net interest ? long answer
Answers
Explanation:
NII or net interest income is the difference between the income a bank earns from its lending activities and the interest it pays to depositors whereas NIM or net interest margin is calculated by dividing NII by the average income earned from interest-producing assets.
Explanation:
Definition of 'Net interest income (NII)'
Definition: Net interest income (NII) is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors.
Net interest income = Interest earned - interest paid
Assuming ABC Bank earned an interest income of Rs 15,000 crore on its assets comprising all kinds of loans, mortgages and securities for the year ended March 31, 2015 and paid Rs 13,750 crore in interest to depositors, the net interest income would be: Net interest income = Rs 15,000 crore - Rs 13,750 crore = Rs 1,250 crore