The developments banks are essentially different from commercial banks because they

Development banks are essentially different from commercial banks because they provide medium and long-term loans for developmental projects such as industries, infrastructure development, agriculture, and housing, whereas commercial banks provide short-term loans and accept deposits from the public. Development banks are established to promote economic development in the country and provide financial assistance for long gestation projects, which commercial banks may not be willing to finance. They also provide technical assistance, consultancy services and managerial expertise to borrowers. Therefore, the primary focus of development banks is to promote economic development and social welfare, whereas the primary focus of commercial banks is to earn profit by providing banking services.