Hi, I think you don't want to join retail bank, and interested in NBFCs, Commercial Banks, etc. Firstly I think you should understand the different kinds of Banks to fully understand your interest.
There are several kinds of banks, and each one has a distinct function and set of requirements. These are a few typical kinds:
Retail Banks: These banks offer small enterprises and individuals banking services. They provide services like checking and savings accounts, loans, and simple investment goods. Example: Wells Fargo, ICICI Bank
Commercial Banks: With a primary focus on business clients, commercial banks offer services including treasury services, business loans, and other financial products designed specifically for businesses. Example: JPMorgan Chase, State Bank of India
Central banks, also referred to as reserve banks, are in charge of managing the money supply, supervising and regulating monetary policy, and preserving economic stability in a nation. The Reserve Bank of India, European Central Bank and the Federal Reserve of the United States are three examples.
Investment banks: These banks focus on assisting mergers and acquisitions, underwriting securities, and offering financial advice. They collaborate with institutional investors and big businesses frequently. Example: Goldman Sachs, Morgan Stanley
Development Banks: These financial institutions support long-term investments in infrastructure, healthcare, and education with the goal of promoting economic development. The World Bank and regional development banks are two examples. Example: World Bank, Asian Development Bank
Cooperative Banks: Usually founded by certain communities, professions, or groups with shared interests, cooperative banks are owned and run by their members. They provide its members with banking services. Example: Amul Cooperative Bank, Cosmos Cooperative Bank
Savings banks: These financial institutions prioritize lending for mortgages and encouraging savings. They may be locally or regionally focused, and they frequently participate in community development. Example: Dime Community Bank, NORD/LB
Internet banks: These financial institutions mostly conduct business online and offer banking services via digital channels. They provide the ease of internet shopping without the need for a physical branch. Example: Ally Bank, N26
Islamic Banks: These banks don't charge interest or make any other payments in accordance with Islamic law. Rather, they employ profit-sharing and other financial arrangements that comply with Sharia law. Example: Bank Islam Malaysia, Qatar Islamic Bank
Credit Unions: Member-owned financial organizations that provide services like savings accounts, loans, and other financial goods to their members, credit unions are comparable to cooperative banks. Example: Navy Federal Credit Union, Desjardins Group
Merchant Banks:
Example: Rothschild & Co, Brown Brothers Harriman
Offshore Banks:
Example: Cayman National Bank, Bank of Bermuda
Postal Banks:
Example: Japan Post Bank, India Post Payments Bank
Private Banks:
Example: HDFC Bank, Barclays Private Bank
Public Sector Banks:
Example: Bank of Baroda, Bank of America (while it's not a public sector bank, it has public ownership)
In India, non-banking financial companies, or NBFCs, perform a range of non-traditional banking-related financial services. Here are a few instances of many categories of NBFCs:
The Asset Finance Company (AFC) offers financing for the acquisition of tangible assets, including machinery, equipment, and cars.
As an illustration, consider Bajaj Finance
Investment Company (IC), which specializes in securities, stocks, bonds, and other financial goods.
As an illustration, consider HDFC Asset Management Company
Loan Company (LC), which offers advances and loans.
Loan Company (LC): Dedicated to the provision of advances and loans.
As an illustration, consider Muthoot Finance
Infrastructure Finance Company (IFC), which specializes in financing infrastructure and supports initiatives in the energy, transportation, and communication sectors.
For instance, IDFC Limited
Systemically Important Core Investment Company (CIC-ND-SI), which is a core investment company with at least 90% of its net assets invested in bonds, debentures, preference shares, and equity shares.
For instance, Tata Sons
Microfinance Institution (MFI) offers small-scale business owners, especially those in rural areas, financial services.
SKS Microfinance (now known as Bharat Financial Inclusion Limited) is one example.
Investments in financial sector businesses are held by the Non-Operative Financial Holding Company (NOFHC).
For instance, IDFC Financial Holding Company
Peer-to-peer lending platform (P2P) offered by
Limited links lenders and borrowers via an internet platform to enable loans to be made without the need for conventional financial middlemen.
As an illustration, consider Faircent
Housing Finance Company (HFC), which specializes in housing loans.
For instance, the LIC Housing Finance
Infrastructure loans Fund (IDF) raises money to finance long-term loans and investments in infrastructure projects.
IDFC Infrastructure Finance Limited, for instance
