A

PRESENTATION
ON

BY GROUP
6
 Amrutha
Preetam
 Gautam
Aggarwal
 Komal D
 Padmini Gowda
 Stalin Mohanty
 Introduction
 Evolution
 Functions
 Services
 Roles
 Current scenario
 Conclusion
 A business organization which
deals in money; it borrows and
lends money. In the process of
borrowing and lending of money it
makes profit.

 A division of a bank primarily

dealing with deposits and loans
from corporations or businesses.
 Modern banking in India is said to
be developed during the British
era.

 In the first half of the 19th

century, the British East India
Company established three banks
–
-The Bank of Bengal in 1806
-The Bank of Bombay in 1840
-The Bank of Madras in 1843
 But in the course of time these
three banks were amalgamated to
a new bank called Imperial Bank
and later it was taken over by the
State Bank of India in 1955.

 Allahabad Bank was the first fully

Indian owned bank. Followed by
other banks like Punjab National
Bank, Bank of India, Canara Bank
and Indian Bank.
What are the functions of commercial bank???
1. Accepting of deposits
 Current deposit Account - money deposited in the account is for very short
period. – high rate of interest – term deposit – matures at a definite period.
 Fixed deposit - withdraw money at any time – no interest -
 Savings deposit Account – some restrictions. – minimum amount of money –
interest rate is low.

6. Granting of loans and advances

 Loans
 Advances
- Making ordinary loans
- Cash credit – popular with Indian businessman
- Overdraft – draft in excess of credit balance – for the reliable customer.
- Investment of funds – surplus fund in government securities.
- Promote use of cheques
- Agency functions of the bank-
transfer of funds
collecting consumer funds
purchase and sales of share
income tax consultant
- Purchase and sale of foreign exchange
- Safe custody of valuable items of the public.
Issuing letters of credit, travelers cheques, circular notes etc.

12. Undertaking safe custody of valuables, important documents, and securities

by providing safe deposit vaults or lockers.

14. Providing customers with facilities of foreign exchange.

16. Transferring money from one place to another; and from one branch to
another branch of the bank.
1. Standing guarantee on behalf of its
customers, for making payments for
purchase of goods, machinery, vehicles
etc.

3. Collecting and supplying business

information.

5. Issuing demand drafts and pay orders.

7. Providing reports on the credit

worthiness of customers.
Cash Credit

Overdraft

Discounting of
bills
 Acting as an investment advisor
 Collection and payments of cheque, bills of
exchange, promissory notes etc.
 Collection of dividends, interest and rent
etc.
 Purchase and sale of shares and securities
 Payment of rent, interest, insurance
premiums, subscriptions etc.
 Acting as trustee, executor, administrator
 Acting as a custodian.
 Acting as agents for other banks at home
and abroad
 Banker’s Drafts and Letters of Credit
 Circular Notes, Traveler’s Cheque.
 Safe custody of valuables
 Night safes
 Referee as to the Respectability and Financial
Status of Customer
 Credit cards
 Debit and ATM cards
 Electronic Funds Transfer (EFT) Service
 Online banking
 Mobile banking
 Information and other Services
 Need for a sound banking system
 Capital formation – rate of saving is low in underdeveloped economy due to
poverty. – potential cant be realize due to poor commercial bank facility – to
make money available for entrepreneur sound banking system is rtequired.
 Finance for priority sector
 Innovation – innovation can be done through bank credit by entrepreneur.
 Monetization – underdeveloped economy monetization due to large non
monetized sector.
 Micro finance
 Provision for long term finance
 Cheap money policy to stimulate economic activity
 Network Expansion
 Growth of deposits and credits
 Foreign Businesses of Indian Banks
 Rural banking
 Technological Infrastructure
 Increased Funding to SME’s
 Banks are back bone for the
economic development of any
country. A planned banking system
is indispensable for economic growth
and development of the country.