New Karnataka

8/14/2019 New Karnataka

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Head of the Department of

Commerce and Business

Management

BHANDARKARS’ ARTS AND SCIENCE

COLLEGE, KUNDAPUR

CERTIFICATE

This is to certify tht !r" Pr#ee$ K%&r Shetty is

st%'e$t of Fi$( )er B" B" !" *++-+. of this i$stit%tio$"

This /ro 0ect re/ort Ti t(e' 1A PRO2ECT REPORT ON

PERFOR!ANCE E3ALUATION OF KARNATAKA BANK LTD",

!ANGALORE4 hs 5ee$ /re/re' 5y h i& i$ /rt i (

f%(fi((&e$t for the re6%ire&e$t of the Bche(ors De7ree

i$ B%si$ess !$7e&e$t, to 5e s%5&itte' to !$7(ore

U$i#ersity, %$'er the s%/er#isio$ $' 7%i'$ce of !s"

!A!ATHA, Lect%rer, De/rt&e$t of Co&&erce $'

B%si$ess !$7e&e$t"

Guide Principal

Date:Place: Kundapura



BHANDARKARS’ ARTS AND SCIENCE

COLLEGE, KUNDAPUR

DECLARATION

I Mr. PRAVEEN KUMAR SHETTY , st%'e$t of

BHANDARKARS’ ARTS AND SCIENCE COLLEGE,

KUNDAPUR, Final Year B. B. M. !!"#!$ 'o here5y

'ec(re tht this /ro0ect re/ort Tit(e' %A PRO2ECT REPORT

ON PERFOR!ANCE E3ALUATION OF KARNATAKA BANK LTD",

!ANGALORE& i s &y ori7i$ ( 8or9 $' tht i t hs $ot

/re#io%s(y for&e' the 5sis for the re8r' of $y De7ree

: Di/(o& or other si&i(r tit(e"

This /ro0ect is 5ee$ /re/re' 5y &e i$ /rti( f%(fi((&e$t for the

re6%ire&e$t of the Bche(ors De7ree i$ B%si$ess !$7e&e$t, to

5e s%5&itte' to !$7(ore U$i#ersity, %$'er the s%/er#isio$ $'

7%i'$ce of M'. MAMATHA, Le()*rer, De+ar)en) -

C-er(e an/ B*'ine'' Mana0een)"

Dte;P(ce; K%$'/%r

1MR. PRAVEEN KUMAR SHETTY2



E3ECUTIVE SUMMARY

Name of the organization : Karnataka Bank Ltd. Mangalore

Methodology :

Data col lect ion i s a s tep in the preparat ion of project report .

The information is collected in the following manner.

Primary Sources :

Data is collected b the interacting with the bank Managers and

!fficers.

Secondary Sources :

The data is col lected for report b "ario#s records maintained

and s tanding orders of the banks which help #s for preparing

this reports . $ lot of data were a lso col lected b referr ing to

magazines and news paper% ann#al reports of bank .

Objecties :

To st#d the loans and ad"a nces of the bank.

To st#d the e"al#ation and per formance of the bank.

To st#d the all financial statement.

To st#d the so#rce of finance of the bank.

To st#d the histor of the bank.



ACKNO4LEDGEMENT

I & #ery &%ch 5eho('e$ to !$7(ore U$i#ersity for this

8o$'erf%( o//ort%$ity to %$'ert9e the Pro0ect St%'y s /rt of

the f%(fi((&e$t of Bche(or’s De7ree i$ B%si$ess !$7e&e$t"

!y 7rtef%( th$9s re '%e to Prof" Nry$ Ro" The

Pri$ci/(, Bh$'r9r’s Arts $' Scie$ce Co((e7e for e<te$'i$7 the

$ecessry s%//ort i$ the /re/rtio$ of this /ro0ect"

A /rtic%(r 8or' of th$9s is '%e to Prof" Sh$thr&,

H"O"D" of Co&&erce $' B%si$ess !$7e&e$t $' other fc%(ty

&e&5ers for their %sef%( ti/s $' e$co%r7e&e$t" !y estee&e'

7%i'e, !s" !&th, Lect%rer i$ B%si$ess !$7e&e$t, 'eser#es

(( //recitio$ $' th$9s for /tie$t(y $' efficie$t(y 7%i'i$7 &e

thro%7ho%t the /re/rtio$ of this /ro0ect"

I th$9 !r" 3"S"N" Kr$th, De/%ty Ge$er( !$7er, K"

!$oh,Chief !$7er !r" Sh& Bht, !$7er $' !s" S%'h,

Officr Kr$t9 B$9 Lt'" for 7i#i$7 &e the o//ort%$ity to 'o &y

s%&&er tri$i$7 t their or7$i=tio$"I & e<tre&e(y 7rtef%( to

!r" 3i0y Sh$9er Ri, AG!, Kr$t9 B$9 Lt'" !%&5i, for his

8or's of 8is'o&, e$co%r7e&e$t $' the i$terest he h' to &9e



the s%&&er tri$i$7 $ i$teresti$7 $' e'%cti#e o$e "A$' I (so

th$9 (( the other e&/(oyees of Kr$t9 B$9 Lt'" for /ro#i'i$7

&e 8ith #(%5(e i$-ho%se s 8e(( s other i$for&tio$ re6%ire'

for the Pro0ect $' &ost of (( for their s%//ort $' coo/ertio$"

Lst 5%t $ot (est I th$9 Bhts Te(eco& Ce$tre, K%$'/%r for

he(/i$7 &e i$ ty/i$7 $' /ri$ti$7"



S%5&itte' By

Mr. Pra5een K*ar S6e))7

Re7" No" !8!!"!!$9

U$'er The G%i'$ce of

!s" !A!ATHA,Lect%rer,

De/rt&e$t of Co&&erce $' B%si$ess !$7e&e$t

Pro0ect Re/ort s%5&itte' to !$7(ore

U$i#ersity i$ /rti( f%(fi((&e$t for the

re6%ire&e$t of the Bche(or’s De7ree i$

B%si$ess !$7e&e$t"



BHANDARKARS’ ARTS AND SCIENCECOLLEGE, KUNDAPUR



























CONTENTS

:.In/*')r7 Pr-ile :#"

.C-+an7 Pr-ile $#!

;.Pr-/*()' an/

Ser5i(e' Pr-ile :#98.S(6ee' E5-l5e/

<7 Karna)a=a Ban=L)/.

9;#99

>.S*<'i/iar7

Ser5i(e' -Karna)a=a Ban=

9"#"

9.Anne?*re ";#$:

".C-n(l*'i-n $#$;

$.Bi<li-0ra+67 $8







INDUSTRY PROFILEMone lending in &ndia is an age old profession with a histor of abo#t

'(( ears. &n the late )*th cent#r% Tipp# +#lthan% was accredited to ha"e

concei"ed the idea of organising banking as a part of state machiner for

e,tending credit facilities to the need at an affordable rates. $t the end of late-

)*th cent#r% there were hardl an bank in &ndia in the modern sense of the

term. $t the time of the $merican i"il /ar % a "oid was created as the s#ppl of

cotton to Lancashire stopped from the $merican0s. +ome banks were opened at

that time which f#nctioned as entities to finance ind#str% incl#ding spec#lati"e

trades in cotton. /ith large e,pos#re to spec#lati"e "ent#res% most of the banks

opened in &ndia d#ring that period co#ld not s#r"i"e and failed. The depositors

lost mone and lost interest in keeping deposits with banks. +#bse1#entl%

banking in &ndia remained the e,cl#si"e domain of 2#ropeans for ne,t se"eral

decades #ntil the beginning of the '(th cent#r. The first bank which was

established in &ndia was 3eneral Bank of &ndia which came into e,istence in

)4*5 which was followed b the Bank of 6ind#stan. Both these banks are nowdef#nct. The oldest bank in e,istence in &ndia is the +tate Bank of &ndia being

established as 7The Bank of Bengal7 in alc#tta in 8#ne )*(5. $ co#ple of

decades later% foreign banks like redit Lonnais started their alc#tta

operations in the )*9(s. $t that point of time% alc#tta was the most acti"e

trading port% mainl d#e to the trade of the British 2mpire% and d#e to which

banking acti"it took roots there and prospered. The first f#ll &ndian owned

bank was the $llahabad Bank% which was established in )*59.

B the )((s% the market e,panded with the establishment of banks s#ch

as ;#njab National Bank% and Bank of &ndia% in )(5% both of which were

fo#nded #nder pri"ate ownership. The <eser"e Bank of &ndia formall took

o"er the responsibilit of reg#lating the &ndian banking sector from )=9. $fter

&ndia>s independence in )?4% the <eser"e Bank was nationalized and was gi"en

broader powers. .

->-

http://en.wikipedia.org/wiki/18th_century

http://en.wikipedia.org/wiki/American_Civil_War

http://en.wikipedia.org/wiki/Lancashire

http://en.wikipedia.org/wiki/18th_century

http://en.wikipedia.org/wiki/American_Civil_War

http://en.wikipedia.org/wiki/Lancashire



HISTORY

The 2nglish word bank is deri"ed from the &talian word @BanacoA%

the Latin word @Baac#sA and the rench word @Ban1#eA which means a

bench. The word is also deri"ed from the 3erman word @BankA% which

means a joint stock compan f#nd Ci.e. heap mone% rose from a large

n#mber of members of the p#blic.

Bank in one from or another was in e,istence e"en in ancient times.

The writings of Man# Cthe maker of old 6ind# law and Ka#tila Cthe

minister of handrag#pta Ma#ra and the teachings of hrist contained

references to banking acti"ities in Bablonia m#ch before hrist.

6owe"er modern banking is of recent origin. &t came into e,istence

onl after the ind#strial re"ol#tion. $fter the ind#strial re"ol#tion% with

the increase in the size of ind#strial and b#siness #nits% joint stock

compan form of b#siness organization came into e,istence. This form of

organization enco#raged people with small incomes to become

shareholders of big ind#strial and b#siness enterprises .+till% there were

certain section of the p#blic who were not prepared to in"est their mone

on the shares of joint stock companies. B#t the were willing to part with

their s#rpl#s mone% if the were ass#red of the repament of their mone

with some interest thereon. +o% nat#rall there arose the need for the

formation of financial instit#tion that co#ld collect the s#rpl#s f#nds ofthe people on terms acceptable to them and make them a"ailable to the

need for prod#cti"e p#rpose.

Definition

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$ Banking compan in &ndia has been defined in the Banking

companies $ct% )? as @ /hich transacts the b#siness of Banking%

which means accepting for the p#rpose of lending or in"estment% of

deposits of mone from the p#blic repaable on demand or otherwiseand with draw able b he1#es% drafts% orders or otherwiseA.

Indian Banking Regulation Act

Sec !"#$ of the &ndian Banking <eg#lation $ct of )? defines the

EBanking ompan0 as @$n compan which transacts the b#siness of

BankingA.

Business of Banking

Banking is a b#siness and like an other b#siness the aim is the

ma,imisation of profits thro#gh c#stomer ser"ice. The two main

prod#cts are Deposits and Loans. !n Deposits it pas interest whereas

on Loans it charges interest and the rate on Deposits is alwas lower

than the rate of Loans. The difference between these two constit#tes

the banks income.

Banking is a b#siness b#t profiteering is absent here. &t is a #ni1#e

b#siness of pooling together the sa"ings of the comm#nit scattered all

o"er and from the "er same pool granting loans to the need in the

societ. Th#s it acts as a link between the sa"ers and the need. This

#ni1#e ser"ice is often called p#blic #tilit ser"ice. &n the common

man0s parlance it is definitel a social ser"ice.

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Banking is a b#siness b#t it differs from other b#siness in man

respects. This b#siness r#ns p#rel on the confidence of the members

of the general p#blic called the depositors who entr#st their sa"ings

solel o#t of their confidence and tr#st that the will get back theirmone with interest whene"er the need. +o long as there is

confidence on the bank in this wa% the deposits will come to the bank.

+imilarl in case of loan. /hile gi"ing% the bank reposes f#ll tr#st and

confidence on the Borrower that he will repa the same with interest.

There co#ld be sec#rit doc#ments #ndertaking to repa antime on

demand b the bank and collateral sec#rities for an e"ent#alit. B#t

the doc#ments and sec#rities are onl collateral and secondar and the

main consideration is onl the confidence. Th#s in both the cases of

deposits and ad"ances% confidence pas a "ital role.

Post-Independence

The partition of &ndia in )?4 had ad"ersel impacted the economies

of ;#njab and /est Bengal% and banking acti"ities had remained

paralzed for months. &ndia>s independence marked the end of a

regime of the Laissez-faire for the &ndian banking. The 3o"ernment of

&ndia initiated meas#res to pla an acti"e role in the economic life of

the nation% and the &nd#strial ;olic <esol#tion adopted b the

go"ernment in )?* en"isaged a mi,ed econom. This res#lted into

greater in"ol"ement of the state in different segments of the econom

incl#ding banking and finance. The major steps to reg#late banking

incl#ded.

&n )?*% the <eser"e Bank of &ndia was nationalized% and it became an

instit#tion owned b the 3o"ernment of &ndia. &n )?% the Banking

-@-



<eg#lation $ct was enacted which empowered the <eser"e Bank of

&ndia C<B& 7to reg#late% control% and inspect the banks in &ndiaA. The

Banking <eg#lation $ct also pro"ided that no new bank or branch of

an e,isting bank ma be opened witho#t a license from the <B&% andno two banks co#ld ha"e common directors.

6owe"er% despite these pro"isions% control and reg#lations% banks in

&ndia e,cept the +tate Bank of &ndia% contin#ed to be owned and

operated b pri"ate persons. This changed with the nationalization of

major banks in &ndia on )th 8#l% )5.

Nationalisation

B the )5(s% the &ndian banking ind#str had become an important

tool to facilitate the de"elopment of the &ndian econom. $t the same

time% it has emerged as a largest emploer% and a debate has ens#ed

abo#t the possibilit to nationalize the banking ind#str. &ndira 3andhi%

the-then ;rime Minister of &ndia e,pressed the intention of the

3o"ernment of &ndia in the ann#al conference of the $ll &ndia

ongress Meeting in a paper entitled 7+tra tho#ghts on Bank

Nationalisation.7 The paper was recei"ed with positi"e enth#siasm.

Thereafter% her mo"e was swift and s#dden% and the 3o"ernment of

&ndia iss#ed an ordinance and nationalised the )? largest commercial

banks with effect from the midnight of 8#l )% )5. 8aaprakash

Naraan% a national leader of &ndia% described the step as a

7masterstroke of political sagacit.7 /ithin two weeks of the iss#e of

the ordinance% the ;arliament passed the Banking ompanies Bill% and

it recei"ed the presidential appro"al on th $#g#st% )5.

--



$ second dose of nationalisation of 5 more commercial banks followed

in )*(. The stated reason for the nationalisation was to gi"e the

go"ernment more control of credit deli"er. /ith the second dose of

nationalisation% the 3o"ernment of &ndia controlled aro#nd )F of the banking b#siness of &ndia.

$fter this% #ntil the )(s% the nationalised banks grew at a pace of

aro#nd ?F% closer to the a"erage growth rate of the &ndian econom.

Liberalisation

&n the earl )(s the then Narasimha <ao go"ernment embarked on a

polic of liberalisation and ga"e licences to a small n#mber of pri"ate

banks% which came to be known as New 3eneration tech-sa"" banks%

which incl#ded banks s#ch as GT& Bank% &&& Bank and 6D

Bank. This mo"e% along with the rapid growth in the econom of &ndia%

kick started the banking sector in &ndia% which has seen rapid growth

with strong contrib#tion from all the three sectors of banks% namel%

go"ernment banks% pri"ate banks and foreign banks.

Opportunities a Head

#rrentl% o"erall% banking in &ndia is considered as fairl mat#re in

terms of s#ppl% prod#ct range and reach-e"en tho#gh reach in r#ral

&ndia still remains a challenge for the pri"ate sector and foreign banks.

2"en in terms of 1#alit of assets and capital ade1#ac% &ndian banks

are considered to ha"e clean% strong and transparent balance sheets-as

compared to other banks in comparable economies in its region. The

<eser"e Bank of &ndia is an a#tonomo#s bod% with minimal press#re

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from the go"ernment. The stated polic of the bank on the &ndian

<#pee is to manage "olatilit-witho#t an stated e,change rate-and

this has mostl been tr#e.

/ith the growth in the &ndian econom e,pected to be strong for 1#ite

some time-especiall in its ser"ices sector% the demand for banking

ser"ices-especiall retail banking% mortgages and in"estment ser"ices

are e,pected to be strong. MH$% takeo"ers% asset sales and m#ch more

action will happen on this front in &ndia.

&n March '((5% the <eser"e Bank of &ndia allowed /arb#rg ;inc#s to

increase its stake in Kotak Mahindra Bank to )(F. This is the first

time an in"estor has been allowed to hold more than 9F in a pri"ate

sector bank since the <B& anno#nced norms in '((9 that an stake

e,ceeding 9F in the pri"ate sector banks wo#ld need to be "etted b

them.

$s on date% &ndia has ** sched#led commercial banks C+Bs - '* p#blic sector banks% ' pri"ate banks and =) foreign banks. The ha"e

a combined network of o"er 9=%((( branches and )4%((( $TMs.

$ccording to a report b &<$ Limited% a rating agenc% the p#blic

sector banks hold o"er 49 percent of total assets of the banking

ind#str% with the pri"ate and foreign banks holding )*.'F and 5.9F

respecti"el.

COMPANY PROFILE

a) Back ground and inception of the copan!"

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Karnataka Bank Ltd% a leading E$0 lass sched#led commercial Bank

in &ndia% was incorporated on eb )*th )'? with a registered office at

Mangalore. The Bank commenced its b#siness on '= rd Ma )'? with

an &nitial ;aid #p apital of <s. ))%9*( contrib#ted b ))=shareholders. +ri.B.<.Iasaraa $char was the first president of the

Bank. The Banks Memorand#m of $ssociation in its !bjecti"e la#se

states that the Bank apart from carring on the general f#nction of

Banking b#siness% wo#ld @set apart and appropriate from the ann#al

net profit towards the general% mental% moral and phsical

ad"ancement of other beneficial p#rpose of the members of the

Dra"idian Brahmin comm#nit% +#ch s#ms as ma be deemed fitA.

The first three branches of the Bank were at Mangalore Dongerker%

Madras 3eorge% and Gd#pi ar +treet. +ri Kalmadi 3opal Krishna had

the disting#ishion of becoming the first Branch Manager. $t the end of

the Banks first ear of operations the Banks deposits stood at <s. (.5*

Lakhs and ad"ances were <s. ).'' Lakhs. The Bank celebrated its+il"er 8#bilee in the ear )? in its +il"er 8#bilee ear of operation

the Bank earned a net profit of <s. (.49 Lakhs with deposits of <s.

99.9 Lakhs and $d"ances of <s. =.= lakhs. +ri.K.+.N.$diga

became the chairman of the Bank on '=rd No" )9*. The irst real

recognition for the Mangalore based Bank came in the ear )9 with

the Bank being ele"ated from E0 class to EB0 lass. &n the stride of

progress and e,pansion% the Bank got reinforced b the takeo"er of =

banks namel +hringeri +harada Bank Ltd on )st $pril

)5(.%hitrad#rga Bank Ltd on December =(th )5?% and Bank of

Karnataka Ltd on Dec 'th )55.%. &n the ear )5 the Bank opened

its 49th branch where its deposits crossed <s. )( rore mark to reach

<s. )'.5= rores% $d"ances were at <s. *.( rore and Net profits

were <s. =.(9 Lakhs.

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Ltd for marketing general ins#rance prod#cts. The banks all ro#nd

e,cellence in the twin parameters of growth and stabilit has earned it

rich la#rels in the form of @;)A rating for certificate of deposits from

<&+&L.

b) Nature of the Business #arried

&n the words of Late +hri T.$.;ai @+ome people belie"e

that Banking means mone lending and that a Banker is not b#t a glorified

Mone lender. B#t Banking is not mone-lending as mone lender does

not take the risk whereas the Banker does.A Bank is into pooling together

the sa"ings of the comm#nit scattered all o"er and from the "er same

pool granting loans to the need in the societ. Th#s it acts as a link

between the sa"ers and the need. Th#s the two main prod#cts of the

Bank are Deposits and Loans.

c) $ision% &ission% and 'ualit! Polic!

&ision

Bank is a professional managed with good track record of c#stomer

loalt and consistent profitabilit. The bank has the resilience to face

the new challenges s#ccessf#ll and achie"e the goals in "ision b its

management. $dopting ethical management practices% Bank reiterates

its commitment to f#lfill national and social priorities% present so#nd

financial and abo"e of all else impro"e and inno"ate to meet the

challenges posed b a c#stomer dri"en banking ind#str.

Mission

The Mission statement of an organisation generall represents its

long term goals and strategies. 2"er organisation m#st ha"e its own

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mission% which describes present b#siness scope of the organisation.

The mission statement of Karnataka Bank Ltd is as follows.

@To be a technolog sa""% c#stomer centric progressi"e bank with a

national presence% dri"en b the highest standards of corporate

go"ernance and g#ided b so#nd ethical "al#esA.

'uality Policy

The #alit polic of Karnataka Bank Ltd is of pro"iding

#ick and Better ser"ice and their b achie"ing #stomer +atisfaction.

Corporate Goal

The Bank has en"isaged to achie"e a total b#siness t#rno"er

of <s. '*% 9(( rore% comprising of a deposit target of <s. )4% ((( crore

and ad"ance target of <s. )% 9(( rore for the ear ending March =)%

'((*. The Bank is confident of achie"ing the same thro#gh better

c#stomer ser"ices and operational efficienc. Besides% the Bank has plans

to increase its total n#mber of b#siness #nits to 9*(% b increasing the

total n#mber of branches to ?=( and own $TM network to )9( b March

'((*

d) Product(er*ice Profile

Product for (inancial Salaried Persons

Toda% personal finance is the fastest growing segment of banks credit

deploment. $mong personal banking prod#cts% loans to salaried class%

occ#pies a prominent place. /ith this backdrop this loan prod#ct has been

modified from time to time

The p#rpose for which this loan scheme can be #sed are ;#rchase

ho#sehold articlescons#mer d#rables% hildren0s 2d#cation% Marriage

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and thread ceremon of selfdependents% Medical e,penses of

selfdependents% !bse1#ies 2,penses% <epair to own ho#se and an other

;#rpose as to the satisfaction of sanctioning a#thorit

The 1#ant#m of loan pro"ided shall be to a ma,im#m of )( times of the

monthl gross salar or composite credit limit consisting of fi,ed loan

and o"erdraft not e,ceeding )( times of the monthl gross salar o#t of

which% the o"erdraft component shall not e,ceed 9 times of the gross

salar. The loan has to be repaid with interest within 9 Oears.

)B* +P,+ GH+-

KBL $pna 3har scheme was introd#ced in No"ember '(()% d#l

re"iewing modifing Bank0s erstwhile ho#sing finance scheme. The

terms and conditions of the scheme ha"e been re"iewed refined from

time to time.

The p#rpose for which loan can be pro"ided are for constr#ction of

ho#sep#rchase of read b#ilt ho#se or flatp#rchase of site and b#ild

ho#se thereon. <eno"ation remodelingrepairs to the e,isting ho#seflat.

The 1#ant#m of loan pro"ided shall be to a ma,im#m of 5( times of latest

monthl take home Cnet salar in the case of salaried or 9 times of latest

ann#al Net income pl#s depreciation pro"ided if an% as per ;HL ac in

the case of traders self emploed personsprofessionals !r <s. 49.((

Lakhs. /hiche"er is less

The 1#ant#m of loan pro"ided in the case of

reno"ationremodelingrepairs. of the e,isting ho#se flat ma,im#m <s.

)(.(( lakh or #pto 5(F of the "al#e of the ho#se flat owned b the

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applicant% whiche"er is lower s#bject to maintaining a margin of '9F on

estimated repairs .

$ ma,im#m period of )9 ears C incl#ding a repament holida at the

option of beneficiar till the completion of constr#ction or )* months

from the date of first disb#rsal of the loan whiche"er is earlier for

constr#ction p#rchase of ho#se flat.or repairs reno"ationsremodeling-

Ma,im#m period of 4 ears.

)B*.&+-/H+) *O+,

/as form#lated d#ring ebr#ar '(((% for financing traders

b#siness persons. The p#rpose for which KBL-Iarthak loan scheme was

introd#ced was in order to pro"ide for the /orking apital re1#irements

of traders and b#siness persons

The ma,im#m amo#nt that can pro"ided to indi"id#al

traderB#sinessman are <s. '9.(( Lakh per Borrower

The repament conditions for KBL- Iarthak Loan are that in

case of !"erdraft $cco#nts the amo#nt has to be paid within a period of

!ne Oear

$nd No 6olida period is gi"en. $nd the loan is <epaable

either in monthl or 1#arterl instalments.

)B* 0D1OG M2/H-+

This scheme was introd#ced d#ring ebr#ar and the p#rposes

for which the loan can be a"ailed are for

). ;#rchase of Medical 21#ipment Machineries omp#ters%

->?-



'. #rnishing the !ffice% ;#rchase of #rnit#re% Books etc.

=. ;ament of $d"ance rent for setting #p of an !ffice.

The ma,im#m $mo#nt of loan facilit that can be a"ailed is as follows:

• Ma,im#m amo#nt #p to (F of the cost of assets to be p#rchased in

The case of p#rpose specified #nder )

• Ma,im#m amo#nt #p to *(F of the cost in the case of p#rpose

specified #nder ' and =

• or setting #p of an office Doctors % hartered $cco#ntants%

2ngineering ons#ltants the ma,im#m 1#ant#m of $d"ance is

restricted to:

• <s. 49%((( P incase of <#ral branches

• <s. )%((%((( P incase of +emi-#rban branches

• <s. )%9(%((( P in the case of Grban branches

• <s. '%((%((( P in the case of Metropolitan branches

)B* C+- (2,+,C3

/as form#lated d#ring No"ember )* for the p#rpose of p#rchase of

fo#r wheelers. The ma,im#m amo#nt of loan that can be pro"ided to

indi"id#al #nder the scheme are as follows.

). or N2/ Iehicle: Ma,im#m amo#nt #pto to *9F of the in"oice

"al#e e,cl#ding "ehicle ta, and ins#rance.

->@-



'. $nd for +econd hand Iehicle: The "ehicle sho#ld not be older

than = ears from the date of registration of the "ehicle. Ma,im#m

amo#nt of loan is <s. 9.(( Lakh

The loan has to be repaed within 5( months in case of new "ehicle

and =? months in the case of second hand "ehicle

&2D1+,2DH2 3D0C+/2O,+* *O+, SCH3M3

/as introd#ced in the ear )* on the occasion of platin#m 8#bilee

Oear of the Bank .The scheme was designed to pro"ide financial

s#pport to the deser"ing and meritorio#s st#dents for contin#ing their

st#dies in &ndia and abroad.

The amo#nt of loan facilit which are pro"ided for st#dents +t#ding

in &ndia is a Ma,im#m of <s. 4.9( Lakh and for st#dents st#ding

abroad it is a Ma,im#m <s. )9.(( Lakh

<epament holidamoratori#m is co#rse period ) ear or 5 monthsafter getting job in earlier. The interest to be debited on simple basis

d#ring repament holidamoratori#m period. There after on

compo#nding basis with monthl rests. The loan to be repaid in 9 to 4

ears after commencement of repament.

)B* &+H+,+ M2/H-+

&n order to streamline deli"er of credit to the transport ind#str% a

c#stomer friendl scheme tailored to meet the re1#irements of this

sector was form#lated in +eptember '((=.

The loan is pro"ided for the p#rpose of p#rchase of new as well as old

C#p to 9 ears. $#to rickshaw% 8eep% ar% Ma,i cab% Tempo Tra"eller%

->-



T$T$ +#mo etc... $nd also for p#rchase of new tractor% 8B% rane

etc.% to be registeredregistered as p#blic transport "ehicle for hire.

The Ma,im#m amo#nt of loan that can be pro"ided #nder the scheme

are mentioned below.

(or a ,e4 &ehicle:

). Ma,im#m #pto *9F of the in"oice "al#e e,cl#ding "ehicle ta, and

charges towards &ns#rance% ;ermit etc.

'. or Bod B#ilding charges #p to 49F of the 1#otation f#rnished b

the "ehicle bod b#ilders.

or an old "ehicle <egional office are permitted to sanction loan #nder

the scheme for p#rchase of #p to 9 ears old "ehicle. Gp to = ears old

"ehicle P =(F margin on latest "al#ation has to be maintained. or =

to 9 ears old "ehicle% 9(F margin on the latest "al#ation has to

maintain. The loan has to repaid within *? months in case of B#s andTr#cks and for others it is 5( months

)B* 3+S1 -2D3

+cheme was form#lated d#ring !ctober '(() for the p#rchase of two P

wheelers. The loan scheme was introd#ced for the p#rpose of

ac1#isition of new two wheeler of pop#lar brand and make Cs#ch as

Bajaj% 6ero 6onda% TI+% Kinetic% 6onda etc.

Ma,im#m amo#nt of loan that can be a"ailed #nder this facilit is

). )9 times of net take home salar in the case of salaried persons%

!r

->-



'. 21#i"alent of ann#al gross income declared in the case of

professionals b#sinessmen self-emploed persons% or

=. Ma,im#m #p to )((F of the in"oice "al#e of the "ehicle e,cl#ding

omp. &ns#rance % <oad Ta, and e,tra fittings

)% '% and = whiche"er is less. 6owe"er% the ma,im#m amo#nt of

loan that can be considered as fi,ed at <s. 49%(((- per borrower.

The loan has to repaid within a Ma,im#m period of 5( months.

)B*. )-2SH2) S+-+/H2 SCH3M3

The KBL- Krishik +arathi +cheme was introd#ced for p#rchase of

arm machineries like Tractor;ower Tiller% Trailerother implements%

6ar"ester% +praer D#ster!ther arm Machineries and arm "ehicles

b $gric#lt#re.

$ Ma,im#m amo#nt of loan is #pto (F of the cost Ce,cl#ding Ta,%

<egistration H &ns#rance of new farm MachinerIehicle Ma, Limit<s. )(.(( Lakh.

The loan amo#nt has to be repaed within ears. in case of

Tractorcombine in case of ;ower Tillers Threshers its 4 ears in case

of !ther &mplements Machineries ' wheelers its 9 ears and in case

of arm Iehicles C? wheelers its 4 ears .

)B* 5)-2SH2) S2CH+,+ SCH3M3

The ;#rpose of the scheme is to pro"ide for all tpes of Minor

&rrigation de"elopment works like ;#rchase of oil engine2lectric

;#mp setsDrip+prinkler!ther &rrigation +stems incl#ding p#rchase

of pipes 3enerators. <epair or replacement of irrigation

sstem3enerators. % open well% Bore well% T#be well.

->-



$ Ma,im#m amo#nt of #pto *9F of the cost of new irrigation

e1#ipments or 5(F of the Land "al#e which e"er is less. $nd Ma,.

Limit being <s.9.((lakhs. The loan amo#nt has to be repaid

between9-4 ears.

chee to #o*er the Loans for +eneral #redit card in Rural and ei

urban branches

$s ad"ised b the <B& to sched#led commercial banks % for pro"iding

hassle P free credit to the indi"id#als in r#ral and semi #rban areas% it is

proposed to introd#ce a @3eneral redit ard schemeA in the r#ral and

semi-#rban branches of &ndia.

The +cheme is in the nat#re of an operati"e working capital acco#nt i.e.%

in the nat#re of re"ol"ing credit% with no stip#lation as to end #se. The

3 holder can draw cash from his !D acco#nt #p to the limit

sanctioned. $ che1#e book ma also be iss#ed% if the borrower so insist

Gnder the 3% proper assessment of working capital re1#irement of an

indi"id#al is to be made based on the income proof and cash flow

statement s#bmitted along with his her application similar to that

pre"ailing #nder normal credit assessment. Ma,im#m limit is restricted to

<s. '9% (((

$n indi"id#al applicant being a resident of r#ralsemi #rban area% with a

definite so#rce of income and s#fficient means to meet the obligation on

demand is eligible to co"er #nder the scheme.

Gp to '9F of the ann#al income declared b the applicant and accepted

b the sanctioning a#thorit for fi,ing #p eligible credit limit. ash flow

of the ho#sehold need be insisted at the time of sanction and re1#ired

information ma be called for at the time of <e"iew <enewal .or

->.-



women beneficiaries limit ma be considered #pto =9F of the ann#al

income declared and accepted b the sanctioning a#thorit.

The facilit sho#ld normall be "alid for '? months s#bject to an ann#al

re"iew. The <e"iew ma res#lt in contin#ation of the facilit

enhancement red#ction in limit Cs#bject to limit of <s.'9%(((- or

cancellation of the facilit depending #pon the performance of the

borrowal acco#nt.

)2S+, S3&+ )3,D-+S ")S)s$ of 2OC

&n order to reach diesel and other prod#cts in Kisan0s doorstep% it has

been decided to set #p Kisan +e"a ;#mps in r#ral areas in line with

low cost retail o#tlets. These will be known as @ )isan Sea

)endrasA

The following are the objecti"es for which the K+Ks was introd#ced

Making diesel as well as the facilities items re1#ired b theKisan a"ailable to him #nder one roof at his door steps at least

cost.

;ro"iding gainf#l emploment opport#nit to r#ral people.

#lfilling the corporate responsibilit towards r#ral de"elopment

NON OIL ,A#ILII. :

or a#gmenting the re"en#es of the Kisan +e"a Kendras as well

as for the con"enience of agric#lt#ral c#stomers following non-oil

facilities can be pro"ided.

+ale of agro inp#ts of fertilizers% seeds% pesticides% etc.

$gric#lt#ral e1#ipments% N#tan +to"e% 6#rricane lamp% etc.

->-



&tems of dail needs like 3#r% Khandsari% Lal hana% lo#r% soap%

etc.

+ale of agro prod#cts like "egetables% etc.

;ro"ision of non agro facilities like banking% internet kiosk%

comm#nication facilities% etc.

+ale of stationar items like notebook% pencil% etc. as well as

newspaper Cif possible% re"en#e stamp C if possible% water mark Cif

possible% etc.

-*+-



PRODUCTS

&otor pirit /& i"e" petrol) facilit!0

The K+K are primaril meant to be ha"ing 6igh +peed Diesel or 6+D

facilit. 6owe"er% based on the potential of the site% the state 62$D C of

the oil compan ma take a decision to pro"ide M+ facilit also

Other Products of IO#

The Kisan +e"a Kendra will also sell l#bricating oils or an other

prod#cts as decided b &! from time to time to the c#stomers.

#ost In*estent b! dealer

<s.5( lakhs the sales b#ilding% dri"ewa% fencing% other items s#ch as fire

e,ting#isher etc.

.1pected ales *olues

D&2+2L: '9 T! 9( KL per month

;2T<!L: facilit to be pro"ided onl when minim#m )( KL

potential e,ists

C KL Q kilo Litres% ) KL Q )((( Litres

-*>-



S6+-O7G+- C-3D2/ C+-D SCH3M3 "SCC$

+ was introd#ced in +eptember '((= conse1#ent #pon the

anno#ncement made m ;rime Minister in his &ndependence Da+peech on )9 $#g '((=

+ scheme aims at pro"iding ade1#ate and timel credit i.e. working

capital or block capital or both to small artisans% handloom wea"ers%

+er"ice sector% ishermen% self emploed persons% <ickshaw owners %

other Micro 2ntreprene#rs % +63s% etc.% from the banking sstem in a

fle,ible % hassle free and cost effecti"e manner. Borrowers in #rban

areas can be co"ered #nder + scheme. +mall b#siness co"ered

priorit sector is also eligible #nder + scheme. $n scheme

project that are income generating emploment generating ma be

co"ered #nder the scheme. The facilit ma also incl#de a reasonable

component for cons#mption need.

arm sector acti"ities like fishers% dair etc.% can also be co"ered #nder

the scheme. 3enerall s#ch of the self- emploment acti"ities which

ha"e reg#lar t#rno"er income stream on short inter"al basis can also

be co"ered #nder + scheme. The credit facilit e,tended #nder the

scheme is in the nat#re of a composite loan incl#ding term loan cash

credit or both:

The Ma,im#m amo#nt of loan that can be pro"ided #nder the scheme

is a loan Gp to <s. '9%(((- per borrower as composite loan. This is

indicati"e. Banks ma consider higher limits on the merits of the case.

$ component for cons#mption credit co#ld be b#ilt in keeping in "iew

the "al#e of the famil labo#r in the prod#cti"e acti"it. The total limit

-**-



wo#ld ha"e a relationship with projected net earning and repament

capacit of the borrower.

+ is normall "alid for 9 ears s#bject to satisfactor operation of

the acco#nt and renewed on a earl basis thro#gh simple re"iew

process.

Issue of #redit0

The beneficiaries #nder the scheme shall be iss#ed with a

laminated credit card and pass book. This will +er"e as an

identit card and facilitate recording of transaction on an ongoing

basis.

$s far as possible% cl#ster approach ma be followed in

implementing the scheme.

&n case smart card are iss#ed% fee towards iss#e of card

processing ma not e,ceed <s. 9(-per card

Insurance0

Beneficiaries #nder the scheme wo#ld a#tomaticall be

co"ered #nder the gro#p ins#rance scheme and the premi#m wo#ld be

shared b the bank and the borrower e1#all. 2ach Bank ma negotiate

the terms of ins#rance with a compan of its choices on a national or

regional basis. #rther as ad"ised b general &ns#rers Cp#blic sector

$ssociation of &ndia C3&;+$ it wo#ld be ad"ised for the banks to take

#p the matter of ;ersonal $ccident &ns#rance linked with + scheme

indi"id#all with the ins#rance companies. +ince man bank ha"e tie-#ps

for bancasss#rance agreement with general &ns#rance ompanies the

ma decide to incl#de + scheme also #nder their tie-#ps.

-*?-



D.POI PROD2#0

Karnataka Bank Ltd aims to help c#stomers b#ild on a strong fo#ndation b ma,imizing ret#rns on in"estments and increasing their assets.

#stomers. can make #se of their c#stomized prod#cts to take care of

their specific banking needs.

+bhyudaya Cash Certificate

$ growth oriented scheme with ma,im#m ret#rns. Mone in"ested

m#ltiplies after the specified period. The minim#m period of deposit is

5 months and the ma,im#m period is )'( months.

(i8ed deposits

$ deposit scheme for specified periods ranging from )9 das to )(ears. with interest paments made monthl% 1#arterl% half-earl or

earl as re1#ired b the depositor.

-eady Money deposits:

$ #ni1#e term deposit c#m o"erdraft acco#nt% whereb a minim#m

deposit of <s. . )(%(((- enables the c#stomers withdraw #p to 49F of

the amo#nt b che1#e witho#t presentation of the deposit receipt.

Soulabhya Deposit

$ fle,ible Etwin gain0 deposit scheme that allows withdrawal of

deposits in #nits of <s. . )%(((- each in case of need% witho#t affecting

the interest paable on the remaining #nits. Minim#m amo#nt of

deposit is <s. 9%((( and in m#ltiples of <s . )%(((- thereto.

-*@-



Cumulatie deposit

$ monthl deposit scheme whereb a fi,ed amo#nt is to be contrib#ted

monthl for a minim#m period of 5 months and a ma,im#m period of

)( ears. This is an ideal scheme to sa"e a fi,ed amo#nt for f#t#re

plans s#ch as ed#cation% b#ing a home etc.

2nsurance lin9ed saings Ban9 deposit

B maintaining a stip#lated minim#m balance in +B acco#nt%

c#stomers become entitled to free accident ins#rance co"erage of #p to

<s. ' lakh and <s.)(%(((- towards reimb#rsement of hospitalization

e,penses arising o#t of accidents.

).(le8i Deposit

&t is a facilit for all e,isting acco#nt holders that ma,imize the ret#rns

on s#rpl#s f#nds in the acco#nt. The stip#lated le"el at present is

<s.)(%(((-. /hene"er the balance in the +B ac s#rpasses thisamo#nt% the e,cess amo#nt gets transferred to a term deposit in

m#ltiples of <s.9%(((- for a specified period and earns interest

applicable to a term deposit of that period.

-esident foreign currency "domestic$ account

This acco#nt can be opened as a c#rrent acco#nt onl. oreign

c#rrenc in G+D% 3B; and 2#ros ma be deposited. The acco#nt

carries no interest with it and there is no minim#m amo#nt for opening

the acco#nt. oreign e,change ac1#ired in the form of c#rrenc notes%

tra"elers che1#es% gifts% honorari#m recei"ed o#tside &ndia% gifts

recei"ed from relati"es and earnings thro#gh the e,port of goods and

ser"ices% can be credited to this acco#nt.

-*-



,-2 Serices

There are a wide range of deposit schemes for Non-<esident &ndians.

&t incl#des non resident r#pee acco#nt% foreign c#rrenc non resident

CBank scheme CN< RBS and non resident Cordinar acco#nt

CN<! with "er attracti"e and competiti"e rates. <esident foreign

c#rrenc C< Cdeposit acco#nt for ret#rning &ndians is also

a"ailable.

Area of Operation

The bank at present has ?)( branches% )(5 $TM o#tlets% 4 2,tension

co#nters% * regional offices% ) &nternational Di"ision% ) Data enter% ?

+er"ice Branches% ' #rrenc hests% +pread o"er ) +tates and ' Gnion

territories.

-*-



O3nership Pattern

The share holding pattern in Karnataka Bank Ltd is as gi"en below in the

form of table

/able ,o: #%#

Sho4ing the o4nership pattern in )arnata9a Ban9

Categor

y code

Category of

shareholders%

,umber of

shareholders%

/otal

number of

shares

,umber of

shares held in

dematerialie

d form

/otal

Shareholding

+s a ; of

total

number of

shares

+s a ; of

+<B

$

+hareholding of

promoters and

promoters 3ro#p

( ( ( (

BPublic

shareholding

C) &nstit#tions

Ca M#t#al ==)*??5 ==)*??5 '.4?

-*-



#ndsGT&

Cb

inancial

instit#tionsBanks 9)*9*? 9)*9*? (.?=

Cc

entral

3o"ernment+tate

3o"ernment

( ( ( (

CdIent#re apital

#nds( ( ( (

Ce&ns#rance

ompanies= )=*5'=) )=*5'=) ).)?

Cf &&s = =55*?)4 =55*?)4 =(.?4

Cgoreign Ient#re

apital &n"estors( ( ( (

Ch $n other ( ( ( (

Sub./otal "B$"#$ => ?@#A#= ?@#A#= ?%

C' Non-&nstit#tions

Ca Bodies orporate *= )9549)'( )9549)'( )'.)

-*.-



Cb

&ndi"id#als-

shareholders

holding nominal

share capital of

#pto <s. ) lakh

54''5 ?=='?'4 '?95=?5= =5.')

ii. &ndi"id#als-

shareholders

holding nominal

share capital in

e,cess of <s. )

lakh

54= )9??='= )5'59?'= )5.)(

Sub./otal "B$"@$ =@ A#!#> !=>!@#A! =!%@@

/otal Public

shareholding

"B$E"B$"#$F"B$"@

$

=A?@#@#?!?

A@? #>>%>>

/O/+*"+$F"B$ =A?@

#@#?!?

A@? #>>%>>

-*-



#opetitors Inforation

+ll the ban9s in 2ndia are competitors for the Ban9% +ome of the major

ompetitors for the bank are.

#it! 2nion Bank Ltd"0

The oldest pri"ate sector bank% it Gnion Bank Ltd% was established in

)(? as the K#mbakonam Bank Ltd. &t has taken o"er three local banks:

ommonwealth Bank Ltd in )94J it orward Bank Ltd and Gnion

Bank Ltd in )59. Located in K#mbakonam% the temple cit and ha"ing

small o#tfit of ))* branches% mostl in Tamil Nad#% it is less know o#tside

the state. &n its long jo#rne% it "ent#red o#t of the state onl in )*(%

!pening a branch in Bangalore. it Gnion Bank Ltd combines

traditional banking with end#ring relationship.

he 4arur $!s!a Bank Ltd"0

The Kar#r Isa Bank Ltd was established in the ear ))5. The Bank

witnessed the "icissit#des of the banking sector d#ring the two /orld

wars. 2,panding slowl% it has grown strong in its hometown Kar#r. The

bank0s o"erall performance has been aptl described b Dr. .

<angarajan% the then 3o"ernor of $ndhra ;radesh% while ina#g#rating the

KIB towers in hennai as% @The Kar#r Isa bank can be regarded as a

fine e,ample of how a medi#m size bank can effecti"el pla its part in

promoting regional de"elopment and in attending to the needs of small

and medi#m enterpriseA.

ailnad &ercantile Bank Ltd0

Tamilnad Mercantile Bank Ltd is from T#ticorin. &ts original incarnation

was as The Nandar Bank Ltd% promoted b a gro#p of b#sinessman in the

-?+-



port town of T#ticorin in )'). &t became a sched#led bank in )=9. The

present name was adopted in )5'. Tr#e to its name% it works as a Tamil

Nad# bank. The Bank is making all efforts to remain as the totally

motiated ban9 .

Nainital Bank Ltd0

Nainital Bank Ltd is a tin little bank from Gttaranchal. D#ring the British

das% most of the hill stations like +imla% M#ssorie% Darjeeling% and !ot

were ha"ing banking facilities % pro"ided b either local banks or banks

from o#tside. Nainitial where nat#re smiles in wilderness% saw the birth of

a bank in )''.!ne of its promoters was late 3obind Iallabh ;anth%

confining to a single state. !n the e"e of &ndependence% it had a capital

base of onl <s ).9( lakh and the n#mber of branches was 9.

he Lakshi $ilas Bank Ltd0

The bank from Kar#r% which adds good fortune to your life- Lakshmi

Iilas Bank Ltd-was established in )'5 b a gro#p of 4 leaders of the

local b#siness comm#nit% it was aiming at ser"ing the traders and the

people from the middle class. D#ring the first two decades it co#ld open

onl )( branches. ontended in ser"ing the small towns for nearl 9(

ears% it stepped o#t of the state onl in )4?.

or increasing the fee-based income the bank has entered into M!G with

Dab#r 3G Life &ns#rance ;ri"ate Ltd for marketing the ins#rance

prod#cts.

he Dhanlakshi Bank Ltd0

The Dhanlakshmi BankLtd% was established b a gro#p of eminent

lawers% in thriss#r in )'4% with a initial paid #p capital of <s. ))%(((.

6andling a "ol#me of b#siness not more than <s ).=lakh in the first ear%

-?>-



it co#ld earn a net profit of <s. )() and the ne,t ear it declared a

di"idend of )' percent. Tho#gh slow in e,panding% it took a bold step in

taking o"er )' small banks in )5?. The bank has caref#ll b#ilt #p

relationship%(oreer with its shareholders and #stomers.

he outh Indian Bank Ltd0

The +o#th &ndian Bank Ltd was born in Thriss#r in )'% two ears after

the birth of Dhanalakshmi Bank Ltd. &t has the record of taking o"er the

largest n#mber of small banks-)9 banks between )5) and

)59.$malgamating so man banks was intended a big task% considering

the difference in the nat#re of the b#siness and the financial stat#re. B#t in

the process the bank co#ld e,pand its b#siness. Tho#gh it does not ha"e

its own $TMs% it has tied #p with ent#rion Bank Ltd for sharing their

$TM network all o"er the co#ntr

he $!sa Bank Ltd0

The BangalorePbased% 4' ear old bank% began its banking operation in a

small wa like all other banks . &t owes its formation to the effort made b

their fo#nder directors% who were the b#sinessman. The first chairman

was retired dep#t commissioner of the Msore state. The paid #p capital

was onl <s.4)((( in )=). Till )5? it was spreading acti"ities into the

neighboring districts like $nanthp#r% Bellar and Msore. $ branch was

opened in Madras d#ring the ear and paid #p capital increased to <s.

)(.=( lakh.&n )4 % when the bank was celebrating its golden j#bilee% its

capital base crossed the <s ) rore mark and the deposits crossed the

<s.)(( crore le"el.

2nfrastructural (acility

-?*-



$s regards to the infrast#ral facilities pro"ided in Karnataka Bank

Offices

The 6ead office of Karnataka Bank Ltd has a central air condition sstemwhich helps the emploees to escape from the heat of Mangalore it.

Canteen

The Bank pro"ides canteen facilit to all its emploees and it is sit#ated

inside the Bank premises.

System

The Bank is one of the few banks in the co#ntr which #ses inical

+oftware which in t#rn helps the bank to ser"e its c#stomers more

efficientl. The Bank also pro"ides internet facilit to its emploees

6or9 (lo4 Model

The work flow model of Karnataka Bank Ltd is of two tpes and is shown

belowJ

;rocess Map- Deposit:

;rocess Map $d"ances:

-??-



Decisio$ !9i$7

Process Map. Deposit:

The below chart shows the work flow of depositing mone

Chart #

Chart Sho4ing the process map deposit in )arnata9a Ban9 *td

-?@-

#stomer

Deposit

$pplication <e"iew

and doc#mentation

;rocessin

Csh

Che6%e

Drft

$cco#nts

/ork Done



This is the work flow adopted b the bank at the time of recei"ing the

deposits from their c#stomers.

The first step in this process is c#stomer approaching the bank. /hen the

c#stomers will ha"e s#rpl#s mone with them% the will be looking to

in"est that mone in some place where the can get good ret#rns o#t of it.

Bank is one s#ch place which accepts deposits from their c#stomers and

pas interest on them. +o the c#stomers will be looking for that bank

which will pa them highest rate of interest on their deposits.

!nce the c#stomer identifies the bank where he is going to deposit his

amo#nt% he has to go thro#gh the introd#ction stage% were the c#stomer

needs to be introd#ced to the bank. 6e ma be introd#ced to the bank b

the c#stomer or an emploee of that bank. 6e is asked for pro"iding

doc#ments like <ation card or an license for address% age H income

proof. !nce the acco#nt is opened Ci.e. 2ither +.B ac% fi,ed deposits%rec#rring deposits or c#rrent ac heshe will pro"ide with facilities like

he1#e book% $TM or !.D if it0s a c#rrent ac.

!nce the c#stomer opens an acco#nt in the bank he can deposit an

amo#nt an n#mber of times b#t in case of fi,ed deposit its one l#mp s#m

amo#nt deposited till its mat#rit it is not withdrawn. /hen amo#nt is

deposited it goes to the hands of cashier and then to cash s#per"isor and

then to his acco#nt% b#t now d#e to B+ the entr is gi"en within a

min#te.

The depositors are eligible to withdraw the amo#nt which is credited in

their acco#nt and not more than that #nless it is c#rrent acco#nt.

Depositors can withdraw as an when the need b#t in case of fi,ed

deposits prior 4 das notice to be gi"en% b#t toda0s banker will not ask

-?-



for an notice j#st gi"e it in the spot with penalt. The process of

withdrawal is re"erse of depositing where from his acco#nt it goes to cash

s#per"isor from him to cashier finall to the hands of c#stomer% again

traditional work flow. Now all are comp#terized where in one person doesall the acti"it. #stomer can directl withdraw in $TMs or can directl

iss#e he1#es to the other part.

Process Map +dances:

The "ario#s stages of granting loan to c#stomers is depicted below

Chart ,o: @

Chart Sho4ing the process map adances of )arnata9a Ban9

-?-

#stomers

#stomer +pecific

<e1#irement

illin of $ lication

$pplication <e"iew

Decision

<eject



This is the work flow model followed b the bank at the time of gi"ing

ad"ances to their c#stomers. /hich in"ol"es the following series of steps%

the are:

$n part re1#iring f#nds thro#gh Bank first has to talk with the

respecti"e manager of a branch of his area. !ne thing the manager has to

see that the amo#nt of loan he has to sanction is in his power limit or else

he has to concern his higher a#thorit. &n this stage the process ofnegotiation regarding rate of interest between part and Banker takes

place.

The important d#t of a manager is to know his c#stomer there are man

sstematical techni1#es and process to know the real identification of the

c#stomers. This is done mainl to a"oid anti-la#ndering.

The p#rpose of loan to be sanctioned sho#ld be clearl #nderstood either

b e"al#ating bl#e print of his project or balance sheet or performance

proof of his e,isting b#siness. This is mainl done to make s#re that

repament of the amo#nt is ens#red and part won0t become Bankr#pt. &n

case of personal loan e"al#ation of the person is done thro#gh other

person who is known to the Banker.

-?-

Doc#mentation

Loan Disb#rsement

<epament of interest



The part in need of loan is capable of withdrawing the amo#nt not more

then the amo#nt sanctioned to him.

Doc#mentation deals with filling of forms that are in contract#al form and

most of the doc#mentation process co#ld be seen in all the stage. &t also

deals with s#bmission of sec#rit for their loan and its formalities.

$fter the p#rpose of the loan is ser"ed% the part is obliged to repa the

amo#nt incorporating ;L< and other Bank charges or according to the

agreement

(uture Gro4th prospectus

/ith a econom of the co#ntr growing at nearl *F there high growth

potential for the bank. The bank is planning to enable EMone lick0 as a

pament gatewa for shopping that co"ersast areas of b#siness like 6otel

Booking% Ticket Booking% ;#rchase of goods etc. The Bank is also

planning to introd#ce mobile Top-#p thro#gh $TMs and internet Banking.

#rther Bank is also planning to tie #p for online trading in shares.

Mc9ensyss (rame 6or9

McKinse H ompanies 4+ framework pro"ides a #sef#l wa of st#ding

internal working of the organization. The model was de"eloped b Tom

;eter and <obert /aterman% cons#ltants of Mckens0s and compan. The

40+ Model was fi<s. t p#blished b them in the article @+tr#ct#re is not

organizationAC)*( and in the books @The $rt of 8apanese

ManagementAC)*) and @&n search of 2,cellenceA. The McKinse

ons#lting irm identified strateg as onl one of se"en elements

e,hibited b the best managed companies.

-?.-



+trateg% str#ct#re and sstems can be considered the 7hardware7 of

s#ccess whilst stle% staff% skills and shared "al#es can be seen as the

7software7.

ompanies% in which these soft elements are present% are #s#all more

s#ccessf#l at the implementation of strateg

-?-



Chart ,o:

Chart sho4ing Mc9ensys S Model

The f#nctioning of Karnataka Bank Ltd can be better #nderstood

with the help of following 4s

The 40+ are

♦ +tr#ct#re

♦ +kill

♦ +tle

♦ +trateg

♦ +taff

♦ +hared Ial#es

-@+-





acti"ities coming #nder their departments b taking the help of

e,ec#ti"es% officers. and staff of their departments. The

organisation str#ct#re of the Karnataka Bank has been shown in the

chart below. The Board of Directors occ#p the top most positionfollowed b the chairman who is ne,t in the hierarch. &n the ne,t

le"el of organizational str#ct#re there are D3M 6#man relations

and ind#strial relations% 3eneral Manager% planning and

de"elopment% 3M redit% 3M Treas#r% 3M% reco"er Legal and

<MD% $nd D3M inspection and $#dit.

@$ S9ill

+kills refer to the fact that emploees ha"e the skills needed to

carr o#t the compan0s strategies. +killf#l emploees are the assets

of the organization. +kills of the emploees ma be impro"ed b

gi"ing necessar training to them. The Bank belie"es that skillf#lemploees contrib#te to the +#ccess of the Bank.

De"elopment of h#man reso#rce is an important factor for the

de"elopment of an ind#str. Banking is not an e,ception to that. &t

in"ol"es "ario#s aspects like contin#o#s training% rewards b wa

of promotion% appreciations etc. The bank 6<D polic is g#ided b

the hinese ;ro"erb @&f o# are planning for one ear% grow rice. &f

o# are planning for twent ears plant trees. &f # are planning for

cent#ries % de"elop menA.D#ring the ear '((5-'((4%)?'? officers%

9)4 clerks and 5* s#b staff were gi"en training #nder "ario#s

aspects to #pdateimpro"e the knowledge. The officers of the bank

are also dep#ted at Bankers Training ollege% M#mbai% National

&nstit#te of Bank Management% ;#ne% &nstit#te of De"elopment and

-@*-



<esearch in Banking Technolog% 6derabad. /hene"er

+pecialized training was fond necessar.

/able ,o%#

/able sho4ing the number of employees 4ho under 4ent training

during the year

Banks own training

ollege

!fficers lerks +#b

+taff

$t bankers Training

ollege C<B& H other

Training colleges C !fficers

$t /ork

shops H

+eminars.

4( 9)4 5* '5( ?99

$ Style

&t is one of the se"en le"ers which the top management can #se to

bring abo#t change in the organization. $ccording to M Kinse0s

ramework% Becomes e"ident thro#gh the patterns of action taken

b the members of the top management team o"er a period of time.

The M Kinse0s ramework considers @+tleA as more than the

stle of top management.

Karnataka Bank Ltd. follows a Top to down stle of management.

&t also works in a participati"e stle. The decisions are taken b the

top management concerning matters related to the organization.

The decisions relating to department matters are taken b the

departmental heads. The bank follows a democratic leadership stle

which allows the emploees to take part in the decision making

-@?-



process. 2mploees are free to gi"e an ideas% s#ggestions etc% for

the betterment of the organisation. This will be taken with acti"e

cons#ltation with the emploees.

?$ Strategy

+trateg means action a compan plans in response to or in

anticipation of challenges in the e,ternal en"ironment. The

Karnataka Bank% in order to respond to the changes% has formed the

following action plan with specific reference to prod#ct% pricing%

and people

Action plans on product

&ntrod#ction of &nternet Banking

2,pansion of Banks on $TM Network

&ntrod#ction of Debit ards

<etailing in +ec#rities

Action plan on Pricing

&ncreasing emphasis on fee based % ommission based acti"ities%

ollection of #tilit bills and other fee based ser"ices like m#t#al f#nd

distrib#tion which the bank to be more competiti"e.

-@@-





sstem Einacle0. $ part from this the bank has comp#terised all acti"ities

and branches so to pro"ide 1#ick ser"ice to its #stomers.

raining !ste

&n a ser"ice ind#str like bank% 1#alit of the ser"ice offered to the

c#stomers is "er important. To pro"ide s#ch high 1#alit ser"ice to its

c#stomers% the bank trains its emploees in "ario#s areas as well as in

ad"anced technolog. The training is gi"en at the +taff Training ollege

of the bank and b some specialized o#tside agencies.

#ontrol !ste

The Bank has well defined control sstem in all critical areas of operation

i.e. corporate credit% fore,% treas#r% etc% which are doc#mented and

re"iewed from time to time. The bank has also a f#ll-fledged internal

a#dit and inspection mechanism thro#gh which all branches are p#t #nder

reg#lar inspection encompassing the whole range of acti"ities i.e.% ore,%

#stomer omplaints% &ncome leakages etc.

=$ Staff

+taff means that the organization has hired able people trained them well

and assigned them to the right jobs. +taffs are h#man reso#rces working

in an organisation. The are responsible for carring o#t "ario#s acti"ities

of the organisation effecti"el and efficientl. The Karnataka Bank has

well trained% de"oted and skilled staffs who work "er hard for the

s#ccess of the bank. The n#mber of people emploed b the bank stood at

??95 as on =)st March '((4. The B#siness per emploee has impro"ed

from <s. ?.4* crores as on =)st March '((5 to <s. '? rores as on =)st

March '((4.The Bank d#ring the '((5-'((4 recr#ited 4? new officers %

)* clerks% and =' s#b staff.

-@-



/able ,o:@

/able sho4ing the total staff position as on#.>.@>>

Officer

sCler9s

Sub.

Staff /otal

$s at the end of the Oear )9? '(5* 4? ??!=

<ecr#ited d#ring the ear 4? )* =' >?

$ Shared &alues

+hared "al#es refer to the g#iding concepts% "al#es and

aspirations that #nite an organisation in some common p#rpose. The

g#ide emploees of an organisation towards "al#ed beha"ior.

&mportant concerns and goals that are shared b most of the

people in a gro#p% that tend to shape gro#p beha"ior% and that often persist

o"ertime e"en with changes in gro#p membership. +hared "al#es

originall called as s#per ordinate goalsJ it is the g#iding concepts and principles of the organisation - "al#es and aspirations% often #nwritten.

The are also the things that infl#ence a gro#p to work together for a

common goal. &t acts as a g#iding concept% f#ndamental ideas aro#nd

which a b#siness b#ilt. +o it m#st be simple% #s#all stated at the abstract

le"el% ha"e great meaning inside the organisation e"en tho#gh o#tsiders

ma not see or #nderstand them.

-@-



The Karnataka Bank goes for the following "al#es

#stomer +atisfaction

#ick and better +er"ice

Loal to the #stomers

6onest in work

S6O/ +nalysis

&dentification of the threats and opport#nities in the en"ironment and the

strengths and weakness of the firm is the cornerstone of b#siness polic

form#lation. &t is these factors which determine the co#rse of action to

ens#re the s#r"i"al of the firm.

The en"ironment might present man opport#nities b#t a compan might

not ha"e strength to e,ploit all the opport#nities. +imilarl% sometimes a

firm will not ha"e the strength to meet the en"ironmental threats. &f a

compan% th#s% finds that it will not ha"e the competence to s#r"i"e in a

partic#lar line of b#siness% it will be pr#dent to gi"e it #p and concentrate

on s#ch b#siness for which the firm is most competent. The economic

liberalization in &ndia in )) drasticall changed the b#siness

en"ironment. Man ompanies ha"e e,ited se"eral of their b#siness and

ha"e been concentrating on their core B#siness

Strengths

). The factors that ha"e contrib#ted to the s#ccess of the Bank is its

workforce beca#se the bank has highl ed#cated workforce% o#ng and

energetic emploees within the age gro#p of '9-?9This helps the

[email protected]



8#nior emploees to learn from the e,perience of the senior

emploees

'. The Bank is professionall managed. The bank is one of the few banks

in &ndia which gi"es importance to technolog in order to ser"e it

c#stomers better it is one of the few banks which #ses finacal

software0s.

=. The Banks strengths lie in management capabilities% foc#sed strateg%

speed decision making.

?. There has been e,pansion of branches and $TM ser"ices b the bank

d#ring the last few ears.

9. The Banks pro"ides good infrastr#ct#ral facilit to its to its staff and

help them to concentrate more on their job%

5. The Bank has introd#ced "ario#s schemes

6ea9nesses

The weaknesses of the bank incl#des that the bank has majorit of

the branches in the so#thern region.

The second /eakness of the bank is that of its aging work force.

Non-"erification of <eser"e Bank of &ndia defa#lters list while

processing credit proposals

Dela in follow #p on "ario#s acco#nts

Bank had often in"ol"ed in fre1#ent che1#e p#rchases of large

amo#nts beond the discretionar power .

-@-



/hile opening foreign letter of credit opinion report of the o"erseas

part not obtained res#lting in de"ol"ementlikel de"elopments.

Dela in crstallisation of e,port bills disco#nted.

+anction terms and conditions were not complied with in man

cases re"ealing inade1#ateineffecti"e mechanism to monitor and

follow-#p of s#ch cases.

The stocks hpothecated to the Bank were not ade1#atel

ins#rednot ins#red in some cases

There were instances of fre1#ent ret#rns of che1#es and the

branches had not taken #p the matter with the borrowers concerned

to maintain financial discipline.

Opportunities

The 3rowth potentials or the opport#nities are "er h#ge as the bank had

mainl concentrated on the so#thern region of the co#ntr in its earlier

ears it has the opport#nit to e,pand its b#siness to other parts of the

co#ntr wherein it can increase its c#stomer base. The bank b "irt#e of

becoming a member of $TM networks like EI&+$% EN+0% Eash Tree0%

besides contin#ing the bilateral arrangement with corporation Bank% has

enabled access to nearl ) million $TMs and '9 Million ;!+ across the

globe for its card holders. Bank is also facilitating inward remittance

facilit thro#gh /estern Gnion Mone Transfer which has enabled "ast

section of the pop#lation to recei"e hassle free remittance from abroad.

The bank is planning to enable EMone lick0 as a pament gatewa for

-+-



shopping that co"ers "ast areas of b#siness like 6otel Booking% Ticket

Booking% ;#rchase of goods etc. The Bank is also planning to introd#ce

mobile Top-#p thro#gh $TMs and &nternet Banking% besides la#nching

"al#e additions like +M+ alerts to Non-Mone lick #stomers% Gtilit bill pament and $ir ticket booking thro#gh $TMs. #rther Bank is also

planning to tie #p for online trading in shares. The Bank is planning to

increase the n#mber of its $TMs to )9( b =).(=.'((*.

/hreats

$s the bank majorit b#siness comes from the so#th an effect to

the econom here wo#ld ha"e an ad"erse effect on the performance of the

bank. The Bank is relati"el smaller when compared to other banks like

+B& and &&& Bank and some others. +ince it0s a smaller bank when

compared to hea" weights like +B& and corporation Bank the bank is

alwas #nder treat of being taken o"er b other banks.

S0MM+-1 O( *+/3S/ +,,0+* -3PO-/

Karnataka Bank Ltd% is a leading E$0 lass sched#led commercial Bank

in &ndia has earned a net profit of <s. )44.(= crores as against <s. )45.(=

crores in the pre"io#s ear an increase of (.9F increase in comparison

with the pre"io#s ear. or the ear '((5-(4 the total deposit of

Karnataka Bank registered a growth of 5F o"er the pre"io#s ear. /hile

its ad"ances rose b ''.5(F o"er the pre"io#s ear. The other ke

financial data0s are mentioned below

/able ,o:

->-



/able Sho4ing the performance highlights of the Ban9 for the year

@>>=.@>>

C<s. &n rore

Particulars%+s on Ifor the year

ended #%>%@>>

+s on Ifor the year

ended #%>%@>>=

Deposits )?(=4.?? )='?=.)5

$d"ances 99'.5* 44).94

&n"estments 9(?*.)5 99?*.9*

Total &ncome )?=(.9' ))*?.*?

!perating ;rofit =95.9* ='*.'

Net ;rofit )44.(= )45.(=

The total b#siness t#rno"er of the bank to#ched <s. '=9(.)' crores%

an increase of )'.)9F o"er the preceding.

The total assets of the bank increased from <s. )?9=.'4 crores to <s.

)5'''.9' crore recording a growth of *.?F

The Net interest income rose from <s =59.4 crore to <s.?).*5 crore

thereb registering a growth of )?.4=F d#e to growth in ad"ances.

The operating profit increased from <s. ='*.' crores to <s. =95.9*

crore showing a growth of *.5'F

-*-



Total Deposits of the bank grew from <s. )='?=.)5 crores as on

=).(=.'((5 to <s. )?(=4.?? crore as on =).(=.'((4% registering a

growth of 5F

The total ad"ances grew from <s. 44).94 crores as on =).(=.'((5 to

<s. 99'.5* crores as on =).(=.'((4an increase of ''.5(F

$gric#lt#ral ad"ances increased from <s. 4=4.== rores to 4).=

rore.

The priorit sector ad"ances increased from '44'.'( rores to <s.

=(9*.( rores.

The total in"estment of the bank as on =) st March '((4 stood at <s.

9(?*.)5 rores as against <s. 99?*.9* rores as on =)st March '((5

showing a red#ction of .('F.

The banking posted an operating profit of <+. =95.9* rore for the

ear as against ='*.' rore for the iscal '((5.

+ppropriations

The net profit of <s. )44.(= rore which along with a s#m of <s. (.(5

rore bro#ght forward from the pre"io#s ear aggregated <s. )44.(

rore is appropriated as #nder. The corresponding fig#re for the pre"io#s

ear was <s. '5.(? rores.

/able ,o: ?

/able Sho4ing +ppropriation of profits of the ban9 for the year @>>=.

@>>

-?-



+ppropriation -s% % in crore

Transfer to +tat#tor <eser"es )(4.((

Transfer to apital <eser"es ).=*

Transfer to <e"en#es and

3eneral <eser"es

).((

Transfer to ;roposed Di"idend ?.5

Balance arried to Balance

sheet

(.('

/otal #%>A

Diidend:

The bank declared a di"idend of =9F for the ear which totaled <s. ?'.?4

rores% which is )5.4?F higher than the amo#nt distrib#ted for the ear

end =).(=.'((5. The Di"idend ;ao#t ratio stood for the ear stands athigher at '=.F as compared to '(.54F d#ring the ear '((9-(5

3arning per share I Boo9 &alue

The 2arning per share and the book "al#e of the share stood at <s. )?.5(

and <s. )('.(* <especti"el as on =)st March '((4.

,et O4ned (unds and capital +deJuacy -atio

-@-



The net owned f#nds of the bank increased from <s. )))).)= rore to <s.

)'=*.5= rore registering a growth of )).?4F. The capital ade1#ac ratio

decreased from )).4*F as on =)st March '((5 to )).(=F as on =)st March

'((4 after taking into acco#nt the market risk on in"estment as per <B&g#idelines. The bank has been consistentl maintaining apital $de1#ac

<atio well abo"e the norm of F stip#lated b the <B&.

(ore8 Business

D#ring the ear% Bank achie"ed foreign e,change b#siness t#rno"er of <s.

5)().)5 rore as against <s. ?5=*.9 rore for the pre"io#s ear%

registering a growth of =).9=F. The ad"ances to e,port sector increased

from *?.*) rore to <s. )(9.=) rore

+dances to Priority Sector

The ad"ances of the bank to priorit sectors are shown below in the form

of a table

/able ,o:!

/able Sho4ing *ending of the Ban9 to Priority Sector

C<s. in lakh

/ypes of +dances

,umber of

accounts at the

end of the year

Balance

outstanding at

the end of the

year

a $gric#lt#re 9'') 9'9.9

b +mall +cale &nd#stries

of which 2,port redit

to ++& #nits

59? ))9'(.)

--



c +etting #p of the

&nd#strial 2state

? 9=9.

d +mall B#siness inance 9=* =*5.*)

e ;rofessional H +elf2mploed ??' '455.'4

f Transport !peration 9?95 )=?(?.4*

g 2d#cation '=4* =4)9.9=

h <etail Trade )=499 )?)?*.*4

i 6o#sing Loans ))*4( 49?'.?=

j ons#mption loans )5'4 4*).59

k +elf 6elp 3ro#p )()* ?9'.?5

l ood ;rocessing 5= 5('*.'*

/otal #>?== >!A%!

2,port inance e,cl#ding

e,port credit to small scale

ind#strial #nits

)9 4)5(=.=5

-atio +nalysis

<atio $nalsis is a widel #sed tool of financial analsis. &t can be

#sed to compare the risk and ret#rn relationship of a firm. &t is defined as

the sstematic #se of ratios to interpret the financial statements so that the

strengths and weakness of a firm as well as its historical performance and

its c#rrent financial conditions can be determined. The term ratio refers to

the n#merical or 1#antitati"e relationship between two items or "ariables.

The rationale of ratio analsis lies in the fact that it makes related

information comparable.

--



Significant Performance 2ndicators:

/otal +dances to /otal Deposit -atio:

This ratio is generall e,pressed as a ratio between Total $d"ances and

Total Deposits. The ratio is #sed to determine how m#ch of the total

deposits collected from the c#stomers are lent as loan to p#blic. &t can

be e,pressed as follows:

/otal +dances

/otal Deposits

--



/able ,o: !

/able sho4ing /otal +dances to /otal Deposits ratio

C(((0s omitted

Particulars% Mar > Mar >= Mar >!

/otal +dances "-s%$ 99'%54% 44)%95%4* 5'*4%??%(5

/otal Deposits "-s%$ )?(=4%?=%9

?

)='?=%)5%(? )(*=4%(9%*)

/otal +dances to /otal

Deposits ratio

(.5*(9 (.9**= (.9*('

&t can be seen in the abo"e table that there has been a stead

increase in total ad"ances in proportion to total deposits from <s. (.9* to

<s. (.5*. &t can also be inferred that there has also been a stead increase

in the amo#nt of deposits collected b the bank o"er the period of three

ears. .

#$ /otal 2nestments to /otal Deposits -atio:

This ratio is generall e,pressed as a ratio between Total

&n"estment and Total Deposits. This ratio is to #sed to know what

proportion of the total deposits are #sed b the Bank for its

in"estments p#rpose s#ch as 3o"ernment +ec#rities or +hares of

other companies. &t can be e,pressed as follows:

/otal 2nestments

-.-



/otal Deposits

/able ,o: =

/able Sho4ing the /otal 2nestments to /otal Deposits -atio

C(((0s omitted


/otal 2nestments "-s%$ 9(?*%)5%?? 99?*%9*%(4 ?999%4)%54

/otal Deposits "-s%$ )?(=4%?=%9

?

)='?=%)5%(

?

)(*=4%(9%*)

/otal 2nestments to

/otal Deposits ratio

(.=95 (.?)* (.?'(=

The total in"estments in proportion to total deposits ha"e shown a slight

decline o"er the ears from (.?'(= in March '((9 to (.=95 in March

'((4.

@$ ,et ,on.Performing +ssets to ,et +dances

This <atio indicates the $d"ances or Loans that were lent b the

Bank and which ha"e t#rned o#t to be Non-;erforming $d"ances.

&t can be e,pressed as follows:

,et ,on.Performing +ssets E Opening Balance F +dditions

during the year 5 -eductions during the year%

,et ,P+

--



,et +dances

/able ,o:

/able Sho4ing the ,et ,on.Performing +ssets to ,et +dances -atio


,et ,P+ "-s in la9h$ ))5('.9( )9).) )?='.9?

,et +dances "-s% in

crores$

99'54. 44).94 5'*4.??

,et ,P+ to ,et

+dances

).')?9 ).)4?? '.'4(

N;$s are those ad"ances where the interest and ad"ances ha"e

been o"erd#e for more than ( das. The abo"e table shown that there has

been a steep decrease in Non performing assets of Bank from '.'4( in

March '((9 to ).')?9 in March '((4 this shows that there has been an

increase in the efficienc of the Bank to collect its ad"ances.

$ -eturn on /otal +ssets

<et#rn on total assets is the ratio of net profit to total

reso#rces. This ratio meas#res the prod#cti"it of the total assets of a

concern. &t indicates the profitabilit of a b#siness.

,et Profit K#>>

/otal +ssets

-+-



/able ,o:

/able Sho4ing the -eturn on /otal +ssets -atio

C((( !mitted


,et Profit after /a8 "-s%$ )44(=?? )45(== )?4)?5?

/otal +ssets "-s%$ )5'''9)5' )?9='4' )'9'54)*)

,et Profit after /a8 to

/otal +ssets

).()' ).)44' ).)4?5

The data re"eals that there has been a decrease on the ret#rn on total

assets from ).)4?5 in '((9 to ).()'.

?$ 3arnings Per Share -atio:

This is a ratio between net profit a"ailable for e1#it

shareholders that is net profit after ta,es and preference di"idends% and the

n#mber of e1#it shares. The more the 2;+ the better is the performanceand f#t#re prospect#s of the compan. This ratio throws light on the

performance of the compan and helps in deciding whether the e1#it

share capital is being #tilized effecti"el or not.

,et Profit aailable for 3Juity Shareholders

,umber of 3Juity Shares

->-



/able ,o: A

/able Sho4ing the 3arnings per Share -atio

C(((s omitted


,et Profit aailable

for eJuity Shareholders% "-s $

)44(=) )45(?=? )?4)?**

,umber of 3Juity Shares )')'5'.?

)

)')'9=.55 ?='(5.4?=

3PS "-s% $ )?.5( )?.9)* =?.(9

The abo"e data shows that there has been a decline in 2;+ of the bank

from <s. =?.9( in '((9 to <s. )?.5( in '((4. The decrease in the 2;+ is

d#e to the increase in share capital of the Bank.

*3+-,2,G 3LP3-23,C3

The in-plant training was for fo#r weeks. & had done m in plant in

Karnataka Bank Ltd% Mangalore. $s there was limitation of time% the

st#d is done abo#t the general information regarding the Karnataka

Bank.

&n-plant training is reall #sef#l to know how class room st#d is applied

in the organisation. &t is tr#e incase of Karnataka Bank Ltd. 2"er

-*-



organisation before carring o#t an task has to perform managerial

f#nctions s#ch as planning% organising% controlling and directing. Besides

#s#al f#nctions s#ch as wage and salar administration.

& learnt abo#t what is N;$0s in banks% Non ;erforming $d"ances

means an asset or acco#nt of borrower% which has been classified b a

bank or financial instit#tion as s#b-standard% do#btf#l or loss asset% in

accordance with the directions or g#idelines relating to asset

classification iss#ed b <B&. onditions to treat an acco#nt as N;$.

i. &nterest and or installment of principal remain o"erd#e for a

period of more than ( das in respect of a Loan%

ii. The acco#nt remains >o#t of order> for a period of more than (

das% in respect of an o"erdraft cash reditC!D%

iii. The bill remains o"erd#e for a period of more than ( das inthe case of bills p#rchased and disco#nted%

i". &nterest and or installment of principal remains o"erd#e for two

har"est seasons b#t for a period not e,ceeding two half ears. in

the case of an ad"ance granted for agric#lt#ral p#rpose% and

". $n amo#nt to be recei"ed remains o"erd#e for a period of more

than ( das in respect of other acco#nts.

+econdl & had learnt abo#t what is an o"erd#e acco#nt it means @$n

acco#nt sho#ld be treated as >o#t of order> if the o#tstanding balance

remains contin#o#sl in e,cess of the sanctioned limit drawing power.

&n case where the o#tstanding balance in the principal operating

acco#nt is less than the sanctioned limit drawing power% b#t there are

-?-



no credits contin#o#sl for si, months as on the date of balance sheet

or credits are not eno#gh to co"er the interest debited d#ring the same

period% these acco#nt sho#ld be treated as >o#t of order>

The reco"er department of the bank works for the reco"er of credit

granted to c#stomers. <eco"er department will do the job of getting

back the loan granted to the c#stomers. if the fail to repa the loan

amo#nt.

$s regards to the legal department it is concerned with pro"iding legal

ad"ices to "ario#s departments if there is an conflict in the

f#nctioning of department.

#% Circulars pertaining to the products and serices of )arnata9a

Ban9%

@% )arnata9a Ban9s +nnual -eport @>>?.@>>%

% Magaines and Brochures of )arnata9a Ban9%

?% Souenir of the Ban9%

!% 444%9arnata9aban9%com

=% 444%rbi%org

-@-



SCHEMES EVOLVED BYKARNATAKA BANK LTD.

/H3 PH2*OSOPH1

7To open a shop is eas b#t to keep it open is an art7 - were the golden

words of noted philosopher onf#ci#s. /hen we look back to the histor

of coffee finance in o#r bank% we feel pro#d beca#se there is a perfect

combination of the art and science.

/H3 C0P /H+/ CH33-S

or cent#ries% coffee has been cheering and stim#lating the task b#ds of

millions of people worldwide. ascinated b the fragrance of the steaming

c#p% Dr. +. <adhakrishnan eminent scholar and statesman.

/H3 O-2G2,

The origins of coffee c#lti"ation in &ndia goes back to aro#nd )5(( $.D.

when a M#slim +aint from &ndia Baba B#dan sm#ggled se"en coffee

seeds o#t of Oemen on his wa back from a pilgrimage% near

hikmagal#r. $ pict#res1#e town in Karnataka and this mo#ntain now

pop#larl known as 7Baba B#dan 3iri7 and origin of coffee in &ndia.

--



/H3 &2S2O,

Born in the ear )'? at Mangalore the Karnataka Bank Ltd. was knownfor its commitment to the common man. The Bank choose to find a new

path in the agric#lt#ral sector b financing this "er need b#t totall

neglected area d#ring the pre independence itself. or Karnataka bank%

this transition period was not onl critical b#t also historic it is all now

that the same <B& has made agric#lt#ral finance a priorit sector and

earmarked a minim#m of )*F of credit to agric#lt#ral sector. 6ats off to

the great "ision of late +ri K.+.N. $diga and other fo#nder directors who

were instr#mental in showing a new path not onl to the Bank b#t also to

the nation

/H3 ,3/6O-)

2nco#raged b its earl s#ccess in agric#lt#ral finance% the Bank started

its first branch in the coffee belt in the ear )94 at Koppa followed b

Balehonn#r and +#nti Koppa in )9* and then spread its tentacles to

6assan in )5( and the coffee town of hikmagalore in )55. Iiz 6assan

and hikmagalore. There after% there was no going back% as the Bank

opened more and more branches in the #nbanked coffee areas of

hikmagalore% 6assan and Kodag# districts. Toda aro#nd ?* branches of

the bank are e,cl#si"el. offee c#ring trading e,port etc. !#t of )4(54'

latch of coffee c#lti"ated area in these = d=istricts% Bank has financed fo=r

=mor=e than= =9=4*'' ha. The total o#tstanding ;lantation credit of the

Bank has reached a new height of <s.'' crores.

--



/H3 ,36 3-+

The more scientific and technological orientation towards agric#lt#ralfinance more especiall towards plantation finance began d#ring the ear

)*? when bank started recr#iting more technicall 1#alified agric#lt#ral

field officers C$;!s. The ser"ice of these specialized officers has been

#tilized. 7Gnder 6ead 1#arter based cl#ster branches approach7 almost all

the branches of the Bank are ha"ing agric#lt#ral ad"ances% it was at this

period that Bank #pgraded its technical e,pertise in coffee finance and

took earl ad"antages in #tilization of the refinance facilities of

N$B$<D. The effecti"e mobilit of the $!s in the field of agric#lt#ral

credit the Bank has also started posting some of them as branch manages

for some of the agric#lt#ral dominated branches.

/H3 +%D%B%

$ll these stren#o#s efforts ha"e c#lminated in designing the

hikmagalore branch as the first 7C$DB of bank in )9. #rther in

order to pro"ide modern banking facilities to the coffee e,ports is ga"e

more fillips to the coffee e,ports. The bank also designed the said branch

for crore b#siness d#ring )44. The bank has created banking sstem i.e.

7$gric#lt#re7 and 7oreign 2,change B#siness7 apart from the traditional

banking facilities.

--



SUBSIDIARY SERVICE OFKARNATAKA BANK

Demand Draft

Mail Transfer

Telegraphic Transfer

;a !rder

+afe Locker acilit

+afe #stod +er"ices

M#lti Branch Banking

-.-



SUBSIDIARY SERVICESOF KARNATAKA BANK

The Karnataka Bank Ltd. has rendered lots of s#bsidiar ser"ices to its

#stomer with reasonable ser"ice charges. +ince its inception the Bank

has attached high priorit to c#stomer ser"ice. The main motto of the

Bank is 7+er"ice with a +mile7. This motto added f#ll benefits to its

slogan of 73rowth with +tabilit7.

<emittance of f#nds is major s#bsidiar ser"ice rendered b the Bank. &t

has twin benefits of attracting new clients towards it and increasing its

commission% income.

The important +#bsidiar ser"ices rendered b the >Karnataka Bank Ltd.>

are as follows:

D3M+,D D-+(/S "DPS$

Demand drafts are negotiable instr#ments drawn b one branch #pon

another branch of the same Bank. &t is an #nconditional order to pa on

demand% a specified person or to his order.

Demand draft books s#pplied b 6.!. shall alwas be held in joint

c#stod% d#l entered in the stock register. &t shall bear the name% D;Dcode and <B& code of iss#ing branch at the top. &f these partic#lars do not

appear on the draft pads s#pplied b 6.!. these partic#lars shall be

stamped on the draft lea"es on the da of receipt of stock.

--



/3*3G-+PH2C /-+,S(3-

&n Telegraphic Transfer f#nds% are transferred from one branch to another

branch b coded telegraphic massage for pament to the beneficiar of

the TT b the drawee branch.

Telegraphic transfers can be made between branches% which ha"e prior

arrangements in this regard. Branches can ha"e reciprocal arrangements

for both o#tward and inward transfer or for either inward or o#tward

transfer onl. The message sho#ld also contain the telegram serial n#mber

pertaining to the recei"ing branch. The coded message sho#ld be

transmitted thro#gh tele,.

The iss#ing branch sho#ld compare the confirmator recei"ed from the

paing branch with the entr made in the Telegram &nward <egister and

make a not of receipt of the confirmator against the entr in the register.

&f an discrepanc is noticed% it sho#ld be immediatel followed #p with

the other branch for necessar correction.

P+1 O-D3-S I P+1 S*2PS

$ pa order or a pa slip is an order b a branch of a Bank drawn #pon it

self to appl a certain s#m of mone to or to the order of the paee named

therein. $ltho#gh% the pa order is almost in the form of che1#e since it is

drawn on the branch it self% it is not co"ered b sections *9$ and )=) of

the Negotiable &nstr#ments $ct. The Bank will not therefore get

protection in paing a pa order with a forged endorsement. +imilarl% the

collecting Bank will also not get protection% as pa order is not co"ered b

section )=) of the Negotiable &nstr#ments $ct.

-+-



;ament d#e from the branch to the local parties Banks% are also made

b iss#ing pa order. The commission is to be collected as applicable to

local drafts. /here a pa order is iss#ed to third part at the re1#est of

c#stomer% the credit slip meant for DDs MTs ma be #sed. /hileappling a pa order presented thro#gh clearing or across the co#nter for

pament or for credit of an acco#nt% it sho#ld be scr#tinized in all respects

as in the case of che1#es drafts.

S+(3 D3POS2/ *OC)3-S

;ro"ide different sizes for rental p#rposes. ;reca#tion while gi"ing a

locker on rental basis are as follows.

). The locker hirer sho#ld ha"e an introd#ced sa"ings or c#rrent acco#nt

with the bank.

'. The branch asks the hirer to fill in and sign a specimen signat#re card%

with his f#ll name% address% specimen signat#re and a password or a

code word.

=. The banker specifies the timings of the operations of lockers.

?. Lockers cannot be rented o#t to a minor% as a minor has no contract#al

capacit to hire a locker.

S+(3 C0S/OD1 S3-&2C3

Traditionall bankers recei"e "al#ables s#ch as negotiable sec#rities

jeweller and doc#ments of title to propert for safe c#stod. &n fact the

origin of Banking in &ndia is said to lie in the fact that people going on

pilgrimage for long periods #sed a keep their "illage or town. Being

e1#ipped with safes and storage rooms for the p#rpose of their b#siness

->-



modern bank is nat#rall a safe and con"enient place to keep "al#able in

safe c#stod.

M0*/2 B-+,CH B+,)2,G

M#lti Branch Banking is a special facilit offered b Karnataka Bank that

gi"es the power to operate +B or #rrent $cco#nt of acco#nt holder

thro#gh se"eral branches in the cities of Bangalore% Mangalore% hennai

and M#mbai. $n c#stomer who is eligible to open a +B acco#nt or a

#rrent $cco#nt can open the pri"ileged acco#nt and a"ail M#lti Branch

Banking facilit.

The minim#m a"erage balance to be maintained is <s.9(((- for +B

acco#nt and <s.)((((- for #rrent $cco#nt.

The M#lti Branch Banking ac1#ires power of geographical fle,ibilit in

Banking.

M3-CH+,/ B+,)2,G

The <B& has allowed &ndian Banks to #ndertake man ancillar ser"ices.

&n addition to their main b#siness of banking Merchant banking is among

one of the most important b#sinesses now being #ndertaken b Banks.

Money plant +/Ms

$n acco#nt holder% can #se $TM card to withdraw cash% make balance

en1#iries and re1#est statements% che1#e books thro#gh $TMs. Mone

;lant $TMs gi"e 7ro#nd the clock7 access to acco#nt thro#gh $TM

co#nters across the co#ntr% as well as those $TMs #nder arrangement

with orporation Bank.

-*-



0/2*2/1 B2** P+1M3,/ M+D3 3+S1

$t Karnataka Bank one can now make telephone bill paments thro#gh

the bank itself. Now c#stomers need no longer wait long ho#rs in a 1#e#e

to pa phone bills.

63S/3-, 0,2O, MO,31 /-+,S(3-

$ strategic arrangement with /estern Gnion inancial +er"ices &nc. of

G+$ facilitates 1#ick% reliable and con"enient transfer of f#nds anwhere

in the world.

SP33D1 MO,31 /-+,S(3- 6O-*D62D3

The Bank is also a member of the +ociet for /orldwide &nter Bank

inancial Tele omm#nication C+/&T for e,peditio#s two wa transfer

of f#nds and has a wide network of correspondent Banks in ?= co#ntries

aro#nd the globe.

/H3 )-2SH2 C+-D

Karnataka Bank introd#ced $gric#lt#ral credit card known as >K<&+6&

$<D> for its former clientele in the ear )* it self. &t is also now

histor that the <B& has made K&+$N <2D&T $<D+ mandator for

all banks since )*. &t has also e,tended this facilit to the plantation

sector d#ring the platin#m j#bilee ear.

/H3 CO((33 CO,(3-3,C3

-?-



The dominance of the bank in plantation sector finance bro#ght to the

limelight 7/hen offee onference7 was organised on '5-(?-)*. &t

was again in historic occasion as more than 9(( ;lanter delegates from all

the three major coffee growing districts% "iz hikmagalor% 6assan andKodag# ha"e participated along from N$B$<D% offee Board% 3rowers

$ssociation% Ta, ons#ltants% arriers 2,ports% Bankers etc.

-@-



ANNE3URE

Balance sheet of the last three years

Capital and *iabilities

March >! March >= March >

/otal Share Capital )').'9 )').'4 )').=9

3Juity Share Capital )').'9 )').'4 )').=9

Preference Share Capital (.(( (.(( (.((

-eseres *95.4 *.*5 )%))4.'4

-ealuation -eseres (.(( (.(( (.((

,et 6orth 4*.(? )%))).)= )%'=*.5'

Deposits )(%*=4.(5 )=%'?=.)5 )?%(=4.??

Borro4ings '?=.55 )*'.5 ?'(.4?

/otal Debt ))%(*(.4' )=%?'9.*9 )?%?9*.)*

Other *iabilities < Proisions ?*=.5* ?'?.) 9=?.(9

/otal *iabilities )'%9?'.?? )?%5).)4 )5%'=(.*9

+ssets

--



Cash < Balances 4ith -B2 5*4.5* 9=9.= *'5.*'

Balance 4ith Ban9sN Money at

Call

5*?.*( 54.'' ==?.5

+dances 5%'*4.?? 4%4).94 %99'.5*

2nestments ?%999.4' 9%9?*.9* 9%(?*.)5

Gross Bloc9 )5.') ').9' '=9.9(

+ccumulated Depreciation .55 ))9.') )'*.5*

,et Bloc9 5.99 )(?.=) )(5.*'

Capital 6or9 2n Progress (.(( (.(( (.((

Other +ssets '=(.'9 =('.)( =5).5*

/otal +ssets )'%9?'.?? )?%5).)4 )5%'=(.*9

*iabilities

Contingent *iabilities '%(?(.(* '%?)'.4( =%?'4.(

Bills for collection =5=.=5 ?5=.( 54'.**

Boo9 &alue "-s$ *(.55 ).5' )('.(4

Profit and loss account for the year ended #st marchN @>>

--



/able no%A

Cooos omitted$

(or the yearended

#%>%@>>!

-s%

(or the yearended

#%>%@>>=

-s%

(or the yearended

#%>%@>>

-s%

2% 2,COM3

&nterest earned *=%=%== )()*%(=%4= )'95%'9%(?

!ther income '')%)?%*5 )55%*(%)9 )4?%'4%'4

/otal #>=#N>N#A ##?NN #?>N!@N#

22% 3LP3,D2/0-3

&nterest e,pended 9'=%(?%=9 59'%(5%5= *=5%=%(9

!perating e,penses )4%==%() '(?%?*%)) '=4%9?%9'

;ro"isions and

contingencies

)=%95%) )9'%'9%49 )4%99%=(

/otal A#NAN!! #>>N>N?A #@!N?N

222% P-O(2/

Net profit for the ear )?4%)?%** )45%(=%= )44%(=%??

Transferred from

&n"estment

l#ct#ation <eser"e

( )'(%((%(( (

;rofit bro#ght forward '? 9 9%*4

/otal #?N#?N @A=N>?N? #N>AN#

2&%

+PP-OP-2+/2O,S

Transfer to +tat#tor

<eser"e

(%((%(( )(5%((%(( )(4%((%((

Transfer to apital ( )%'9%?5 )%=*%')

--



<eser"e

Transfer to <e"en#e

<eser"e

'*%'9%(( )?9%49%(( )%((%((

Transfer to !ther#nds

)%'(%(( )%9(%(( (

Transfer to ;roposed

di"idend

'?%'?%*) =5%=4%*) ?'%?4%(=

Transfer to Ta, on

proposed di"idend

=%??%)' 9%)(%'( 4%')%4*

Balance carried o"er

to Balance +heet

9 9%*4 '%'

/otal #?N#?N @A=N>?N? #N>AN#

N#mber of shares

o#tstanding d#ring the

ear C/eighted

a"erage

?='(%54%?= )'%)'%9=%55= )'%)'%5'%?)4

2arning per share C<s

per share of <s. )(-

each -see note No: 9

of sched#le )4

Basic H Dil#ted =?.(5 )?.9' )?%5(

Notes on acco#nt

$cco#nting ;olicies

-.-



/H3 )+-,+/+)+ B+,) *2M2/3D: -3GD < H3+D O((2C3:

M+,G+*O-3 .!!>>@

0,+0D2/3D '0+-/3-*1 (2,+,C2+* -3S0*/S (O- /H3 /H-33

MO,/HS 3,D3D #%#@%@>>

-s in *a9hs

GN$GD&T2D $GD&T2D

'uarter ended ,ine months ended 1ear

3nded

#%#@%@>>

#%#@%@>>

=

#%#@%@>>

#%#@%@>>

=

#%>%@>>

# &nterest 2arned

Cabcd?>!?= =') ##!>## (=(9 )'95'9

a &nterestDisco#nt on

ad"ancesbills

@=@ ')''5 #A> 9494? *)=9'

b &ncome on

&n"estments

## )(=(* @@#> =(4)4 ?)'4(

c &nterest on

balances with

<eser"e Bank of

&ndia and otherinter bank f#nds

@= '?( )95? '9)5

d !thers ?'9 ?9( ?*4

'!ther &ncome

A# =4) #@=# )==' )4?'4

T!T$L &N!M2C)'

?A =5)4( #@@@ )(=5=? )?=(9'

?&nterest e,pended

@A== ')59 AA> 5)'(9 *=5=

9!perating

e,penses Ciii

=@ 99'* @>= )4'94 '=499

i2mploees ost

# =('? ##! 4== )'(

ii!ther operating

e,penses

>>= '9(? 49'? )(*?5

= T!T$L

2U;2ND&TG<2CC?9 e,cl#ding

pro"isions Hontingencies

!A '4''= #>>=== 4*?5' )(4=?

--



!perating ;rofit before pro"isions

H contingenciesC=-5

#@#? *?4 #=>= '9)4' =959*

*;ro"isions Cother

than ta, andontingencies

#>!> 5) @=!> '=(( *=4*

2,ceptional &tems

> ( > ( (

)(;rofit CLoss C-from !rdinar

$cti"ities beforeta, C4-*-

##>A *='* @A!= ''*4' '4'*(

##Ta, 2,pense

?#A! '?( #>=> 4*?9 944

#@ Net ;rofitCLoss C- from!rdinar acti"ities

after Ta, C)(-))

=A> 9=** #>A= )9('4 )44(=

#2,traordinar

&tems Cnet of ta,e,pense

> ( > ( (

)? Net ;rofit

CLoss C- for the period C)'-)=

=A> 9=** #>A= )9('4 )44(=

)9;aid #p e1#it

share capital

Cace Ial#e <s

)(-

#@#! )')'4 #@#! )')'4 )')=9

)5<eser"es

e,cl#dingre"al#ation

reser"es Cas per balance sheet of

pre"io#s

acco#nting ear

- . - )))4'4

#$naltical <atios

i;ercentage of

shares held b3o"ernment of

&ndia

,il Nil ,il Nil Nil

iiapital $de1#ac

<atio CF

#%## )).*= #%## )).*= )).(=

-.+-



iii

3arning per

share "3PS$ "-s$

a Basic 2;+

b Dil#ted 2;+

before2,traordinar

items Cnet of Ta,

e,pense

b Basic 2;+

Dil#ted 2;+

after2,traordinar

items Cnet of Ta,e,pense

V Not $nn#alised

!%=AK

!%=K

!%=AK

!%=K

?.??V

?.??V

?.??V

?.??V

#?%A#K

#?%K

#?%A#K

#?%K

)'.=V

)'.=V

)'.=V

)'.=V

)?.5(

)?.5(

)?.5(

)?.5(

i" N;$ <atios as on

date

a 3ross N;$ Net N;$

b F of 3ross N;$

F of Net N;$

c <et#rn on$ssets-

V Not $nn#alised

A@>

#@@!%!=

#%@

>%K

=*?=

))**=?.='

).=5(.=9V

A@>

#@@!%!=

#%@

#%>!K

=*?=

))**=?.='

).=5(.V

=*4=?

))5(?=.9

).'').)9

)*;#blic

+hareholding-No of +hares

-;ercentage of+hare holding

#@#?!?

#>>;

)')'5(=?*

)((F

#@#?!?

#>>;

)')'5(=?*

)((F

)')=?=9?*)((F

-.>-



,otes:

). ).The Board of Directors ha"e taken the abo"e financial res#lts for the 1#arter

ended =)st December '((4 on record at their meeting held on =(th 8an#ar

'((*.

'. The abo"e res#lts ha"e been arri"ed at after considering #s#al and necessar

pro"isions as per <B& g#idelines.

=. ;ro"ision for 2mploees Benefits for the 1#arter has been made on an

estimated basis pending act#arial "al#ation of the liabilit. $dditional

pro"ision Cif an re1#ired to compl with $+ )9 C<e"ised of The &nstit#te of

hartered $cco#ntants of &ndia has not been 1#antified.

?. The Bank has identified two-b#siness segments "iz Treas#r and !ther

Banking !perations and the 3eographic +egments consist of the Domestic

+egment% as the Bank does not ha"e an foreign branch. The segment res#lts

are anne,ed.

9. D#ring the nine months ended December =)% '((4% the 2+!; ommittee of

the Board of Directors has granted in aggregate ('(( stock options% grant

date being ').(*.'((4 and (9.)(.'((4% to the emploees of the Bank #nder

The Karnataka Bank 2mploees +tock !ptions +cheme '((5 C2+!+ '((5 at

an e,ercise price of <s 9( per share. These stock options wo#ld "est within a

period not e,ceeding three ears in a graded manner i.e.?(F% =(F and =(F.

$ccordingl the Bank has transferred a s#m of <s '4*.?9 lakh being the

proportionate compensation e,penses for the option of ?(F.

5. +tat#s of the shareholders complaints is as #nder:

omplaints pending at the

beginning of the

1#arter

omplaintsrecei"ed d#ring the

1#arter

omplaintsredressed d#ring

the 1#arter

omplaints pending at the

end of the

1#arter

Nil Nil

-.*-



Segment4ise -esults

P+-/ + . Business Segment

(or the three months period ended #%#@%@>> -s in *a9hs

0,+0D2/3D +0D2/3D

Particulars /hree

Months

ended#%#@%@>>

/hree Months

ended

#%#@%@>>=

,ine Months

ended

#%#@%@>>

,ine Months

ended

#%#@%@>>=

1ear ended

#%%@>>

a$Segment -eenue

i Treas#r !perations

ii !ther Banking

!perations

!!@

?>!

9(=?

=))=5

#=@@

##?=!>

)5?5

*55**

)*54

)'=)*9

/otal ?A =5)4( #@@@ )(=5=? )?=(9'

b$Segment -esults


ii !ther Banking

!perations

!#=

##@==

-)?5

)(?5'

.@@=

!

-)9'=

'5=?5

-?=''

=?'?

/otal ##@ *= #>@ '?*'= '4'

Gnallocated e,penses =? 559 @>= )9) '5'

;rofit before Ta, ##>A *='* @A!= ''*4' '4'*(

&ncome ta, ?#A! '?( #>=> 4*?9 944

2,traordinar

;rofitLoss

> ( > ( (

Net ;rofit =A> 9=** #>A= )9('4 )44(=

Other 2nformation

Segment +ssets


ii !ther Banking

!perations

iii Gnallocated $ssets

#@@

#==

#=?

'(5=(

)=?9?'

))5()

#@@

#==

#=?

'(5=(

)=?9?'

))5()

)95)59

)??*95=

)49'?

/otal +ssets #?@A? )95*(4= #?@A? )95*(4= )5'''9'

Segment *iabilities


ii !ther Banking

!perations

iii Gnallocated

Liabilities

##@=#

#=?=?!A

#!@!?

)9

)=?'49'

'9=5'

##@=#

#=?=?!A

#!@!?

)9

)=?'49'

'9=5'

)?)?

)?=*9(*

=?99(

/otal *iabilities #?@A? )95*(4= #?@A? )95*(4= )5'''9'

-.?-



CONCLUSION

Karnataka Ltd. a premier pri"ate sector Bank in &ndia% incorporated in the

ear )'? with a modest capital of <s.))%9*( has grown b leaps and

bo#nds in ke areas of banking thanks to its +hareholders% #stomers and

well wishers.

Karnataka Bank Ltd. has registered a net profit of <s. )*(.5 crore for the

months period ended =)st December (4 as against <s. )9(.'4 crore for

the corresponding period last ear% showing an increase of '(.?'F. The

profit for the third 1#arter showed an increase of '*.)'F o"er

corresponding 1#arter of the pre"io#s ear from <s.9=.** crore to

<s.5.(= crore. !n a ear-on-ear basis% the total b#siness growth was at

)4.5'F with deposit growth of )5.45F and ad"ances growth of )*.5F.

$s at =)st December '((4% the deposits stood at <s.)9(= crore and

ad"ances at <s.)(?)? crore as against <s. )=5'( crore and <s.*49? crore

as at =)st December '((5.

The aggregate in"estments stood at <s. 94?* crore as at =)st December

'((4. The D ratio stood at 59.?*F.

The net interest income for the nine months period has increased from

<s.') crore to <s. =9) crore.

The apital $de1#ac ratio stood at )=.))F. The net N;$ stood at ).'=F

as at =)st December '((4 compared to ).=5F of the corresponding period

of the pre"io#s ear. <et#rn on assets stands at ).?)F.

$s on date% all the ?)5 branches are networked #nder core banking

sol#tion co"ering )((F b#siness.

-.@-





BIBILIOGRAPHY

B.+. <aman - Banking Theor

M.L. +eth - Mone banking and &nternational Trade

I.B. 6ansa - Banking Theor

*=rd $nn#al <eport of Karnataka Bank Ltd.

Documents

New Karnataka