Trends and growth of non-interest income with special reference to public sector banks

The Banks are the backbone of financial sector and the economy as a whole. It plays the significant role in the socio economic development of the country. As far as the present scenario is concerned the banking industry is in a transition phase (Jadhao, 2010). After the liberalization program the net income of the banks has doubled. In this paper the net income comprises of the interest income and non-interest income. We try to find out the non-interest income as the major source of income for the Public sector banks. For this purpose we collected the data relating to the total income of the Public sector banks from RBI database. This research paper tries to analyze the trend and growth of non-interest income in the public sector banks over the past 10 years i.e. 2001–2010.