DuPont Decomposition
Why does INDBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 40.4% × 0.18 × 1.29
Latest: FY2025
Profitability
Net Margin
40.4%
39.5% →40.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.19x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.33x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~9%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 39.5% | 0.19 | 1.33 | 9.8% |
| FY2023 | ₹0Cr | ₹0Cr | 22.0% | 0.16 | 1.31 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 46.0% | 0.18 | 1.28 | 10.8% |
| FY2025 | ₹0Cr | ₹0Cr | 40.4% | 0.18 | 1.29 | 9.2% |
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.