Functions of Banks – A Look on Function of Bank

For general knowledge pont of view, the following points emphasize the banks ‘ top functions. The features are:

1. Collection of Community Savings

2. Lending and Investment

3. Wealth creation.

Community Savings Collection:

People are not keeping their savings at home nowadays. They are depositing them into banks. This avoids the risk of loss (from theft, etc.). In addition, some interest has been earned. There are different deposit types. Some are deposits currently in existence.

Either very small or nil is the interest paid on such deposits. Some deposits may be withdrawn after a fixed period (one year, two years, etc.) or subject to some fraction of the deposited amounts, etc. Such deposits are referred to as time deposits. The different varieties of time deposits, such as fixed deposits, savings deposits, etc., have different names. Time deposits are earning higher interest rates.

Lending and Investment

Banks lend money to traders, businessmen and others. The loan is made using a number of methods. In the borrower’s name, an account is sometimes opened and checks may be drawn. A person with an account may be allowed to collect more money than he has on the account. This is called an exhaust system.

It is also possible to lend money to a bank by discounting a bill or a Hundi. Banks invest money on corporate shares and debentures and on public bills. They provide industry with money against government security Promissory Notes, shares, debenture, gold, manufacturing goods, etc.

Wealth creation

In former times, banks were able to print and issue notes on request. The notes have been used as an exchange medium. Currently, only the country’s central bank can issue notes. However, banks can give loans that exceed the amount that they deposit. Checks against these loans can be drawn and checks can be used as an exchange medium. Banks can therefore create money.

Function of Bank on exam Point Of View:

Student when go to the interview of Bank, Bank asked the student tell me the Function of Bank. Let’s learn the Function of Bank for exam:

Function of Bank

Acceptance of deposits:

A bank’s most important role is to mobilize public funds. Bank provides the depositors with safe custody and interest.

Save deposit:

Save deposit account for those individuals who want to save for future needs and uncertainties. Number and quantity of withdrawals are not restricted. Bank offers check books, ATM cum debit cards and Internet banking facilities. Depositors must maintain a minimum balance that varies across banks.

Fixed deposit or term deposit Money is deposited for a fixed tenure on a fixed deposit account. Banks issue a certificate of deposit containing name, address, deposit amount, date of withdrawal, signatures of the depositor and other important information.

During this period, depositors can not withdraw money. In the event that depositors wish to withdraw before maturity, banks will charge the penalty for premature withdrawal. Current account Companies normally open current accounts. For these accounts, banks provide overdraft facility whereby account holder can withdraw more money than the bank balance available.

To meet urgent needs, this acts as a short-term loan. Bank charges high interest rates and overdrawn charges.

Recurring deposit:

In this type of account depositors, certain sums of money are deposited at regular time. Recurrent account benefit is that it benefits from compounded interest rates and allows depositors to collect large sums of money.

Granting Loans and Advances Cash Credit:

It is a short-term loan facility under which banks allow their customers to borrow up to a certain limit, normally banks grant this loan against certain property’s mortgage. Bank overdraft bank provides this facility to current account holders

. Account holder may withdraw money up to the provided limit at any time. He only has to pay interest on the amount borrowed for the period he borrowed. Loans banks provide loans for different types of short-term and long-term needs. In installments, the borrower pays back the loan.

Discounting bills

Sellers send bills to buyers in normal day-to-day business whenever they sell their products and payment in stipulated time is mentioned in the bill. Let’s take it for 30 days. Seller may discount the bank bill for certain fees under such conditions. Bill discounting acts as a short-term loan in such a situation. In the event that the buyer or drawer defaults, bank sends the bill back to the drawer seller so that he can take legal action against the drawee or buyer.

Agency functions

  • Funds transfer
  • Cheques collection
  • Periodic payments/collection
  • Portfolio management

Utility functions

  • Issue of draft, letter of credit etc :-Letter of credit acts as an assurance that the bank will make the payment up to the amount specified in the letter of credit if the borrower fails to make the payment.
  • Locker facility
  • Underwriting of shares
  • Dealing in foreign exchanges
  • Project reports
  • Social welfare programs

Top 10 Bank In india: Overview Of Top Banks By Market Cap As Well As Assets And The Type Of Banks


Since, I Was going to bank to Open my first bank account. I was totally confused, guardian says me that my 1st bank should be with State Bank Of India (SBI). At my first journey to the bank, I got totally surprised with the crowd present in the Bank. I felt Sad as on my 1st day I can’t able to open my Bank Account.


Same evening, I met my friend and asked him, “which is the top Bank (best Bank) of the time?” He replied SBI, CBI AND BOB are top bank of the time. After completing our discussion we both returned to our respective home. Thay night, my sister was going through her passbook. She was connected with Central Bank Of India (CBI) while my mom was connected with State Bank Of India (SBI). Next Day my sister take me to central Bank of India and helped me to Open My Bank account.

Let’s start about top 10 Bank In India

We Have heard a lot about Lead Bank, Community Bank, Industrial Bank and Many More these type of banks and many more.

Types Of Banks

  • Commercial Banks:-

Commercial Banks are referred to those Banks which reduce Deposit and invest these Deposit as loan to others. Now a day Commercial Bank are Mostly Flourished bank in the city.

  • Exchange Bank (Forex Bank):-

This type of Banks are said to useful one for indo-country Trade as like as trade between two nation. This type of Bank exchange the one Currency to other Currency and took approx 2-4% for usage Charge.

  • Industrial Banks:-

If we talk about india, no of Industrial Bank in India is too small. In case China, United States, Japan and Other heavy Industrial Country Industrial banks have great number of these type of Banks. Industry took loan from these Banks for their machines. Usually, these Banks have a lot of money to finance the Loans.

Note: If we talk about industrial Bank in india, Central Government establishes Industrial finance corporation Of India (IFCI) in 1948.

Note:- Industrial Banks In india

  • IFCI (Industrial finance corporation Of India) – 1948
  • Agriculture or Comparative Banks:-

Main Goal of Agriculture or Comparative Banks is to finance Farmer by land Mortgage. Agriculture or Comparative Banks provide short term Loans to th Farmer.

  • Saving Banks:-

Size of deposite in Saving Banks Bank account is too small. Saving Banks just want a behavior of saving money.

  • Online Banks or Payment Banks :-

Online Banks or Payment Banks run through internet. Online Banks or Payment Banks don’t have any local office, only mother office exist.

  • Lead Bank

Lead Bank is bank which co-releate the industrial loan between Industry and the Industrial Bank. The Lead Bank seek extra charge for the Correlation between Industry and the Industrial Bank. In Eurobond market, the lead Bank acts as an agent which has capacity for an undertaking clique or syndicate. Lead Banks ate said to be investment Bank.

  • Community Bank;-

Community Bank are those type of Banks that is regulated in local area, for local people to local people. Community Bank uses to focus on locality where Bank’s Branch or office is located.

Bank near me:-

In case of india, when we search “Bank near me” into the google, Bing or any search engine. We find that state Bank of India is Broadly seen in search term “Bank near me”. This show state Bank of India is largest Bank in india by the no of Branches.

Top Ten Bank in india By market Cap:-

Market Capitalization:-

Market capitalization is the market value traded in the share market. Market capitalization is equal to the “Rate of Share” which is multiplied by “the number of Share Publicly issued”.

We says the term, “Top Ten Bank in india By Market Cap”.The term states that the respective Bank is too Popular in the Market and it came in the Group Of Largest Bank or Biggest Bank Club.

Though Bank ranking system of Bank Give the rating and ranking to the Bank’s. We Have shortlisted Top 10 Bank in india On the Basis market. The list is Below:

  • HDFC Bank(6,25,605+ cr):- Hdfc Bank Limited has headquarter at Mumbai, Maharashtra with more than 88,253+ Branches. HDFC Bank is Ranked 69th in top 100 most valuable global Brand.
  • State Bank Of India (2,81,667+cr):- State Bank Of India is mumbai based Bank. SBI is listed as 216th out of 500th Global list of Top 500 Brands. SBI has 23% share of total Assets posed by banks in India.
  • Kotak Mahindra Bank (2,55,499+cr):- kotak mahindra Bank is a mumbai Based Bank. It is out late of Mahindra Finance Limited.
  • ICICI BANK (2,52,497+CR.):- ICICI bank is a multinational with headquarter at mumbai. In 2018, ICICI BANK become second Largest Bank by Assets in India.
  • AXIS BANK (1,95,805+cr):- Axis Bank is the third largest BANK of the private sector mumbai Based Bank. The Bank employs 56,000 people.
  • Bajaj finserve (1,75,818+cr):- Bajaj finserve a part of Bajaj Corporation with non-financial working and wealth Gain.
  • Indusland Bank (1,06,844+cr):- Indusland Bank limited is mumbai Based Bank. Indusland Bank inarguated in April 1994.
  • Bank Of Baroda (1,25,000+cr):- After Merger of DENA BANK, BANK OF BRODRA AND BANDHAN BANK, BANK OF BRODRA become 2nd latest Bank by assets. It has headquater in Varodra, Gujarat.
  • IDBI BANK (34,387+cr):- It is industrial Bank led by Government Of India. Major Share holder Of IDBI Is LIC(51%).
  • CENTRAL Bank Of India:-

No it Come with Biggest Bank with assets.

Top 5 Banks In India with Assets:-

Assets:- Assets stands for the Term “total value of Physical value of goods hold By The bank’s as like Building, Furniture, loans, and everything hold by bank.

  • STATE BANK OF INDIA:- The State Bank of India is India’s biggest bank. It is owned by the Indian government and is based in Mumbai, where six regional offices operate throughout the country. At the end of 2015, it is the country’s largest business bank with assets worth US$ 431.95 billion. The Bank has 14,000 branches, 190 of them in 36 countries. It was established in 1806 as one of the oldest banks in Asia – Pacific by the SBI. The Bank of Calcutta was launched in 1806. It provides various banking products and financial services, including products aiming at non – resident Indians, through its network of branches.
  • Bank of Brodra:- Maharaja Sayajiro Gaekwad created Bank of Baroda in 1908 by the Company Act of 1897. The bank is owned by the state and has headquarters in Gujarat, Vadodara. Bank of Baroda has 106 subsidiaries across the world in approximately 24 countries. Retail banking is the core company of the bank through its African subsidiaries and branches. The BOB is one of India’s largest banks and holds large shares in the National Bourse. The bank’s asset size as of fiscal 2015 was $ 117.42 billion, which is India’s second largest.
  • ICICI Bank:- ICICI Bank is India’s biggest private bank. The bank has its headquarters in Mumbai and offers a range of financial and banking products via a number of channels and subsidiaries. The company has a network of more than 4,400 branches and 14,000 ATMs across the country, and is present in more than 15 countries. Their subsidiaries are in the United Kingdom and in Canada. For the 2015 financial year, ICICI Bank had total assets of $ 103 billion. ICICI Bank contributed to the establishment over the years of several Indian institutions which established the financial infrastructure of the country.
  • Punjab National Bank:- The national bank of Punjab is a government – owned national bank in India. The bank was set up in 1894 with its headquarters in New Delhi. It operates more than 6,900 subsidiaries and 9,900 cable vehicles serving more than 80 million Indian customers. In the UK, Dubai and Kabul, the Punjab National Bank operates its subsidiaries. In countries such as Kazakhstan, China and Australien there are regional offices. PNB has great business value and a well known national brand image. The bank had approximately 69,000 staff and total assets of US$ 101,75 billion at the end of 2015.
  • Bank of India:- A group of Mumbai businessmen formed Banco de India (BOI) in 1906. Until 1969, when the company was converted in public sector with 13 other banks, the bank was private owned and controlled. Some branches, such as Kandia and Indonesia, continue to be private. In the course of the years the bank has grown to become one of the major national and international public – sector banks. As of 2015, the bank had more than 5,000 branches, 56 outside India. The overall asset value of Bank Of India was US$ 100.03 billion at the end of 2015.


We have discussed top 10 Banks by assets as well top bank by Market Cap. I hope you get a lot about the bank or Top Bank.

For any please contact me at for any issue related to the Post.

History Of Bank and How Bank Effect The Society Of World

We are talking about Bank and How Bank effect the society, this is all about the Trade relations between society and the country. From the ancient world we (HUMAN) are trading with each other as this Trade Bring the wealth to the People or the Nation.


The Wealth people Gains, people starts to think how these excessive amount should be stored securely and invested for the Growth of Trade or Happiness of The society. This is the basics step to enhance the Growth or Devlopment we get till now.

Devlopment of Trade in the World:

In all cash transactions, very few people buy their homes, with the exception of extremely rich ones. To make such a large purchase, most of us need a mortgage or some form of credit. Many people actually pay for everyday items using credit cards. It wouldn’t work without credit, or without banks to issue credit, in the whole world as we know it. The birth of these two thriving industries is to be explored below.

How Investment aroses Around The World:

Since the first currencies were melted, banks have been around, perhaps even before, in one way or another. Taxation has resulted in currency, especially coin use. Actually, in ancient period all coins are responsible for government and by government.

In the early days of the ancient empires it might be fair for one healthy pig per year, but this kind of payment was less desirable as the empires expanded. Moreover, empires started to need the means to pay for foreign goods and services, which could be more easily exchanged. Coins of different sizes and metals served instead of brittle, unstoppable letters of paper.


The Coins Trend started:

However, these coins had to be kept secure. Therefore, most wealthy people held accounts at temples in ancient houses without the benefit of a safety steel. Many people, such as priests and temple workers, hoped to be both devoted and honest, always took care of the temples to create a feeling of safety.

In addition to keeping it safe, there are reports from Greece, Rome, Egypt or Ancient Babylon suggesting that temples are loaning the money. The main reason they were ransacked in wars was the fact that most temples were also financial centers in their towns.

Coins could be harvested easier than other commodities, for example pigs for 300 pounds, so a class of rich traders was found that took the interest to lend these coins to needy people. Temples generally handled large loans and various sovereign lending, and the rest were taken up by these new money lenders.

First Bank Introduced:

The Romans, who were themselves great builders and managers, took banking from the temples and formalized it in various buildings. During that time, money lenders continued to benefit as loan sharks do today, but the use of institutional banks involved most legitimate trade – and almost all government expenses.

Julius Caesar gives the first example of how to allow bankers to confiscate land rather than paying loans in an edit that changes Roman law after its takeover. This was a monumental power shift in the relationship of creditor and debtor as nobles landed in most of the past remained unsustainable and passed on debts to descendants until either the lines of the creditor or the debtor died.

The Roman Empire eventually collapsed, but some of its banks lived as Papal bankers emerging during the Holy Roman Empire, and as Templar Cnights during the Crusades. Small – time lenders competing with the church have often been accused of weariness.

Kingdom And the Bank’s

The different monarchs that ruled over Europe noted banks ‘ strengths. As banks and sometimes express charters and contracts of the ruling sovereign existed, royal powers at the Royal Treasury began to take loans to compensate for the hard times, often at the royal terms. This easy financing led to unnecessary extravaganzes, expensive wars and arms race, often leading to crushed debts.

Phillip II of Spain was able to burden his Kingdom with so much debt in 1557, causing the first national bankruptcy in the world — as well as the second, third and quatth in a rapid succession — as a result of many inutile wars. This was because the country was in the process of servicing its debt by 40 percent of the gross national product (GNP). Banks continue to haunt them to this day and age, with the trend of blindness to the creditworthiness of large customers.

The Modern Bank With Adamsmith:

Banking was well established in the British Empire when in 1776 Adam Smith introduced his theory of “invisible hand.” Building on his views on a self – regulating economy, moneylender and bankers succeeded in limiting the involvement of the state in the banking industry and in the entire economy. This free market capitalism and competitive banking has been fertile in the New World, where the US is about to emerge.


At the outset, Smith’s thoughts did not benefit US banking. For a US bank, the average life was five years and most bank notes of defaulted banks were lost. After all, these chartered banks could only issue bank notes against their reserved gold and silver coins. In our age of deposit insurance and the Federal Deposit Insurance Corporation (FDIC), bank robberies meant much more than now.

Alexander Hamilton, the Treasury Secretary, created a national bank to accept banknotes on a par with banks that float through challenging times. After just a few stops, this National Bank began, annulled and resurrected, created a single national currency and set up a system by which national banks supported their bills by buying securities from the Treasury and thereby established a liquid market. The national banks have expelled competition by imposing taxes on the relatively lawless state banks.

The damage was already done, however, as the average American population had already grown into banks and bankers in general. The Texas State would actually banking outlaw this sentiment — a law that lasted until 1904.

How marchent Bank Led The Globe:

In addition to regular banking activities like loans and corporate finance, most of the economic duties that would have been handled in the national banking system came to the power of big market banks because the national banking system was so sporadic. These commercial banks have been working both politically and financially over this period of unrest that lasted until the 1920s.


Initially, they relied heavily on the commissions of foreign bond sales in Europe with a small backflow from the American trading in Europe and thus allowed them to build their capital. These banks included Goldman and Sachs, Kuhn, Loeb and J.P. Morgan and Company.

A bank had no legal obligation at that time, showing its ability to survive on high, hypermedium credit losses, to disclose its capital reserves. This mysterious practice meant that more than anything was the reputation and history of a bank. These family – owned trading banks have long history of successful transactions while starting up banks have come and go. As large industries developed and became necessary for corporate finance, no single bank could supply the required amount of capital and the only means of increasing necessary capital were first – time public bids (IPOs) and public bond bids.

How 1907 changes Bank

The collapse of copper trust shares has created a panic that hastened people to cash out their money from banks and investments that has brought down shares. The task had not been taken to calm people by the Federal Reserve Bank. Morgan stopped the panic by using its significant influence to bring all the main actors on Wall Street together in order to maneuver their control over credit and capital, just as today the Fed would.

The Collapse of First Banking Era:

Ironically, this demonstration of supreme power in saving the American economy ensured no private banker ever again exercised this power. That J.P was needed. The government was moved to form the Federal Reserve Bank, now referred to as the Fed, in 1913 by Morgan, which was a banker that was not like much of America because of being one of its robber baron with Carnegie and Rockfeller. Although the commercial banks had an influence on the Federal Reserve’s structure, they were pushed backwards as well.

Even with the creation of the Federal Reserve, Wall Street concentrated financial power and remaining political power. With the outcome of the First World War, America was made a global creditor and replaced London at the end of the war as the center of the financial world. Unfortunately some unconventional handcuffs have been applied on banking by the Republican administration. The government insisted that all debtor nations should repay their traditionally forgiven war loans, especially in the case of allies, before any American institution extended further credit to them.


This slowed down global trade and led to hostilities against American goods in many countries. The already slow world economy was knocked out, when the stock market collided on Black Tuesday in 1929. It was not possible for the Federal Reserve to contain the crash and refuse to stop the depression, but the effect on all banks was immediate. A clear line between banks and investors has been drawn. In 1933 banks could no longer speculate with deposits and regulations were implemented under the FDIC to persuade the public to return safely. The depression continued, with nobody being fooled.

World war 2 And The Bank

World War II could have prevented complete destruction for the banking industry. WWII has pushed the US and global economies out of the downwards spiral and has produced its industriousness. The war required financial handling with billions of dollars for the banks and the Federal Reserve. This massive funding operation brought about large credit requirements that, in turn, led banks to merge in order to meet the new needs. These enormous banks covered world markets. More importantly, domestic banking in the U.S. finally settled to the extent that an individual would have reasonable access to credit with the advent of deposit insurance and mortgages.

Conclusion how Bank emerged:

Banks have come a long way from the temples, but they have not changed their fundamental business practices. The banks give loans to those that need it, but require interest in addition to repaying the loan. Though history has altered the business model’s fine points, the bank’s objective is to create credit and protect the money of depositors. Even if the future takes banks off your street corner and on the internet — or shops for credit worldwide — there will still be banks to perform this main feature.

How Bank changed The Mankind:

We have talked how Banks Evolved or Developed with time frame in the world. For the shake of mind we have divided whole banks and it’s effect to the Human into Four PARTS :-

  • Early period (Enhancement Period Of Banks):-

This is period of early Human civilization, as During Early Period People have only with stones, Axle and equipment. During This period People uses to start store their equipment to the place where it can be stored efficiently and safely. These Place were Banks for them.

  • Medieval Period (Banks Works Officialy):

Bank Started work efficiently or it is better to say Bank took Birth I’m the real World. This is period where Trade flourished and enhanced around the world for better present and tomorrow. The states (kings) were superior than everything (There were no RULE OF LAW)

During this Period Currency started to Flourished. These Currency Bring a mode of trade that is in a place of Commodity Currency came To be used.

Hence, currency Become too valuable. Thus, a new trend occour that is BANK ROBBERY. Due to Bank robbery, people start to think Bank are not secured Place to hold there whole earning. Bank become too much trendy place for them.

  • Early Modern Period (Banks After world war 2):-

During world war whole world were in economic crisis for the uplifment from the crisis led by world war 2. People started to think about the Bank’s.

The world’s Deflection towards the Bank’s led the Bank too much security, people started to invest or deposite their earning to the BANKS.

Now, Banks starts to become prosperous and regulating authority of economy. Some of them were state owned and Private owned. These Banks starts to work for Development of the world.

  • Modern Banks (Banks Lives Today):-

In this section, we will talk about the Bank’s that is live today.

When we enter into the Bank, we see that some person are sitting on the table in the front of computer Beside there some people are standing near them. Simply called customer and staff.

These enhancement led to the upliftment and endorsment to the society of the time. Banks starts to works as creditor and Debtors. We often came to Known Banks are full of NPAs (Non performing Assets).


We use to show how Banks and the world are interconnected with each other from the 1st Human to Modern Society.

Note:- Some Data may not correct, please email us on the issue on AFFILATEMARKET523@GMAIL.COM

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