Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	80,116	93,375	115,793	138,389
Total Non-Interest Income (Rsm)	25,263	28,815	35,211	43,081
Operating Revenue (Rsm)	105,379	122,190	151,005	181,469
Total Provision Charges (Rsm)	(17,926)	(18,539)	(19,613)	(19,724)
Net Profit (Rsm)	21,059	24,703	34,277	43,366
Core EPS (Rs)	2.83	3.11	4.31	5.46
Core EPS Growth	17%	10%	39%	27%
FD Core P/E (x)	265.00	241.08	173.74	137.33
DPS (Rs)	1.00	1.45	2.01	2.55
Dividend Yield	0.13%	0.19%	0.27%	0.34%
BVPS (Rs)	23.1	28.7	32.9	38.1
P/BV (x)	32.51	26.13	22.82	19.67
ROE	14.2%	12.4%	14.0%	15.4%
% 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	93,375	115,793	138,389
Total Non-Interest Income	25,263	28,815	35,211	43,081
Operating Revenue	105,379	122,190	151,005	181,469
Total Non-Interest Expenses	(59,572)	(70,626)	(85,567)	(103,769)
Pre-provision Operating Profit	45,807	51,564	65,437	77,700
Total Provision Charges	(17,926)	(18,539)	(19,613)	(19,724)
Operating Profit After Provisions	27,881	33,025	45,825	57,976
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	27,881	33,025	45,825	57,976
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	27,881	33,025	45,825	57,976
Exceptional Items
Pre-tax Profit	27,881	33,025	45,825	57,976
Taxation	(6,821)	(8,322)	(11,548)	(14,610)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	21,059	24,703	34,277	43,366
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	21,059	24,703	34,277	43,366

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	85.2%	84.7%	82.8%	81.5%
Avg Liquid Assets/Avg Assets	97.7%	97.9%	98.1%	98.2%
Avg Liquid Assets/Avg IEAs	106.5%	105.7%	105.1%	105.1%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	1.99%	1.57%	1.38%	1.16%
Provision Charge/Avg Assets	1.34%	1.05%	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	1,287,536	1,546,548	1,856,791
Liquid Assets & Invst. (Current)	378,475	537,349	652,027	797,676
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,449,400	1,824,885	2,198,575	2,654,467
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	1,449,400	1,824,885	2,198,575	2,654,467
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	92,056	111,715	135,629
Long-term Investments
Total Assets	1,578,457	1,956,037	2,354,749	2,840,671
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	1,663,519	2,020,912	2,455,644
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	47,509	54,636	62,831	72,256
Total Liabilities	1,396,794	1,718,155	2,083,743	2,527,900
Shareholders Equity	171,663	227,882	261,006	302,771
Minority Interests
Total Equity	171,663	227,882	261,006	302,771

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	55.4%	16.5%	24.0%	19.5%
Operating Profit Growth	82.1%	12.6%	26.9%	18.7%
Pretax Profit Growth	34%	18%	39%	27%
Net Interest To Total Income	76.0%	76.4%	76.7%	76.3%
Cost Of Funds	7.11%	6.56%	6.36%	6.29%
Return On Interest Earning Assets	13.1%	11.7%	11.6%	11.5%
Net Interest Spread	5.99%	5.18%	5.22%	5.22%
Net Interest Margin (Avg Deposits)	7.58%	6.71%	6.77%	6.63%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	39%	36%	30%	25%
Interest Return On Average Assets	6.00%	5.28%	5.37%	5.33%
Effective Tax Rate	24.5%	25.2%	25.2%	25.2%
Net Dividend Payout Ratio	4.7%	4.7%	4.7%	4.7%
Return On Average Assets	1.58%	1.40%	1.59%	1.67%

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

(91) 22 4161 1569 rishabh.jogani@incredresearch.com