DIVERSIFIED INCOME STRATEGIES OF BANKS – A REAL WORLD SITUATION

DIVERSIFIED INCOME STRATEGIES OF BANKS – A REAL WORLD SITUATION
Author(s):
JAYESH S V, Dr K SEVUGAN
Keywords:
Bank, Deposit, Advances, NPA, Fee, Commission, Charges, Cheque Return, SMS
Abstract
Generally speaking banking helps the economy by connecting savers to investors. The excess fund is collected as deposit and advances some portion to the needy people for various purposes. By this way banks make revenue from their usual banking business. But it never reaches their anticipated profit to compete in the market. The nationalized banks, private banks, foreign banks and even co-operative banks are also facing the similar situation in the market to. The npa portion of bank is a double edged weapon, as it never creates an income nor it reduces the profit by creating reserves. To meet the operational expenses of the banks, the interest income not enough. So they try to improve their profits by increasing the non-interest incomes of the banking business. The charges, commission, fees etc collected by banks through various ancillary services will reach the destinations. The ATM Fee, Bank Statement Charges, Cheque Return Charges, SMS Charges etc are major item in this scenario.
Article Details
Unique Paper ID: 153074 Publication Volume & Issue: Volume 8, Issue 5 Page(s): 446 - 449
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