Study of Banking Break Even Point: An Innovative Tool for Banking Industry

Abstract

Breakeven point is that point of business target where there is no loss no profit it can recover its fixed cost. We always calculate Break Even Point of the Product only and never think about services sector like banking institution. This research paper developed the formula and methodology for banking breakeven point.  Which indicates that amount of lending and deposit will recover the fixed cost and if there is desired profit it will also calculate.