What Banks in India Achieved the Highest Interest Margin in 2018?

Based on a comparison of 26 banks in India in 2018, Bandhan Bank operated with the highest net interest margin, followed by HDFC Bank and Kotak Mahindra Bank.

Bandhan Bank's net interest margin amounted to 8.93% in 2018, up from 8.14% when compared to the previous year.

Historically, the bank’s net interest margin reached an all time high of 9.62% in 2016 and an all time low of 8.14% in 2017. The average margin in the last five years amounted to 8.97%.

Average asset yield was 13.2% in 2018, up from 12.9% when compared to previous year. On the other hand, cost of funding amounted to 5.36% in 2018, down from 5.83%.

Comparing Bandhan Bank with its closest peers, HDFC Bank operated in 2018 with a net interest margin of 4.29% Kotak Mahindra Bank reached 4.02% and City Union Bank some 3.78%.

You can see all the banks interest margin data on the Net Interest Margin indicator page or you can download a report on the Indian banks in the report section.