Context: ICICI Bank on Saturday said standalone net profit for the quarter ended September 30 climbed 37% to ₹7,558 crore from a year earlier, driven by 26% growth in net interest income (NII) to ₹14,787 crore and a dip in provisioning.
About Net Interest Income
◼ Net interest income reflects the difference between the revenue generated from a bank's interest-bearing assets and the expenses associated with paying its interest-bearing liabilities.
◼ The type of assets earning interest for the bank can range from mortgages to auto, personal, and commercial real estate loans.
◼ The amount of net interest income a bank generates will depend on many factors including the quality of the loan portfolio, the collective interest rates each type of loan carries, as well as whether the loans carry a fixed or variable rate.
◼ Banks calculate their net interest income by subtracting the interest they must pay out to their clients from the interest income they generate.
◼ You can find a bank's net interest income in its quarterly and annual reports.