Shri GPM Degree college

Name : Maheshwari velu.

Std : SYBBI
Roll no : 49 (Andheri)
Subject : Financial markets.
Topic : advantages of banking.
 Advantages of banking.
Commercial banking can help a small business by making it easier to
manage day- to- day financial tasks an established commercial account
with a bank will make it easier to borrow money when you grow your
business is assigned a representative who works directly with the
company to find the best services and solutions for the issues the
business is facing.
Example: the company may save money but outsourcing payroll
processing. Bank also offer invoicing, and can set up transfer to other
banks which will simplify accounting procedurs.
 Retail banking has inherent advantages outweighing certain
advantages are analyzed from the resources angle and assets
angle.

Resources side:
retail deposits are stable and constitute core deposits.
They are interest insensitive and less bargaining for additional interest.
They constitute low cost funds for the banks.
Effective customer relationship management with the retail customers build a strong customer base.
Retail banking increase the subsidiary business of the bank.
Long term loan like housing loan due to its long repayment term in the absence of proper follow up, can become
NPAS.
 Diversified portfolio due to huge customer base enables bank to reduce
their dependence on few or single borrower.
Bank can earn goods profit by providing non fund based or based
services without deploying their funds.
Retail banking involves minimum marketing efforts in a demand driven
economy.
Thank you