7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
1/20
COMMERCIAL BANKS IN THEGROWTH OF ENTERPRISES
AND OTHER RELATED AREAS
CA.FRANCIS AMAL GEORGE
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
2/20
BANK
It is a financial institution
Deals with deposits and advances and otherrelated services.
Receives money from those who want tosave in the form of deposits and
Lends money to those who need it.
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
3/20
JOURNEY OF INDIAN BANKING SYSTEM
Early phase -1786 to 1969
Nationalization - up to 1991
New phase - Reforms after 1991.
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
4/20
FUNCTIONS OF RBI
Monetary policy Regulation and supervision of the banking and non-banking
financial institutions Regulation of money, FOREX and government securities
markets Debt and cash management for Central and State
Governments Management of foreign exchange reserves Foreign exchange management Banker to banks Banker to the Central and State Governments
Oversight of the payment and settlement systems Currency management Developmental role Research and statistics
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
5/20
TYPES OF BANK
Saving Banks
Commercial Banks
Industrial Banks / Development Banks Central / Federal / National Bank
Co-operative Banks
Exchange Banks Consumers Banks
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
6/20
COMMERCIAL BANK
Financial Institution Deposits - checking, savings and time deposit. Primary Object -receiving deposits and
lending to business Profit Motive institutions Owned by a group of individuals In India, commercial banks are established
under Companies Act, 1956
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
7/20
CommercialBanks
Public SectorBanks
SBI &Associates
NationalisedBanks
(incl.IDBI)
Foreign BanksRegional Rural
Banks
OtherScheduled
CommercialBanks
STRUCTURE OF COMMERCIAL BANKS
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
8/20
FUNCTIONS OF COMMERCIAL BANKS
PRIMARY FUNCTIONS:
Accepting Deposits
Advancing of Loans
Credit Creation
SECONDARY FUNCTIONS:
Agency Function
General Utility Services
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
9/20
ACCEPTING DEPOSITS
TIMEDEPOSIT
FIXEDDEPOSIT
RECURRING
DEPOSIT
CASHCERTIFICATE
DEMANDDEPOSIT
SAVINGSDEPOSIT
CURRENTACCOUNT
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
10/20
ADVANCING OF LOANS
OVERDRAFT
CASH CREDIT
DISCOUNTING OF BILLS LOANS AND ADVANCES
HOUSING FINANCE
EDUCATIONAL LOAN
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
11/20
CREDIT CREATION
Loan through Deposit Account
Withdrawal at Demand
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
12/20
AGENCY FUNCTION
Collection of cheques, Dividends, andInterests
Payment of rent, Insurance premiums
Dealing in foreign exchange
Purchase and sale of securities
Act as trustee, executor, attorney,correspondent
Preparations of Income-Tax returns
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
13/20
GENERAL UTILITY SERVICES
Safety Locker facility
Payment Mechanism or Money Transfer
Travelers' cheques Letters of Credit
Acting as Referees
Provides Trade InformationATM facilities
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
14/20
GENERAL UTILITY SERVICES
Credit cards
Gift Cheques
Accepting Bills Merchant Banking
Advice on Financial Matters
Factoring Service
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
15/20
EMERGING ROLE
Backbones of the Financial Sector
Capital Formation -UnderdevelopedEconomy
Innovations Adequate & Cheap Credit toEntrepreneur
Finance for Priority Sectors
Medium and Long term Finance
Cheap Money Policy
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
16/20
..CONTD
Credit to households & government
Credit to weaker sectors of the economy
Market Oriented System Bank on Wheels Facility of Amalgamation
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
17/20
HINDRANCES
Political uncertainty
Bureaucratic hassles
Shortages of power Infrastructural deficiencies
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
18/20
STATISTICAL DATA
The total assets of all scheduled commercialbanks by end-March 2010 is estimated at Rs40,90,000 crore.
Gross NPAs as ratio to gross advances forScheduled Commercial Banks as a wholeincreased from 2.25 per cent in 2008-09 to
2.39 per cent in 2009-10.
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
19/20
IN FUTURE
Indias GDP Growth to make the IndianBanking Industry third largest in the Worldby 2025
Break-out growth in usage of new channels
7/30/2019 Commercial Banks in the Growth of Enterprises and Other Related Areas
20/20
Top Related