Banking, mapped
MapGlossary

How the bank is judged

ROA & ROE: the bank's bottom-line report card

Profit measured against the bank's assets, and against shareholders' money.


Why it matters

These are the final scores after every other lever plays out — and knowing why a "1% return" is actually good for a bank is a real edge.

A worked example

₹1,200 cr profit = 1.2% ROA, but ~10× leverage turns that into 12% ROE — a thin asset return magnified for shareholders.

The picture

Net profit (₹1,200cr)ROA = 1.2%ROE = 12%÷ assets÷ equity× leverage =

What it leads to

ROA/ROE are the output of the whole chain — healthy NIM and low costs minus provisions — and the leverage behind them is what CRAR keeps safe.

Where it sits in the map

Follow the causation