There are various types of banks which operate in our country to meet the financial requirements of different categories of people engaged in agriculture, business, profession etc. 

The banking institution may be divided into following types:

(a) Public Sector Banks: Public Sector banks are those banks in which the Government has at least 51% shares. Public sector banks are owned and controlled by the Government either directly or indirectly through the RBI. These banks are also known as “National Banks”.

(b) Private Sector Banks: Private Sector banks are those which are owned by private individuals or business corporations. Some examples of private banks in India include The Lakshmi Vilas Bank Ltd., The Karur Vysya Bank Ltd., The City Union Bank Ltd., HDFC Bank, Axis Bank and son.

(c) Foreign Banks: These banks are originated outside India but have a place of business in India. At present there are 27 Foreign Banks. E.g. City Bank, Standard Chartered Bank, HSBC Bank, Bank of Tokyo.

(d) Cooperative Banks: Cooperative Banks are those banks which are run by following cooperative principles of service motive. Their main motive is not profit making but to help the weaker sections of the society. Some examples of cooperative banks in India include Central Cooperative Banks, State Cooperative Banks.

(e) Development Banks: Development banks are specialized financial institutions which provide medium and long term finance to private entrepreneurs and help in economic development of the country.

(f) Agricultural/Land Development Banks: Agricultural/Land Development Banks are those banks which provide long term loan for the purposes of purchase of new land, purchase of heavy agricultural machinery such as tractor, repayment of old debt, conservation of soil and reclamation of loans.

(g) Investment Banks: Investment Banks are those banks which are specialized in provide medium and long term financial assistance to business and industry.