Net interest margin
Also called: NIM, net interest income, CASA, cost of funds
A lender's interest earned minus interest paid, divided by its average interest-earning assets.
Net interest margin shows how profitably a bank or lender turns borrowed money into loans. A large share of low-cost current and savings account deposits (CASA) keeps a bank's cost of funds down and supports its margin.
Example
Net interest income of ₹475 crore on average earning assets of ₹10,000 crore is a net interest margin of 4.75%.
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- Analysing banks and lendersHow do you analyse a bank or a lending company?
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