What Is Commercial Bank ?

COMMERCIAL BANK

The bank which main object is to earn profit or maximum profit that is called a commercial bank

PUBLIC SECTOR BANK (PSB)

1. The bank which has more than 50% of ownership is owned by the government of India That is called a public sector bank.
2. Presenting there are 12 public sector bank are function in India.
3. SBI is the largest public sector bank.

Name of the public sector bank:-

1. State Bank of India
2. Bank of Baroda
3. Punjab National Bank
4. Canara Bank
5. Indian Bank
6. Union Bank of India
7. Indian overseas Bank
8. Bank of India
9. UCO Bank
10. Central Bank of India
11. Punjab and Sind bank
12. Bank of Maharashtra

PRIVATE SECTOR BANK

• The bank with the majority of the stake of ownership more than 50% owned by a private individual or a company is called a private sector bank.
• In India private sector bank are categories into two types :-

OLD GENERATION PRIVATE SECTOR BANK

The Private Sector Bank Started Before 1993

Example:-

1. City union Bank
2. Lakshmi Vilas Bank
3. Karur Vysya Bank
4. Dhanalakshmi Bank
5. Federal Bank
6. Ratnakar Bank limited
7. J&K Bank etc.

NEW GENERATION PRIVATE SECTOR BANK

The private sector bank established on after 1993

Example:-

1. HDFC Bank
2. ICICI Bank
3. Axis Bank
4. Yes Bank
5. IndusInd Bank
6. DCB bank
7. Kotak Mahindra Bank
8. Bandhan Bank
9. IDFC Bank
10. IDBI Bank

Notes

• ICICI Bank is the largest private sector bank in India.
• The minimum capital requirement to open a private sector bank is rupees 500 crore.

FOREIGN BANK IN INDIA

• The bank which are in a cooperative on established outside India got functional in India by opening their branch are called foreign bank operative in India
• HSBC Bank was the first foreign bank started in India
• Standard chartered Bank is the largest foreign bank operative in India
• There are 43 foreign bank are operating in India in present time

Some major foreign bank:-

1. HSBC
2. CITI BANK
3. J.P MORGAN BANK
4. THE ROYAL BANK OF SCOTLAND
5. STANDARD CHARTERED BANK
6. ICBC
7. BNP PARIBAS
8. SONALI BANK
9. ABN AMARO

RRB (REGIONAL RURAL BANK)

• It is popular known as Grameen bank in India.
• It was established with an aim to solve the target rural population like agriculture farmer, landless ,labour.
• The area of operation of RRB is limited to the area as notified by the government of India.
• It is limited within the state or some particular district.
• The concept of RRB was started on the recommendation of  Narasimha committee.
• The first RRB was established on 2nd October 1975 at Moradabad Uttar Pradesh name as prathama Grameen Bank.
• RRB act was passed in 1976.
• There are no RRB in Goa and Sikkim.
• Total number of RRB functions in India is 43.

OWNERSHIP OF RRB

• 50% central government.
• 15% state government
• 35% sponsor Bank
• Sponsor Bank of RRB should be public sector bank that share in banking experience technology with RRB.
• Syndicate Bank was the first sponsor Bank of RRB that is " prathama Grameen Bank ".
• There are two RRB operating in a Odisha.

OGB ( ODISHA GRAMEEN BANK )

• Headquarter:- Bhubaneswar
• Sponsor Bank:- IOB

UTKAL GRAMEEN BANK

• Headquarter:- Balangir
• Sponsored Bank:- SBI

SMALL FINANCE BANK

• Small finance established for the purpose of promotion of financial includes in India.
• It was established on the recommendation of Usha trust committee.
• It is license under 'section 22' of Banking regulation act 1949.
• They should use the word small finance Bank it's name.
• The minimum capital requirement to start a small finance Bank was 100 crore. (but it's 200 crore)
• They can do all search activity performed as a private sector bank.
• They have to open the error branches or ATM ( Minimum 25% ) unBank rural area.
• They have to provide ( Minimum 75% ) of its total loan to the on Bank rural area for a rural development and agriculture purpose.
• But till now RBI give licence to 12 entity to open small finance bank in India.

LIST OF SMALL FINANCE BANK

1. Capital small finance Bank ( it is the first small finance Bank started operation in India.
2. A.U small finance Bank headquarter Rajasthan.
3. Equator small finance Bank headquarter China.
4. Surya Daya small finance Bank headquarter Mumbai.
5. Ujjivan Small Finance Bank headquarter Bangalore.
6. Utkarsh small finance Bank headquarter Uttar Pradesh.
7. ESAF small finance Bank headquarter Kerala.
8. FINCARE small finance Bank headquarter Gujarat.
9. Jana Small finance Bank headquarter Bangalore.
10. North East small finance Bank headquarter Assam.

PAYMENT BANK

• There also licence under section 22 of a bank regulation act 1949.
• It was established recommendation of Nachiketa committee.
• The minimum capital requirement to start a payment Bank rupees 100 crore.
• Payment Bank cannot provide loan and cannot is to credit card.
• They can accept deposit maximum up to 2 lakhs.
• The sole initial to start a payment Bank it's father financial inclusion and its exclusive started for the better payment system in India.
• Airtel payment bank is the fast payment Bank of India.

LIST OF A PAYMENT BANK IN INDIA

1. Airtel payment Bank
2. Fino payment Bank
3. Paytm payment Bank
4. Jio payment Bank
5. NSDL payment Bank
6. India post payment Bank

COOPERATIVE BANK

• A cooperative Bank is a financial institution that belong its member who are both owner and a customer of their bank
• The objective of cooperative bank is mutual benefit not profit making
• This was set up to meet the credit needs in rural areas specially to provide money lenders.
•  Cooperative Bank are control, manage or operative under Cooperative Bank Society Act 1912.
• Cooperative Bank regulate act RBI and governor by the bank Regulation Act 1949 and Bank law Cooperative Society Act 1965.
• It is supervised by NABARD and concerned state government.
• The Ananya cooperative Bank was first cooperative in India established in Gujarat.
• The cooperative Bank are divided into two type:-

1. Urban cooperative Bank
2. Rural cooperative Bank

• It is means focus to meet the financial needs of urban and semi urban are particular for non agricultural sector and small borrows.

Example:- Punjab Maharashtra cooperative Bank

RURAL COOPERATIVE BANK

• It is primary function it is to ensure to the flow of credit to the agriculture sector
• It is father category into three type:-

STATE COOPERATIVE BANK

• It is an Apex Bank of a state.
• It works in state level and its officers are a situated in every district.

Example:- Odisha state cooperative Bank

DISTRICT OR CENTRAL COOPERATIVE BANK

• It ones district level.
• Primary agriculture credit society ( PACS ):- it works in village and a Panchayat level.

DEVELOPMENT OR SPECIALISED BANK

The banks which means objective is to development the source economy condition of a country or a provide finance to development particular sector that is called development Bank.