Financial Insights from Income and Expenditure Analysis of a Top-Ranked Indian University: An Exploratory Case Study of IISC Bengaluru (2014-2023)

Abstract

The Indian Institute of Science (IISc), Bengaluru ranked as India’s top higher education institution under the 2024 National Institutional Ranking Framework (NIRF)-demonstrates academic and research excellence. However, the NIRF does not assess financial strategy, an essential component of long-term institutional sustainability. This study addresses that gap by analyzing IISc’s financial performance over a ten-year period (2014–2023). The analysis utilizes audited financial statements and employs trend analysis, compound annual growth rates (CAGR), financial ratio assessments, and income–expenditure composition breakdowns. The evaluation covers six key financial dimensions: revenue growth, expenditure management, net operating performance, capital investment, liquidity, and income diversification. The findings reveal a pattern of steady revenue growth, sustained capital investment, and consistent operating surpluses. Despite these strengths, IISc remains significantly dependent on government funding. Self-generated income has shown only modest improvement, highlighting a potential vulnerability in the face of shifting policy or funding environments. While IISc demonstrates strong financial management in several areas, its high dependency on external grants underscores the need for greater diversification of income sources. This study contributes to a more comprehensive understanding of financial performance in top-tier Indian universities and provides valuable insights for policymakers and administrators seeking to ensure long-term financial resilience alongside academic excellence.