Dear Professionals,
Please clarify how NET INTEREST MARGIN is calculated in NBFC?
Thanks in advance.
2 Replies
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8697 Points)
Replied 03 December 2024
Here's the step-by-step calculation:
This means the NBFC earns a net interest margin of 8% on its average interest-earning assets.
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