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Pre-Provision Operating Profit (PPOP)

1 min read
RBI Grade BNABARD ESISEBI
  • Financial metric representing income generated in a specific time period before accounting for future bad debts.
  • Key metric for banks providing insight into operational efficiency.
  • Calculated by subtracting expected loan defaults and uncollectible debts from total income.
  • Estimates remaining operating profit after loan defaults.
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