My thoughts my words!

#NIM- Net Interest Margin?

(Interest earned- Interest expended)/Average Earning assets

#ROA- Return on Assets
Net Profit/Average Total Assets

So now to understand Will
NIM- ROA make sense?
if yes...What will that imply?

Also before that what's the difference between Earning Assets of Bank and Total Assets?

Lets see what RBI has to say:

Earning Assets includes loans and advances, investments of all types, interest earning deposits with banks/ others and market lending to banks.

Cool so basically those assets from which Banks are directly generating earnings...thats why...Earning Assets Right?

So what will be th difference between Total Assets and Earning Assets..

Fixed Assets of bank mostly?
Right..

So how much is Fixed Assets of Banks as % of total assets... lets see of HDFC Bank...it is less than 1%..

Also in schedule you have to see what's in other assets...
Although other Assets for HDFC bank is around 3-4% of Total Assets.

So overall we may loosely assume denominator may be close for both ratios...

Now NIM-ROA basically remain the difference of NII-Net profit?

What will be that ?
Not interest expense ....Right

So NIM-ROA less the better...Right