Bank health checker
Judge a bank on the four numbers that actually decide it, because almost nothing you use for an ordinary company applies here.
Runs entirely in your browserRuns entirely on your device — nothing you type is sent anywhere. Educational only, and not investment advice.
How to use this calculator
Each step names a control you will find on screen above.
- Net interest margin (NIM)
The spread between what the bank earns on loans and pays on deposits. This is the core profitability of the business.
- Gross NPA
The proportion of loans that have stopped performing. Watch the trend more than the level — a rising NPA on a growing book is worse than a steady one.
- CASA ratio
Current and savings deposits as a share of the total. High CASA means cheap, sticky funding, and it is the most durable advantage a bank can have.
- Cost-to-income
Operating efficiency. Below 45% is good; above 60% suggests a branch network or a technology bill that the revenue is not supporting.
Worked example: A well-run private bank
The four headline numbers from a solid Indian private-sector bank.
What to enter
- Net interest margin (NIM)
- 3.5%
- Gross NPA
- 2.5%
- CASA ratio
- 45%
- Cost-to-income
- 45%
What it shows you
- NIM
- Healthy
- Gross NPA
- Acceptable
- CASA
- Strong
- Cost-to-income
- Efficient
- Leverage
- ≈ 8–10× equity
3–4% is the strong band in India
watch the direction, not the level
cheap funding is a durable moat
normal for a bank, alarming anywhere else
Where this is taught
A calculator gives you a number. These explain what the number means and when it misleads you.
- Fundamental Analysis14 minSector-specific analysisGeneral ratios break down at sector boundaries. What to actually look at for banks, NBFCs, IT, pharma, FMCG, cement, autos and real estate in India.
- Fundamental Analysis12 minValuing a bank properlyWhy P/E fails for banks, how price-to-book and ROE combine into a single framework, and the asset-quality numbers that decide everything.
- Fundamental Analysis14 minAn IT services company is priced by the hour: reading one properlyAn IT services company’s revenue is people, times hours, times a rate — and nearly every number it reports is a way of watching one of those three. Constant currency growth, utilisation, the employee pyramid, deal wins that become revenue over years, and why a weaker rupee can make a flat quarter look like growth.
- Fundamental Analysis13 minA cement company is read per tonne, and region by regionCement is heavy, cheap by the kilo and expensive to move, so it is sold in regional markets that can be in opposite cycles. How to read a cement company in rupees per tonne — realisation, fuel, freight and EBITDA — why capacity added in lumps starts price wars, why the monsoon quarter is always weak, and how the industry values capacity by the tonne.
- Fundamental Analysis12 minBook value, and the businesses where it means anythingFor a bank it is close to the whole valuation. For a software company it is almost meaningless. Knowing which you are looking at is most of the skill.