DuPont Decomposition
Why does BANDHANBNK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.8% = 9.0% × 0.06 × 8.26
Latest: FY2026
Profitability
Net Margin
9.0%
1.1% →9.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.08x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.26x
8.00x →8.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 5 years. Driven by net margin improving (1.1% → 9.0%), leverage rising (8.00x → 8.26x). 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 | 1.1% | 0.08 | 8.00 | 0.7% |
| FY2023 | ₹0Cr | ₹0Cr | 18.7% | 0.08 | 7.97 | 11.2% |
| FY2024 | ₹0Cr | ₹0Cr | 17.9% | 0.07 | 8.23 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 19.0% | 0.08 | 7.78 | 11.2% |
| FY2026 | ₹0Cr | ₹0Cr | 9.0% | 0.06 | 8.26 | 4.8% |
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.