9.1 COMMERCIAL BANKS

COMMERCIAL BANKS

• Commercial Banks are created for profit motive.

• Scheduled Commercial Banks (SCBs) are grouped under following categories:
– Nationalized Banks
– Foreign Banks
– Regional Rural Banks

• Nationalized Banks
– State Bank of India and its associates along with the nationalized banks such as the IDBI Banks, Indian Bank, Dena Bank etc. are all public sector banks.
– Other scheduled commercial banks include private banks such as ICICI, Axis, HDFC bank etc. operating in the country.

• Foreign Banks
– Operating in the country include Deustche Bank, Bank of America, Citibank, HSBC, and Royal Bank of Scotland etc.

• Regional Rural Banks
– Regional rural banks came into being in the 1970s with the objective of providing deposit and credit facilities to the people in rural areas especially the small and marginal farmers, agricultural labourers, and small entrepreneurs.
– Even though these banks count as the scheduled commercial banks but their focus and reach is generally limited to a district or two.
– Some of the examples of Regional Rural Banks are Assam GraminVikash Bank, Allahabad UP Gramin Bank, Baroda Gujarat Gramin Bank etc.
– At present there are 91 RRBs functioning in India.