commercial banks industrial banks etc

2. WHAT IS BANK
 A bank is a licensed and regulated financial
institution that lends money, accepts deposits and
carries out other financial transactions for its clients.
 It includes
 Central banks
 Investment banks
 commercial banks

3. TYPES OF BANKS
 There are various types of banks and they can be divided into some of
the following categories:-
 Saving banks: These banks function with the intention to culminate
saving habits among people, especially those who belong to low income
groups or those who are salaried. The money these people deposit in the
banks are invested in securities, bonds etc. These days, many
commercial banks perform the dual functions of savings bank. The
postal department is also in a way a saving bank.
 Industrial banks sell certificates that are labeled as investment shares and also
accept customer deposits. They then invest the proceeds in installment loans
for consumers and small businesses. This kind of bank has limited scope of
business. The main objective of these banks is to provide long-term loans for
expansion and modernization of industries. Industrial Banks are also referred
to as developmental banks.
 Agricultural Banks: These are banks that lend money to farmers, often over a
long period of time and at low rates of interest. They are
credit banks specifically established to assist agricultural development

4. CONT…….
 Commercial banks:- These banks function to help the
entrepreneurs(firm) and businesses. They give financial
services to these businessmen like debit cards, banks
accounts, short term deposits, etc. with the money people
deposit in such banks. They also lend money to businessmen
in the form of overdrafts, credit cards, secured loans,
unsecured loans and mortgage loans to businessmen.

5. CONT……
 The commercial banks can be further classifies as: public
sector bank, private sector banks, foreign banks and regional
banks.
 The public sector banks are owned and operated by the
government, who has a major share in them. The major focus
of these banks is to serve the people rather earn profits.
 The private sector banks are owned and operated by
private institutes. They are free to operate and are controlled
by market forces. A greater share is held by private players
and not the government.
 The foreign banks are those that are based in a foreign
country but have several branches in country.