InCred Equities - Federal Bank

	Mar-20A	Mar-21A	Mar-22F	Mar-23F
Net Interest Income (Rsm)	46,489	55,337	64,318	74,173
Total Non-Interest Income (Rsm)	19,300	19,449	20,837	22,295
Operating Revenue (Rsm)	65,789	74,786	85,156	96,468
Total Provision Charges (Rsm)	(11,722)	(16,496)	(15,766)	(14,148)
Net Profit (Rsm)	15,414	15,903	20,754	25,302
Core EPS (Rs)	7.73	7.97	10.39	12.65
Core EPS Growth	23%	3%	30%	22%
FD Core P/E (x)	26.75	25.94	19.90	16.34
DPS (Rs)		0.70	2.40	2.40
Dividend Yield		0.34%	1.16%	1.16%
BVPS (Rs)	72.8	80.8	88.7	98.8
P/BV (x)	2.84	2.56	2.33	2.09
ROE	11.1%	10.4%	12.3%	13.5%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-20A	Mar-21A	Mar-22F	Mar-23F
Net Interest Income	46,489	55,337	64,318	74,173
Total Non-Interest Income	19,300	19,449	20,837	22,295
Operating Revenue	65,789	74,786	85,156	96,468
Total Non-Interest Expenses	(32,420)	(35,434)	(40,022)	(46,697)
Pre-provision Operating Profit	32,033	37,869	43,502	47,961
Total Provision Charges	(11,722)	(16,496)	(15,766)	(14,148)
Operating Profit After Provisions	20,311	21,373	27,735	33,813
Pretax Income/(Loss) from Assoc.
Operating EBIT (incl Associates)	20,311	21,373	27,735	33,813
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	20,311	21,373	27,735	33,813
Exceptional Items
Pre-tax Profit	20,311	21,373	27,735	33,813
Taxation	(4,898)	(5,470)	(6,981)	(8,511)
Consolidation Adjustments & Others
Exceptional Income - post-tax
Profit After Tax	15,414	15,903	20,754	25,302
Minority Interests
Pref. & Special Div
FX And Other Adj.
Net Profit	15,414	15,903	20,754	25,302

(Rs mn)	Mar-20A	Mar-21A	Mar-22F	Mar-23F
Gross Loans/Cust Deposits	81.5%	78.1%	79.8%	81.3%
Avg Loans/Avg Deposits	82.2%	79.7%	79.0%	80.6%
Avg Liquid Assets/Avg Assets	26.3%	27.3%	27.2%	25.8%
Avg Liquid Assets/Avg IEAs	29.5%	31.5%	31.6%	29.5%
Net Cust Loans/Assets	67.7%	65.5%	66.8%	68.2%
Net Cust Loans/Broad Deposits	80.3%	76.4%	77.6%	79.0%
Equity & Provns/Gross Cust Loans	13.7%	14.7%	14.6%	13.9%
Asset Risk Weighting	61.0%	58.2%	58.2%	58.0%
Provision Charge/Avg Cust Loans	0.94%	1.24%	1.03%	0.76%
Provision Charge/Avg Assets	0.65%	0.84%	0.70%	0.53%
Total Write Offs/Average Assets	(1.13%)	(1.59%)	(1.96%)	(2.12%)

(Rs mn)	Mar-20A	Mar-21A	Mar-22F	Mar-23F
Total Gross Loans	1,241,923	1,349,114	1,552,197	1,849,167
Liquid Assets & Invst. (Current)	354,299	366,996	412,559	463,818
Other Int. Earning Assets
Total Gross Int. Earning Assets	1,596,222	1,716,110	1,964,756	2,312,985
Total Provisions/Loan Loss Reserve	(19,242)	(30,328)	(41,828)	(51,828)
Total Net Interest Earning Assets	1,576,979	1,685,782	1,922,927	2,261,157
Intangible Assets
Other Non-Interest Earning Assets	88,220	122,201	140,531	161,610
Total Non-Interest Earning Assets	103,655	131,978	151,529	173,989
Cash And Marketable Securities	125,750	195,914	187,793	199,618
Long-term Investments
Total Assets	1,806,384	2,013,674	2,262,250	2,634,763
Customer Interest-Bearing Liabilities	1,522,900	1,726,445	1,945,880	2,274,177
Bank Deposits
Interest Bearing Liabilities: Others	102,676	88,441	101,707	116,963
Total Interest-Bearing Liabilities	1,626,620	1,817,130	2,051,212	2,396,352
Banks Liabilities Under Acceptances
Total Non-Interest Bearing Liabilities	34,580	35,308	40,405	46,534
Total Liabilities	1,661,200	1,852,438	2,091,617	2,442,886
Shareholders Equity	145,180	161,236	177,199	197,705
Minority Interests
Total Equity	145,180	161,236	177,199	197,705

	Mar-20A	Mar-21A	Mar-22F	Mar-23F
Total Income Growth	11.3%	19.0%	16.2%	15.3%
Operating Profit Growth	15.7%	17.9%	14.7%	10.3%
Pretax Profit Growth	6%	5%	30%	22%
Net Interest To Total Income	70.7%	74.0%	75.5%	76.9%
Cost Of Funds	5.61%	4.78%	4.82%	4.84%
Return On Interest Earning Assets	8.7%	8.3%	8.6%	8.5%
Net Interest Spread	3.12%	3.53%	3.74%	3.66%
Net Interest Margin (Avg Deposits)	3.24%	3.41%	3.50%	3.52%
Net Interest Margin (Avg RWA)	4.47%	4.87%	5.17%	5.21%
Provisions to Pre Prov. Operating Profit	37%	44%	36%	29%
Interest Return On Average Assets	2.73%	2.90%	3.01%	3.03%
Effective Tax Rate	24.1%	25.6%	25.2%	25.2%
Net Dividend Payout Ratio	31.1%	30.1%	23.1%	19.0%
Return On Average Assets	0.91%	0.83%	0.97%	1.03%

(91) 22 4161 1547 jignesh.shial@incredresearch.com

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

(91) 22 4161 1500 meghna.luthra@incredresearch.com

Market Data

Source: Bloomberg