Recommended
More Related Content
What's hot
What's hot (20)
Similar to Commercial Banking
Similar to Commercial Banking (20)
More from vinay kumar
Recently uploaded
Recently uploaded (20)
Commercial Banking
- 2. HISTORY The first bank in India was The BANK OF HINDUSTAN in 1770 and liquidated in 1829-32. The largest bank ,and the oldest still in existence is the State bank of India(SBI). It originated as the Bank of Calcutta in 1806. In 1969 the Indian government nationalised 14 major private banks, one of the big bank was Bank of India. In 1980, 6 more private banks were nationalised. 2
- 3. MEANING ◦ Commercial bank is an institution that provide services such as accepting deposits from the public for the purpose of lending money to the borrowers with the aim of earn profit. ◦ “As per Section 5(b) of the Banking Regulation Act, 1949 , "banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or otherwise.” 3
- 4. The term commercial banks refers to both scheduled and non-scheduled commercial banks regulated under the Banking Regulation Act, 1949. A Scheduled bank, in India, refers to a bank which is listed in the 2nd Schedule of the Reserve bank of India act, 1934. THE BANK INCLUDED IN THIS SCHEDULE LIST SHOULD FULFILL TWO CONDITIONS. 1. The paid up capital and collected fund of bank should not be less than Rs. 5 lac. 2. Any activity of the bank will not adversely affect the interests of depositors.. SCHEDULED BANK 4
- 5. COMMERCIAL BANKS SCHEDULED BANKS NON SCHEDULED BANKS Public sector bank Private sector bank Foreign bank SBI and its subsidiaries Other Nationalized banks
- 6. NON SCHEDULED BANKS Banks not under 2nd Schedule of the Reserve bank of India act, 1934 are called as non-scheduled banks . It is also called as Local area bank. Non-scheduled banks are also subject to the statutory cash reserve requirement. But they are not required to keep them with the RBI . They are not entitled to borrow from the RBI for normal banking purposes, but they may approach the RBI for accommodation under abnormal circumstances. 6
- 7. SCHEDULED AND NON SCHEDULED BANK THERE ARE 5 NON- SCHEDULED URBAN COOPERATIVE BANKS IN INDIA 1. Akhand Anand Co- Operative Bank Ltd 2. Alavi Co-Op Bank Ltd 3. Amarnath Co-operative Bank Ltd 4. Amod Nagrik Sahakari Bank Ltd 5. Amreli Nagrik Sahakari SCHEDULED BANK They are divided into 3 types:- Public sector (27) Private sector (21) Foreign bank (43) from 26 countries. 7
- 8. Hello! I AM JAYDEN SMITH I am here because I love to give presentations. You can find me at @username 8
- 9. FUNCTIONS OF COMMERCIAL BANKS PRIMARY FUNCTION SECONDARY FUNCTION Accepting deposits Lending money Current account Savings bank account Fixed deposits Loans and advance Overdraft Cash credit Discounting of bills Internet banking Agency services and General utility services ATM Locker facility Cheque facility Tele banking
- 10. WAYS IN WHICH COMMERCIAL BANKS HELP SMALL SCALE INDUSTRIES ◦ Credit guarantee scheme ◦ Working Capital Facilities ◦ Cash Credit/Overdraft ◦ Foreign Trade Facilities Export Packing Credit Post Shipment Credit Bill Discounting under LC ◦ Business Expansion Term loan ◦ Letter of credit ◦ Bank guarantee
- 11. LIBERALIZED CREDIT FOR SSI BY SBI ◦ State Bank of India extends production- linked credit facilities to small-scale industries, ancillary industrial units and village and cottage industrial units on liberal terms and conditions. ◦ The pricing of the loan is based on credit assessment, and the units with strong ratings may be given finer rates. ◦ No collateral security is required for loans up to Rs 5 lakh. Composite term loans can be sanctioned up to Rs 25 lakh combining term loan and working capital.
- 13. 13