Operational Risk

• Procurement of protective and sanitizing

equipment.
• Staff Absenteeism (psychological resistance
and added family obligations)
• Due to reduced production and other
economic activities.
• Declining asset prices
 Currency Risk
• Health of Indian Economy
• Remittance Inflow
• Foreign Currency Earning
• High fluctuation of Exchange Rate
Difference between Commercial and
Development Bank
• Commercial Banks are the banks which are established to undertake basic banking
services, for the general public. On the other hand, Development Banks are the
financial institutions, set up to provide funds to new and budding companies and
projects related to economic, agricultural and industrial development.
• A development bank is proactive in nature, as it plays an active role in promoting
projects and to develop budding companies. As against, commercial banks are
reactive in terms of business opportunities, because it requires bankability, after
the entrepreneur’s decision is taken, thereafter the idea is taken into
consideration.
• Commercial banks raise funds by accepting public deposits. Conversely,
Development Banks raise funds from borrowing, government grants and selling of
securities.
• Commercial Banks offers loan for short and medium-term, whereas medium and
long term loans are offered by development banks.
• Commercial Banks provide legal, business advice and credit Investigation
service are provided for a definite fee. Contrarily, counseling and advisory
service are provided for the development and promotion of the
enterprise, by a development bank.
• Commercial banks deal with the general public and business entities,
while the development banks deal with the government.
• Commercial Banks are profit-seeking business entities. In contrast,
Development Banks are established to encourage development.
• Commercial Banks aims at making a profit by lending money at a high rate
of interest. As against, development banks aim to achieve social profit, by
providing funds for capital intensive projects.