Evolution of Banking Institutions – Commercial Banks: Classification of banks – Functions of Commercial Banks– Commercial Banking Principles – Social Responsibility of Banks - Sources and Employment of Commercial Banks’ Funds – Credit Creation - Banking Systems: Types – Indian Banking System.

Relationships between banker and customer – Ancillary Services of a banker – Customers’ Deposit account – Special types of Bankers customers

Banks and Liquidity – Advances – Modes of charging the securities – Types of Securities – Purchasing and Discounting of bills – Letters of Credit.

Financing Exports – Priority Sector – Financing Agriculture – Financing Small Industries – Financing other activities and Borrowers – Venture Capital Scheme.

Business Credit needs – Bank Credit and Banking policy – Documentation – Follow – up Supervision and Control – Recovery of Advances - Frauds in Bank.