Banking, mapped
MapGlossary
The spread engine·5 of 7
  1. What a bank's balance sheet actually is→
  2. CASA vs term deposits→
  3. Cost of funds→
  4. Yield on advances→
  5. Net Interest Income (NII)→
  6. Net Interest Margin (NIM)→
  7. Why branches push CASA

The spread engine

Net Interest Income (NII): the rupee profit from the core job

The actual rupee profit from lending — interest earned minus interest paid.

Why it matters

When results say "NII grew 12%," that's the engine room scaling — NII is the rupee figure, NIM is the same thing as a percentage.

A worked example

On a ₹100 cr book: ₹9 cr earned minus ₹4.45 cr paid = ₹4.55 cr of net interest income.

The picture

Interest earned(₹9.00 cr)Interest paid(₹4.45 cr)NII (₹4.55 cr)NIMminussubtractedas a % of assets =

What it leads to

Divide NII by interest-earning assets and you get NIM — the headline percentage the market judges.

Where it sits in the map

Cost of fundsNet InterestMargin (NIM)Cost of fundsYield on advancesYield on advancesNet InterestIncome (NII)

Follow the causation

this is NII expressed as a percentageNet Interest Margin (NIM)→this is the cost side that shrinks NIICost of funds→this is the income side that grows NIIYield on advances→