Net Interest Margin (NIM) for Banks
In the forthcoming days, we will be discussing certain parameters or financial ratios which you should be checking before investing in a stock.
As per Wikipedia a financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.
Lastly, you can make sure that you get the pie of your profit from this market by using our Best Bank Nifty Option tips and start making money on a daily basis as you just require Rs 10,000 to get started in bank Nifty option trading.
The most important ratio when it comes to banks and financial companies is the Net Interest Margin (NIM). Net interest margin is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders, relative to the number of their assets. It is similar to the gross margin of non-financial companies.
What is the Ideal Net Interest Margin (NIM)?
An ideal financial company should have NIM above 3% and here we find that as of date ICICI bank has a Net interest margin which is more than 3% and thus this bank passes on our testing parameter in this regard and becomes worthy of the investment. However, do not jump to the conclusion as there are a number of other parameters that this stock needs to pass before it becomes a stock worthy of investment and we will be discussing the same in the subsequent days. So, remember to bookmark the website or best is get free updates in email by filling your email id in the subscription inbox under the article.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
