What do you mean by Commercial Bank?
Commercial banks are basically involved in profitable business. The basic function of this bank is to accept deposit from the public and use it to provide loans and advances to the needy people by charging certain interest rate, henceforth making profit.
The Commercial Banks are further classified as per the figure above, but the number of banks has been changed in 2019 when the big decision by the govt came in: yes' Merging of banks made super changes in banking sector. Soon the merging list will be added here.
a. Public Sector Banks:
The public sector Bank means the bank which have more than 50% of share is from govt side. In simple words they are the larger banks prevailing in the market and most trust able for the public because of governmental interference. the major bank of public sector is SBI (State Bank of India)
b. Private Sector Banks:
Private banks are established by private entities for making profit. but banks have to be registered as bank under banking Act 1949. though there are few additions were amended into banking regulations but this basic Act is necessary for any bank to qualify. these banks are more profitable as they charge high interest rate than public sector banks.
c. Foreign Banks:
these banks are specifically made for the purpose of business persons. separate rules are made by RBI to regulate this bank. It is a type of international bank who are bound to follow home as well as host country. Foreign Banks are present in India either as representative offices or as branches.
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