COMMERCIAL BANKS<br />G H C Prasad Reddy<br />KunalSachdev<br />Naveen Kumar V<br />Pinky Baishya<br />VarunBennur<br />Vi...
COMMERCIAL BANK<br />     Commercial banks are the financial institution which acts as a financial intermediary which coll...
Functions of Commercial Banks<br />Primary functions.<br />Secondary functions including agency functions.<br />Primary fu...
 Granting loans and advances:</li></ul>Loans<br />Advances<br />
Secondary functions<br />Issuing letters of credit, travellers cheques.<br />Undertaking safe custody of valuables, import...
Difference between Primary and SecondaryFunctions<br />
Different modes of Acceptance of Deposits<br />Savings Deposits<br />Current Deposits<br />Fixed Deposits<br />Recurring D...
Different methods of Granting Loans by Bank<br />Services provided by Modern Commercial Banks<br /><ul><li>Agency services
General utility services</li></li></ul><li>Credit creation<br />Credit creation is considered to be the main function of c...
Basic concepts used in the process of credit creation<br />1. Bank deposits <br />2. Business Institutions<br />3. Cash Re...
Process of Credit Creation<br />Single Bank System<br />Multiple Bank System<br />
Limitations of credit creation<br /><ul><li> Cash Reserve Ratio
 Amount of Primary Deposits
 Banking Habits of the People
 Credit Policy of the Central Bank
 Policy of other banks
 Nature of Securities or Availability of Good     Borrowers
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Commercial banks final

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Commercial banks final

  1. 1. COMMERCIAL BANKS<br />G H C Prasad Reddy<br />KunalSachdev<br />Naveen Kumar V<br />Pinky Baishya<br />VarunBennur<br />VijetaHattiholi<br />Group-09<br />
  2. 2. COMMERCIAL BANK<br /> Commercial banks are the financial institution which acts as a financial intermediary which collects credit from lenders in the form of deposits and lends in the form of loans.<br />
  3. 3. Functions of Commercial Banks<br />Primary functions.<br />Secondary functions including agency functions.<br />Primary functions<br /><ul><li> Accepting deposits
  4. 4. Granting loans and advances:</li></ul>Loans<br />Advances<br />
  5. 5. Secondary functions<br />Issuing letters of credit, travellers cheques.<br />Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers;<br />Providing customers with facilities of foreign exchange.<br />Transferring money from one place to another; and from one branch to another branch of the bank.<br />Collecting and supplying business information.<br />Issuing demand drafts and pay orders.<br />Providing reports on the credit worthiness of customers.<br />
  6. 6. Difference between Primary and SecondaryFunctions<br />
  7. 7. Different modes of Acceptance of Deposits<br />Savings Deposits<br />Current Deposits<br />Fixed Deposits<br />Recurring Deposits<br />Miscellaneous Deposits<br />
  8. 8. Different methods of Granting Loans by Bank<br />Services provided by Modern Commercial Banks<br /><ul><li>Agency services
  9. 9. General utility services</li></li></ul><li>Credit creation<br />Credit creation is considered to be the main function of commercial banks these days. <br /> “Credit creation refers to the power of commercial banks to expand secondary deposits either through the process of making loans or through investment in securities”.<br />
  10. 10. Basic concepts used in the process of credit creation<br />1. Bank deposits <br />2. Business Institutions<br />3. Cash Reserve Ratio<br />4. Excess Reserves<br />5. Credit Multiplier<br />
  11. 11. Process of Credit Creation<br />Single Bank System<br />Multiple Bank System<br />
  12. 12. Limitations of credit creation<br /><ul><li> Cash Reserve Ratio
  13. 13. Amount of Primary Deposits
  14. 14. Banking Habits of the People
  15. 15. Credit Policy of the Central Bank
  16. 16. Policy of other banks
  17. 17. Nature of Securities or Availability of Good Borrowers
  18. 18. Commercial and Industrial Condition</li></li></ul><li>The commercial banking structured in India<br />
  19. 19. The following are the Scheduled Banks in India (Public Sector):<br />State Bank of India Corporation Bank<br />State Bank of Bikaner Dena Bank<br />State Bank of Hyderabad Indian Overseas Bank<br />State Bank of Indore Indian Bank<br />State Bank of Mysore Oriental Bank of Commerce<br />State Bank of Saurashtra Punjab National Bank<br />Andhra Bank Punjab and Sind Bank<br />Allahabad Bank Syndicate Bank<br />Bank of Baroda Union Bank of India<br />Bank of India United Bank of India<br />Bank of Maharashtra UCO Bank<br />CanaraBank Vijaya Bank<br />Central Bank of India<br />
  20. 20. The following are the Scheduled Banks in India (Private Sector):<br />ING Vysya Bank Ltd<br />Axis Bank Ltd<br />Indusind Bank Ltd<br />ICICI Bank Ltd<br />South Indian Bank<br />HDFC Bank Ltd<br />Centurion Bank Ltd<br />Bank of Punjab Ltd<br />IDBI Bank Ltd<br />
  21. 21. The following are the Scheduled Foreign Banks in India:<br />American Express Bank Ltd.<br />ANZ Gridlays Bank Plc.<br />Bank of America NT & SA<br />Bank of Tokyo Ltd.<br />BanqucNationale de Paris<br />Barclays Bank Plc<br />Citi Bank N.C.<br />Deutsche Bank A.G.<br />Hongkong and Shanghai Banking Corporation<br />Standard Chartered Bank.<br />The Chase Manhattan Bank Ltd.<br />Dresdner Bank AG.<br />
  22. 22. Sources<br />http://www.indiastudychannel.com/resources/108889-Credit-Creation-Limitations-Bank.aspx<br />http://www.slideshare.net/avnishbajpai/commercial-banks<br />http://www.nabard.org/pdf/report_financial/Chap_IV.pdf<br />http://www.google.co.in/search?hl=en&rlz=1C1AVSX_enIN399IN399&tbs=bks:1&q=macroeconomics+credit+creation&btnG=Search&aq=f&aqi=&aql=&oq=&gs_rfai=<br />http://books.google.co.in/books?id=02gh0RAwQYEC&pg=PA303&dq=macroeconomics+credit+creation&hl=en&ei=gOgmTa7LDZHKrAfbm5ysDA&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDoQ6AEwAw#v=onepage&q&f=false<br />http://www.thinkplaninvest.com/2009/01/scheduled-banks-in-india/<br />
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