Income diversification and risk-adjusted returns for Indian banks
By: Kaur, Navneet and Bapat, Dhnanjay
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Material type: 
BookPublisher: Economic & Political Weekly Description: 56(14), 03 Apr, 2021: p.10-14.Subject(s): Asset quality, Banks - India, Public sector banks
In:
Economic & Political WeeklySummary: Of late, banks are under pressure to improve their performance and asset quality. Diversifying income might improve their performance at a time when interest incomes are under strain. This article covers trends in diversification from 2000 to 2017 and explores the relationship between income diversification and risk-adjusted returns for banks in India. Our research supports the hypothesis that banks diversifying into non-interest income category are able to get higher risk-adjusted returns. For public sector banks, it is found that it is the dividend and treasury income that is contributing positively and significantly to risk-adjusted return. – Reproduced
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | 56(14), 03 Apr, 2021: p.10-14 | Available | AR125096 |
Of late, banks are under pressure to improve their performance and asset quality. Diversifying income might improve their performance at a time when interest incomes are under strain. This article covers trends in diversification from 2000 to 2017 and explores the relationship between income diversification and risk-adjusted returns for banks in India. Our research supports the hypothesis that banks diversifying into non-interest income category are able to get higher risk-adjusted returns. For public sector banks, it is found that it is the dividend and treasury income that is contributing positively and significantly to risk-adjusted return. – Reproduced
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