ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Kalluru Siva ReddySubscribe to Kalluru Siva Reddy

Non-interest Income and Stability of Commercial Banks

The impact of the share of non-interest income on the risk of banks in India for the period 1993–2018 is examined, employing coefficients of variation, and linear and quantile regression techniques. The higher share of non-interest income leads to diversification benefits and reduces the risk of banks. The share of non-interest income has fallen and more banks have become unstable in the last decade. For the nationalised and foreign banks, the increase in the proportion of non-interest income has led to greater stability. However, for some of the private banks, this relation is not linear.
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