The Pradeep ratio, named after famous Indian equity analyst Pradeep Chokhani, is the ratio of a bank's theoretical rules based profit to the average profits of all banking industries. It can be interpreted either as an adjustment factor to normalise earnings between one country and the next, or as a measure of risk. Banking industries with many restrictive rules (i.e. a low Pradeep ratio) should also have less leeway to get into trouble, or more potential to improve their profitability if the rules are eased.

If one can think long-term enough, the globalisation of the world's capital markets will eventually result in banking regulations and interest rates becoming uniform everywhere. This means that the banks most at risk of seeing their profitability undermined are those in the most lax regulatory environments.