What are the most important indicators to evaluate a bank's performance? Please elaborate on each point.

There are many indicators to evaluate a banks performance. Some of the important parameter include but not limited to -

1. ROA/ROE: What is the return on banks assets and equity base. Do note bank ROE>ROA due to leverage

2. Tier 1 capital adequacy. As per Basel norms banks are expected to maintain tier 1 capital. Is this healthy or on borderline

3. CASA ratio: CASA is current and savings account ratio to total deposits. CASA is a cheaper source of funds and banks with higher CASA tend to have a more competitive edge

4.NIMS: Net interest margins is the spread between coat of borrowing and lending. Bigger banks tend to have higher NIMS spread