Mutual banks are financial institutions owned by their members rather than shareholders. They focus on providing banking services, such as savings accounts and loans, to their members, often offering better interest rates and lower fees compared to traditional banks. The profits generated are typically reinvested into the bank or returned to members in the form of dividends. These banks operate on the principle of mutuality, meaning that each member has a say in the bank's operations and decisions. This structure fosters a sense of community and encourages responsible lending and borrowing practices, benefiting both the bank and its members.