role and work of commercial bank

1. Prepared by :
ASHUTOSH PATTNAIK

2. What is a bank ?
 A bank is a financial institution licensed to
receive deposits and make loans. Banks may
also provide financial services, such as
wealth management, currency exchange and
safe deposit boxes.
 There are two types of banks:
commercial/retail banks and investment
banks. In most countries, banks are regulated
by the national government or central bank

3. What is commercial bank ?
A commercial bank is a type of financial
institution that accepts deposits, offers
checking account services, makes business,
personal and mortgage loans, and offers
basic financial products like certificates of
deposits (CDs) and savings accounts to
individuals and small businesses. A
commercial bank is where most people do
their banking, as opposed to an investment
bank.

4. Roles of commercial bank in India.
 Trade development: the commercial banks provide
capital, technical assistance and other facilities to
business man according to their need, which leads to
development in trade.
 Supports to agriculture development : Commercial
bank has separate scheme for the farmer by which he give
some percentage of relaxation on them by which they are
promoted to do more and more agriculture.
 Supports to industrial development : It give some
facilities to the new entrepreneur and also give them
appropriate project on which they can be profitable.
 Capital formation: it means increase in number of
production units, technology, plant and machinery.

5. Cont….
 Development of foreign trade :Letter of credit is
issued by the importer’s bank to the exports to ensure
the payment. The banks also arrange foreign exchange.
 Support to more production: as these banks give
financial benefit to all the sectors of India it can be said
that it support more production
 Development of transport: as a bank it also provide
different financial benefit to government which are
utilized in transport

6. Cont……..
 Accelerating the rate of capital formation : they
encourage the habit of savings among people and mobilize
ideal resource for production purpose.
 Provision of finance and credit : banks are instruments of
developing internal as well as external trade.
 Innovations : innovations are essential prerequisite for
economic development. These innovations are mostly
financed by bank credit in the developed countries

7. Cont…….
 Implementation of money policy
 Encouragement to right type of industries
 Regional development
 Promote industrial development
 Fulfillment of socio-economic objectives

8. EXAMPLES