SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES VOL. 5 NO. 2 PAPER 5
 
CREDIT DEPOSIT RATIO AND NET INTEREST MARGIN (NIM) OF INDIAN COMMERCIAL BANKS – AN ANALYSIS
 
M. Syed Ibrahim
Assistant Professor, Sona School of Management, Salem, Tamil Nadu, India
 
The financial institutions are one of the main instruments of economic development as they provide financial resources. An efficient financial system can perform this function by raising the level of economic activity. Financial institutions are the tools to mobilize savings and encourage investments by diverting it to productive channels. The banks manage everyday money matters for private individuals and companies such as the payment of salaries and bills and the repayment of loans, other means of payment such as bank cards or charge cards, can be added to the current accounts. In addition to normal current accounts, the banks also offer accounts paying higher rates of interest, intended for investment purposes. Every day money matters are managed through the banks. The paper provides a comprehensive study of functional spread of Commercial Banks and analysis of NIM for three sectors of banks and its variations over the period
 
KEYWORDS: NIM, Commercial Banks, Interest Rate Structure JEL CLASSIFICATIONS: F36, G21, G23 FULL TEXT