Net Interest Margin (NIM)

Consistent across all 14 consumers

The fundamental profitability ratio of every banking entity. Defined once in DataCrystal. Consumed identically everywhere.

Formula

NIM = (Interest Income − Interest Expense) / Average Earning Assets

Annualized. Computed at month-end. Earning assets include advances, investments, money market lending, less non-performing assets per RBI Master Direction on Income Recognition.

Authoritative definition

Net Interest Margin (NIM) is the difference between the interest income generated by a banking entity from its lending activities (loans, advances, investments) and the interest paid out on its borrowings (deposits, market borrowings, subordinated debt), expressed as a percentage of the entity's average earning assets over the period. NIM is a primary measure of the profitability of the lending function, independent of fee income, trading income, or operating costs. The Pinnacle Financial Group computes NIM using the methodology aligned with RBI Master Direction on Bank Income Recognition (DBR.No.BP.BC.2/21.04.048/2015-16) and excludes interest accrual on substandard, doubtful, and loss assets from the numerator until cash receipt.

Interest Income

Interest on advances (retail, corporate, NBFC)
Interest on investments (G-Sec, T-Bills, corporate bonds)
Interest on money market lending
Interest on RBI deposits (CRR, SLR-eligible)

Excludes: Interest accrual on NPA assets per RBI guidelines

Interest Expense

Interest on deposits (savings, current, term)
Interest on borrowings (refinance, sub-debt, market)
Interest on RBI repo
Interest on inter-bank borrowings

Average Earning Assets

(Opening + Closing) / 2 for the period

Excludes: Non-performing assets, fixed assets, cash, premises

OSI-compliant export

This metric is exported in OSI v1.0 format. Consumers in dbt Semantic Layer, Cube, AtScale, Power BI, and Snowflake Cortex Analyst can ingest the definition directly — no re-implementation required.