The document defines a bank as a financial institution that accepts money from the public for lending, investment, or withdrawal by check. It discusses the types of commercial banks and their primary functions, which include accepting deposits, lending, creating credit, clearing checks, financing foreign trade, and remitting funds. Secondary functions include agency and general utility services. The document concludes that banks help achieve socio-economic objectives and national policy goals while leading economic development.

1. By: CharlesTuiuane Karita
FUNCTIONS OF COMMERCIAL
BANKS

2. OBJECTIVES
 DEFINITION OF A
BANK.
TYPES OF
COMMERCIAL
BANKS.
FUNCTIONS OF
COMMERCIAL
BANKS.
CONCLUSION.

3. PREAMBLE
A bank is like a pool into which the flow of
savings, the idle surplus money of
households and from which loans are given
on interest to individuals and others who
need them for investment or productive
uses.

4. DEFINITION OF A BANK
The Banking Companies Act of India
defines a bank as “A Bank is a financial
institution which accepts money from the
public for the purpose of lending or
investment repayable on demand or
otherwise withdrawable by cheques, drafts
or order or otherwise.”

5. TYPES OF COMMERCIAL
BANKS
DEPOSIT BANKS
INDUSTRIAL BANKS
SAVINGS BANKS
EXCHANGE BANKS
AGRICULTURAL BANKS
MISCELLANEOUS BANKS

6. FUNCTIONS OF COMMERCIAL
BANKS
Commercial banks have to perform a variety of
functions which are common to both developed
and developing countries. These are known as
‘General Banking’ functions of the commercial
banks. The modern banks perform a variety of
functions. These can be broadly divided into two
categories:
(a) Primary functions.
(b) Secondary functions.

7. PRIMARY FUNCTIONS
1. Acceptance of
deposits.
2. Advancing loans.
3. Creation of
credit.
4. Clearing of
cheques.
5. Financing foreign
trade.
6. Remittance of
funds.

8. SECONDARY FUNCTIONS
1. Agency
Services.
2. General
Utility Services.

9. TOP RANKING COMMERCIAL
BANKS IN INDIA
1. STATE BANK OF INDIA
2. ICICI Bank Limited
3. Punjab National Bank
4. Canara Bank
5. Bank of Baroda
6. Bank of India
7. Union Bank of India
8. Industrial Development Bank of India Limited
9. Central Bank of India
10. HDFC Bank Limited
11. UCO Bank
12. Syndicate Bank
13. Indian Overseas Bank
14. Oriental Bank of Commerce
15. Allahabad Bank

10. CONCLUSION
Have been called upon to
help achieve certain socio-
economic objectives laid
down by the state.
Used to sub-serve the
national policy objectives of
reducing inequalities of
income and wealth, removal
of poverty and elimination
of unemployment in the
country.
In the modern world, banks
are to be considered not
merely as dealers in money
but also the leaders in
economic development.