Punjab Bank Performance in India
Punjab Bank inIndiahave developed around more than 100 years ago. The nature of Punjab Bank have changed as the time has changed. The term bank is related to financial transactions. It is a financial establishment of Punjab Bank which uses, money deposited by customers for investment, pays it out when required, makes loans at interest exchanges currency etc. however to understand the concept in detail we need to see some of its definitions. Many economists have tried to give different meanings of the term bank.
Commercial banks like Punjab Bank are an organisation which normally performs certain financial transactions. Punjab Bank performs the twin task of accepting deposits from members of public and make advances to needy and worthy people form the society. When Punjab Bank accept deposits its liabilities increase and it becomes a debtor, but when it makes advances its assets increases and it becomes a creditor. Banking transactions in Punjab Bank are socially and legally approved. It is responsible in maintaining the deposits of its account holders.
Commercial bank being the financial institution performs diverse types of functions. For Punjab Bank it satisfies the financial needs of the sectors such as agriculture, industry, trade, communication, etc. That means they play very significant role in a process of economic social needs. The functions of Punjab Bank performed by changing according to change in time and recently they are becoming customer centric and widening their functions. Generally the functions of commercial banks like Punjab Bank are divided into two categories viz. primary functions and the secondary functions. The following chart simplifies the functions of banks.
Commercial Banks performs various primary functions some of them are given below:
Accepting Deposits: Commercial bank like Punjab Bank accepts various types of deposits from public especially from its clients. It includes saving account deposits, recurring account deposits, fixed deposits, etc. These deposits are payable after a certain time period.
Making Advances : The commercial banks including Punjab Bank provide loans and advances of various forms. It includes an over draft facility, cash credit, bill discounting, etc. They also give demand and demand and term loans to all types of clients against proper security.
Credit creation : It is most significant function of the Punjab Bank. While sanctioning a loan to a customer, a bank does not provide cash to the borrower Instead it opens a deposit account from where the borrower can withdraw. In other words while sanctioning a loan a bank automatically creates deposits. This is known as a credit creation from commercial bank.
But most some time due to their working and exceeding competition Punjab Bank can also make mistakes, resulting in an upset customer. Thanks to Consumer Forum services provided by few sites which helps in solving all types of Punjab National Bank complaints and provide a way for an ordinary man to speak about any such Punjab Bank frauds.
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