Journal of Management Value & Ethice A COMPARATIVE STUDY OF COMMERCIAL BANKS IN INDIA. (With Special Reference to State Bank of India and Central Bank of India) DKS. Thakur Dr. Anuja Bhadauria ABSTRACT The Commercial banks were initially started by the East India Company, known as Agency Houses. The Agency Houses were mainly trading concerns and they combine banking and trading functions all together. In the history of Indian banking July 1, 1955 was an important landmark because on that day the government of India nationalized the imperial banks of India formed the State Bank of India. Those banks which undertake banking business with the aim of profit are commercial banks. They accept deposit and lend money to commercial industry, trade and also to the general public. There is a long lst of services and facilities provided by the commercial banks. In the present study review of the literature, objectives, scope, methods, limitations, utility problems, suggestions and findings are mentioned which will be useful not only to the customers but also to the academicians, students, consultants etc. the present research is based mainly on first-hand information and experience. Key Words: Commercial Banks, Agency House, Imperial Banks. INTRODUCTION ‘A commercial bank is a business organization, which deals in money, ie., borrowing and lending cof money. In this borrowing and lending of money, it makes profit. The lending role of interest is higher than it pays to its depositors. The functions of the commercial banks are now wide and diverse. They have assumed great significance in the role of an agent for economic renaissance and social transformation because of ther vital role in mobilization of resources as well as their deployment for ‘meeting the said objectives. They are no longer considered as institutions only for affluent sections of the population. They have acquired broad base and have emerged as effective as catalytic agents of social economic changes. ‘A commercial bank is like any other business enterprise. Hence, its prime motive is to make profit in countries where commercial banks are owned by the government e.g, in India, about 90 per cent of the banking business is in public sector. Due emphases is given to maintenance of profitability of [Associate Professor, Insitute of Commerce and Management, Jvali University, Gwalior (MP) Email ID: ks.thakur@reditfmallcom [ssl Professor & Principal, Aditya College, Gwalior (MP.)Journal of Management Value & Ethice banks so as to prevent emergence of sick banks. However, commercial banks mostly deal with other people's money, ie., depositors. Their own funds in the form of share capital and reserves generally do not constitute more than § per cent of the total resources of the banks. The deposits are either repayable on demand of after the expiry of a fixed period. The inability of a commercial bank to meet the claims of the depositors on demand or on due dates will result in loss of creditablity of the bank which may ultimately pave way for its failure. Hence, a commercial bank has to maintain adequate liquidity ofits funds. However, more liquidity means less of profitabilty ‘A commercial bank has therefore to perform the difficult task of maintaining equilibrium between liquidity and profitability. A commercial bank is the custodian of the depositors money. It must also see that the security of investments is not sacrificed at the altar of profitability. Thus, the traditional principles of commercial banking are: profitability, liquidity and security ‘Commercial Banking, though important for developed countries, as we have discussed above, is, of special importance for the economic growth of developed and underdeveloped countries. No underdeveloped country can progress without frst setting up a sound system of commercial banking in the economy. ‘Commercial Banks these days provide a variety of services. They provide both short-term credit ‘and long-term credit. Their customers come from all walks of life from small business to a multinational corporation having its business activities all around the world. The banks have to satisfy the requirements of different customers belonging to different social group. The banking business has therefore become complex and requires specialized skils. As a result, different types of banks have come into existence to suit specific requirements. State Bank of India offers a wide spectrum of saving and other schemes for benefit and Convenience to meet every need, SBI strive hard to serve better to customers. The follOWing are the important schemes of selected bank, ie., SBl-saving Bank Account Scheme, Current Account ‘Scheme, Multi Option Deposit Scheme, Doctor Plus Scheme, Teacher Plus Scheme, Justice Plus ‘Scheme, Term Deposit Scheme, Special Term Deposit Scheme, Recurring Deposit Scheme, SBI Gold Deposit Scheme, Liquid Term Deposit Scheme, Personal Loan Scheme, Educational Loan Scheme, Car Loan Scheme, Housing Loan Scheme, Scoom-Scheme for purchase of two wheeler, Kisan Credit Card and KisanMitraJamaYojana, Central Bank of Incia, a pioneer in the annuals of Indian banking has over the years formulated a host of tailor made schemes to meet the diverse requirements ofits varied clientele. Be ita lump-sum amount at the end of a predetermined period or a regular stream of income every month, Central Bank has something to offer everyone. The following are the important schemes of Central Bank of India - Saving Bank Account Scheme, Current Account Scheme, Money Multiplier, Deposit Scheme, Khazaana Deposit Scheme, Monthly Interest Deposit Receipt Scheme, Quarterly Interest Deposit Receipt Scheme, Recurring Deposit Scheme, Cash Certificate Scheme, KisanKrishiDhan Deposit Scheme, Cent Buy Scheme, Cent Computer Scheme, Personal Loan Scheme, Cent Vidyarthi ‘Scheme, Housing Finance Scheme and Central Kisan Credit Card etc. REVIEW OF THE LITERATURE For the present research study, the researcher has consulted the available literature, which has 4Journal of Management Value & Ethice been given in the bibliography. Choudhry and Ahmadin their article have given some suggestions to improve the bank services in rural areas. Gupta, Tarunhas discussed his views in his article about the marketing concept in the banks. Laurent, C. R. has emphasizedthe role of marketing in banking sector. Master, L.C.has examined various services provided by the commercial banks in his study. Singh, Deepakhas suggested marketing strategies for selected commercial Banks.Tyagi, Indiranas analysed the various Schemes of State Bank of India. Saxena, K.K. has examined the marketing of banking services and suggested the various approaches in the areas. Sahay, Arvindhas discussed the role of computerization in banking industry and suggested the advantage of computerization. Important steps will have to be taken for study the related banking sector by other researchers and research papers, RBI, Commercial Research Bureau, Mumbai and Research Bureau of Economic ‘Times, Mumbai with above mentioned research works and papers. OBJECTIVES OF THE STUDY Before beginning any research work, it is important to finalize the objectives because it helps in deciding the required data and its characteristics. The objectives of any research work should be specified clearly, because it saves us from any problem arising later and also saves our money and time. The main objectives of the present study are as follows:- (1) To study the present positon of selected Commercial Banks, (2) To.emphasis the growth profile of selected commercial banks, (3) To study the over view of banking sector in India, (4) Todiscuss the various schemes of deposits in selected bank, (6) To study the various schemes of finances provided by selected banks, (6) To.emphasis the appraisal of schemes of loans and advances of selected banks, (7) To~analysis the various schemes of selected banks, (8) Toexamine the various trends of selected banks and its analysis, (©) Toidentity the various problems faced by the selected banks, and (10) To suggest a few parameters for the possible improvement in selected banks. SCOPE OF THE STUDY ‘The selected banks related to the present research study are important banks of banking sector. For the deep study of area of the present research study, it includes Brief Profile of Commercial Banks, Various Deposit and Loan Schemes of Commercial Banks, Various Services Provided by Commercial Banks and Analysis of Various Schemes and Services in Commercial Banks,