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 browser — 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 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.
- Market Basics11 minOrder types, and the order book behind themMarket, limit, stop-loss and GTT — what each one actually does to the order book, and why choosing wrong is expensive.
- Technical Analysis11 minPaper trading properly, and what it cannot tell youForward testing catches things a backtest never will, and it lies about the one thing that decides most outcomes.