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AMITY GLOBAL

BUSINESS SCHOOL

What is
banking?

Chandigarh

AMITY GLOBAL
BUSINESS SCHOOL

Chandigarh

Basic Definition: A system of trading


money which:
provides a safe place to save excess
cash, known as deposits.
supplies liquidity to the economy by
loaning this money out to help businesses
grow and to allow consumers to purchase
consumer products, homes, cars etc.

AMITY GLOBAL
BUSINESS SCHOOL

What are banksChandigarh

Institutions which deals in money and credit.


An intermediary, which handles other peoples
money both for their advantage and to its own
profits.
A financial institution that links the flow of
funds from savers to the users.
Plays an important role in the economy of any
country as they hold the saving of the public.

AMITY GLOBAL
BUSINESS SCHOOL

Types of banks in India

Chandigarh

Central Bank: The Reserve Bank of India is


the central Bank that is fully owned by the
Government

Public Sector Banks: State Bank


Regional rural banks

Private Sector Banks: Foreign Banks,etc

Co-operative Sector: State Co-operative


Banks, Central Co-operative Banks, Primary
Agriculture Credit Societies

Development Banks/Financial Institutions:


IDBI, ICICI, NABARD

Group,

AMITY GLOBAL
BUSINESS SCHOOL

Chandigarh

Commercial Role of Banking

Issue of banknotes (promissory notes issued by


a banker and payable to bearer on demand)
Processing of payments by way of telegraphic
transfer, internet banking or other means
Issuing bank drafts and bank cheques
Accepting money on term deposit
Lending money by way of overdraft, installment
loan or otherwise

AMITY GLOBAL
BUSINESS SCHOOL

Chandigarh

Commercial Role of Banking

Providing documentary and standby letters of credit


(trade finance), guarantees, performance bonds,
securities underwriting commitments and other forms of
off-balance sheet exposures
Safekeeping of documents and other items in safe
deposit boxes
Currency exchange
Acting as a 'financial supermarket' for the sale,
distribution or brokerage, with or without advice, of
insurance, unit trusts and similar financial products

AMITY GLOBAL
BUSINESS SCHOOL

Chandigarh

What is bank marketing?


Bank marketing is the aggregate of
functions, directed at providing services to
satisfy customers financial (and other
related) needs and wants, more effectively
and efficiently than the competitors
keeping in view the organizational
objectives of the bank.

AMITY GLOBAL
BUSINESS SCHOOL

Why bank marketing Chandigarh


necessary?
The existence of the bank has little value

without the existence of the customer.


Aim is not only to create and win more and
more customer but also to retain them
through effective customer service.
Appropriate promise to a customer
through a range of services (products) and
also to ensure effective delivery through
satisfaction is important.

AMITY GLOBAL
BUSINESS SCHOOL

Concept of bank marketing


Chandigarh

Identifying the most profitable markets now


and in future;
Assessing the present and future needs of
customers;
Setting business development goals and
making plans to meet them
Managing the various services and
promoting them to achieve the plans
Adapting to a changing environment in the
market place.