There are 5 classifications in banking sector. These classifications are based on their activities.
1. Retail Banking
2. Commercial Banking
3. Private banking
4. Saving Banking
5. Community Development Banking
Let us see these one by one with perfect examples.
Retail Banking:
· Retail banking refers to banking activities and services for customers directly.
· Services includes savings, transactional accounts, personal loans, credit and debit cards.
· For Example Indian Bank, SBI, Indian Overseas bank, Dena Bank, and Many others in India
Commercial Banking:
- Commercial bank is the term used for a normal bank to distinguish it from an investment bank.
- Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). It is the most successful department of banking.
- For Example, IDBI, ICICI, NABARD, HDFC, and many other.
Private Banking;
- Private Banks are nothing but its owned by high net worth individuals. Private Banks may provide financial services for other individuals also.
Saving Banking:
- Saving Bank accepts deposits of customers.
Community Development Banking
- These Banks are regulated banks that provide financial services and credit to underserved markets or populations or specific kind of community people.
- For Example, ISLAM BANK in Kerala.
