fund/non fund based income

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J SREEKUMAR

J SREEKUMAR (Querist)
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24 August 2009 what are fund/non fund based income for banks? pls explain in detail

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25 August 2009 Dear Sreekumar

I would like to explain the difference between fund and non-fund based income for banks with an example below.

The income of the bank in the form of interest from the loan provided is fund based income whereas the annual fees charged for credit card is a non fund or fee based income.

This implies that any income arising due to fund corpus of the bank (e.g. Interest) in known as fund based income. All other incomes arising due to services and their related fees are known as non-fund or fees based income.

Hope this assists you.

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