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Commercial Bank

A commercial bank refers to that type of bank which offers services like acceptance of deposits, giving business loans or providing basic products for investment purpose. Commercial bank is that type of bank which usually deals in deposits or loans by large business firms and business corporations, rather than a common individual.

Some of the important activities carried out by commercial banks are:-

• Payment processing
• Issue of bank cheques or drafts
• Term deposit
• Cash management
• Treasury
• Financing private equity
• Merchant banking

Commercial banks also provide loans. There are basically two types of loans offered by commercial banks- secured loan and unsecured loan.
Commercial banks of India can be classified in following categories:-
1. Scheduled banks
2. Private sector banks
3. Public Sector banks
4. Foreign Banks
5. Non Scheduled Commercial Banks.


Commercial banks are the backbone of country’s institution of finance. They operate by accepting deposits from the general public. This money is lent as loan to businessmen, entrepreneurs, and firms at a certain rate of interest.
Some of the major commercial banks of India are:-
State Bank of India
• Union Bank of India
IDBI Bank ltd.
• ICICI Banking corporation ltd., etc