A commercial bank is a type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products that is operated as a business for profit.
It can also refer to a bank, or a division of a large bank, which deals with corporations or large/middle-sized business to differentiate it from a retail bank and an investment bank.
Services By Product:
Commercial banks generally provide a number of services to its clients, these can be split into core banking services such as deposits and loans and other services which are related to payment systems and other financial services.
Core products and services:
- Accepting money on various types of Deposit accounts
- Lending money by overdraft, and loans both secured and unsecured.
- Providing transaction accounts
- Cash management
- Treasury management
- Private equity financing
- Issuing Bank drafts and Bank cheques
- Processing payments via telegraphic transfer, EFTPOS, internet banking, or other payment methods.
Other functions
Along with core products and services, commercial banks perform several secondary functions. The secondary functions of commercial banks can be divided into agency functions and utility functions.
Agency functions include:
- To collect and clear cheques, dividends, and interest warrant
- To make payments of rent, insurance premium
- To deal in foreign exchange transactions
- To purchase and sell securities
- To act as the trustee, attorney, correspondent and executor
- To accept tax proceeds and tax returns
Utility functions include:
- To provide safe deposit boxs to customers
- To provide money transfer facility
- To issue traveler's cheques
- To act as referees
- To accept various bills for payment: phone bills, gas bills, water bills
- To provide various cards such as credit cards and debit cards
List of Banks in India in 2020
| Anchor Bank | Merged Banks | Total Assets | Branches | Headquarter |
| Bank of Baroda (63.74%) | Vijaya BankDena Bank | ₹16,130 billion (US$230 billion) | 9,481 | Vadodara,Gujarat |
| Bank of India(87.054%) | ₹9,030 billion (US$130 billion) | 5,000 | Mumbai,Maharashtra | |
| Bank of Maharashtra (87.01%) | ₹2,340 billion (US$33 billion) | 1,897 | Pune,Maharashtra | |
| Canara Bank (72.55%) | Syndicate Bank | ₹15,203 billion (US$210 billion) | 10,342 | Bengaluru,Karnataka |
| Central Bank of India (88.02%) | ₹4,680 billion (US$66 billion) | 4,666 | Mumbai,Maharashtra | |
| Indian Bank (81.73%) | Allahabad Bank | ₹8,080 billion (US$110 billion) | 6,104 | Chennai,Tamil Nadu |
| Indian Overseas Bank (91%) | ₹3,750 billion (US$53 billion) | 3,400 | Chennai,Tamil Nadu | |
| Punjab and Sind Bank (79.62%) | ₹1,710 billion (US$24 billion) | 1,554 | New Delhi,Delhi | |
| Punjab National Bank (70.22%) | Oriental Bank of CommerceUnited Bank of India | ₹17,940 billion (US$250 billion) | 11,437 | New Delhi,Delhi |
| State Bank of India (61.00%) | State Bank of Bikaner & JaipurState Bank of Hyderabad
State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Bhartiya Mahila Bank |
₹52,050 billion (US$730 billion) | 24,000 | Mumbai,Maharashtra |
| UCO Bank (93.29%) | ₹3,170 billion (US$44 billion) | 4,000 | Kolkata,West Bengal | |
| Union Bank of India (67.43%) | Andhra BankCorporation Bank | ₹14,594 billion (US$200 billion) | 9,609 | Mumbai,Maharashtra |
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