Non Interest Income free essay sample

Overview Of Banking Project Title: Comparative study of non interest income of the Indian Banking Sector Submitted by: Gaurav Sharma BBA(Finance, Gold Medal),MBA(Finance) [emailprotected] com Electronic copy available at: http://ssrn. com/abstract=1431288 Index Introduction Methodology SBI Associates Nationalized banks(Public sector banks) Private sector banks Foreign banks Findings Conclusion Literature review References 1 3 5 10 15 20 25 26 26 26 Electronic copy available at: http://ssrn. com/abstract=1431288 Introduction There are two broad sources of bank revenues: 1. Interest income 2. Non-interest income. Interest income is generated from what is known as â€Å"the spread. † The spread is the difference between the interest a bank earns on loans extended to customers, corporate etc and the interest paid to depositors for the use of their money. It is also earned from any securities that the banks own, such as treasury bills or bonds. Non-interest income is earned by providing a variety of services, such as trading of securities, assisting companies to issue new equity financing, securities commissions and wealth management, sale of land, building, profit and loss on revaluation of assets etc. We will write a custom essay sample on Non Interest Income or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As compared to the developed world, the Indian banking sector, apart from the relying on traditional sources of revenue like loan making are also focusing on the activities that generate fee income, service charges, trading revenue, and other types of noninterest income. While noninterest income plays an important role in banking revenues in the developed world, its contribution to the total income of the Indian banking was 25% as on 31st March 2008. Components of non interest income The major components of non interest income in our banking sector are as follows: 1. 2. 3. 4. 5. 6. Commission/ exchange and brokerage Profit or loss on Sale of investments Profit or loss Sale of land buildings Profit/loss on revaluation of investments Profit or loss on Exchange transaction etc. Miscellaneous income source which includes advisory, trading etc. Share of various sources of non interest income The share of various sources of non interest income to the total income of banking sector as on 31st march 2008 is shown in the pie chart below: In the above figure we find that the highest contribution to the non interest income has been of the commission followed by sale of investments, miscellaneous income and exchange transactions. Movements of interest and non interest income of the Indian banking sector (1994-2004) Methodology Under this I have done a comparative study of non interest income of the Indian banking sector by classifying banks into four categories: 1. SBI and associates which includes State bank of India, State bank of Bikaner and Jaipur, State bank of Hyderabad, State bank of Mysore, State bank of Patiala, State bank of Saurashtra and State bank of Travancore. 2. Nationalized banks: (Public sector banks) which includes Allahabad bank, Andhra bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara bank, Central Bank of India, Corporation bank, Dena bank, Indian bank, Indian Overseas bank, New bank of India, Oriental bank of Commerce, Punjab Sind bank, Punjab National Bank, Syndicate bank, UCO bank, Union bank of India, United bank of India, Vijaya bank. Total 19) 3. Other scheduled banks: (Private sector banks) which includes Development credit bank, Times bank, Axis bank, Indus land Bank, ICICI bank, Bank of Rajasthan, Catholic Syrian bank, Lakshmi Vilas bank, HDFC bank, Centurion bank, Bank of Punjab, Tamilnad Mercantile Bank, Federal bank, Punjab Cooperative bank, Lord Krishna bank, ING Vyasya bank, IDBI bank, Dhanlaks hmi bank. (total 18 banks) 4. Foreign banks: which includes Barclays bank, ING bank, ABN Amro bank, Bank of America, BNP Paribas, Standard Chartered bank, DBS bank ,Citibank, HSBC, Deutsche bank, Mashreq bank, Bank of Nova Scotia, Bank of Bahrain Kuwait, American Express bank (total 14 banks) The banks used under private sector and foreign sector category are reflective of major portion of their respective market/category. Moreover data was not available for other banks within that category. The period of study taken was 11 years i. e. 994-2004. The period of study was taken as 11 years because, for the above mentioned period the data was available for all the bank and to ensure uniformity. Objectives of the study: 1. To analyze the growth of non interest income as a source of revenue for the Indian banking sector over a period of 11 years (1994-2004). 2. To analyze the contribution of major components of the non interest income over a period of 11 years (1994-2004). 3. To find out statistically that how much of the profits of the banking sector over a period of 11 years is determined by non interest income and interest income. 4. To find out statistically the contribution of various components of Non interest income towards the profits of the bank over a period of 11 years. 5. To find out the contribution of interest and non interest income towards the total income in each of the 11 years (1994-04). 6. To find out the correlation between the non interest income and the total income of the banking sector over a period of 11 years. . To find out the reasons for the increase in the non interest income and what are the challenges involved to generate non interest income. Tool used: Data regarding the interest income, non interest income, profits, various components of non interest income, total income of the banking sector has been collected from the RBI website. To find out the influence of interest and non interest income on the profits of the bankin g sector, I have made use of multiple regression tool in E-views software. The interest and non interest income were independent variable and the profits of the bank was the dependent variable Two Multiple Regression equation was used for the study: Equation 1 Profits=a+b1*interest income+b2*noninterest income Where b1 and b2 were coefficient and a is the intercept term which shows the profits of the bank had been c if interest and non interest income had been 0 Equation 2 Profits: a+b1*commission+b2*profit/loss on sale of land+ profit/loss on sale of investment+ profit/loss on revaluation of investment profit/loss on exchange transactions+ Miscellaneous income Where profits was the dependent variable and various components of non interest income were independent variable and a is the constant term The equation 2 was used to find out the influence of various components of non interest income on the profits of the bank. SBI and Associates (Rs‘000) In the above table we see the following: Column1: Average Column 2: Year Column 3: Other income or the non interest income of the bank Column 4: Commission, exchange and brokerage Column 5: Net profit/loss on sale of investment Column6: Net profit/loss on revaluation of investment Column7: Net profit/loss on sale of land, building and other assets Column 8: Net profit/ loss on exchange transactions Column 9: Miscellaneous income Column 10: Total income of the bank Column 11: Profit/loss of the bank Column 12: Interest income of the bank Column 13: Noninterest income as a percentage of total income Column 14: Interest income as a percentage of total income Influence of interest and non interest income on profits of SBI Associates The above output is of the multiple regression equation where we have tried to find out that how much of the profits of the SBI and its associates are determined by interest and non interest income. 1. We find non -interest income to be a significant variable in explaining the profits of SBI as the prob value is less the . 05 (. 0095)and the value of t stat is more than 2(3. 386)[ Rule: an independent variable is said to be significant is its prob value is less than . 05 or the t-stat is more than 2). 2. We find that in our regression model the percentage of variation in the profits of SBI and its associate that is explained by interest and non interest income is 92. 81% ( Rule: for a regression model to be efficient the r-square shall be at least . 6) 3. From the above output we find that Noninterest income had a significant influence on the profits of SBI and its associates over a period of 11 years. Influence of non interest components on profit of SBI Associate Model Summary Std. Error of the Estimate 4040785. 5 . 981 . 943 5743 a Predictors: (Constant), misc, plland, plexchange, pllinvest, plreav, comm Mode l R 1 . 990(a) Adjusted R Square R Square Coefficients(a) Mode l Standardized Coefficients Unstandardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 20565743. 52 10099548. 868 -2. 036 . 135 6 comm 2. 109 . 603 1. 153 3. 495 . 040 pllinvest . 970 . 255 . 944 3. 805 . 032 plreav 27. 569 76. 257 . 100 . 362 . 742 plland 76. 158 97. 743 . 221 . 779 . 493 plexchang -1. 077 . 815 -. 135 -1. 322 . 278 e misc -4. 728 2. 151 -1. 042 -2. 198 . 115 a Dependent Variable: profit In the above regression output the independent variable used were various components of non interest income i. e. commission/exchange /brokerage, profit/loss on sale of investment, profit and loss on revaluation of investment, profit/loss on sale of land/building, profit/loss on exchange transaction and miscellaneous income. And the dependent variable used was the profits of the SBI associates The objective is to find out that which one of the non interest component had a major influence on the profit of SBI associates over a period of 11 years. We find the following: 1. The percentage of variation in the profits of the SBI associates explained by the 6 independent variables is 98. 1% which is significant(as R square shall be more than . 6) 2. We find that commission/exchange/brokerage and profit/loss on sale of investment had a major influence on the profits of the SBI and its associates over a period of 11 years. As they are having a prob values less than . 05(level of significance) and is having a t-stat more than 2. This means that SBI and its associates shall focus more on commission exchange and brokerage for its non interest income. Contribution of various components of non-interest income of SBI Associate(94-04) The above pie graph has been prepared by taking into account the average values of non interest income components over a period of 11 years (94-04). From the above graph we find that commission/exchange and brokerage had around 59% (highest) contribution to the non interest income followed by sale of investment (20%). Exchange transaction was having a contribution of 12% and miscellaneous income was having an influence of 9%. The sale of land/buildings, revaluation of investment was having a very negligible influence on the non interest income. Movements of interest and non interest income of SBI Associates(94-04) If we look at the movement of interest and non interest income of SBI and associates over a period of 11 years we will find that the non interest income has grown at a CAGR of 18. 46% and the interest income has grown at a CAGR of 13. 15%. The noninterest income over a period of 11 years has grown by 444. 563% whereas interest income has increased by 244. 14% which shows how aggressively the bank is working on its non interest income. Contribution of interest and non interest income of SBI Associate From the above table we find the contribution of interest and non interest income as a percentage of total income in each of the 11 years period. We find the share of non interest income has increased over a period of time from 14% to 21% and share of interest income has decreased from 85% to 78%. On an average over a period of 11 years the contribution of non interest income as been 15% and interest income has been 85% to the total income of the SBI and its associates. Correlation between non interest income and total income 0. 935642 There is a very positive correlation between non interest income and the total income of SBI and its associates which shows that higher the non interest income higher the total income of the SBI associate. Nationalized banks: Public sector banks (Rs‘000) In the above table we see the following: Column1: Average Column 2: Year Column 3: Other income or the non interest income of the bank Column 4: Commission, exchange and brokerage Column 5: Net profit/loss on sale of investment Column6: Net profit/loss on revaluation of investment Column7: Net profit/loss on sale of land, building and other assets Column 8: Net profit/ loss on exchange transactions Column 9: Miscellaneous income Column 10: Total income of the bank Column 11: Profit/loss of the bank Column 12: Interest income of the bank Column 13: Noninterest income as a percentage of total income Column 14: Interest income as a percentage of total income Influence of interest and non interest income on profits of Public sector banks (94-04) The above output is of the multiple regression equation where we have tried to find out that how much of the profits of the public sector banks are determined by interest and non interest income. Non interest and Interest income are independent variables and profit is the dependent variable From the above output we find: 1. We find non -interest income to be a significant variable in explaining the profits of public sector banks as the prob value is less the . 05 (. 0268) and the value of t stat is more than 2(2. 7056) [Rule: an independent variable is said to be significant if its prob value is less than . 05(level of significance) or the t-stat is more than 2]. 2. We find that in our regression model the percentage of variation in the profits of public sector banks that is explained by interest and non interest income is 88. 86%( Rule for a regression model to be efficient the r-square shall be at least . 6) 3. From the above output we find that noninterest income had a significant influence on the profits of public sector banks over a period of 11 years. Influence of non interest components on profit of Public sector banks(94-04) Model Summary Std. Error Mode Adjusted of the l R R Square R Square Estimate 1 14640946. .974(a) . 948 . 870 95589 a Predictors: (Constant), misc, plland, plreav, pllinvest, plexchange, comm. Coefficients(a) Mode l Standardized Coefficients Beta . 024 . 014 -. 348 . 105 . 276 . 470 -1. 453 . 26 . 035 -1. 651 . 763 . 668 . 458 . 220 . 981 . 974 . 174 . 488 . 541 . 671 Unstandardized Coefficients Std. Error 58218744. 505 5. 866 . 478 8. 434 63. 394 8. 910 7. 536 t Sig. B 1 (Constant) -84595095. 339 comm . 151 pllinvest . 017 plreav -13. 928 plland 48. 353 plexchang 5. 954 e misc 3. 451 a Dependent Variable: profit In the above regression output the independent variable used were various components of non interest income i. e. commission/exchange /brokerage, profit/loss on sale of investment, profit and loss on revaluation of investment, profit/loss on sale of land/building, profit/loss on exchange transaction and miscellaneous income. And the dependent variable used was the profits of the public sector banks The objective is to find out which one of the non interest component had a major influence on the profit of public sector banks over a period of 11 years. We find the following: 1. The percentage of variation in the profits of the public sector banks explained by the 6 independent variables is 94. 8% which is significant(as r square shall be more than . 6) 2. We find that none of the non interest component was individually sufficient in explaining the profits of the public sector banks as we find that none of the non interest component is having a significance value of less than . 5 or having a t-stat of more than 2. Contribution of various components of non interest income of Public Sector banks (94-04) The above pie graph has been prepared by taking into account the average values of non interest income components over a period of 11 years (94-04). From the above graph we find that commission/exchange and brokerage had around 36% (highest) contribution to the non interest income followed by sale of investment (35%). Miscellaneous income was having a contribution of 16% followed by exchange transaction i. e. 12%. The sale of land/buildings, revaluation of investment was having a very negligible influence on the non interest income. Movements of interest and non interest income of Public sector banks(94-04) If we look at the movement of interest and non interest income of public sector banks over a period of 11 years we will find that the non interest income has grown at a CAGR of 19. 85% and the interest income has grown at a CAGR of 12. 68%. The noninterest income over a period of 11 years has grown by 511. 87% whereas interest income has increased by 230. 03% which shows how aggressively the bank is working on its non interest income. Contribution of interest and non interest income of the Public Sector banks(94-04) From the above table we find the contribution of interest and non interest income as a percentage of total income in each of the 11 years period. We find the share of non interest income has increased over a period of time from 11% to 20% and share of interest income has decreased from 88% to 79%. On an average over a period of 11 years the contribution of non interest income as been 13% and interest income has been 87% to the total income of the public sector banks. Correlation between non interest income and total income of Public sector banks 0. 940162 There is a very positive correlation between non interest income and the total income of public sector banks which shows that higher the non interest income higher the total income of the public sector banks. Private sector banks (Rs ‘000) In the above table we see the following: Column1: Average Column 2: Year Column 3: Other income or the non interest income of the bank Column 4: Commission, exchange and brokerage Column 5: Net profit/loss on sale of investment Column6: Net profit/loss on revaluation of investment Column7: Net profit/loss on sale of land, building and other assets Column 8: Net profit/ loss on exchange transactions Column 9: Miscellaneous income Column 10: Total income of the bank Column 11: Profit/loss of the bank Column 12: Interest income of the bank Column 13: Noninterest income as a percentage of total income Column 14: Interest income as a percentage of total income Influence of interest and non interest income on profits of Private sector banks(94-04) The above output is of the multiple regression equation where we have tried to find out that how much of the profits of the private sector banks are determined by interest and non interest income. Non interest and Interest income are independent variables and profit is the dependent variable From the above output we find: 1. We find non -interest income to be a significant variable in explaining the profits of private sector banks as the prob value is less the . 05 (. 0128) and the value of t stat is more than 2(3. 88) [Rule: an in dependent variable is said to be significant if its prob value is less than . 05(level of significance) or the t-stat is more than 2]. 2. We find that in our regression model the percentage of variation in the profits of private sector banks that is explained by interest and non interest income is 95. 95 %( Rule for a regression model to be efficient the R-square shall be at least . 6) 3. From the above output we find that noninterest income had a significant influence on the profits of private sector banks over a period of 11 years. Influence of non interest components on profit of Private sector banks (94-04) Model Summary Std. Error of the Estimate 309483. 83 . 912 . 881 835 a Predictors: (Constant), misc, plreav, plexchange, pllinvest, plland, comm Mode l R 1 . 964 Adjusted R Square R Square Coefficients(a) Mode l Unstandardized Coefficients Std. B Error (Constant) 177724. 775200. 9 748 43 comm . 493 . 252 pllinvest . 623 . 147 plreav 4. 129 2. 209 plland 108. 894 14. 560 plexchang -2. 522 . 513 e misc 3. 314 . 310 Standardized Coefficients Beta -4. 362 . 311 . 672 . 062 . 923 -. 268 1. 114 1. 955 4. 240 1. 869 7. 479 -4. 915 10. 680 . 012 . 122 . 013 . 135 . 002 . 008 . 000 t Sig. 1 In the above regression output the independent variable used were various components of non interest income i. . commission/exchange /brokerage, profit/loss on sale of investment, profit and loss on revaluation of investment, profit/loss on sale of land/building, profit/loss on exchange transaction and miscellaneous income. And the dependent variable used was the profits of the private sector banks The objective to find out w hich one of the non interest component had a major influence on the profit of private sector banks over a period of 11 years. We find the following: 1. The percentage of variation in the profits of the private sector banks explained by the 6 independent variables is 91. 2% which is significant(as r square shall be more than . 6) 2. We find that sale of investment , land building and miscellaneous income and exchange transactions have a major influence on the profits of private sector banks over a period of 11 years as these variable are having a significance level of less than . 05 and a t-stat of more than 2. 3. According to the above output miscellaneous income had a major influence o the profits of the as it’s is having the maximum t-stat i. e. 10. 680 so bank shall focus on it for its non interest income. Contribution of various components of non interest income of Private Sector banks (94-04) The above pie graph has been prepared by taking into account the average values of non interest income components over a period of 11 years (94-04). From the above graph we find that sale of investment has around 41%(highest) contribution to the non interest income followed by commission/exchange /brokerage 34% followed by miscellaneous income(17%) and exchange transactions 8%. The sale of land/buildings, revaluation of investment was having a very negligible influence on the non interest income. Movements of interest and non interest income of Private Sector banks(94-04) If we look at the movement of interest and non interest income of private sector banks over a period of 11 years we will find that the non interest income has grown at a CAGR of 43. 50% and the interest income has grown at a CAGR of 33. 95%. The non interest income over a period of 11 years has grown by 3604. 74%% whereas interest income has increased by 1760. 4% which shows how aggressively the private sector banks are working on its non interest income. Contribution of interest and non interest income of Private sector banks (94-04) From the above table we fin d the contribution of interest and non interest income as a percentage of total income in each of the 11 years period. We find the share of non interest income has increased over a period of time from 13% to 23% and share of interest income has decreased from 86% to 76%. On an average over a period of 11 years the contribution of non interest income as been 17% and interest income has been 83% to the total income of the private sector banks. Correlation between non interest income and total income of Private sector banks 0. 87067 There is a very positive correlation between non interest income and the total income of private sector banks which shows that higher the non interest income higher the total income of the private sector banks. Foreign banks (Rs ‘000) In the above table we see the following: Column1: Average Column 2: Year Column 3: Other income or the non interest income of the bank Column 4: Commission, exchange and brokerage Column 5: Net profit/loss on sale of inv estment Column6: Net profit/loss on revaluation of investment Column7: Net profit/loss on sale of land, building and other assets Column 8: Net profit/ loss on exchange transactions Column 9: Miscellaneous income Column 10: Total income of the bank Column 11: Profit/loss of the bank Column 12: Interest income of the bank Column 13: Noninterest income as a percentage of otal income Column 14: Interest income as a percentage of total income Influence of interest and non interest income on profits of Foreign banks (94-04) The above output is of the multiple regression equation where we have tried to find out that how much of the profits of the foreign banks are determined by interest and non interest income. Non interest and Interest income are independent variables and profit is the dependent variable From the above output we find: 1. We find non -interest income to be a significant variable in explaining the profits of foreign banks as the prob value is less the . 05 (. 0006) and the value of t stat is more than 2(5. 59) [Rule: an independent variable is said to be significant if its prob value is less than . 05(level of significance) or the t-stat is more than 2]. 2. We find that in our regression model the percentage of variation in the profits of foreign banks that is explained by interest and non interest income is 94. 64%( Rule for a regression model to be efficient the r-square shall be at least . 6) From the above output we find that noninterest income had a major and significant influence on the profits of foreign banks over a period of 11 years Influence of non interest components on profit of Foreign banks (94-04) Model Summary Std. Error of the Estimate 891916. 79 . 990 . 75 648 a Predictors: (Constant), misc, plland, plreav, pllinvest, comm, plexchange Mode l R 1 . 995(a) Adjusted R Square R Square Coefficients(a) Standardize d Coefficient Unstandardized Coefficients s B 1 (Constant) 2987693. 345 Std. Error 1103189. 29 7 . 245 . 298 9. 845 5. 393 . 384 . 952 Beta t 2. 708 -. 131 . 158 -. 094 -. 123 . 485 . 580 -. 744 1. 248 -1. 534 -1. 776 2. 101 2. 790 Sig. .054 . 498 . 280 . 200 . 150 . 103 . 049 Mode l comm -. 182 pllinvest . 371 plreav -15. 101 plland -9. 579 plexchang . 808 e misc 2. 657 a Dependent Variable: profit In the above regression output the independent variable used were various components of non interest income i. e. ommission/exchange /brokerage, profit/loss on sale of investment, profit and loss on revaluation of investment, profit/loss on sale of land/building, profit/loss on exchange transaction and miscellaneous income. And the dependent variable used as the profits of the foreign banks The objective is to find out which one of the non interest component had a major influence on the profit of foreign banks over a period of 11 years. We find the following: 1. The percentage of variation in the profits of the foreign banks explained by the 6 independent variables is 99. 0% which is significant(as r square sh all be more than . 6) 2. We find that only miscellaneous income have a major influence on the profits of foreign banks over a period of 11 years as it is having a significance level of less than . 05(. 049) and a t-stat of more than 2(2. 790). Contribution of various components of non interest income of Foreign banks (94-04) The above pie graph has been prepared by taking into account the average values of non interest income components over a period of 11 years (94-04). From the above graph we find that commission/exchange /brokerage was having around 48% (highest) contribution to the non interest income followed by exchange transactions 29%. The contribution of sale of investment was 17% followed by miscellaneous income 6% . The sale of land/buildings, revaluation of investment was having a very negligible influence on the non interest income Movements of interest and non interest income of foreign banks (94-04) If we look at the movement of interest and non interest income of foreign banks over a period of 11 years we will find that the non interest income has grown at a CAGR of 19. 57% and the interest income has grown at a CAGR of 13. 49%. The non interest income over a period of 11 years has grown by 497. 394%% whereas interest income has increased by 254. 54% which shows how aggressively the bank is working on its non interest income Contribution of interest and non interest income of foreign banks (94-04) From the above table we find the contribution of interest and non interest income as a percentage of total income in each of the 11 years period. We find the share of non interest income has increased over a period of time from 21% to 31% and share of interest income has decreased from 78% to 68%. On an average over a period of 11 years the contribution of non interest income as been 23% and interest income has been 77% to the total income of the foreign banks. Correlation between non interest income and total income of foreign banks 0. 972437 There is a very positive correlation between non interest income and the total income of private sector banks which shows that higher the non interest income higher the total income of the private sector banks. Findings We have seen that the contribution of non interest income of our banking sector has increased significantly over a period of 11 years. We have also seen that in each type of banks i. e. SBI, public sector banks, private sector banks and foreign banks the contribution of non interest income towards the total income has increased over a period of time and that of the interest income has decreased over a period of time. If we look at the total banking sector we will find that in our banking system the non interest income is having a significant influence on the profits of the banks. On an average the share of the non interest income towards the total income of the banking sector has increased from 12% in 1994 to 20% in 2004. If we look at the components of non interest income of our banking sector we will find that commission/exchange and brokerage earned by the banks had a major contribution i. e. 4% to the total noninterest income of the bank , after the commission the next big contribution to the non interest income had been of the sale of investments which was 28%, followed by exchange transactions having a share of 15%. Miscellaneous income was having the 13% cont ribution to the total noninterest income of the banking sector. The contribution of sale of land, revaluation of investments was having a negative or even a negligible influence on the noninterest income of the banking sector. On an average the non interest income of the banking sector has grown at a CAGR of 25% as compared to interest income which has grown at a CAGR of 18%. The percentage increase in the non interest income of the banking sector has increased by 1264. 64% and interest income has increased by 622%. The private sector banks had seen a significant contribution in the increase of its non interest income over a period of 11 years as compared to other types of banks. Among the various non interest components that had an influence on the profits of the banking sector we find that commission, sale of investment, miscellaneous income had a significant influence on it. We also find that there was a positive correlation between the non interest income and the total income of the banking sector. We also find that in case of public sector banks none of the non interest component was found to be statistically significant enough to influence the profits over a period of 11 years. Reasons for increase in the non interest income Now if we look at the reason for the increase in the non interest income of the banking sector we will find that it has majorly increased due to following reasons: 1. Increased pressure on net interest margins of the banking sector. 2. With economy growing at an unprecedented rate of 9. 4 per cent during 2006-07 and acceleration in the growth rate being attributable to the buoyancy in the industrial and service sector, the demand for fee-based services of banks has gone up and as a result of which the non interest income has also risen up. 3. Noninterest income is an effective way used by banks to respond to its squeezing margins 4. At the bank level, greater reliance on noninterest income, particularly trading revenue, is associated with lower risk-adjusted pro? ts attached to it. Challenges involved 1. Not aggressive direct customer interaction of public sector banks. 2. High cost and less expertise involved in launching of innovative products/services as per the customers’ expectations. 3. Technology requirements. Conclusion After studying the non interest growth pattern of the Indian banking sector over a period of 11 years we can say that it is slowly and gradually becoming one of the important avenues for our Indian banks to generate revenue from. In this respect we see that not only private banks and foreign banks are ahead but also our public sector banks are gradually catching it. We can say that it to be an important source available with our banking sector to respond to the squeezing margins and meeting the shareholders expectations. Literature review 1. Business Efficiency of Public Sector Commercial Banks: A Data Envelopment Approach : Ram Pratap Sinha (2008) The article says that following the nationalization of 20 major commercial banks in 1969 and 1980, the government followed policies of financial repression up to the 1980s. During this period the public sector commercial banks had rapid expansion of branches, especially in the rural and semi urban areas and had reasonable success in the matter of deposit mobilization and disbursement of loans. However, the operating efficiency of public sector commercial banks, declined during the period due to various reasons. In the 1990s, the banking environment was radically transformed by certain bold initiatives taken by RBI including the dismantling of entry barriers, rate deregulation, introduction of prudential accounting norm and the implementation of Basel I capital adequacy norms. The changed competition and accounting environment compelled the commercial banks to provide unprecedented attention to cost cutting and supplementing fund-based income by fee-based income. 2. Product mix and earnings volatility at commercial bank: evidence from a degree of leverage model: Robert De young Karin P Roland(1999) The article says that the commercial banks lending and deposit taking business has declined in recent years. Deregulation and new technology have eroded bank’s comparative advantages and made it easier for non bank competitors to enter these markets. In response, banks have shifted their sales mix towards noninterest income-by selling non bank fee based financial services such as mutual funds, by charging fees for services that used to be bundled together with deposit or loan products . It says that the conventional wisdom in the banking industry is that earnings from fee based products are more stable than loan based earnings and that fee based activities reduce bank risk via diversification. References 1. RBI website 2. Icfai Journal of Banking studies Sept 2008 issue pg 22-26 3. Ideas. repec. org

4 Types of Reference Books You Didnt Know You Need

4 Types of Reference Books You Didnt Know You Need 4 Types of Reference Books You Didn’t Know You Need 4 Types of Reference Books You Didn’t Know You Need By Mark Nichol OK, it’s time to conduct an inventory of your reference library to ensure that you have a comprehensive collection at hand. Dictionary? Check. Thesaurus? Mm-hmm. Compendium of famous quotations? Right. Visual dictionary? (Silence.) You’re telling me you don’t have a visual dictionary? Before you get too self-conscious, I’ll let you off the hook: You don’t have to own your own visual dictionary. But you should know where to find this type of resource, and three others, at your local library, or you simply must do some online research and see what electronic simulacra you can discover. 1. Visual Dictionaries The four books listed here are all superior guides to the names of physical objects and their components. Does a scene in your novel require you to distinguish the parts of a plane? Do you need to know the difference in home construction between a rafter and a joist? What is the base of a horse’s neck called? A visual dictionary knows all: The Macmillan Visual Dictionary, Jean-Claude Corbeil Merriam-Webster’s Visual Dictionary, Merriam-Webster What’s What: A Visual Glossary of the Physical World, Reginald Bragonier Jr. Ultimate Visual Dictionary, DK Publishing 2. Guides to Symbolism These five volumes, and others, will enlighten you about the religious, mythological, and folkloric significance of symbols. Perhaps you want to strew visual metaphors throughout your novel. Or you want to avoid cliched occult symbols in your supernatural thriller, and want to find something unusual. Or you want to make sure your medieval mystery accurately describes a cross without anachronistic errors. Follow the signs to these sources about symbology: An Illustrated Encyclopaedia of Traditional Symbols, by J. C. Cooper Dictionary of Symbolism: Cultural Icons and the Meanings Behind Them, Hans Biedermann 1,001 Symbols: An Illustrated Guide to Imagery and Its Meaning, Jack Tresidder The Penguin Dictionary of Symbols, Jean Chevalier Reverse Symbolism Dictionary: Symbols Listed by Subject, Steven Olderr 3. Guides to Hierarchies Do you know the order of succession among Cabinet officials in the United States in case the president, vice president, and Speaker of the House are all incapacitated? Is a battalion bigger, or smaller, than a regiment? What’s higher up the taxonomic scale a phylum, or a family? The Order of Things: How Everything in the World Is Organized into Hierarchies, Structures, and Pecking Orders, Barbara Ann Kipfer, will set you straight. 4. Reverse Dictionaries Flip Dictionary, Barbara Ann Kipfer, is the best of the class of reference books known as reverse dictionaries, for when you know how to describe something but can’t think of the word. One of the qualities that set it apart is the numerous charts and tables that group things by subject. The Describer’s Dictionary: A Treasury of Terms Literary Quotations, David Grambs, is a similar work that’ll help you transfer a word from the tip of your tongue to paper or the computer screen. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Book Reviews category, check our popular posts, or choose a related post below:Dialogue Dos and Don'ts"Wracking" or "Racking" Your Brain?Honorary vs. Honourary

Analysis of Customer Service Management

The lab gained insight into customer service using a hair salon sample survey. A comprehensive description of a data set that separates short-range and long-distance relationships provides insight into customer dissatisfaction with the relationship between employer and consumer. The data is divided into columns and delimited by responses. The near responder is identified as 1 and the distant responder is marked as -1. Evaluation of 1 to 7 based on the following factors: Think about new things, re-cut, keep loyalty, recommend, frank, open, do not want to know I can not say I want feedback, honesty, facts The focus of this research is on the recognition and application of CRM in Indian textile industry. Analyzed the differences between marketing strategy management (MSM), customer value analysis (CVA), customer service management (CSM), and information technology application (ITA) with different characteristics (see Figure 2). We distributed 640 questionnaires in 2008 and collected 194 copies. The total recovery rate was 30.31%. Of the 194 responses to the questionnaire, 68 was invalid and the effective recovery rate was 19.69%. This survey covers both business owners and unit leaders. Owners accounted for 29.37%, senior managers accounted for 48.41%, and middle managers accounted for 22.22%. The sample shows that average business experience is 11-15 years, 53.18%, and 16.98% in 16 years. The educational level of this sample is higher than the university, accounting for 93.65%. In summary, samples are representative and can be used to answer the meaning of the questionnaire. Customer Relationship Management (CRM) is a way to manage corporate communications with current and potential customers. Especially focus on customer retention and improve customer relationships with customers using data analysis of customer and company history in order to ultimately increase sales. An important aspect of the CRM approach is the CRM system. It is a summary of data from variou s communication channels, such as company website, phone, e-mail, live chat, marketing materials, and more recently social media. Through the CRM approach and the system used to promote it, companies can learn more about their target audience and the best way to satisfy their needs. Companies use customer relationship management (CRM) systems to manage customer relationships. The CRM system provides information to coordinate all sales processes, marketing and service business processes with customers to optimize sales, customer satisfaction, customer retention rate. This, along with SCM, is one of the most common system applications in business value chain analysis (page 90). For details on Pg, please refer to. 285 Some companies have a better understanding of how to make products, services, how to manufacture and how to provide them, so there are cases where performance is superior to other companies. Knowledge Management System (KMS) allows organizations to better manage the proce ss of capturing and applying knowledge and expertise. These systems are available anytime and anywhere to gather all the relevant knowledge and experience of the company and improve business processes and management decisions. They also associate the company with external knowledge sources. challenging

USING EVIDENCE Essay Example | Topics and Well Written Essays - 2000 words

USING EVIDENCE - Essay Example Leaving children unsupervised, ignoring their needs, and making them feel unworthy are forms of child abuse as well. Several myths are related to child abuse; for instance, abuse is related to violence, only strangers abuse children, and abuse does not occur in families (Saisan, Smith & Segal, 2012). Therefore, it is important for the staff to learn the symptoms and signs of child abuse, and as a result, making a difference in their lives. Schools are regarded as a second home for children; despite the staff being trained on their profession, training on signs of child abuse is also vital. Members of staff can have positive influence on the children’s lives once they detect signs of abuse at an early stage. This is because child abuse has serious effects on children, which affect their academics and future lives as well, such as, the ability to maintain a healthy relationship and lack of self-worth. This essay will discuss whether staff members are trained appropriately to rec ognize signs of child abuse. Both academic and online sources will be used to produce a literature review, and their outcome will be discussed as well. When child abuse is detected at an early stage, it gives room for recovery and effective treatment for the abused child. According to Children First (2011, p.8), child abuse occurs in different forms; neglect involves depriving a child his/her needs such as clothing, food, shelter, security, health care services and love. Therefore, neglect can be defined as ill-treatment of a child by depriving his/her needs. Signs of neglect include frequent absenteeism from school, stealing or begging for food, lack of clothing and medical care, and lack of personal hygiene (Child Welfare Information Gateway, 2007; Cambridgeshire county council N.d, p.5). Secondly, emotional abuse occurs when a child is deprived affection, such as, unresponsive parent who neglects his responsibility to the child and unrealistic

The Seeds of Ageism Assignment Example | Topics and Well Written Essays - 1000 words - 1

The Seeds of Ageism - Assignment Example Ageism is an amalgamation of stereotypes beliefs, discrimination behaviors, prejudice evaluations. Ageism is attributed to the changing demographic trends in various part of the world. Life expectancy is enhanced as a result people live for a longer duration and may lead a healthy life (Marques Presentation FLARE31Aug). According to the United Nations aging index, the number of individuals above the age of 60 years is equal to the number of individuals between the age of 0- 14 years this highlight the fact that elderly people are equal in number to the young population. Further, Europe witnessed an aging index of 136.2 in 2007 while it is anticipated to enhance to 229.7 in 2050 (Ageism in Europe). These data indicate that there is going to be a drastic alteration in population structure in future which is going to have lasting implication on the society in terms of labor markets, growth both economic and developmental, the behavior of consumer as well as health systems. These implications are not ordinary to overlook as they are going to change the structure of the society. Health systems are going to affect to a greater extent as they have to witness new paradigms. Ignorance of any kind leads to prejudice or ageism. Ageism has a negative implication and it depicts the attitude an individual display towards elderly people. According to Nelson (2002), Older adults in the United States tend to be marginalized, institutionalized and stripped of accountability, supremacy and eventually their distinction. Considering the history, people used to respect their elders and provided them great regard and respect, they were considered to be guide and teachers who are experienced to help them to reach the solution in case if any problem arise. It was considered to be divine if one lives for more than 50 years of age (Branco and Williamson, 1982).  

Exploration of Nocturnal Sleep-Related Eating Disorder Essay -- Exposi

Exploration of Nocturnal Sleep-Related Eating Disorder       What if you woke up in the morning and didn't have any recollection of what you did during the night? For some people not remembering is not a problem. Most people just assume that they were in their beds all night, and for most people this is true, but for a small percentage of the population, this is not true. The average person spends approximately 25 years of their life sleeping (Brown, 2002). For some people, this time is well spent, but for others, their 25 years of sleep might not be spent in their bed. When people wake from the night and find crumbs dashed across their clothes and sheets, or candy bar wrappers with small remnants of what was inside lying next to their beds, it can be a frightening experience. These people have no recollection of waking during the night, or even eating. The problem is, they didn't wake during the night, but they did eat. How can this be possible? Sleep eating is similar to sleep walking. It's when a person gets up from a deep sleep and eats with little or no recollection of doing so. Often times the person has little or no sense as to what their actions are. In other words, a sleep-eater may know to turn on the stove in order to cook their food, but they may not think to turn it back off. Nocturnal Sleep-Related Eating Disorder (NSRED) is often referred to as sleep eating. It can be explained as a disorder that is relatively rare. The basic idea of the disorder is simple: while sleeping, the affected eat uncontrollably. The recall level varies and the only evidence of eating is either in weight gain or in the half-eaten food that was left out (Smith & Pilnik, 2003). This disorder can be explained as a mixture between... ...1, Febuary) Night-eating or nocturnal eating or sleep-related eating. Retrieved March 5, 2003, from http://www.neuronic.com/eating_disorder.htm Lamberg, L. (1989, July). Voyeurs in the kingdom of sleep. Health, 69. Mann, D. (2003, March). Bizarre sleep disorders. Retri ved March 5, 2003, from http://content.health.msn.com/content/article/61/67436.htm Montegomery, L. (2002, April). An unusual sleep disorder. RN, 41-43. Montgomery, L. Haynes, L. C. (2001, August). What every nurse needs to know about Nocturnal Sleep-Related Eating Disorder. Journal of Psychosocial Nursing and Mental Health Sevices, retrieved March 12, 2003, from Morgenthaler, T.I., Silber, M.H. (2002, July). Amnestic sleep-related eating disorder associated with zolpidem. Sleep Medicine, 323-327. Smith, S., Pilnik, L. (Febuary 2003). The eating habit that almost ruined my life. Redbook, 96-97.

Human Aggression In The Social Context: An Analysis Of The Reasons Why Human Beings Fight

Human aggression has been consistently blamed for the growing incidence of violence all over the world. The link between aggression and violence is clear when we are to consider factors other than biological and psychological factors. This paper aims to establish a clear evidence of the direct influence of social factors in human aggression. Further, this paper aimed at establishing the fact that suppressing violence is possible when social factors are controlled.For the purpose of initial discussion, this paper preferred to briefly discuss the definition of human aggression using official definitions for the purpose of establishing a common ground. Biological and psychological factors are no more discussed, aside from comparison some part of the paper for the reason that this paper focuses on the role of social factors in human aggression.Bulk of this paper discusses and investigates the role of social factors and the social responsibility towards human aggression. A conclusion and a number of recommendations are offered by the writer for the readers’ consideration.The United Nations, an international organization of countries in the world aimed at 1maintaining international peace and security, had in its 2319th Plenary Meeting adopted a board resolution for the official definition of aggression.UN addressed aggression in a global concept as â€Å"the most serious and dangerous form of the illegal use of force, being fraught, in the conditions created by the existence of all types of weapons of mass destruction, with the possible threat of a world conflict and all its catastrophic consequences† (Resolution 3314, Annex).For the purpose of a broader discussion of the subject, this writer finds it important to present the qualifications of aggression outlined and approved by the UN Board (Article 3):1.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The invasion, attack or occupation by the armed forces of a State of the terr itory of another State by the use of force.2.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Bombardment by the armed forces of a State against the territory of another State or the use of any weapons.3.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The blockade of the ports or coasts of a State by the armed forces of another State.4.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   An attack by the armed forces of a State on the land, sea or air forces, or marine and air fleets of another State.5.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The use of armed forces of one State which are within the territory of another State in contravention of the conditions provided for in the agreement or any extension of their presence in such territory beyond the termination of the agreement.6.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The action of a State in allowing its territory to be used by that other State for perpetrating an act of aggression against a third State.7.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The sending by or on behalf of a State of armed bands, groups, irregulars or mercenaries, which carry out acts of armed force against another State.In consideration of the above qualifications, we can draw out just one general idea of how UN regard aggression and that is any act that will harm other countries or state. Needed to be stressed, the Board Resolution also qualified that such acts are considered as aggression regardless of the declaration of war.The etymology of the word will also lead us to the same element as with that of the United Nation’s official definition. Merriam-Webster defines aggression as(1) a forceful action or procedure (as an unprovoked attack) especially when intended to dominate or master,(2) the practice of making attacks or encroachments; especially unprovoked violation by one country of the territorial integrity of another (3) hostile, injurious, or destructive behavior or outlook especially when caused by frustration. It is a derivation of the Latin word aggressio which means â€Å"attack† (Merriam-Webster Online).Sarah Mc Cawley has adapted a more direct and simple definition: 2â€Å"Aggression is an action. It is intended to harm someone.† Mc Cawley stressed that aggression as an action can be in a verbal or physical manner. The main point of the above definitions is the presence and intention of producing harm.Prominent personalities in related fields of sciences seem to agree on the said definition. But when it comes to the analysis of the caused of aggression, biologists, psychologists and even social psychologists differ in their views and interpretations of study results.The debate between and the natural (innate) and socio-cultural (learned) causes of aggression had been an international issue for many years. Desp ite the long list of studies and experiments done on the subject, violence, as a result of aggression still continues to dominate over peace. It is therefore important to find out why while biological factors of aggression have been proven to be valid not all persons resort to violence.There must be something else that provokes human aggression as suggested by the difference in crime rates or incidents of violence in different areas and regions of the world. There must be something outside the human nature of aggressiveness that induces him to fight. This paper asserts that â€Å"social conditions also contribute to the expression of aggression† (J. Taylor & J. Nellist).Bandura is well-known for his 4Social Learning Theory which he developed using his experiment on kids and bo-bo dolls. This theory holds that humans are not innately aggressive (S. Mc Cawley). Bandura asserts that children to be aggressive in two ways:   by observation and from receiving rewards for the aggr essive behavior. Mc Cawley offered a logical example of the observation process.A child for example is a witness of how his father beats his wife after some sort of heated argument. After showing such aggressive behavior, the father obviously had successfully dominated the situation and because of beating his wife, the argument then stopped.In the child’s eyes, his father’s aggressive behavior (beating his wife) is a way of resolving the problem (wife arguing with the husband). The reward then for the aggressive behavior is that the argument had been stopped. This is an example of observational learning (J. Liu).Rewards may also come in different ways: 5getting control of the situation, getting praise/ positive reinforcement for the aggressive behavior or by stopping aggression by others or the negative reinforcement.For example, the father has to beat his wife in order to stop nagging so the reward for being aggressive is of having the goal of stopping the wifeâ€℠¢s nagging. If a child tries to bully another child in force him to lend him a toy, the aggressive behavior is rewarded when the other child gave up his toy because the other tries to hurt him.Negative reinforcement happens when a child tries to threaten other child that he sees as a potential threat to his toys or food. For example, child A will warn child B not to get his toys otherwise child A will no more let him in their house ever again.If child B being threatened will not in turn get the toys, child A is being rewarded for his aggressive behavior. Having been either positively rewarded or successful by negative reinforcement, the child gets to repeat the aggressive behavior over and over again.An individual who had experienced or is currently experiencing some sort of violence are believed to be more aggressive than those who are not exposed to it. This is maintained by the concept of 3victim association as asserted by Nathanson and Cantor. In their experiment, two sets of ch ildren were asked to watch a violent movie.One set were advised to feel the emotions of the victims in the movie they are to watch. The other set watched the movie without any sort of advice. It turned out that those children who were asked to empathize with the victims in the violent movie were less likely to exhibit violent behavior than those who just watched the movie.