DuPont Decomposition
Why does BANKINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 31.6% × 0.03 × 13.11
Latest: FY2026
Profitability
Net Margin
31.6%
16.2% →31.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.03x
0.03x →0.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
13.11x
13.32x →13.11x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.1 pp over 5 years. Driven by net margin improving (16.2% → 31.6%), leverage falling (13.32x → 13.11x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.2% | 0.03 | 13.32 | 6.3% |
| FY2023 | ₹0Cr | ₹0Cr | 14.6% | 0.03 | 13.67 | 6.3% |
| FY2024 | ₹0Cr | ₹0Cr | 22.3% | 0.03 | 13.10 | 9.3% |
| FY2025 | ₹0Cr | ₹0Cr | 30.3% | 0.03 | 13.09 | 11.8% |
| FY2026 | ₹0Cr | ₹0Cr | 31.6% | 0.03 | 13.11 | 11.5% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.