Dynamics of Changing Income Structure: An Empirical Analysis of the Indian Banking Sector

• Published in: SCMS journal of Indian management Vol. 20; no. 4; pp. 60 - 77
• Main Authors: Thakur, Nidhi, Arora, Sangeeta
• Format: Journal Article
• Language: English
• Published: Kochi School of Communication & Management Studies 01.10.2023
• Subjects: Banking industry; Banks; Commercial banks; Diversification; Hypotheses; Literature reviews; Public sector; Regulatory reform; Trends; India
• ISSN: 0973-3167

[...]this study aims to empirically study the changing bank income structure with particular emphasis on interest income, Nil, and its sub-components for the Indian SCBs during 2001 -2021 and the extent of income diversification to check whether it differs across different ownership groups in India. [...]the study explores the correlations between interest income and various sources of NIL By doing so, it seeks to assist Indian banks in optimizing their income mix to enhance financial performance and stability. [...]we investigate whether ownership groups of SCBs significantly influence the levels of income diversification in the Indian banking sector. [...]the study identifies the bank groups that are the most and least diversified in terms of revenue sources and offers recommendations for enhancing diversity.