BA NKING SECTOROF INDI A OF INDI A

What is bank
A banker or bank is a financial institutionwhose primary activity is to act as a paymentwhose primary activity is to act as a paymentagent for customers and to borrow and lendagent for customers and to borrow and lendmoney.money. An institution where one can place and An institution where one can place andborrow money and take care of financial affairs;borrow money and take care of financial affairs; A branch office of such an institution. A branch office of such an institution.

The first modern bank was founded in Italy inThe first modern bank was founded in Italy inGenoa in 1406, its name was (Bank of St.Genoa in 1406, its name was (Bank of St.George).George).

Functions of bank
Accepting Deposits from public/others Accepting Deposits from public/others(Deposits).(Deposits). Lending money to public (Loans).Lending money to public (Loans). Transferring money from one place toTransferring money from one place toanother (Remittances).another (Remittances). Acting as trustees. Acting as trustees. Keeping valuables in safe custody.Keeping valuables in safe custody. Government business.Government business.

Acting as a trustees
Banks also act as trustees for various purposes. For example,whenever a company wishes to issue secured DEBENTURES, itwhenever a company wishes to issue secured DEBENTURES, ithas to appoint a financial intermediary as trustee who takeshas to appoint a financial intermediary as trustee who takescharge of the security for the debenture and looks after thecharge of the security for the debenture and looks after theinterests of the debenture holders. Such entity necessarily haveinterests of the debenture holders. Such entity necessarily haveto have expertise in financial matters and also be of sufficientto have expertise in financial matters and also be of sufficientstanding in the market/society to generate confidence in thestanding in the market/society to generate confidence in theminds of potential subscribers to the debenture. While Banks areminds of potential subscribers to the debenture. While Banks arethe natural choice for the customers, Banks must possess thethe natural choice for the customers, Banks must possess thefollowing to be effective and retain that:following to be effective and retain that: A track record of sufficient length. A track record of sufficient length. Facilities for safe keeping.Facilities for safe keeping. Legal skills to take necessary steps for the trusteeshipLegal skills to take necessary steps for the trusteeship..

tYPES OF BA NKS
Public sector BanksPublic sector Banks Private sector BanksPrivate sector Banks CoCo--operative Banksoperative Banks Development Bank/Financial institutionsDevelopment Bank/Financial institutions

Some Public Sector Bank si n I nd i a:: Central Bank of IndiaCentral Bank of India Corporation BankCorporation Bank Dena BankDena Bank Bank of IndiaBank of India Indian Overseas BankIndian Overseas Bank