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Diversification is a strategic option. Firms use diversification strategy to improve their performance. The present study seeks to assess the relationship of the strategy of diversification to the performance of the commercial banks. This study took 10 commercial banks of India to assess the relationship between level of diversification and financial performance of selected commercial banks in India for the period of 5 year (2013-14 to 2017-18). Using Herfindahl-Hirschman Index and Correlations analysis the study revealed that all selected commercial banks in India are moderately diversified. Further, diversification level has a negative influence on financial performance of commercial banks in India.

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