Explanation:

Banks use the major portion of the deposit to extend loans. This means that when people deposit money into a bank, the bank does not simply keep it all in reserve or use it to cover routine expenses or renovations. Instead, banks take a portion of the deposits and use it to provide loans to individuals, businesses, and other entities.

1. The purpose of keeping reserves:
- Banks do keep a portion of the deposits as reserves. These reserves are required by regulatory authorities to ensure that banks have enough funds to meet the demands of depositors who wish to withdraw their money. Reserves also act as a cushion to protect banks from unforeseen events or financial crises.

2. Routine expenses of banks:
- Banks do use some of the deposits to cover their routine expenses. This includes salaries and benefits for bank employees, maintenance and operation costs of bank branches, technology infrastructure, marketing expenses, and other administrative costs.

3. Loans:
- The primary way banks generate income is by extending loans to individuals and businesses. When banks receive deposits, they have the ability to lend a multiple of those deposits through a process called fractional reserve banking. This means that banks can lend out more money than they actually have in reserves, as long as they maintain a certain reserve ratio set by the regulatory authorities.
- By extending loans, banks earn interest on the borrowed money, which is their main source of revenue. This interest income allows banks to cover their operating expenses, make a profit, and provide a return to their shareholders.

4. Meeting renovation of the bank:
- While banks do allocate some funds for renovations and improvements, this is generally a smaller portion compared to the amount used for loans. Renovations are necessary to maintain and upgrade bank facilities, provide a better customer experience, and comply with regulatory requirements. However, the majority of the deposit is typically used for lending purposes.

In conclusion, banks primarily use the major portion of deposits to extend loans. By doing so, they generate income through interest payments and provide financial support to individuals and businesses in need of funds.