Net Interest IncomeNII

Net interest income is the main source of revenue for Nepali commercial banks. Interest income comes from loans and advances, investments in treasury bills and bonds, and placements with other banks. Interest expense is paid on deposits, borrowings and debt securities.

NII depends on three things: the volume of earning assets, the yield on those assets and the cost of funds. It grows when loans expand at healthy margins and shrinks when deposit costs rise faster than lending rates, when the regulator lowers the permissible spread or when interest stops being recognised on non-performing loans.

Under NFRS, interest is recognised using the effective interest rate method, and NRB guidelines govern recognition of interest income on loans, including the treatment of accrued but unrealised interest.

NII expressed as a percentage of average earning assets gives the net interest margin. Income from fees, commissions, foreign exchange and other sources is called non-interest income; a bank with a higher share of non-interest income is less dependent on interest margins.

खुद ब्याज आम्दानी नेपालका वाणिज्य बैंकको मुख्य आम्दानी स्रोत हो। ब्याज आम्दानी कर्जा तथा सापटी, ट्रेजरी बिल र बन्डमा लगानी तथा अन्य बैंकमा राखिएको रकमबाट आउँछ; ब्याज खर्च निक्षेप, सापटी र ऋणपत्रमा तिरिन्छ।

NII आर्जनशील सम्पत्तिको आकार, प्रतिफल दर र कोषको लागतमा निर्भर हुन्छ। निक्षेप लागत छिटो बढ्दा, ब्याजदर अन्तर घटाइँदा वा निष्क्रिय कर्जाको ब्याज आम्दानी नहुँदा NII घट्छ। NFRS अनुसार प्रभावकारी ब्याजदर विधिबाट ब्याज आम्दानी लेखाङ्कन हुन्छ। NII लाई औसत आर्जनशील सम्पत्तिले भाग गर्दा खुद ब्याज मार्जिन आउँछ।