Factors contributing to profitability of Banks.part 1 .

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Factor affecting credit growth of bank
1.NET INTEREST INCOME
2.NET INTEREST MARGIN
3.PROVISION
4.CREDIT GROWTH

[@jackydash382]

NET INTEREST INCOME=Net Interest Earned-Net Interest Paid
NET INTEREST MARGIN=Return on Investment-Return on Credit (in percentage)
PROVISIONS (On NPA,Depriciation of value in investment,Low credit growth)

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Net Interest Margin
Net interest margin is the net interest income divided by average interest earning assets. AS PER RBI WEBSITE..why so,,sir???

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