Commercial Banks and It s Recent Development

Banks Commercial Banks Commercial Banks Public Sector Banks Private Sector Banks Old(17) New(8) Foreign Banks(31) SBI & Associate Banks(7) Other Nationalized Banks(20) . Banks and primary credit societies State Coop.Structure of Banking System in India Scheduled Banks Non-Scheduled Banks Central Coop.

such as checking. they are primarily concerned with receiving deposits and lending to businesses. and offers related services.Definition of Commercial Banks An institution which accepts deposits. and time deposit. ‡ Commercial banks offer services to individuals. ‡ . ‡ These institutions are run to make a profit and owned by a group of individuals. ‡ Commercial banks also allow for a variety of deposit accounts. savings. makes business loans.

± Overdraft. Miscellaneous Deposits. ‡ Short-term Loans ± Cash Credit. ± Discounting of Bills. Recurring Deposits. Fixed deposits. .Functions of Commercial Bank ‡ Primary Functions ± Accepting Deposits ‡ ‡ ‡ ‡ ‡ Current Deposits. ± Granting Loans and Advances. ± Term Loan. Saving Deposits. ‡ Long-term Loans ± Demand Loan.

interest. on behalf of the customer. debentures. ‡ Undertaking foreign exchange business. ‡ Collection of dividends. Safe-keeping of valuables in safe deposit locker. etc. ‡ Acting as a referee regarding the financial status of customers. Underwriting of shares.Functions of Commercial Bank Continue ‡ Secondary Functions ± Agency Services ‡ Collection and payment of cheques and bills on behalf of the customer. etc. interest and rent. Supplying trade information and statistical data useful to customers. ± General utility Services Issuing letters of credit and travelers' cheques. etc. ‡ ‡ ‡ ‡ . ‡ Payment of rent. ‡ Acting as agents or correspondents on behalf of customers for other banks and financial institutions at home and abroad. insurance premium.. if so instructed. on behalf of customers. if so instructed by them.

Commercial Banks at a glance .

No.State bank of India and its associates Sl. Name of bank Year of incorporation 1966 1941 1955 1960 1913 1917 1945 1 2 3 4 5 6 7 State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Travancore .

Nationalized Commercial Banks Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Name of bank Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank IDBI Bank Ltd Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank Year of incorporation 1865 1923 1908 1906 1935 1906 1911 1906 1938 1994 1907 1937 1943 1908 1895 1925 1943 1919 1950 1931 .

& Intl. No.Old Private Sector Commercial Banks Sl. Name of bank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Catholic Syrian Bank City Union Bank Development Credit Bank Dhanalakshmi Bank Federal Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Lakshmi Vilas Bank Lord Krishna Bank Nainital Bank Ratnakar Bank Sangli Bank SBI Comm. Bank South Indian Bank Tamilnad Mercantile Bank Year of incorporation 1920 1904 1995 1927 1931 1930 1938 1924 1926 1926 1940 1922 1943 1948 1993 1929 1921 .

Name of bank Year of incorporation 1994 1994 1994 1995 1985 1994 2003 1 2 3 4 5 6 7 Centurion Bank HDFC Bank ICICI Bank IndusInd Bank Kotak Mahindra Bank Axis Bank Yes Bank .New Private Sector Commercial Banks Sl. No.

interconnection of clearing houses through the Indian Financial Network (INFINET) ‡ The development of a Real-Time Gross Settlement (RTGS) System ‡ Centralized Funds Management System (CFMS) ‡ ‡ ‡ ‡ .Recent Development in Commercial Banking Interest rate deregulation Electronic Clearing Services (ECS) Electronic Funds Transfer (EFT) The opening of new clearing houses.

Continue ‡ ‡ ‡ ‡ ‡ . . E-banking E-payment Automated teller machines(ATM) Negotiated Dealing System (NDS) The Structured Financial Messaging System(SFMS).

02.2) 44. 2.788 5.86.26.968 33.988 1.37.04.59.26. 2.2 Long-term Time Deposits Funding from Financial Institutions .48.401 1.04.Growth of Commercial Banks Source: Reserve Bank Of India 21-05-2010 Aggregate Deposits of Residents(1+2) Demand Deposits Time Deposits of Residents(2.075 1.718 18.184 12.783 14.51.09.894 21.77.26.609 27.65.192 22-05-2009 39.429 23-05-2008 31.99.537 1.1 Short-term Time Deposits 2.92.356 38.1+2.674 5.73.15.793 4.432 17.706 15.

376 10.339 844 2.624 16.Urban Metro.4 43.146 1.480 12.043 2.193 11.Branches and ATMs of Scheduled Commercial Banks (As at end-March 2009) Bank Group Off-site ATMs as ATMs as percent Rural Semi.166 293 270 8 9 5.3 67.054 10 35.835 842 1.478 52 233 20.951 8.938 4.608 24.058 16.233 3.673 1.0 31.669 State Bank Group Old Private Sector Banks New Private Sector Banks Foreign Banks Total (i to v) 5.651 .site Total percent age of age of urban politan total Bran ATMs ches Number of Bank/Branches Number of ATMs i) ii) iii) iv) v) 1 2 3 Nationalised Banks 13.381 8.554 271 1.830 4.084 4 4 4 5 6 7 8.8 37.062 7.761 13.674 7.146 14.6 59.646 784 1.0 1.9 296.204 5.2 29.645 19.375 39.371 1.Total On-site Off.5 11 40.2 74.560 4.006 43.705 15.344 933 4.0 56.6 357.643 64.

51.8 34.937 1.5 69.446 41.8 Value of transactions (Rs.521 9 97.547 5.27. crore) 2006-07 2007-08 2008-09 2006-07 2007-08 2008-09 1 1.82.6 24.35.710 3 78.40. 2.203 2.055 13.776 1.2008-09 08 5 13.177 3.172 8 7.8 25. 4. 3.309 6.28.984 12.5 13.67.693 10.78.9 141.654 5.956 65.306 1.60.561 88.976 2.990 .59.69.273 25.7 44.441 77.222 48. 5.019 75.356 18.487 66.120 1.326 57.41.825 2.161 2.7 41.27.Transactions through Retail Electronic Payment Methods Type Volume of transactions (000 s) Growth in volume (per cent) 2007.202 4.4 6 12.00.365 4 88.361 8.35.6 46.0 178.536 60.322 1.315 32.394 7 83. Total ECS-Credit ECS-Debit EFT/ NEFT Credit Cards Debit Cards 2 69.

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