DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Md. Qadeer Rehman
Designation : HEAD OF SECTION
Branch : D.C.C.P.
Institute : K D R Govt, Polytechnic,
Wanaparthy.
Year : I year
Subject : Business Organization
Subject code : CCP-104
Topic : Banking
Duration : 50 mts
Sub topic : Banks and banking
Teaching Aids : P.P.T, animations
CCP104.140 TO 141 1
Objectives

On completion of this you would be

able to:
 Define a Bank
 Explain Banking industry and organization
 Types of banks

CCP104.140 TO 141 2
Recap:

So far we learnt about:

 Money and definition

 Function of money

CCP104.140 TO 141 3
Where do you keep your money for safety
and security?

CCP104.140 TO 141 4
Bank:

Bank is a place where:

 Deposits are accepted

 Loans/ advances offered
 Other secondary services rendered

CCP104.140 TO 141 5
Bank:
 A bank is an organization which opens an
account, accepts the money deposit, gives
it whenever a customer demands
 The bank is an organization which does
banking business, accepts money
deposits, gives loan and so on

CCP104.140 TO 141 6
Bank:
 The business of a bank is banking

 The banker is a manger and officer of bank

who transacts the banking business

CCP104.140 TO 141 7
 Types of banks

Commercial development Exim coop regional NABARD

bank bank bank banks banks

CCP104.140 TO 141 8
 Commercial banks

Foreign Indian
Banks Banks

Public sector Private sector

banks banks ex:ICICI,AXIS

State bank and

subisidiries

Nationalised
Banks
EX:Andhra Bank, Indian Bank
CCP104.140 TO 141 9
 Development Banks

Industrial Development NABARD

Bank (National Bank for

Agriculatural and Rural
Development
SIDBI
(small industrial development
bank of India )

CCP104.140 TO 141 10
EXIM Bank:
Export function
Import function

 The above banks advances loans for

export and import trade to boost foreign
trade
 Its located in Mumbai
 To help to get foreign exchange for Indian
goods to be sold abroad to get foreign
exchange

CCP104.140 TO 141 11
 COOPERATIVE
BANKS

STATE CENTRAL PRIMARY

COOPERATIVE COOPERATIVE COOPERATIVE
BANKS BANK BANK

CCP104.140 TO 141 12
12
purpose:

 To extend the credit facilities loans to small

medium range farmers

 Agricultural development banks

 Finance to the small scale industrial units,

cottage industries

CCP104.140 TO 141 13
Regional Rural Banks
 To be located in rural areas
 Where the coverage of loans by the commercial,
cooperative banks are poor
 Provide loans to the rural agricultural farmers
 Development of dairy farms, poultry farms, artisan
development programs will be undertaken
 Loans to rural technicians, sole traders, and small
business firms, to provide self-employment

CCP104.140 TO 141 14
National Bank for Agriculture & Rural
Development
An Apex bank to develop all round agricultural
operation Stated business in 15-07-1982

The bank provides loans and re-finance facilities

to:

 Agriculture
 small scale
 Artisans
 village handicrafts

CCP104.140 TO 141 15
National Bank for Agriculture &
Rural Development
 share capital subscription for
cooperatives
 provides long term loans and advances
to rural regional banks, state
cooperative banks land development
banks

CCP104.140 TO 141 16
Lead bank:

Purpose:
 The Reserve Bank of India & Govt wanted to
extend more credit, loan facilities to rural areas
 All the districts in India distributed amongst public
sector banks to act as lead bank and to extend
more loans and advances to priority sectors
 The credit facilities to business, self employment,
and technicians etc., and to develop the rural areas

CCP104.140 TO 141 17
Summary
We have discussed about:

3. Definition of bank banking, banking

organization

5. Various Types of banks

7. Their primary activities

CCP104.140 TO 141 18
Assignment

3. Explain bank and banking organization, in

eight sentences .

5. Explain lead bank and its credit extension, in

eight sentences .

7. Explain EXIM bank, in six sentences .

9. Describe NABARD, in six sentences .

CCP104.140 TO 141 19
Quiz
A bank is an organization which does the
following activity

c)Opens an account and accepts the

deposit
 Accepts deposits and gives interest on
deposits
 It issues loans and advances to its
customers
 All the above

CCP104.140 TO 141 20
Quiz

The performance of EXIM bank:

c) To advance loans and overdrafts to customers

d) To advance loans to boost export and import
trade
e) To accept bills and cheques and DDs
f) To discount bills of homogenous merchants

CCP104.140 TO 141 21
Frequently asked Questions:

1. Define a bank, list its primary functions

2. Mention the purpose of a lead bank
3. Explain the function of any two types of banks

CCP104.140 TO 141 22
Frequently asked Questions:
 Describe in six sentences each, about the
followings:

c. Commercial Banks
d. Cooperative Banks
e. Regional Rural Banks
f. Development Banks

CCP104.140 TO 141 23