DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : G.Rajeswari
Designation : Senior Lecturer
Branch : Commercial and Computer Practice
Institute : Government Polytechnic, Srikakulam
Year/Semester : V semester
Subject : Banking
Subject code : CCP 504(B)
Topic : Banking, types of banks
Duration : 50mts
Sub topic : Types of banks and basis for
classification
Teaching Aids : PPT, Animation
CCP504(B).3 1
Types of Banks

Objectives:-

On completion of this Topic, you would be able

to Understand :

 The various types of Banks.

 The classification of Banks.

 The features of Commercial Banks.

CCP504(B).3 2
 Recap
 Banks basically deal with money.
 Their motive is Profit making.
 They provide Cheque system as a medium of
exchange.
 They collect deposits and lend loans to the needy
public.

CCP504(B).3 3
Questions for the students – known
to Unknown
 How many types of Banks are there ?

 Can you name them ?

 Why there are different banks?

CCP504(B).3 4
Types of Banks
The following are the various types of Banks.

1. Commercial Banks
2. Industrial Banks
3. Agricultural Banks
4. Exchange Banks
5. Savings Banks
6. Central Bank
7. World Bank

CCP504(B).3 5
 Classification of Banks

Banks can be classified into various types on the basis of

their functions, ownership, domicile etc.

Classification of Banks on the basis of Functions:

• Commercial Banks:

These Banks perform all kinds of banking business. They

collect deposits from public and lend loans to the needy
public.

CCP504(B).3 6
2. Industrial Banks:

These banks give long term loans to Industries.

Ex : ICICI, IDBI, SFC. etc.,

3. Agricultural Banks:
These banks provide credit to farmers, artisans etc.

4.Exchange Banks:
These banks deal in foreign exchange and finance
foreign trade.

CCP504(B).3 7
5. Savings Banks:
These banks are nothing but commercial banks.

6. Central Bank:
It is the apex bank. It controls, supervises and
regulates the monetary and credit system of the
country.

7.World Bank:
This bank provides finance to its member countries.
CCP504(B).3 8
Classification of Banks on the Basis
of Ownership

1. Public Sector Banks

These are owned and controlled by the Government.

In India, the nationalized Banks and rural Banks
comes under these categories.

CCP504(B).3 9
1. Private sector Banks
These banks are owned by the Private
individuals or corporations and not by the
Government or Co-operative Societies.

CCP504(B).3 10
 Co – operative Banks
Cooperative Banks are operated on the co-
operative lines. In India co-operative credit
Institutions organized under the co-operative
societies Act and play an important role in
meeting Financial needs in the rural areas.

CCP504(B).3 11
Classification of Banks on the Basis
of Domicile
1. Domestic Banks

When the operations of the Banks limited to the

origin of the Country, it is called Domestic Banks.

• Foreign Banks
When the operations of the Banks extended to
other Countries, it is called foreign Banks.

CCP504(B).3 12
Commercial Banks

Features of Commercial Banks.

 Commercial Banks meet the working capital
requirements of Business or Industry.

 These Banks lend essentially for short periods.

 These Banks are the custodians and trustees of the

vast majority of depositors.

CCP504(B).3 13
 Functions of Commercial Banks

Functions of Commercial banks are classified into 3 categories.

Functions of Commercial Banks

Primary Agency General

Functions Services Utility
Services.

CCP504(B).3 14
Summary

 There are various types of Banks which cater to

the needs of the different sectors.
 The Banks are classified on the basis of their
functions, domicile and ownership.
 Commercial banks are one of the various types of
banks which plays a predominant role in the
development of any country.

CCP504(B).3 15
Quiz

1.The Classification of Banks is made on

the following basis

A. Functions
B. Reserves
C. Customs
D. None

CCP504(B).3 16
2. Commercial Banks Provides Loans for

A. Business people
B. Foreigners
C. Government
D. Social Organizations

CCP504(B).3 17
Questions

1. List the different types of banks.

3. How the Banks are Classified ?

5. What are the features of Commercial Banks?

7. How many types of functions are performed by

Commercial Banks?

CCP504(B).3 18