FUNCTIONS OF COMMERCIAL
BANKS

By: Charles Tuiuane Karita
OBJECTIVES
 DEFINITION

OF A

BANK.
TYPES OF

COMMERCIAL
BANKS.
FUNCTIONS OF

COMMERCIAL
BANKS.
CONCLUSION.
PREAMBLE
A bank is like a pool into which the flow of

savings, the idle surplus money of
households and from which loans...
DEFINITION OF A BANK
The Banking Companies Act of India

defines a bank as “A Bank is a financial
institution which accep...
TYPES OF COMMERCIAL
BANKS
DEPOSIT BANKS
INDUSTRIAL BANKS
SAVINGS BANKS
EXCHANGE BANKS
AGRICULTURAL BANKS
MISCELLANEO...
FUNCTIONS OF COMMERCIAL
BANKS
Commercial banks have to perform a variety of

functions which are common to both developed...
PRIMARY FUNCTIONS
1. Acceptance of

deposits.
2. Advancing loans.
3. Creation of
credit.
4. Clearing of
cheques.
5. F...
SECONDARY FUNCTIONS
1. Agency

Services.
2. General

Utility Services.
TOP RANKING COMMERCIAL
BANKS IN INDIA
1.

STATE BANK OF INDIA

2.

ICICI Bank Limited

3.

Punjab National Bank

4.

Canar...
CONCLUSION
 Have been called upon to

help achieve certain socioeconomic objectives laid
down by the state.
 Used to sub...
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Functionsofcommercialbanks 130523075925-phpapp01

  1. 1. FUNCTIONS OF COMMERCIAL BANKS By: Charles Tuiuane Karita
  2. 2. OBJECTIVES  DEFINITION OF A BANK. TYPES OF COMMERCIAL BANKS. FUNCTIONS OF COMMERCIAL BANKS. CONCLUSION.
  3. 3. PREAMBLE A bank is like a pool into which the flow of savings, the idle surplus money of households and from which loans are given on interest to individuals and others who need them for investment or productive uses.
  4. 4. DEFINITION OF A BANK The Banking Companies Act of India defines a bank as “A Bank is a financial institution which accepts money from the public for the purpose of lending or investment repayable on demand or otherwise withdrawable by cheques, drafts or order or otherwise.”
  5. 5. TYPES OF COMMERCIAL BANKS DEPOSIT BANKS INDUSTRIAL BANKS SAVINGS BANKS EXCHANGE BANKS AGRICULTURAL BANKS MISCELLANEOUS BANKS
  6. 6. FUNCTIONS OF COMMERCIAL BANKS Commercial banks have to perform a variety of functions which are common to both developed and developing countries. These are known as ‘General Banking’ functions of the commercial banks. The modern banks perform a variety of functions. These can be broadly divided into two categories: (a) Primary functions. (b) Secondary functions.
  7. 7. PRIMARY FUNCTIONS 1. Acceptance of deposits. 2. Advancing loans. 3. Creation of credit. 4. Clearing of cheques. 5. Financing foreign trade. 6. Remittance of funds.
  8. 8. SECONDARY FUNCTIONS 1. Agency Services. 2. General Utility Services.
  9. 9. TOP RANKING COMMERCIAL BANKS IN INDIA 1. STATE BANK OF INDIA 2. ICICI Bank Limited 3. Punjab National Bank 4. Canara Bank 5. Bank of Baroda 6. Bank of India 7. Union Bank of India 8. Industrial Development Bank of India Limited 9. Central Bank of India 10. HDFC Bank Limited 11. UCO Bank 12. Syndicate Bank 13. Indian Overseas Bank 14. Oriental Bank of Commerce 15. Allahabad Bank
  10. 10. CONCLUSION  Have been called upon to help achieve certain socioeconomic objectives laid down by the state.  Used to sub-serve the national policy objectives of reducing inequalities of income and wealth, removal of poverty and elimination of unemployment in the country.  In the modern world, banks are to be considered not merely as dealers in money but also the leaders in economic development.
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