Indian banks must diversify income to boost performance in competitive market.
The article examines how different types of banks in India earn money and how it affects their performance. They looked at data from 77 banks from 1999 to 2004 and found that banks need to focus on making money from sources other than interest to be more profitable. Newer private banks and foreign banks perform better than older public sector and cooperative banks. To be successful, Indian banks should improve their non-interest income and manage risks better.