InCred Equities - Federal Bank

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Net Interest Income (Rsm)	94,680	102,812	123,993	148,506
Total Non-Interest Income (Rsm)	38,013	42,703	51,911	65,584
Operating Revenue (Rsm)	132,692	145,514	175,904	214,090
Total Provision Charges (Rsm)	(7,331)	(12,926)	(15,188)	(17,846)
Net Profit (Rsm)	40,519	37,516	49,306	65,245
Core EPS (Rs)	16.50	15.28	20.08	26.57
Core EPS Growth	8%	(7%)	31%	32%
FD Core P/E (x)	12.59	13.60	10.35	7.82
DPS (Rs)	1.20	1.15	1.51	1.99
Dividend Yield	0.58%	0.55%	0.72%	0.96%
BVPS (Rs)	136.1	151.4	170.3	195.4
P/BV (x)	1.53	1.37	1.22	1.06
ROE	13.0%	10.6%	12.5%	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	94,680	102,812	123,993	148,506
Total Non-Interest Income	38,013	42,703	51,911	65,584
Operating Revenue	132,692	145,514	175,904	214,090
Total Non-Interest Expenses	(71,681)	(82,433)	(94,798)	(109,018)
Pre-provision Operating Profit	61,011	63,081	81,106	105,072
Total Provision Charges	(7,331)	(12,926)	(15,188)	(17,846)
Operating Profit After Provisions	53,681	50,155	65,917	87,225
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	53,681	50,155	65,917	87,225
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	53,681	50,155	65,917	87,225
Exceptional Items
Pre-tax Profit	53,681	50,155	65,917	87,225
Taxation	(13,162)	(12,639)	(16,611)	(21,981)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	40,519	37,516	49,306	65,245
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	40,519	37,516	49,306	65,245

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Gross Loans/Cust Deposits
Avg Loans/Avg Deposits	82.9%	83.4%	84.4%	85.5%
Avg Liquid Assets/Avg Assets	94.5%	95.5%	95.8%	95.8%
Avg Liquid Assets/Avg IEAs	108.7%	110.3%	110.5%	110.8%
Net Cust Loans/Assets
Net Cust Loans/Broad Deposits
Equity & Provns/Gross Cust Loans
Asset Risk Weighting
Provision Charge/Avg Cust Loans	0.33%	0.51%	0.51%	0.51%
Provision Charge/Avg Assets	0.22%	0.34%	0.35%	0.36%
Total Write Offs/Average Assets

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Gross Loans	2,348,364	2,759,328	3,242,210	3,809,597
Liquid Assets & Invst. (Current)	662,456	756,899	795,851	838,092
Other Int. Earning Assets
Total Gross Int. Earning Assets	3,010,820	3,516,226	4,038,061	4,647,689
Total Provisions/Loan Loss Reserve
Total Net Interest Earning Assets	3,010,820	3,516,226	4,038,061	4,647,689
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	4,052,110	4,664,060	5,379,196
Customer Interest-Bearing Liabilities	2,836,475	3,290,311	3,816,760	4,427,442
Bank Deposits
Interest Bearing Liabilities: Others
Total Interest-Bearing Liabilities	3,073,738	3,557,232	4,110,373	4,750,417
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	82,104	123,156	135,472	149,019
Total Liabilities	3,155,842	3,680,388	4,245,845	4,899,435
Shareholders Equity	334,206	371,722	418,214	479,761
Minority Interests
Total Equity	334,206	371,722	418,214	479,761

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Income Growth	14.2%	8.6%	20.6%	19.8%
Operating Profit Growth	17.9%	3.4%	28.6%	29.5%
Pretax Profit Growth	8%	(7%)	31%	32%
Net Interest To Total Income	71.4%	70.7%	70.5%	69.4%
Cost Of Funds	5.85%	5.65%	5.49%	5.32%
Return On Interest Earning Assets	9.2%	8.9%	8.9%	8.8%
Net Interest Spread	3.38%	3.24%	3.36%	3.53%
Net Interest Margin (Avg Deposits)	3.53%	3.36%	3.49%	3.60%
Net Interest Margin (Avg RWA)
Provisions to Pre Prov. Operating Profit	12%	20%	19%	17%
Interest Return On Average Assets	2.88%	2.73%	2.85%	2.96%
Effective Tax Rate	24.5%	25.2%	25.2%	25.2%
Net Dividend Payout Ratio	7.2%	7.5%	7.5%	7.5%
Return On Average Assets	1.23%	0.99%	1.13%	1.30%

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

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

Market Data

Source: Bloomberg