List of Banks in Gujarat

A bank is a licensed financial institution that accepts deposits and makes loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are many different types of banks, including retail banks, commercial or corporate banks, and investment banks. The world's first modern bank, Banco di San Giorgio (St. George's Bank), was established in Genoa, Italy in 1406.

1 – Public Sector Bank or Government Bank

Public Sector Banks Are Those Banks In Which More Than 50 Percent Stake Is Held By The Government Of India, And The Remaining Stake Is Held By The Shareholders. In Simple Words, Such Banks Which Are Owned By The Government Of India Are Called Public Sector Banks.

There Are 12 Public Sector Banks In India. Which Are As Follows –

• State Bank Of India (SBI)
• Punjab National Bank (PNB)
• Indian Bank (IB)
• Bank Of India (BOI)
• UCO Bank
• Union Bank Of India
• Central Bank Of India
• Bank Of Baroda
• Bank Of Maharashtra
• Canara Bank
• Punjab And Sind Bank
• Indian Overseas Bank

2 – Private Sector Bank

Those Banks Are Called Private Sector Banks In Which More Than 50 Percent Stake Is Held By The Shareholders And Not By The Government Of India. That Is, Public Sector Banks Are Not Completely Owned By The Government Of India.

There Are Mainly 21 Private Sector Banks In India, Some Of Which Are As Follows –

• ICICI Bank
• HDFC Bank
• Axis Bank
• IDBI Bank
• Dhanlaxmi Bank
• Kotak Mahindra Bank
• Federal Bank

3 – Regional Rural Bank

Such Banks Which Operate At The Regional Level Of Different States Are Called Regional Rural Banks. The Main Objective Of These Types Of Banks Is To Provide Banking Facilities To The Weaker Sections Of The People. Rural Banks Are Very Important For The Development Of Small Areas.

There Are A Total Of 43 Regional Rural Banks In India, Some Of Which We Have Mentioned Below –

• Assam Gramin Bank
• Uttar Bihar Gramin Bank
• Kerala Gramin Bank
• Madhya Pradesh Gramin Bank
• Uttarakhand Gramin Bank
• Jammu And Kashmir Gramin Bank
• Paschim Banga Gramin Bank
• Pratham UP Gramin Bank

Similarly, There Are Rural Banks In All The States.

4 – Foreign Bank

Foreign Banks Are Such Banks Whose Headquarters Are Located Outside The Country. These Types Of Banks Have To Follow The Rules Of Both The Countries. Foreign Banks Are Very Important To Increase The Efficiency Of The Banking System Of Weak Banks.

There Are A Total Of 46 Foreign Banks In India, Out Of Which Some Of The Major Foreign Banks Are As Follows –

• Bank Of America
• Bank Of Kuwait – Bahrain
• Sonali Bank Limited (Bangladesh)
• Bank Of China
• Australia And New Zealand Banking Group
• DBS Bank India Limited

By Now You Must Have Understood What Is Commercial Bank And What Are Its Types, Now Let Us Also Know About The Functions Of Commercial Bank.

Commercial bank functions

All The Functions Of Commercial Bank Can Be Mainly Classified Into Three Parts.

• Primary Task
• Secondary Function
• Social Work

1 – Primary functions of commercial bank

Commercial Banks Accept Different Types Of Deposits Under Primary Operations, And The Customer's Deposit Is Returned As Per His Demand. Commercial Banks Deposit Customers' Money In The Form Of Savings Account , Current Account, Recurring Deposit Account (RD) , Fixed Deposit Account (FD) Etc.

Apart From This, In The Primary Work, Commercial Banks Provide Loan Facilities To Their Needy Customers. Commercial Banks Provide Types Of Loans Like Home Loan, Education Loan, Car Loan Etc.

Apart From Loans, Commercial Banks Also Provide Other Facilities To Their Customers Like Cash Loans, Overdrafts, Loans For Investment In Government Securities, Etc.

Overall, Commercial Banks Deal With Money Under Primary Functions.

2 – Secondary functions of commercial bank

The Secondary Functions Of The Bank Can Also Be Divided Into Two Parts –

• Agency Work
• Utility Work

Agency Functions Of Commercial Banks

• Commercial Banks Buy And Sell Shares , Bonds, Debentures, Government Securities On Behalf Of Their Customers .
• Commercial Banks Also Collect Cheques, Interest Etc. Of Their Customers.
• Commercial Banks Pay Various Types Of Bills On Behalf Of Their Customers, Such As Electricity, Water, Gas Etc. Bills.
• Commercial Banks Collect Salary, Pension Etc. Dividends Of Their Customers.
• Commercial Banks Also Act As Advisors To Their Customers.

Utility Functions Of Commercial Banks

• Commercial Banks Provide Locker Facilities To Their Customers.
• Commercial Banks Promote The International Market By Exchanging Foreign Currency.
• Commercial Banks Also Give Guarantees On Behalf Of Their Customers.

Social Work Of Commercial Bank

Commercial Banks Create Capital Under Social Work And Lend It To The Government For The Development Of The Country. Apart From This, Commercial Banks Provide Loans To Their Customers At Reasonable Interest Rates.

Role of Commercial Banks in Indian Economy

The Contribution Of Commercial Banks In The Indian Economy Is Very Important. The Progress Of A Country Can Be Known Only Through The Banks. The Bank Provides Banking Facilities To Almost All The Citizens Of The Country.

Banks Create Capital For The Country. Banks Provide Loans To The Government For Development Works. Different Types Of Banks Give Loans To The General Public For Development In Different Areas Of The Country. Banks Act As Advisors, Banks Manage Public Money.

Capital Is Created In The Country Only Through The Bank, And Capital Is Very Important To Take Any Country On The Path Of Development. Now You Might Have Understood What Is The Role Of Banks In The Indian Economy.

Advantages of Commercial Bank

There Are Many Advantages Of Commercial Banks, About Which We Have Told You Below –

• Commercial Banks Create Capital For The Country, And Give Loans To It For The Development Of The Country.
• Commercial Banks Provide Various Types Of Facilities To Their Customers. Like – Debit Card, Credit Card, Cheque , Net Banking Etc.
• Commercial Banks Maintain The Confidentiality Of Their Customers.
• Loans Are Provided To Needy People.
• Commercial Banks Provide Locker Facilities To Their Customers, In Which They Can Keep Their Valuables, Important Documents Safe.

Disadvantage of Commercial Bank

There Are Also Some Disadvantages Of Commercial Banks Such As –

• Commercial Banks Charge Additional Fees From Customers In Return For Their Convenience.
• While Giving Loans, Commercial Banks Do A Detailed Examination Of The Financial Structure, Company, Income, Etc. Of The Customers, Due To Which The Loan Process Becomes A Bit Difficult.

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