By: CharlesTuiuane KaritaFUNCTIONS OF COMMERCIALBANKS
OBJECTIVES DEFINITION OF ABANK.TYPES OFCOMMERCIALBANKS.FUNCTIONS OFCOMMERCIALBANKS.CONCLUSION.
PREAMBLEA bank is like a pool into which the flow ofsavings, the idle surplus money ofhouseholds and from which loans are givenon interest to individuals and others whoneed them for investment or productiveuses.
DEFINITION OF A BANKThe Banking Companies Act of Indiadefines a bank as “A Bank is a financialinstitution which accepts money from thepublic for the purpose of lending orinvestment repayable on demand orotherwise withdrawable by cheques, draftsor order or otherwise.”
TYPES OF COMMERCIALBANKSDEPOSIT BANKSINDUSTRIAL BANKSSAVINGS BANKSEXCHANGE BANKSAGRICULTURAL BANKSMISCELLANEOUS BANKS
FUNCTIONS OF COMMERCIALBANKSCommercial banks have to perform a variety offunctions which are common to both developedand developing countries. These are known as‘General Banking’ functions of the commercialbanks. The modern banks perform a variety offunctions. These can be broadly divided into twocategories:(a) Primary functions.(b) Secondary functions.
TOP RANKING COMMERCIALBANKS IN INDIA1. STATE BANK OF INDIA2. ICICI Bank Limited3. Punjab National Bank4. Canara Bank5. Bank of Baroda6. Bank of India7. Union Bank of India8. Industrial Development Bank of India Limited9. Central Bank of India10. HDFC Bank Limited11. UCO Bank12. Syndicate Bank13. Indian Overseas Bank14. Oriental Bank of Commerce15. Allahabad Bank
CONCLUSIONHave been called upon tohelp achieve certain socio-economic objectives laiddown by the state.Used to sub-serve thenational policy objectives ofreducing inequalities ofincome and wealth, removalof poverty and eliminationof unemployment in thecountry.In the modern world, banksare to be considered notmerely as dealers in moneybut also the leaders ineconomic development.