InCred Equities - Canara Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	370,720	380,731	444,477	501,697
Total Non-Interest Income (Rsm)	224,528	201,021	191,029	200,538
Operating Revenue (Rsm)	595,248	581,751	635,506	702,235
Total Provision Charges (Rsm)	(87,636)	(86,440)	(85,760)	(89,081)
Net Profit (Rsm)	170,267	143,536	164,497	191,412
Core EPS (Rs)	18.77	15.82	18.14	21.10
Core EPS Growth	17%	(16%)	15%	16%
FD Core P/E (x)	5.91	7.01	6.12	5.26
DPS (Rs)	4.00	3.16	3.63	4.22
Dividend Yield	3.60%	2.85%	3.27%	3.80%
BVPS (Rs)	110.1	122.0	136.9	154.4
P/BV (x)	1.01	0.91	0.81	0.72
ROE	18.2%	13.6%	14.0%	14.5%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income	370,720	380,731	444,477	501,697
Total Non-Interest Income	224,528	201,021	191,029	200,538
Operating Revenue	595,248	581,751	635,506	702,235
Total Non-Interest Expenses	(281,345)	(305,271)	(330,417)	(357,938)
Pre-provision Operating Profit	313,903	276,480	305,089	344,297
Total Provision Charges	(87,636)	(86,440)	(85,760)	(89,081)
Operating Profit After Provisions	226,267	190,041	219,329	255,216
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	226,267	190,041	219,329	255,216
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	226,267	190,041	219,329	255,216
Exceptional Items
Pre-tax Profit	226,267	190,041	219,329	255,216
Taxation	(56,000)	(46,505)	(54,832)	(63,804)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	170,267	143,536	164,497	191,412
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	170,267	143,536	164,497	191,412

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	71.5%	72.7%	73.6%	74.2%
Avg Liquid Assets/Avg Assets	96.9%	97.2%	97.2%	97.3%
Avg Liquid Assets/Avg IEAs	113.1%	114.4%	114.3%	114.3%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	0.88%	0.77%	0.68%	0.63%
Provision Charge/Avg Assets	0.55%	0.49%	0.44%	0.41%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	10,491,550	11,845,153	13,265,222	14,855,537
Liquid Assets & Invst. (Current)	3,803,434	4,028,823	4,378,447	4,760,388
Other Int. Earning Assets
Total Gross Int. Earning Assets	14,294,984	15,873,976	17,643,668	19,615,924
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	14,294,984	15,873,976	17,643,668	19,615,924
Intangible Assets
Other Non-Interest Earning Assets	377,959	419,534	465,683	516,908
Total Non-Interest Earning Assets	480,110	523,728	571,961	625,312
Cash And Marketable Securities	2,053,402	2,279,276	2,529,996	2,808,296
Long-term Investments
Total Assets	16,828,496	18,676,980	20,745,626	23,049,532
Customer Interest-Bearing Liabilities	14,568,832	16,171,403	17,950,258	19,924,786
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	14,935,592	16,578,507	18,402,142	20,426,378
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	893,903	992,232	1,101,378	1,222,529
Total Liabilities	15,829,495	17,570,740	19,503,520	21,648,908
Shareholders Equity	999,001	1,106,241	1,242,105	1,400,624
Minority Interests
Total Equity	999,001	1,106,241	1,242,105	1,400,624

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	1.4%	2.7%	16.7%	12.9%
Operating Profit Growth	6.7%	(11.9%)	10.3%	12.9%
Pretax Profit Growth	15%	(16%)	15%	16%
Net Interest To Total Income	62.3%	65.4%	69.9%	71.4%
Cost Of Funds	5.84%	5.28%	5.23%	5.22%
Return On Interest Earning Assets	8.8%	8.0%	8.1%	8.1%
Net Interest Spread	2.97%	2.76%	2.88%	2.91%
Net Interest Margin (Avg Deposits)	2.68%	2.48%	2.61%	2.65%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	28%	31%	28%	26%
Interest Return On Average Assets	2.34%	2.14%	2.25%	2.29%
Effective Tax Rate	24.7%	24.5%	25.0%	25.0%
Net Dividend Payout Ratio	21.3%	20.0%	20.0%	20.0%
Return On Average Assets	1.07%	0.81%	0.83%	0.87%

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

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Market Data

Source: Bloomberg