InCred Equities - Federal Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	94,680	97,928	119,209	146,164
Total Non-Interest Income (Rsm)	38,013	43,710	50,809	63,973
Operating Revenue (Rsm)	132,692	141,638	170,018	210,137
Total Provision Charges (Rsm)	(7,331)	(15,510)	(16,328)	(19,185)
Net Profit (Rsm)	40,519	34,365	46,019	63,550
Core EPS (Rs)	16.50	14.00	18.75	25.89
Core EPS Growth	8%	(15%)	34%	38%
FD Core P/E (x)	11.78	13.89	10.37	7.51
DPS (Rs)	1.20	1.05	1.41	1.94
Dividend Yield	0.62%	0.54%	0.72%	1.00%
BVPS (Rs)	136.1	150.7	168.4	192.9
P/BV (x)	1.43	1.29	1.15	1.01
ROE	13.0%	9.8%	11.7%	14.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	94,680	97,928	119,209	146,164
Total Non-Interest Income	38,013	43,710	50,809	63,973
Operating Revenue	132,692	141,638	170,018	210,137
Total Non-Interest Expenses	(71,681)	(80,145)	(92,167)	(105,992)
Pre-provision Operating Profit	61,011	61,493	77,851	104,145
Total Provision Charges	(7,331)	(15,510)	(16,328)	(19,185)
Operating Profit After Provisions	53,681	45,982	61,523	84,960
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	53,681	45,982	61,523	84,960
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	53,681	45,982	61,523	84,960
Exceptional Items
Pre-tax Profit	53,681	45,982	61,523	84,960
Taxation	(13,162)	(11,618)	(15,504)	(21,410)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	40,519	34,365	46,019	63,550
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	40,519	34,365	46,019	63,550

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	82.9%	82.8%	83.4%	84.4%
Avg Liquid Assets/Avg Assets	94.5%	95.4%	95.7%	95.8%
Avg Liquid Assets/Avg IEAs	108.7%	110.4%	110.7%	111.0%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	0.33%	0.61%	0.56%	0.56%
Provision Charge/Avg Assets	0.22%	0.41%	0.38%	0.39%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	2,348,364	2,700,619	3,173,227	3,728,542
Liquid Assets & Invst. (Current)	662,456	767,663	802,539	842,303
Other Int. Earning Assets
Total Gross Int. Earning Assets	3,010,820	3,468,282	3,975,766	4,570,845
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	3,010,820	3,468,282	3,975,766	4,570,845
Intangible Assets
Other Non-Interest Earning Assets	155,853	155,853	179,231	206,115
Total Non-Interest Earning Assets	170,636	171,744	196,314	224,480
Cash And Marketable Securities	308,592	364,139	429,684	507,027
Long-term Investments
Total Assets	3,490,048	4,004,165	4,601,764	5,302,352
Customer Interest-Bearing Liabilities	2,836,475	3,261,946	3,783,857	4,389,275
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	3,073,738	3,511,072	4,052,914	4,679,855
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	82,104	123,156	135,472	149,019
Total Liabilities	3,155,842	3,634,228	4,188,385	4,828,874
Shareholders Equity	334,206	369,937	413,379	473,478
Minority Interests
Total Equity	334,206	369,937	413,379	473,478

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	14.2%	3.4%	21.7%	22.6%
Operating Profit Growth	17.9%	0.8%	26.6%	33.8%
Pretax Profit Growth	8%	(14%)	34%	38%
Net Interest To Total Income	71.4%	69.1%	70.1%	69.6%
Cost Of Funds	5.85%	5.53%	5.50%	5.46%
Return On Interest Earning Assets	9.2%	8.6%	8.8%	9.0%
Net Interest Spread	3.38%	3.11%	3.29%	3.54%
Net Interest Margin (Avg Deposits)	3.53%	3.21%	3.38%	3.58%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	12%	25%	21%	18%
Interest Return On Average Assets	2.88%	2.61%	2.77%	2.95%
Effective Tax Rate	24.5%	25.3%	25.2%	25.2%
Net Dividend Payout Ratio	7.2%	7.5%	7.5%	7.5%
Return On Average Assets	1.23%	0.92%	1.07%	1.28%

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

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Market Data

Source: Bloomberg