Bank's Cost to Income Ratio for India
DDEI07INA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
47.82
Year-over-Year Change
6.21%
Date Range
1/1/2000 - 1/1/2021
Summary
The Bank's Cost to Income Ratio for India measures the ratio of a bank's operating costs to its total income, providing insight into the efficiency and profitability of the Indian banking sector.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Bank's Cost to Income Ratio is a key metric used to evaluate the operational efficiency of banks. It represents the proportion of a bank's total income that is consumed by its operating expenses, such as staff costs, occupancy, and other administrative expenses.
Methodology
This ratio is calculated by dividing a bank's total operating expenses by its total operating income.
Historical Context
The Cost to Income Ratio is widely used by regulators, investors, and analysts to assess the performance and competitiveness of the banking industry.
Key Facts
- The global average Cost to Income Ratio for banks is around 55%.
- A lower Cost to Income Ratio indicates higher operational efficiency.
- India's banking sector has seen a gradual improvement in its Cost to Income Ratio in recent years.
FAQs
Q: What does this economic trend measure?
A: The Bank's Cost to Income Ratio for India measures the proportion of a bank's total income that is consumed by its operating expenses, providing insight into the efficiency and profitability of the Indian banking sector.
Q: Why is this trend relevant for users or analysts?
A: The Cost to Income Ratio is a crucial metric used by regulators, investors, and analysts to assess the performance and competitiveness of the banking industry.
Q: How is this data collected or calculated?
A: The ratio is calculated by dividing a bank's total operating expenses by its total operating income.
Q: How is this trend used in economic policy?
A: Policymakers and regulators use the Cost to Income Ratio to monitor the efficiency and profitability of the banking sector, which can inform policy decisions and interventions.
Q: Are there update delays or limitations?
A: The data is subject to the reporting timelines of the banking institutions and may have occasional delays in updates.
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Citation
U.S. Federal Reserve, Bank's Cost to Income Ratio for India (DDEI07INA156NWDB), retrieved from FRED.