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Commercial Banks - Liability Management
Commercial Banks - Liability Management
– LIABILITY
MANAGEMENT
Commercial banks
Financial Intermediary
Business banking
Investment banking
Retail banking
Functions
i) Primary functions:
a) accepting deposits and
b) granting loans and advances
ii) Secondary functions:
a) Issuing letters of credit, travellers cheques,
b) safe custody of valuables,
c) facilities of foreign exchange,
d) Issuing demand drafts,
e) Transferring money from one place to another
List of commercial banks
Axis Bank
State Bank of India
Bank of Rajasthan
Catholic Syrian Bank
City Union Bank
Development Credit Bank
Dhanalakshmi Bank
Federal Bank
HDFC Bank
ICICI Bank
IndusInd Bank
Dena Bank
IDBI Bank Ltd.
Liability management
Depositors money
Funds secured from other institutions
Liabilities Assets
1. Capital 1. Cash & Balances with
2. Reserve & Surplus RBI
3. Deposits 2. Bal. With Banks &
4. Borrowings Money at Call and Short
Notices
5. Other Liabilities
3. Investments
4. Advances
5. Fixed Assets
6. Other Assets
Components of Liabilities
1. Capital:
I. Bills Payable
II. Inter Office Adjustments (Net)
III. Interest Accrued
IV. Unsecured Redeemable Bonds
(Subordinated Debt for Tier-II Capital)
V. Others(including provisions)
How Commercial Banks
Create Credit or Money
Deposits
The liability owed by the bank to its depositor.