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Stability in Bank Income through Fee-based Activities

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  • R. K Uppal

Abstract

This paper is an attempt to study the trends in non-interest income which is a vital source of stability in bank income. For this, the study takes some parameters like interest and non-interest income as a percentage to total income, share of non-interest income components like exchange & brokerage, sale in investment and exchange transaction. On the basis of these parameters the study concludes that interest income is continuously declining due to deregulation in interest rates and non-interest income is rising. Among the non-interest income components, commodity exchange & brokerage witnessed a large share while exchange transaction witnessed a meager part. The paper also gives some ways and means to bring stability in the total income.

Suggested Citation

  • R. K Uppal, 2010. "Stability in Bank Income through Fee-based Activities," Information Management and Business Review, AMH International, vol. 1(1), pages 40-47.
    • Handle: RePEc:rnd:arimbr:v:1:y:2010:i:1:p:40-47
    DOI: 10.22610/imbr.v1i1.870
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    References listed on IDEAS

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    1. Sunil Mohanty & Alan K. Reichert & Larry D. Wall, 1993. "Deregulation and the opportunities for commercial bank diversification," Economic Review, Federal Reserve Bank of Atlanta, issue Sep, pages 1-25.
    2. Heidi Taylor Aggeler & Ron J. Feldman, 1998. "Record bank profitability: how, who and what does it mean?," Fedgazette, Federal Reserve Bank of Minneapolis, issue Apr.
    3. John H. Boyd & Stanley L. Graham, 1986. "Risk, regulation, and bank holding company expansion into nonbanking," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 10(Spr), pages 2-17.
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    Cited by:

    1. Smita Roy Trivedi, 2015. "Banking Innovations and New Income Streams: Impact on Banks' Performance," Vikalpa: The Journal for Decision Makers, , vol. 40(1), pages 28-41, March.

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