2. A) EXTERNAL FACTORS 1. State of world economy 2. State of national economy 3. Character of local economy 4. Saving habits 5. Role of government 6. Changes in population B) INTERNAL FACTORS 1. Physical facilities 2. Staff 3. Services offered or rendered 4. Policies and position of the bank 5. Interest rates FACTORS DETERMINING BANK DEPOSITS

3. The capital formation depends on the savings and savings-income ratio of a population. The importance of commercial banks lies in mobilizing these savings for use in productive purposes. Savings tied up in non-productive assets will play no role in the economic development of the country. DEPOSIT MOBILISATION

4. Identification of potential for savings Ascertainment of saving motives Formulating deposit mobilization schemes Various Schemes :- Cash certificates Daily savings scheme Minor’s saving scheme Monthly interest income scheme Annuity or retirement schemes STRATEGY FOR DEPOSIT MOBILISATION

5. Farmers deposit schemes Insurance linked schemes Housing deposit schemes Investment deposit scheme Consumption deposit scheme Liability linked deposits Deposit linked with services Deciding the marketing strategy