Net Interest Income!

Net Interest Income (NII) is one of the important parameters on gauging the profitability of a bank. The net interest income of a bank is the difference between the interest it charges on loans and what it pays on its deposits. Net interest income growth is influenced by the proportion of loans that are not paid or are being defaulted on because this is an income loss for the lender. It is also influenced by the loan mix of a bank as certain loans fetch higher interest rates than others. Finally, net interest income growth depends on how fast the loan book grows vis-à-vis the deposit book.