COMMERCIAL BANKS

AUGUST,2015

Banking

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 1/2

  Role   Services   Products

    2 Loans 1 Retail Loans         2 Corporate Loans         3 Trade Finance -

BP/BD,LC/BG,

    3 Forex 1 Foreign Exchange

Transfer,Clearing,ECS, CMS,Bill Collection

    2 Collection 1

CA,SB,FD,RD

b) Payment System

1 Payment & Remittance

1

Financial Intermediation

a) 1 Deposits 1

Cheque/PO/DD/EFT/ Debit card / Credit card

Banking Services & Products 2/2

  Role   Services   Products

MF, Insurance,Govt.Bonds,Gold coins etc.

    2 Collection 1 Utility Bills, Taxes etc.

  3 Demat 1 Demat Shares   4 Safe Keeping 1 Safe Deposit,

Safe Custody

Financial Services

c) 1 Distribution 1

Investment Advisory

5 Advisory 1