Published Paper Details:

In recent times, the banks had largely diversified its income sources from traditional activities to other non-traditional activities such as brokerage and fee based services, sale of third party products, securities and forex transactions, etc.., This study attempts to investigate the impact of non-interest income on bank performance and risk. The sample of 57 banks (23 public sector banks, 11 old generation banks, 7 new generation banks, 16 foreign banks) is used. The data is collected for the period of 13 years i.e., from 2005 to 2017. The effect of different components of non-interest income on the banks performance and risk are analysed using statistics tools and techniques. The findings of this study show that the non-interest income increases both the profitability and risk. It also recommends public and private sector banks to focus on diversified income and aggressive marketing of ancillary services to increase their income.