HDFC Stats Prep

EPS equation

(net income - preferred dividends) / average common shares outstanding

Net profit margin equation

(revenue-cost)/revenue

net profit

amount of money a business earns after deducting all operating, interest, and tax expenses over a given period time

Net interest income for banks

assets include commercial and personal loans, investment securities, etc. Liabilities are mostly just customers' deposits

3 main parts of balance sheets

assets, liabilities, and equity

CSR definition

corporate social responsibility

Net interest income

difference between revenues generated by interest-bearing assets and the cost of servicing liabilities

EPS

earnings per share

positive NIM

entity operates profitably

Loans

funds borrowed by an entity from another entity, repayable after a specific period carrying interest rate

Advances

funds provided by the bank to an entity for a specific purpose, to be repayable after a short duration

Gross npa ratio definition

gross non-performing assets

negative NIM

investment inefficiency

CSR

management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders

Operating cash flow

measure of the amount of cash generated by a company's normal carrying interest rate

Net interest margin

measurement comparing net interest income a financial firm generates for credit products (loans and mortgages) a profitability indicator that approximates the likelihood of a bank thriving over a long period of time. Average NIM in 2019 was 3.5%

net profit margin

measures how much net income of profit is generated as a percentage or revenue

balance sheet

snapshot of its finances at a certain point in time, and represents activities like making loans to households, businesses and taking deposits

Gross npa ratio

sum of all loans that have been defaulted by borrowers within provided period of 90 days