Prime Services offered by acommercial bank include processing of payments by way of telegraphic transfer,issuing bank drafts and bank cheques, accepting money on term deposits, lendingmoney through overdraft or through installment, providing letter of credit, safekeeping of documents, currency exchanges thereby enacting the role of afinancial supermarket. The Commercial Bank lays more importance on loans thatit provides to its customers. These loans are Secured Loans, Mortgage Loans& Unsecured Loans. A secured loan is one in which a borrower pledges someasset as collateral against the loan. A mortgage loan is granted to purchaseproperty against security provided to the bank until the mortgage is paid of infull. The mortgage or loan can be repaid in easy installments. Unsecured loansare granted without any specific securities, under marketing packages likecredit cards, , corporate bonds, etc. All in all a commercial bank raisesfunds by collecting deposits from businesses and consumers via checkabledeposits, savings deposits, and time (or term) deposits & loans it tobusinesses and consumers. It also buys corporate bonds and government bonds.Its primary liabilities are deposits and primary assets are loans and bonds.



                

Indiacategorizes itself into project finance & working capital. In the case ofProject Finance banks in Indiaoffers long & short term loans to business houses to set up their projects.These kinds of loans are issued after approval from banks core creditvalidating committee. The Project Finance segment in the commercial departmentis highly competitive with different players in the department trying to getthe best deals done by enticing different corporate houses and businessorganizations to opt for the loan by providing lucrative offers. Working Capital or Capital Fundsare issued by banks to corporate or business houses to meet diverse needs andrequirements of the business community. Working capital finance is specializedline of business and is largely dominated by the commercial banks.

 

Commercial Banking in India saw dramatic changes in the last decadeafter India?s integrationwith world economy. These economic reforms and the entry of private players sawnationalized banks revamp their service and product portfolio to incorporatenew, innovative customer-centric schemes. Marketing and brand building programswere also given a new thrust in the new liberalized banking scenario.  Promotional budgets were hiked to cater tothe new and large discerning target audience. To meet the personalized needs ofthe customer and in order to differentiate its services, banks repositionedthemselves in specialized fields, like housing loans, car finance, educationalloans etc. to optimally service the customer. As of today Commercial Banking inIndia dominates other areas of banking such as retail banking and investingbanking, solely due to influx and the term called installments that lures thecustomers to opt for loans to satisfy their business needs whether it iscorporate or personal needs in terms of a mortgage loan. Commercial banking in Indiahas definitely brought in a new dimension to regulation of finances in theIndian market.