COMMERCIAL BANK

Presented By:
SUBRATA

NATURE OF COMMERCIAL BANKS:

Commercial banks are an organisation which
normally performs certain financial transactions.
It performs the twin task of accepting deposits
from members of public and make advances to
needy and worthy people form the society. When
banks accept deposits its liabilities increase and
it becomes a debtor, but when it makes advances
its assets increases and it becomes a creditor.
Banking transactions are socially and legally
approved. It is responsible in maintaining the
deposits of its account holders.

Reforms in commercial banks occur in two

Phases:
First phase: Introduced in 1992 and mainly focused on
strengthening and implementing of measures .
Two major development occurred :
Green Revolution
Nationalization

Second phase: Introduced in 1968

This phase mainly focuses on meeting the Indian
standard with international best practices.
It mainly emphasises on structural measures and
improvement.

Role of Commercial Banks

Facilitate trade both inside and outside the country
Increase the mobility of capital
Realizing the importance of agriculture credit
In maintaining the financial needs of sectors such as
agriculture, industry, trade and communication
There are two types of functions:

Primary Function

Secondary Function

Under primary functions :

Deposits
Loans
Credit creation
Under secondary functions:
Agency function
Utility function

DEVELOPMENT OF BANKS
Unprecedented growth and improvement
Anytime , Anywhere, banking
Non cash transaction comprise 91% of value
Measure to improve their functions
Banks have opted beyond their role of finance provider
Final guidelines on BASELIII implementation
Norms for issuing new banking licences

Continued....
Developing corporate bond market
Unique Identification (UID) project
Social Media

Thank
You