Modern banks perform many functions to earn a profit. The basic and necessary principle or function of the banks is that to deposit money of the purchaser and pay a particular level of p.c. on it called as interest / profit and to give loans to the people and charge higher proportion of interest as compare to the % which bank gives to their depositors and earn a good profit. As the business of the Earth is grown with the arrival of time banks also now performs many functions to grow their business and make larger profits. Now banks are giving more facilities to the people and charge costs for the services. Modern banks are concerned also in the stock exchanges simply to earn more. Modern banks are inspiring to make investment in different projects and to give loans to the makers, industrialist and to the central authorities also.
Today banks are also helping the states to initiate new projects for the well-being of the people by giving loans to the states and impose interest on it, which is their profit, in this fashion banks also helps regimes to function correctly. Banks provide their services globally in numerous sectors of business. Bank provides different facilities to the business of export and import by performing as middleman or agent between the importer and exporter banks also perform as guarantor between the importer and exporter. Banks are also doing insurance business by insuring different sorts of risk. Banks are also performing as an agent by collecting and paying money for their holder of the account and charge charges which they called as services charges.
Thru e-banking banks are providing different services for their clients like online cash transfer, withdrawal of cash, sending payments for their shopping. All above functions are performed or done by banks just so as to earn and make their profit.