Unit 2 COMMERCIAL BANKING, Corporate banking.pptx
- 1. UNIT 2 Notes by Ms. Anubala.S Asst. Professor, Department of B.Com ISM
- 2. Commercial Banking – Overview & Definition • Definition: Financial institutions that accept deposits, offer loans, and provide financial services to individuals and businesses. • Main Purpose: Act as intermediaries between savers and borrowers, facilitating economic activity.
- 3. Functions of Commercial Banks • Accepting Deposits: Savings, current, and fixed deposits • Lending Money: Loans, overdrafts, credit facilities • Transfer of Funds: Cheques, drafts, electronic transfers • Agency Functions: Paying bills, collecting cheques, etc. • Utility Services: Safe deposit lockers, forex services, investment advisory
- 4. Personal Banking • Tailored services for individuals: • Savings and current accounts • Personal loans & home loans • Debit/credit cards • Internet/mobile banking • Financial planning & insurance
- 5. Corporate Banking • Financial services for companies & institutions: • Working capital financing • Corporate loans & leasing • Treasury & cash management • Trade finance (LCs, BGs) • Mergers, acquisitions & advisory
- 6. Digital Banking • Definition: Delivery of banking services via digital platforms • Key Features: • Online & mobile banking • Instant fund transfers (IMPS, UPI) • E-statements & digital onboarding • Chatbots and virtual assistants • Benefits: Convenience, speed, 24/7 access, cost- effectiveness
- 7. Core Banking System (CBS) • Definition: Centralized system that allows real-time banking across branches • Advantages: • Unified customer experience • Centralized data management • Real-time transaction processing • Efficient banking operations
- 8. Role of Banks in Economic Development • Mobilization of Savings: Encouraging public savings and investment • Credit Allocation: Funding for agriculture, industry, MSMEs • Employment Generation: Financing entrepreneurs and self-employed • Infrastructure Development: Support for housing, transport, and public utilities • Financial Inclusion: Expanding access to rural and underserved populations