For people who work in banking
Understand how a bank actually makes money.
The mental model your colleagues picked up on the job — and nobody taught you. Short, plain-English explainers of Indian banking, with real ₹ examples, joined by cause and effect.
Start here — follow the money
Five linked ideas, in order. Each one sets up the next — by the end you’ll see how a rate set in Mumbai ends up as your branch’s margin.
- 1RBI & the repo rate→The rate RBI charges banks to borrow overnight — the price every other rate is built on.
- 2Cost of funds→The blended average rate a bank pays on all its money — its purchase price for the cash it lends out.
- 3Net Interest Margin (NIM)→The gap between what a bank earns on loans and pays for funds, as a % of its assets — the spread engine in one number.
- 4Why branches push CASA→CASA = current + savings accounts, the cheapest money a bank can raise; branches chase it because every rupee lowers cost of funds and widens margin.
- 5CASA ratio→The share of a bank's deposits sitting in current and savings accounts — higher means cheaper funding and a stronger margin.
Explore by question
How does a bank actually make money?
What happens when RBI moves rates?
How does a loan go bad?
New here? Read in Brief for a two-minute skim, or switch to Deep on any page for the full picture with worked examples — the toggle sits at the top of every page and your choice follows you around. Or jump to the glossary.