Parameters to judge safety and performance of SFBs

Though I do understand that customer’s deposit is secured under RBI’s deposit guarantee scheme, however do you mind educating the customer a bit more as on what parameters can they judge if a SFB is reputed enough or is it doing good enough to flourish further.

Some parameters that I thought of tracking quarter on quarter are

  1. AUM

  2. Increase in Deposit

  3. Profit increase

  4. Reduction in NPAs

  5. Higher Capital Adequacy Ratio

Please suggest if there are other parameters on which we can track bank’s performance

Numbers hardly matters coz we know each and every parameter you mentioned can be manipulated by banks. I am sure you do remember the case of Yes Bank and PMC bank !

But yeah overall Indian banking system is pretty robust and your money will be safe no matter what.

It is always advisable not to put all eggs in the same basket. Diversify !!

Make sure to keep some amount in too big to fail bank for rainy days !

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