Intellectual capital, as a knowledge-based resource, is essential for enhancing the performance of knowledge driven organization such as banks. Additionally, for the improvement of the commercial banks, they are now diversifying their income to non-banking activities. Thus, this study empirically analyses how income diversification contributes in shaping the link of intellectual capital to the performance of banks of Bangladesh by using an annual panel dataset of 30 banks from the period of 2013 to 2023. The empirical results from regression analysis show that the intellectual capital has a notable contribution in enhancing the bank performance. In addition, income diversity negatively influences the association between intellectual capital and its individual constituents, and bank’s performance. Bank managers can think of efficient intellectual capital management to ensure the competitive advantage as well as focus more on core activities for the enhancement of the performance of banks.