Of late, banks have been increasingly diversifying into non-interest income activities as against traditional banking. This phenomenon, seen globally, is also being witnessed in the case of Indian banks. In this context, this paper attempts to compare the behaviour of interest and non-interest income of scheduled commercial banks in India for the period from 1997 to 2003. The paper further tries to examine whether non-interest income has helped in stabilising the total income of scheduled commercial banks in the country.
