Like the reduction of cost increases the profit, the increase of certain costs would definitely increase the profitability of the banking company. Payment of higher wages and salary to the employees would boost the moral of the employees and would be a great motivating factor for them. Their performance may be in high quality in the sense they can give better service to the customer with smile on their faces and the work may be finished in less than the standard time allotted.

Lower payment of interest on deposits and higher revenue from loans – this wide disparity may lead to higher profitability of the banks.

There exists wide disparity of interest earned and interest paid. The difference between the two is the profit for the banks. For deposits less interest is paid whereas the interest that is paid for loans and advances is too high. Another motto the banks follow is to take the deposit at a shorter period, but lending is for a longer period. This means definite income for a longer duration.

Passing of tax burden to the shoulders of customers.

The tax that is to be paid by the banks would be shifted to the shoulders of customers in one way or the other. The interest on loan may be increased or some bank charges would be imposed for the services rendered by the banks to the customers. The credit card system introduce is a convenient platform for the banks to earn by way of fine and penalty. The provision of ATM facilities and other services brings considerable reven