A Capacitor bank is a set of many identical capacitors connected in series or parallel within a enclosure and is used for the power factor correction and basic protection of substation.These capacitor banks are acts as a source of reactive power, and thus, the phase difference between voltage and current can be reduced by the capacitor banks. They will increase the ripple current capacity of the supply. It avoids undesirable characteristics in the power system. It is the most economical method for maintaining power factor and of correction of the power lag problems