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Glossary Definition

Interest Yield
Interest Yield measures the rate of return generated by all the assets held by a bank that produce returns in the form of interest income.

It is calculated as

Interest Income / Average Interest Generating Assets

Average Interest Generating Assets is the arithmetic average of opening and closing balances for interest generating assets.

Interest Generating Assets = Cash + Treasury Bills + Short Term Investments + Long Term Investments + Customer Loans + Inter Bank Loans + Other Loans)
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