The spread engine
Yield on advances: what the bank earns on the money it lends
The blended rate a bank earns across its whole loan book — money's selling price.
Why it matters
For credit and RM staff, every pricing call trades higher yield against higher risk — and it's half of the spread your seniors track.
A worked example
A mixed loan book blends to ~10.3% yield — but the 14% unsecured slice brings the bad loans that erase the extra.
The picture
What it leads to
Yield minus cost of funds, in rupees, is net interest income — chase yield too hard and loans turn bad.
Where it sits in the map
Follow the causation