• Ibha Rani
• Dr. Mukund Sharma N

In the wake of rising NPAs, the losses associated with it and the resultant restrictions, credit is gradually loosing it’s appeal as a lucrative source of interest-income. As a result, the Indian banking sector has begun pinning its hopes in the non-traditional, non-interest generating, parabanking activities, such as trading, merchant banking, non-fund based transactions, fee-based services, including alternate delivery channels, such as debit cards and PoS terminals. With this backdrop, the present study was conducted to explore whether non-interest based activities are efficient enough to emerge as an alternative source of income for the new generation banks in India. The study was based on secondary data, which was collected from various data bases, such as DBIE and RBI and relevant literature was reviewed in detail. The non-interest of the income has increased during the study period but there was no definite pattern of increase of decrease. The share of non-interest income in the total bank income had not increased on par with that of the interest income and non-interest activities contributed less than 20 percent to the total bank income. The ratio of non-interest income to the total bank assets, was much lesser compared to that of net-interest to the total assets, implying that non-interest income does not influence the bank profitability significantly. The study indicated that banks would need many concentrated efforts to boost para-banking activities as an alternative to interest based income.

Para-banking, Efficiency, Interest Income, Non-interest Income

"A Study of the Efficiency of Para-banking as an Alternative Source of Income for the New Generation Private Banks in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 1, page no.123-143, January-2019, Available :http://www.jetir.org/papers/JETIR1901A18.pdf

"A Study of the Efficiency of Para-banking as an Alternative Source of Income for the New Generation Private Banks in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 1, page no. pp123-143, January-2019, Available at : http://www.jetir.org/papers/JETIR1901A18.pdf