DuPont Decomposition
Why does RBLBANK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 8.4% × 0.06 × 10.81
Latest: FY2026
Profitability
Net Margin
8.4%
-2.5% →8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.06x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
10.81x
8.47x →10.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 5 years. Driven by net margin improving (-2.5% → 8.4%), leverage rising (8.47x → 10.81x). 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 | -2.5% | 0.06 | 8.47 | -1.3% |
| FY2023 | ₹0Cr | ₹0Cr | 12.4% | 0.06 | 8.56 | 6.8% |
| FY2024 | ₹0Cr | ₹0Cr | 13.8% | 0.07 | 9.33 | 8.5% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 0.07 | 9.37 | 4.6% |
| FY2026 | ₹0Cr | ₹0Cr | 8.4% | 0.06 | 10.81 | 5.3% |
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.