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
11.2% = 19.0% × 0.08 × 7.78
Latest: FY2025
Profitability
Net Margin
19.0%
19.0% →19.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.08x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
7.78x
7.78x →7.78x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹0Cr | 19.0% | 0.08 | 7.78 | 11.2% |
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.