COMMERCIAL BANKS

AUGUST,2013

Banking
Business of Trust

Definition :
accepting, for the purpose of lending & investment, deposit of money.

Maxim :
all depositors will not withdraw money at the same time.

Principles of Banking
1. Liquidity 2. Safety 3. Profitability 4. Secrecy 5. Service Quality

Role of Commercial Banks

Financial Intermediation : Pool the resources from the people who have it & deploy it to the trade & commerce who needs it. Payment System :Banks are the only institutions that can accept Demand deposit/s repayable as & when demanded. Financial Services : Selling MF, insurance, collection of bills, utility payments, sale of gold coins etc.

Banking Services & Products

Role Services a) Financial 1 Deposits Intermediation 2 Loans Products 1 CA,SB,FD,RD

1/2

b) Payment System

1 Payment & Remittance 2 Collection 3 Forex

1 Retail Loans 2 Corporate Loans 3 Trade Finance BP/BD,LC/BG, 1 Cheque/PO/DD/EFT/ Debit card / Credit card 1 Transfer,Clearing,ECS, CMS,Bill Collection 1 Foreign Exchange

Banking Services & Products

Role c) Financial Services Services Distribution

2/2

2 3 4 5

Collection Demat Safe Keeping Advisory

1 1 1 1

Products MF, Insurance,Govt. Bonds,Gold coins etc. Utility Bills, Taxes etc. Demat Shares Safe Deposit, Safe Custody Investment Advisory

THANK YOU