Types of banks

 

How many Types of banks??

Commercial banks

Commercial bank are most important type of bank. Commercial bank essentially  profit making institution. They collect deposit from the public and lend (देना) money to business firms, traders ,farmers and consumers for the purpose of consumption and investment to make profit.

Development Banks

It is a specialised financial institutions. It provide medium and long term finance to business units. It does not accept deposit from the public. It is not just a term lending institution it is a multipurpose financing institution. It is essentially a development Orient Bank. It’s primary objective to promote economic development by promoting investment. It provide financial assistant not only to private sector but also to public sector enterprises. To promote economic activity in backward religion of the country.

Co- operative Banks

Cooperative bank is retail bank and commercial banking organised on a cooperative basis. Cooperative banking institutions take deposit and lend money in most part of the world

Cooperative Banks members both customer and owner of the bank. Controlled by the member, who democratically elect a board of directors. Members usually have equal voting rights. A significant part of the yearly profit benefit or surplus is usually allocated (बांटना) to constitute reserves and a part of this profit can also be disturbuted to the cooperative members with legal  limitations.

Land development Banks

The main objective of the LDB is to promote the development of land, agriculture and increasing agriculture production they also give long time loans to farmers for acquiring new lands.

Investment banks

When a corporate entity want to issue new shares or dept securities, an investment bank serve the role of an intermediary. They sometime also make investment in those companies through purchasing of equity shares.

Merchant banks

Merchant Bank help a company to sell its new share to the general public. The main job of merchant bank is raise money to lend to industry.they do not lend money but instead  help circulate money from those who want to lend to firm who wish to borrow.

Foreign banks

Foreign banks are those bank which belong to foreign countries and have their incorporated head office in foreign countries and branch offices in other(india) countries the share  capital of the foreign banks will be fully contributed by foreign investors.

Central Bank

The central bank is the banker’s  bank and is also the banker to the government. It control the entire banking system of a country and the reserve Bank of India ( RBI) is the Indian Central Bank.

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