Commercial banks collect savings from depositors and lend money to borrowers. They accept various types of deposits like demand deposits, fixed deposits, and savings deposits. Commercial banks also provide other services like loans, overdraft facilities, bill discounting, and collection of payments. They play an important role in capital formation, providing finance and credit, promoting entrepreneurship, and balanced regional development. Commercial banks in India are classified as scheduled commercial banks, which include public sector banks, private sector banks, and foreign banks, or non-scheduled commercial banks.

1. Presented by: (Group-11)
Shivam.
Shubham B.
Karishma.
Akshit.
Gangam.
Class: ( F.Y) B.Com ‘B’
Topic: Commercial Bank
Submitted To: Tushti ma’am

3.  “Bank is an institute which collects money
from those who are saving it out of their
income and lend this money out to those
who require it.”
 Commercial banks are like other financial
institutions which are in the business of
lending and borrowing of money or credit.

5.  Demand or current account
deposit.
 Fixed deposits or time deposits
 Saving bank deposit.

6. • By allowing an over draft facility cheques are
honoured even if deposits is less facility for
businessmen only interest on overdraft amount
• Loans by creating a deposits.
 Banks give loans to people by charging interest •
Bank asks for security
Simply opens an account in name of needy person
and issues a cheque book to transact
Loans granted mostly for business

7.  If a seller sells some goods to a buyer
who does not pay in cash. But the
seller draws a bill of exchange which
is signed by buyer.
 There is maturity or payment period,
say one month.
 Now the seller can give this exchange
bill to a bank which will give him cash
against it.
 Bank charges interest on it till one
month.

8.  Collection of bills, cheques.
 Collection of dividends,
interest, premium.
 Purchase and sale of shares
and debentures.
 Payment of insurance
premiums.
 Acts as trustee when
nominated.

9.  Traveller’s cheques, bank draft
 Safe vaults for valuables
 Supplying trade information
 Economic surveys
 Projects report preparation

11. 1. Accelerating the rate of
capital formation.
2. Provision of Finance and
Credit.
3. Developing
Entrepreneurship.
4. Promoting balanced
regional development.
5. Help to consumers.

12.  Commercial banks encourage the habit of thrift and
mobilise the savings of people.
 These savings are effectively allocated among the
ultimate users of funds, i.e., investors for productive
investment.
 So, savings of people result in capital formation which
forms the basis of economic development.

13.  Commercial banks are a very important source
of finance and credit for trade and industry.
 The activities of commercial banks are not
only confined to domestic trade and
commerce, but extend to foreign trade also.

14.  Banks promote entrepreneurship by underwriting
the shares of new and existing companies and
granting assistance in promoting new ventures or
financing promotional activities.
 Banks finance sick (loss-making) industries for
making them viable units.

15.  Commercial banks provide credit facilities to rural
people by opening branches in the backward areas.
 The funds collected in developed regions may be
channelised for investments in the under developed
regions of the country.
 In this way, they bring about more balanced regional
development.

16.  Commercial banks advance credit for purchase of
durable consumer items like Vehicles, T.V.,
refrigerator etc., which are out of reach for some
consumers due to their limited paying capacity.
 In this way, banks help in creating demand for such
consumer goods.

17. The commercial banks can be broadly
classified under two heads:
Commercial banks
Scheduled
commercial banks
Private
sector
banks
Public
sector
banks
Foreign
sector
banks
Non-Scheduled
commercial banks

18.  Scheduled banks refer to those
banks which have been included in
the Second Scheduled of Reserve
Bank of India Act, 1934.
 In India, scheduled commercial
banks are of three types:
• Private sector banks.
• Public sector banks.
• Foreign sector banks.

19.  These banks are owned and controlled by the
government.
 The main objective of these banks is to provide
service to the society, not to make profits.
 State Bank of India, Bank of India, Punjab
National Bank, Canada Bank and Corporation
Bank are some examples of public sector banks.

20.  These banks are owned and controlled by
private businessmen.
 Their main objective is to earn profits.
 ICICI Bank, HDFC Bank, IDBI Bank
is some examples of private sector banks.

21.  These banks are owned and controlled by foreign
promoters.
 Their number has grown rapidly since 1991, when
the process of economic liberalization had started in
India.
 Bank of America, American Express Bank,
Standard Chartered Bank are examples of foreign
banks.

22.  Non-scheduled banks refer to
those banks which are not
included in the Second Schedule
of Reserve Bank of India
Act,1934.