Today in the context of growing modernization and expansion of the economy, the banking sector has an important role to play. Any programme of increasing the volume of employment and rising productivity, availability of credit is of crucial importance, Banking as a tool for development is a multipurpose tool and its uses are capable of wide variations. Banks are the main depositories of the people's savings. Savings are the necessary conditions for economic development. Today's banks are instruments of economic change to maximize social good. In the modern economy bankers are to be considered not merely as dealers in money but more realistically the leaders in development. Banks are not just the store house of the country's wealth but are reservoirs of resources necessary for economic development.