This is the mainstay of Indian Banking - its bread and butter activity. Although historically, this activity had been relegated to a secondary position as banks were driven by the desire to excel themselves in what is known as "priority sector banking" yet it is this part of their loan portfolio which has kept them afloat and help meet the costs. This activity survived despite a number of restrictions imposed on it in the past. With financial sector reforms, the focus has shifted from "priority sector banking" and commercial lending has been reinstated to its rightful place. Today many banks focus on this activity for improving their bottom lines. Fresh and innovative products are being launched to facilitate the corporate customer who forms the core of this business. There is big competition among banks to secure bigger share of this business

At present, commercial loans are available for practically any kind of activity and also for both long and short tenures. Based on customer profile, these loans are of two types :

• Corporate Loans
• Retail Loans