Banking Management 2

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PRESENTED BY:AJITAV ACHARYA


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Basing upon certain factors banks have beenclassified into many, they are:

Basing Upon OriginBasing Upon OwnershipBasing Upon FunctionsBasing Upon Registration/schedule

9/28/2011 2BE A GOOD HUMANBEING.


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Local banks :Banks having its branches also theHead office in the same country are regarded aslocal banks. These banks are formed accordingto regulations of that country. Examples of Local

banks are SBI,PNB etc. Foreign banks :Banks whos Head Office is not

present in the country in which they areperforming banking functions are classified as

foreign Banks. Examples of foreign banks in Indiaare: HSBC, Citibank, Standard

Chartered Bank, etc.

9/28/2011BE A GOOD HUMANBEING. 3


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Public Sector Banks:o These are banks where majority stake is held

by the Government of India or Reserve Bankof India.

o Examples of public sector banks are: StateBank of India, Corporation Bank, Bank ofBoroda and Dena Bank, etc.



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In case of private sector banks majority ofshare capital of the bank is held by privateindividuals.

Examples of private sector banks are: ICICIbank, HDFC bank, AXIS bank etc.



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Banks formed on the principle of co-operation are called co-operative banks.

Co-operative banks provide short term creditto agriculture, small farmers, small scaleindustry.

Co-operative banks accept all kind ofdeposits and make loan to the members at

lower rate of interest.



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Central Banks: A bank which is entrusted with the functions of

guiding and regulating the banking system of acountry is known as its Central bank.

Such a bank does not deal with the generalpublic.

It acts essentially as Governments banker,maintain deposit accounts of all other banks andadvances money to other banks, when needed. It

is therefore also known as the bankers bank. The Reserve Bank of India is the central bank of

our country.



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Commercial banks: Commercial banks mobilize deposit from the

public which are repayable on demand.

Commercial Banks are banking institutionsthat accept deposits and grant short-termloans and advances to their customers. Inaddition to giving short-term loans,

commercial banks also give medium-termand long-term loan to business enterprises.



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Exchange Banks: Exchange banks specialize in financing the

foreign trade.

They supply necessary foreign exchangerequired for settlement of transactions inforeign trade.



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Industrial Banks: Banks working for industrial sector are said

Industrial Banks.

The primary function of these banks is toprovide loans to industrial sector.



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Scheduled Banks: Banks which have registered under the II

schedule of RBI.

Scheduled banks comprise scheduledcommercial banks and scheduled co-operative banks

Non Scheduled Banks: Banks which have not registered under the II

schedule of RBI.


Banking Management 2

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