The spread engine
What a bank's balance sheet actually is
Two sides — money the bank owes versus money it lends out; the gap is profit.
Why it matters
Once you see deposits as the bank's debt and loans as its assets, every other banking concept clicks into place — it's the frame interviewers and seniors assume you already have.
A worked example
On a ₹100 cr bank, ~₹65 cr earns as loans while ~₹35 cr is tied up in forced reserves and low-yield G-secs — the asset side is where the money is made.
The picture
What it leads to
The liability side's price minus the asset side's earnings is the spread the rest of this map explains.
Where it sits in the map
Follow the causation