Professional Documents
Culture Documents
Praveen Kumar Shetty Karnataka Bank Project
Praveen Kumar Shetty Karnataka Bank Project
Praveen Kumar Shetty Karnataka Bank Project
COLLEGE, KUNDAPUR
CERTIFICATE
This is to certify that Mr. Praveen Kumar Shetty is a
student of Final Year B. B. M. 2007-08 of this institution.
This
project
report
Titled
PROJECT
REPORT
has
been
prepared
by
him
in
ON
LTD.,
partial
Lecturer,
Department
of
Commerce
and
Business Management.
Guide
Date:
Place: Kundapura
Principal
DECLARATION
I
Mr.
PRAVEEN
KUMAR
BHANDARKARS
ARTS
SHET TY ,
AND
SCIENCE
student
of
COLLEGE,
B. B. M. 2007-08 do hereby
previously
formed
the
basis
for
the
reward
of
any
of
Ms.
MAMATHA,
Lecturer,
Department
of
EXECUTIVE SUMMARY
Name of the organization :
Methodology :
Data collection is a step in the preparation of project report.
The information is collected in the following manner.
Primary Sources :
Data is collected by the interacting with the bank Managers and
Officers.
Secondary Sources :
The data is collected for report by various records maintained
and standing orders of the banks which help us for preparing
this reports. A lot of data were also collected by referring to
magazines and news paper, annual reports of bank.
Objectives :
ACKNOWLEDGEMENT
I am very much beholden to Mangalore University for this
wonderful opportunity to undertake the Project Study as a part of
the fulfillment of Bachelors Degree in Business Management.
My grateful thanks are due to Prof. Narayan Rao. The
Principal, Bhandarkars Arts and Science College for extending the
necessary support in the preparation of this project.
A particular word of thanks is due to Prof. Shantharam,
H.O.D. of Commerce and Business Management and other faculty
members for their useful tips and encouragement. My esteemed
guide, Ms. Mamatha, Lecturer in Business Management, deserves
all appreciation and thanks for patiently and efficiently guiding
me throughout the preparation of this project.
I thank Mr. V.S.N. Karanth, Deputy General Manager, K.
Manoha,Chief Manager Mr. Sham Bhat, Manager and Ms. Sudha,
Officr Karnataka Bank Ltd. for giving me the opportunity to do my
summer training at their organization.I am extremely grateful to
Mr. Vijay Shanker Rai, AGM, Karnataka Bank Ltd. Mumbai, for his
words of wisdom, encouragement and the interest he had to
Submitted By
CONTENTS
1. Industry Profile
2. Company Profile
3. Products and
Services Profile
4. Schemes Evolved
by Karnataka
Bank Ltd.
5. Subsidiary
Services of
Karnataka Bank
6. Annexure
7. Conclusion
8. Bibliography
1-7
8-20
21-62
63-66
67-72
73-81
82-83
84
INDUSTRY PROFILE
Money lending in India is an age old profession with a history of about
200 years. In the late 18th century, Tippu Sulthan, was accredited to have
conceived the idea of organising banking as a part of state machinery for
extending credit facilities to the needy at an affordable rates. At the end of late18th century, there were hardly any bank in India in the modern sense of the
term. At the time of the American Civil War, a void was created as the supply
of cotton to Lancashire stopped from the Americans. Some banks were opened
at that time which functioned as entities to finance industry, including
speculative trades in cotton. With large exposure to speculative ventures, most
of the banks opened in India during that period could not survive and failed.
The depositors lost money and lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive domain of Europeans
for next several decades until the beginning of the 20th century. The first bank
which was established in India was General Bank of India which came into
existence in 1786 which was followed by the Bank of Hindustan. Both these
banks are now defunct. The oldest bank in existence in India is the State Bank
of India being established as "The Bank of Bengal" in Calcutta in June 1806. A
couple of decades later, foreign banks like Credit Lyonnais started their
Calcutta operations in the 1850s. At that point of time, Calcutta was the most
active trading port, mainly due to the trade of the British Empire, and due to
which banking activity took roots there and prospered. The first fully Indian
owned bank was the Allahabad Bank, which was established in 1865.
By the 1900s, the market expanded with the establishment of banks such
as Punjab National Bank, and Bank of India, in 1906, both of which were
founded under private ownership. The Reserve Bank of India formally took
over the responsibility of regulating the Indian banking sector from 1935. After
India's independence in 1947, the Reserve Bank was nationalized and was
given broader powers. .
-1-
HISTORY
The English word bank is derived from the Italian word Banaco,
the Latin word Baacus and the French word Banque which means a
bench. The word is also derived from the German word Bank, which
means a joint stock company fund (i.e. heap money), rose from a large
number of members of the public.
Bank in one from or another was in existence even in ancient
times. The writings of Manu (the maker of old Hindu law) and Kautilya
(the minister of Chandragupta Maurya) and the teachings of Christ
contained references to banking activities in Babylonia much before
Christ.
However modern banking is of recent origin. It came into existence
only after the industrial revolution. After the industrial revolution, with
the increase in the size of industrial and business units, joint stock
company form of business organization came into existence. This form of
organization encouraged people with small incomes to become
shareholders of big industrial and business enterprises .Still, there were
certain section of the public who were not prepared to invest their money
on the shares of joint stock companies. But they were willing to part with
their surplus money, if they were assured of the repayment of their money
with some interest thereon. So, naturally there arose the need for the
formation of financial institution that could collect the surplus funds of
the people on terms acceptable to them and make them available to the
needy for productive purpose.
-2-
Definition
A Banking company in India has been defined in the Banking
companies Act, 1949 as Which transacts the business of Banking,
which means accepting for the purpose of lending or investment, of
deposits of money from the public repayable on demand or otherwise
and with draw able by Cheques, drafts, orders or otherwise.
Business of Banking
Banking is a business and like any other business the aim is the
maximisation of profits through customer service. The two main
products are Deposits and Loans. On Deposits it pays interest whereas
on Loans it charges interest and the rate on Deposits is always lower
than the rate of Loans. The difference between these two constitutes
the banks income.
Banking is a business but profiteering is absent here. It is a unique
business of pooling together the savings of the community scattered
all over and from the very same pool granting loans to the needy in the
society. Thus it acts as a link between the savers and the needy. This
unique service is often called public utility service. In the common
mans parlance it is definitely a social service.
-3-
Post-Independence
The partition of India in 1947 had adversely impacted the economies
of Punjab and West Bengal, and banking activities had remained
paralyzed for months. India's independence marked the end of a
regime of the Laissez-faire for the Indian banking. The Government of
India initiated measures to play an active role in the economic life of
the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into
greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking
included.
-4-
Nationalisation
By the 1960s, the Indian banking industry had become an important
tool to facilitate the development of the Indian economy. At the same
time, it has emerged as a largest employer, and a debate has ensued
about the possibility to nationalize the banking industry. Indira
Gandhi, the-then Prime Minister of India expressed the intention of
the Government of India in the annual conference of the All India
Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalisation." The paper was received with positive enthusiasm.
Thereafter, her move was swift and sudden, and the Government of
India issued an ordinance and nationalised the 14 largest commercial
banks with effect from the midnight of July 19, 1969. Jayaprakash
Narayan, a national leader of India, described the step as a
"masterstroke of political sagacity." Within two weeks of the issue of
-5-
the ordinance, the Parliament passed the Banking Companies Bill, and
it received the presidential approval on 9th August, 1969.
A second dose of nationalisation of 6 more commercial banks
followed in 1980. The stated reason for the nationalisation was to give
the government more control of credit delivery. With the second dose
of nationalisation, the Government of India controlled around 91% of
the banking business of India.
After this, until the 1990s, the nationalised banks grew at a pace of
around 4%, closer to the average growth rate of the Indian economy.
Liberalisation
In the early 1990s the then Narasimha Rao government embarked on a
policy of liberalisation and gave licences to a small number of private
banks, which came to be known as New Generation tech-savvy banks,
which included banks such as UTI Bank, ICICI Bank and HDFC
Bank. This move, along with the rapid growth in the economy of
India, kick started the banking sector in India, which has seen rapid
growth with strong contribution from all the three sectors of banks,
namely, government banks, private banks and foreign banks.
Opportunities a Head
Currently, overall, banking in India is considered as fairly mature in
terms of supply, product range and reach-even though reach in rural
India still remains a challenge for the private sector and foreign banks.
Even in terms of quality of assets and capital adequacy, Indian banks
-6-
-7-
COMPANY PROFILE
a) Back ground and inception of the company.
Karnataka Bank Ltd, a leading A Class scheduled commercial Bank
in India, was incorporated on Feb 18 th 1924 with a registered office at
Mangalore. The Bank commenced its business on 23 rd May 1924 with
an Initial Paid up Capital of Rs. 11,580 contributed by 113
shareholders. Sri.B.R.Vyasaraya Achar was the first president of the
Bank.
Clause states that the Bank apart from carrying on the general function
of Banking business, would set apart and appropriate from the annual
net profit towards the general, mental, moral
and physical
-8-
Karnataka Ltd on Dec 29th 1966.,. In the year 1969 the Bank opened
its 75th branch where its deposits crossed Rs. 10 Crore mark to reach
Rs. 12.63 Crores, Advances were at Rs. 8.90 Crore and Net profits
were Rs. 3.05 Lakhs.
In year 1971 the Bank opened its first branch in the countrys financial
capital. The following year the Bank was elevated to A class by the
Reserve Bank of India. In its Golden Jubilee year of its operation the
Banks total deposits were Rs. 33.14 Crores and Advances were Rs.
22.09 Crore with 146 branches and 126 employees. In 1977 Karnataka
Bank Ltd., adopted the star symbol as its unique visual identity
symbol. A product of Late Dr. Shivarama Karanth, it symbolises
stability, discipline, harmony and confidence. The
Staff Training
opened on 1st April 1995. The Bank made it into the stock markets on
-9-
October 1995 with a public issue of Rs. 81 crores which was over
subscribed by about 2.5 times despite depressed market condition.
During the year 2003, the Bank has taken up corporate agency for
marketing the various life policies of Met Life India Insurance
Company Ltd.; it has also taken up corporate agency of Bajaj Allianz
General Insurance Co. Ltd for marketing general insurance products.
The banks all round excellence in the twin parameters of growth and
stability has earned it rich laurels in the form of P1+ rating for
certificate of deposits from CRISIL.
b)
that Banking means money lending and that a Banker is not but a
glorified Money lender. But Banking is not money-lending as money
lender does not take the risk whereas the Banker does. Bank is into
pooling together the savings of the community scattered all over and from
the very same pool granting loans to the needy in the society. Thus it acts
as a link between the savers and the needy. Thus the two main products of
the Bank are Deposits and Loans.
c)
Vision
Bank is a professional managed with good track record of customer
loyalty and consistent profitability. The bank has the resilience to face
the new challenges successfully and achieve the goals in vision by its
management. Adopting ethical management practices, Bank reiterates
its commitment to fulfill national and social priorities, present sound
-10-
financial and above of all else improve and innovate to meet the
challenges posed by a customer driven banking industry.
Mission
The Mission statement of any organisation generally represents its
long term goals and strategies. Every organisation must have its own
mission, which describes present business scope of the organisation.
The mission statement of Karnataka Bank Ltd is as follows.
To be a technology savvy, customer centric progressive bank with a
national presence, driven by the highest standards of corporate
governance and guided by sound ethical values.
Quality Policy
The Quality policy of Karnataka Bank Ltd is of providing
Quick and Better service and their by achieving Customer Satisfaction.
Corporate Goal
The Bank has envisaged to achieve a total business turnover
of Rs. 28, 500 Crore, comprising of a deposit target of Rs. 17, 000 crore
and advance target of Rs. 1, 500 Crore for the year ending March 31,
2008. The Bank is confident of achieving the same through better
customer services and operational efficiency. Besides, the Bank has plans
to increase its total number of business units to 580, by increasing the
total number of branches to 430 and own ATM network to 150 by March
2008
d)
Product/Service Profile
-11-
-12-
latest annual Net income plus depreciation provided if any, as per P&L
a/c in the case of traders /self employed persons/professionals Or Rs.
75.00 Lakhs. Whichever is less
The
quantum
of
loan
provided
in
the
case
of
/purchase
of
house/
flat.For
repairs
KBL-VARTHAK LOAN
Was formulated during February 2000, for financing
-13-
2.
3.
Accountants,
-14-
and insurance.
2. And for Second hand Vehicle: The vehicle should not be older
than 3 years from the date of registration of the vehicle.
Maximum amount of loan is Rs. 5.00 Lakh
The loan has to be repayed within 60 months in case of new vehicle
and 34 months in the case of second hand vehicle
VIDYANIDHI EDUCATIONAL LOAN SCHEME
Was introduced in the year 1998 on the occasion of platinum Jubilee
Year of the Bank .The scheme was designed to provide financial
support to the deserving and meritorious students for continuing their
studies in India and abroad.
The amount of loan facility which are provided for students Studying
in India is a Maximum of Rs. 7.50 Lakh and for students studying
abroad it is a Maximum Rs. 15.00 Lakh
Repayment holiday/moratorium is course period +1 year or 6 months
after getting job in earlier. The interest to be debited on simple basis
during repayment holiday/moratorium period. There after on
compounding basis with monthly rests. The loan to be repaid in 5 to 7
years after commencement of repayment.
-15-
-16-
in case of
-17-
between5-7 years.
Scheme to Cover the Loans for General Credit card in Rural and Semi
urban branches
As advised by the RBI to scheduled commercial banks , for providing
hassle free credit to the individuals in rural and semi urban areas, it is
proposed to introduce a General Credit Card scheme in the rural and
semi-urban branches of India.
The Scheme is in the nature of any operative working capital account i.e.,
in the nature of revolving credit, with no stipulation as to end use. The
GCC holder can draw cash from his OD account up to the limit
sanctioned. A cheque book may also be issued, if the borrower so insist
Under the GCC, proper assessment of working capital requirement of an
individual is to be made based on the income proof and cash flow
statement submitted along with his /her application similar to that
prevailing under normal credit assessment. Maximum limit is restricted to
Rs. 25, 000
-18-
Kisan Seva
Kendras
The following are the objectives for which the KSKs was introduced
Making diesel as well as the facilities / items required by the
Kisan available to him under one roof at his door steps at least
cost.
Providing gainful employment opportunity to rural people.
Fulfilling the corporate responsibility towards rural development
-19-
-20-
PRODUCTS
Motor Spirit (MS i.e. petrol) facility:
The KSK are primarily meant to be having High Speed Diesel or HSD
facility. However, based on the potential of the site, the state HEAD ( of
the oil company) may take a decision to provide MS facility also
-21-
1 KL = 1000 Litres )
-22-
-23-
DEPOSIT PRODUCTS:
Karnataka Bank Ltd aims to help customers build on a strong foundation
by maximizing returns on investments and increasing their assets.
Customers. can make use of their customized products to take care of
their specific banking needs.
-24-
Cumulative deposit
A monthly deposit scheme whereby a fixed amount is to be
contributed monthly for a minimum period of 6 months and a
maximum period of 10 years. This is an ideal scheme to save a fixed
amount for future plans such as education, buying a home etc.
Insurance linked savings Bank deposit
By maintaining a stipulated minimum balance in SB account,
customers become entitled to free accident insurance coverage of up
to Rs. 2 lakh and Rs.10,000/-
towards reimbursement
of
-25-
NRI Services
There are a wide range of deposit schemes for Non-Resident Indians.
It includes non resident rupee account, foreign currency non resident
(Bank) scheme (FCNR [B]) and non resident (ordinary) account
(NRO) with very attractive and competitive rates. Resident foreign
currency (RFC) (deposit) account for returning Indians is also
available.
Area of Operation
The bank at present has 410 branches, 106 ATM outlets, 7 Extension
counters, 8 regional offices, 1 International Division, 1 Data Center, 4
Service Branches, 2 Currency Chests, Spread over 19 States and 2 Union
territories.
-26-
Ownership Pattern
The share holding pattern in Karnataka Bank Ltd is as given below in the
form of table
Table No: 1.1
Showing the ownership pattern in Karnataka Bank
Total
Shareholding
Category
Category of
Number of
code
shareholders.
shareholders.
Total
number of
shares
Number of
shares held in
dematerialized
form
As a % of
total
number of
shares
As a % of
A&B
Shareholding of
A
promoters and
3318446
3318446
2.74
promoters Group
Public
shareholding
(1)
Institutions
(a)
Mutual
-27-
Funds/UTI
(b)
Financial
518584
518584
0.43
1386231
1386231
1.14
39
36968417
36968417
30.47
Any other
Sub-Total (B)(1)
60
42191678
42191678
34.78
983
15675120
15675120
12.91
institutions/Banks
Central
(c)
Government/State
Government
(d)
(e)
(f)
(g)
(h)
Venture Capital
Funds
Insurance
Companies
FIIs
Foreign Venture
Capital Investors
(2)
Non-Institutions
(a)
Bodies Corporate
-28-
Individualsshareholders
(b)
holding nominal
67226
43932427
24563463
36.21
673
19544323
16265423
16.10
68882
79151870
56052195
65.22
68942
121343548
98243873
100.00
68942
121343548
98243873
100.00
share capital of
upto Rs. 1 lakh
ii. Individualsshareholders
holding nominal
share capital in
excess of Rs. 1
lakh
Sub-Total (B)(2)
Total Public
shareholding
(B)=(B)(1)+(B)(2)
TOTAL(A)+(B)
-29-
Competitors Information
All the banks in India are competitors for the Bank. Some of the
major Competitors for the bank are.
-30-
-31-
number
of
small
banks-15
banks
between
1961
and
-32-
Infrastructural Facility
As regards to the infrastural facilities provided in Karnataka Bank
Offices
The Head office of Karnataka Bank Ltd has a central air condition system
which helps the employees to escape from the heat of Mangalore City.
Canteen
The Bank provides canteen facility to all its employees and it is situated
inside the Bank premises.
System
The Bank is one of the few banks in the country which uses Finical
Software which in turn helps the bank to serve its customers more
efficiently. The Bank also provides internet facility to its employees
-33-
Deposit
Application Review
and documentation
Processing
Cash
Cheque
Draft
Savings
Account
Current
Accounts
Department
Work Done
-34-
This is the work flow adopted by the bank at the time of receiving the
deposits from their customers.
The first step in this process is customer approaching the bank. When the
customers will have surplus money with them, they will be looking to
invest that money in some place where they can get good returns out of it.
Bank is one such place which accepts deposits from their customers and
pays interest on them. So the customers will be looking for that bank
which will pay them highest rate of interest on their deposits.
Once the customer identifies the bank where he is going to deposit his
amount, he has to go through the introduction stage, were the customer
needs to be introduced to the bank. He may be introduced to the bank by
the customer or an employee of that bank. He is asked for providing
documents like Ration card or any license for address, age & income
proof. Once the account is opened (i.e. Either S.B a/c, fixed deposits,
recurring deposits or current a/c) he/she will provide with facilities like
Cheque book, ATM or O.D if its a current a/c.
Once the customer opens an account in the bank he can deposit any
amount any number of times but in case of fixed deposit its one lump
sum amount deposited till its maturity it is not withdrawn. When amount
is deposited it goes to the hands of cashier and then to cash supervisor
and then to his account, but now due to CBS the entry is given within a
minute.
The depositors are eligible to withdraw the amount which is credited in
their account and not more than that unless it is current account.
Depositors can withdraw as an when they need but in case of fixed
-35-
deposits prior 7 days notice to be given, but todays banker will not ask
for any notice just give it in the spot with penalty. The process of
withdrawal is reverse of depositing where from his account it goes to cash
supervisor from him to cashier finally to the hands of customer, again
traditional work flow. Now all are computerized where in one person
does all the activity. Customer can directly withdraw in ATMs or can
directly issue Cheques to the other party.
Process Map Advances:
The various stages of granting loan to customers is depicted below
Chart No: 2
Chart Showing the process map advances of Karnataka Bank
Customers
Customer Specific
Requirement
Filling of Application
Application Review
Decision
Reject
Documentation
Loan Disbursement
Repayment of interest
-36-
This is the work flow model followed by the bank at the time of giving
advances to their customers. Which involves the following series of steps,
they are:
Any party requiring funds through Bank first has to talk with the
respective manager of a branch of his area. One thing the manager has to
see that the amount of loan he has to sanction is in his power/ limit or else
he has to concern his higher authority. In this stage the process of
negotiation regarding rate of interest between party and Banker takes
place.
The important duty of a manager is to know his customer there are many
systematical techniques and process to know the real identification of the
customers. This is done mainly to avoid anti-laundering.
The purpose of loan to be sanctioned should be clearly understood either
by evaluating blue print of his project or balance sheet or performance
proof of his existing business. This is mainly done to make sure that
repayment of the amount is ensured and party wont become Bankrupt. In
case of personal loan evaluation of the person is done through other
person who is known to the Banker.
The party in need of loan is capable of withdrawing the amount not more
then the amount sanctioned to him.
Documentation deals with filling of forms that are in contractual form
and most of the documentation process could be seen in all the stage. It
also deals with submission of security for their loan and its formalities.
After the purpose of the loan is served, the party is obliged to repay the
amount incorporating PLR and other Bank charges or according to the
agreement
-37-
The
-38-
Chart No: 3
Chart showing
Mckensys 7S Model
-39-
1)
Structure
It prescribes the formal relationship that should exist among
various positions and activities. It is the duty of the top
management
to
design
the
organisation
structure
of
an
-40-
industrial
relations,
General
Manager,
planning
and
2)
Skill
Skills refer to the fact that employees have the skills needed to
carry out the companys strategies. Skillful employees are the
assets of the organization. Skills of the employees may be
improved by giving necessary training to them. The Bank believes
that skillful employees contribute to the Success of the Bank.
Development of human resource is an important factor for the
development of any industry. Banking is not an exception to that. It
involves various aspects like continuous training, rewards by way
of promotion, appreciations etc. The bank HRD policy is guided by
the Chinese Proverb If you are planning for one year, grow rice. If
you are planning for twenty years plant trees. If u are planning for
centuries , develop men.During the year 2006-2007,1424 officers,
517 clerks and 68 sub staff were given training under various
aspects to update/improve the knowledge. The officers of the bank
are also deputed at Bankers Training College, Mumbai, National
-41-
in
Banking
Technology,
Hyderabad.
Whenever
3)
517
At bankers Training
College (RBI) & other
Training colleges ( Officers )
At Work
shops &
Seminars.
260
455
68
Style
It is one of the seven levers which the top management can use to
bring about change in the organization. According to MC Kinseys
Framework, Becomes evident through the patterns of action taken
by the members of the top management team over a period of time.
The MC Kinseys Framework considers Style as more than the
style of top management.
Karnataka Bank Ltd. follows a Top to down style of management.
It also works in a participative style. The decisions are taken by the
top management concerning matters related to the organization.
The decisions relating to department matters are taken by the
departmental heads. The bank follows a democratic leadership
style which allows the employees to take part in the decision
making process. Employees are free to give any ideas, suggestions
-42-
etc, for the betterment of the organisation. This will be taken with
active consultation with the employees.
4)
Strategy
Strategy means action a company plans in response to or in
anticipation of challenges in the external environment. The
Karnataka Bank, in order to respond to the changes, has formed the
following action plan with specific reference to product, pricing,
and people
Retailing in Securities
-43-
5)
System
Computer System
Training System
Control System
Computer System
Karnataka Bank was the first bank to realize the importance of
Centralised Banking System and was the First to deploy Core Banking
system Finacle. A part from this the bank has computerised all activities
and branches so to provide quick service to its Customers.
Training System
In a service industry like bank, quality of the service offered to the
customers is very important. To provide such high quality service to its
customers, the bank trains its employees in various areas as well as in
advanced technology. The training is given at the Staff Training College
of the bank and by some specialized outside agencies.
Control System
The Bank has well defined control system in all critical areas of operation
i.e. corporate credit, forex, treasury, etc, which are documented and
reviewed from time to time. The bank has also a full-fledged internal
-44-
audit and inspection mechanism through which all branches are put under
regular inspection encompassing the whole range of activities i.e., Forex,
Customer Complaints, Income leakages etc.
6)
Staff
Staff means that the organization has hired able people trained them well
and assigned them to the right jobs. Staffs are human resources working
in an organisation. They are responsible for carrying out various activities
of the organisation effectively and efficiently. The Karnataka Bank has
well trained, devoted and skilled staffs who work very hard for the
success of the bank. The number of people employed by the bank stood at
4456 as on 31st March 2007. The Business per employee has improved
from Rs. 4.78 crores as on 31st March 2006 to Rs. 24 Crores as on 31st
March 2007.The Bank during the 2006-2007 recruited 74 new officers ,
198 clerks, and 32 sub staff.
Table No:2
Table showing the total staff position as on31-03-2007
Officer
s
As at the end of the Year
1594
-45-
Clerks
SubStaff
Total
2068
794
4456
198
32
304
7)
Shared Values
Shared values refer to the guiding concepts, values and
Customer Satisfaction
Honest in work
SWOT Analysis
Identification of the threats and opportunities in the environment and the
strengths and weakness of the firm is the cornerstone of business policy
formulation. It is these factors which determine the course of action to
ensure the survival of the firm.
The environment might present many opportunities but a company might
not have strength to exploit all the opportunities. Similarly, sometimes a
-46-
firm will not have the strength to meet the environmental threats. If a
company, thus, finds that it will not have the competence to survive in a
particular line of business, it will be prudent to give it up and concentrate
on such business for which the firm is most competent. The economic
liberalization in India in 1991 drastically changed the business
environment. Many Companies have exited several of their business and
have been concentrating on their core Business
Strengths
1. The factors that have contributed to the success of the Bank is its
workforce because the bank has highly educated workforce, young
and energetic employees within the age group of 25-45This helps the
Junior employees to learn from the experience of the
senior
employees
2. The Bank is professionally managed. The bank is one of the few
banks in India which gives importance to technology in order to
serve it customers better it is one of the few banks which uses finacal
softwares.
3. The Banks strengths lie in management capabilities, focused strategy,
speedy decision making.
4. There has been expansion of branches and ATM services by the bank
during the last few years.
5. The Banks provides good infrastructural facility to its to its staff and
help them to concentrate more on their job,
6. The Bank has introduced various schemes
-47-
Weaknesses
The weaknesses of the bank includes that the bank has majority of
the branches in the southern region.
The second Weakness of the bank is that of its aging work force.
Non-verification of Reserve Bank of India defaulters list while
processing credit proposals
Delay in follow up on various accounts
Bank had often involved in frequent cheque purchases of large
amounts beyond the discretionary power .
While opening foreign letter of credit opinion report of the
overseas party not obtained resulting in devolvement/likely
developments.
Delay in crystallisation of export bills discounted.
Sanction terms and conditions were not complied with in many
cases revealing inadequate/ineffective mechanism to monitor and
follow-up of such cases.
The stocks hypothecated to the Bank were not adequately
insured/not insured in some cases
There were instances of frequent returns of cheques and the
branches had not taken up the matter with the borrowers concerned
to maintain financial discipline.
-48-
Opportunities
The Growth potentials or the opportunities are very huge as the bank had
mainly concentrated on the southern region of the country in its earlier
years it has the opportunity to expand its business to other parts of the
country wherein it can increase its customer base. The bank by virtue of
becoming a member of ATM networks like VISA, NFS, Cash Tree,
besides continuing the bilateral arrangement with corporation Bank, has
enabled access to nearly 1 million ATMs and 25 Million POS across the
globe for its card holders. Bank is also facilitating inward remittance
facility through Western Union Money Transfer which has enabled vast
section of the population to receive hassle free remittance from abroad.
The bank is planning to enable Money Click as a payment gateway for
shopping that covers vast areas of business like Hotel Booking, Ticket
Booking, Purchase of goods etc. The Bank is also planning to introduce
mobile Top-up through ATMs and Internet Banking, besides launching
value additions like SMS alerts to Non-Money Click Customers, Utility
bill payment and Air ticket booking through ATMs. Further Bank is also
planning to tie up for online trading in shares. The Bank is planning to
increase the number of its ATMs to 150 by 31.03.2008.
Threats
As the bank majority business comes from the south any effect to
the economy here would have an adverse effect on the performance of the
bank. The Bank is relatively smaller when compared to other banks like
SBI and ICICI Bank and some others. Since its a smaller bank when
compared to heavy weights like SBI and corporation Bank the bank is
always under treat of being taken over by other banks.
-49-
Particulars.
ended 31.03.2007
ended 31.03.2006
Deposits
14037.44
13243.16
Advances
9552.68
7791.57
Investments
5048.16
5548.58
Total Income
1430.52
1184.84
Operating Profit
356.58
328.29
Net Profit
177.03
176.03
-50-
The total business turnover of the bank touched Rs. 23590.12 crores,
an increase of 12.15% over the preceding.
The total assets of the bank increased from Rs. 14953.27 crores to Rs.
16222.52 crore recording a growth of 8.49%
The Net interest income rose from Rs 365.97 crore to Rs.419.86 crore
thereby registering a growth of 14.73% due to growth in advances.
The operating profit increased from Rs. 328.29 crores to Rs. 356.58
crore showing a growth of 8.62%
Total Deposits of the bank grew from Rs. 13243.16 crores as on
31.03.2006 to Rs. 14037.44 crore as on 31.03.2007, registering a
growth of 6%
The total advances grew from Rs. 7791.57 crores as on 31.03.2006 to
Rs. 9552.68 crores as on 31.03.2007an increase of 22.60%
Agricultural advances increased from Rs. 737.33 Crores to 791.39
Crore.
The priority sector advances increased from 2772.20 Crores to Rs.
3058.90 Crores.
The total investment of the bank as on 31 st March 2007 stood at Rs.
5048.16 Crores as against Rs. 5548.58 Crores as on 31 st March 2006
showing a reduction of 9.02%.
The banking posted an operating profit of RS. 356.58 Crore for the
year as against 328.29 Crore for the Fiscal 2006.
-51-
Appropriations
The net profit of Rs. 177.03 Crore which along with a sum of Rs. 0.06
Crore brought forward from the previous year aggregated Rs. 177.09
Crore is appropriated as under. The corresponding figure for the previous
year was Rs. 296.04 Crores.
Table No: 4
Table Showing Appropriation of profits of the bank for the year
2006-2007
Appropriation
Rs. . in crore
107.00
1.38
Transfer
to
Revenues
and
19.00
General Reserves
Transfer to Proposed Dividend
49.69
177.09
-52-
Dividend:
The bank declared a dividend of 35% for the year which totaled Rs.
42.47 Crores, which is 16.74% higher than the amount distributed for the
year end 31.03.2006. The Dividend Payout ratio stood for the year stands
at higher at 23.99% as compared to 20.67% during the year 2005-06
Earning per share / Book Value
The Earning per share and the book value of the share stood at Rs. 14.60
and Rs. 102.08 Respectively as on 31st March 2007.
Net Owned Funds and capital Adequacy Ratio
The net owned funds of the bank increased from Rs. 1111.13 Crore to
Rs. 1238.63 Crore registering a growth of 11.47%. The capital adequacy
ratio decreased from 11.78% as on 31st March 2006 to 11.03% as on 31st
March 2007 after taking into account the market risk on investment as per
RBI guidelines. The bank has been consistently maintaining Capital
Adequacy Ratio well above the norm of 9% stipulated by the RBI.
Forex Business
During the year, Bank achieved foreign exchange business turnover of
Rs. 6101.16 Crore as against Rs. 4638.59 Crore for the previous year,
registering a growth of 31.53%. The advances to export sector increased
from 894.81 Crore to Rs. 1095.31 Crore
Advances to Priority Sector
The advances of the bank to priority sectors are shown below in the form
of a table
-53-
Table No:5
Table Showing Lending of the Bank to Priority Sector
(Rs. in lakh)
Number of
accounts at the
end of the year
Types of Advances
a) Agriculture
52219
Balance
outstanding at
the end of the
year
59295.59
115920.91
c)
5935.99
Setting up of
Industrial Estate
the 4
5398
3896.81
2766.27
f) Transport Operation
5456
13404.78
g) Education
2378
3715.53
h) Retail Trade
13755
14148.87
i) Housing Loans
11870
79542.43
j) Consumption loans
1627
781.65
1018
452.46
l) Food Processing
63
6028.28
Total
104766
305889.57
915
71603.36
-54-
Ratio Analysis
Ratio Analysis is a widely used tool of financial analysis. It can be
used to compare the risk and return relationship of a firm. It is defined as
the systematic use of ratios to interpret the financial statements so that the
strengths and weakness of a firm as well as its historical performance and
its current financial conditions can be determined. The term ratio refers
to the numerical or quantitative relationship between two items or
variables. The rationale of ratio analysis lies in the fact that it makes
related information comparable.
Total Advances
Total Deposits
-55-
Table No: 5
Table showing Total Advances to Total Deposits ratio
(000s omitted)
Particulars.
Mar 07
Mar 06
9552,67,99
7791,56,78
Mar 05
0.5883
6287,44,06
0.5802
Deposits ratio
It can be seen in the above table that there has been a steady
increase in total advances in proportion to total deposits from Rs. 0.58 to
Rs. 0.68. It can also be inferred that there has also been a steady increase
in the amount of deposits collected by the bank over the period of three
years. .
1) Total Investments to Total Deposits Ratio:
This ratio is generally expressed as a ratio between Total
Investment and Total Deposits. This ratio is to used to know what
proportion of the total deposits are used by the Bank for its
investments purpose such as Government Securities or Shares of
other companies. It can be expressed as follows:
Total Investments
-56-
Total Deposits
Table No: 6
Table Showing the Total Investments to Total Deposits Ratio
(000s omitted)
Particulars.
Mar 07
Mar 06
Mar 05
5048,16,44
5548,58,07
4555,71,67
Total Investments to
0.3596
0.4189
0.4203
-57-
Net Advances
Table No: 7
Table Showing the Net Non-Performing Assets to Net Advances Ratio
Particulars.
Mar 07
Mar 06
Mar 05
11602.50
9151.19
14329.54
7791.57
6287.44
1.1744
2.2790
1.2145
Advances
NPAs are those advances where the interest and advances have
been overdue for more than 90 days. The above table shown that there
has been a steep decrease in Non performing assets of Bank from 2.2790
in March 2005 to 1.2145 in March 2007 this shows that there has been an
increase in the efficiency of the Bank to collect its advances.
3)
-58-
Table No: 8
Table Showing the Return on Total Assets Ratio
(000 Omitted)
Particulars.
Mar 07
Mar 06
1770344
162225162 149532729
1760339
1.1772
Mar 05
1471464
125267181
1.1746
Total Assets
The data reveals that there has been a decrease on the return on total
assets from 1.1746 in 2005 to 1.0912.
4)
shareholders that is net profit after taxes and preference dividends, and
the number of equity shares. The more the EPS the better is the
performance and future prospectus of the company. This ratio throws
light on the performance of the company and helps in deciding whether
the equity share capital is being utilized effectively or not.
Net Profit available for Equity Shareholders
Number of Equity Shares
-59-
Table No: 9
Table Showing the Earnings per Share Ratio
(000s omitted)
Particulars.
Net Profit available
Mar 07
1770931
Mar 06
1760434
Mar 05
1471488
121262.41 121253.66
43206.743
EPS (Rs. )
14.60
34.05
14.518
The above data shows that there has been a decline in EPS of the bank
from Rs. 34.50 in 2005 to Rs. 14.60 in 2007. The decrease in the EPS is
due to the increase in share capital of the Bank.
LEARNING EXPERIENCE
The in-plant training was for four weeks. I had done my in plant in
Karnataka Bank Ltd, Mangalore. As there was limitation of time, the
study is done about the general information regarding the Karnataka
Bank.
In-plant training is really useful to know how class room study is applied
in the organisation. It is true incase of Karnataka Bank Ltd. Every
organisation before carrying out any task has to perform managerial
-60-
ii. The account remains 'out of order' for a period of more than 90
days, in respect of an overdraft/ cash Credit(OD/CC),
iii. The bill remains overdue for a period of more than 90 days in the
case of bills purchased and discounted,
iv. Interest and/ or installment of principal remains overdue for two
harvest seasons but for a period not exceeding two half years. in
the case of an advance granted for agricultural purpose, and
v. Any amount to be received remains overdue for a period of more
than 90 days in respect of other accounts.
-61-
1.
2.
3.
4.
5.
www.karnatakabank.com
6.
www.rbi.org
-62-
SCHEMES EVOLVED BY
KARNATAKA BANK LTD.
THE PHILOSOPHY
"To open a shop is easy but to keep it open is an art" - were the golden
words of noted philosopher Confucius. When we look back to the history
of coffee finance in our bank, we feel proud because there is a perfect
combination of the art and science.
THE ORIGIN
The origins of coffee cultivation in India goes back to around 1600 A.D.
when a Muslim Saint from India Baba Budan smuggled seven coffee
seeds out of Yemen on his way back from a pilgrimage, near
Chikmagalur. A picturesque town in Karnataka and this mountain now
popularly known as "Baba Budan Giri" and origin of coffee in India.
-63-
THE VISION
Born in the year 1924 at Mangalore the Karnataka Bank Ltd. was known
for its commitment to the common man. The Bank choose to find a new
path in the agricultural sector by financing this very needy but totally
neglected area during the pre independence itself. For Karnataka bank,
this transition period was not only critical but also historic it is all now
that the same RBI has made agricultural finance a priority sector and
earmarked a minimum of 18% of credit to agricultural sector. Hats off to
the great vision of late Sri K.S.N. Adiga and other founder directors who
were instrumental in showing a new path not only to the Bank but also to
the nation!
THE NETWORK
Encouraged by its early success in agricultural finance, the Bank started
its first branch in the coffee belt in the year 1957 at Koppa followed by
Balehonnur and Sunti Koppa in 1958 and then spread its tentacles to
Hassan in 1960 and the coffee town of Chikmagalore in 1966. Viz Hassan
and Chikmagalore. There after, there was no going back, as the Bank
opened more and more branches in the unbanked coffee areas of
Chikmagalore, Hassan and Kodagu districts. Today around 48 branches
of the bank are exclusively. Coffee curing trading export etc. Out of
170672 latch of coffee cultivated area in these 3 d3istricts, Bank has
financed fo3r 3mor3e than3 3537822 ha. The total outstanding Plantation
credit of the Bank has reached a new height of Rs.229 crores.
-64-
THE A.D.B.
All these strenuous efforts have culminated in designing the
Chikmagalore branch as the first "(ADB) of bank in 1995. Further in
order to provide modern banking facilities to the coffee exports is gave
more fillips to the coffee exports. The bank also designed the said branch
for crore business during 1977. The bank has created banking system i.e.
"Agriculture" and "Foreign Exchange Business" apart from the traditional
banking facilities.
-65-
SUBSIDIARY SERVICE OF
KARNATAKA BANK
Demand Draft
Mail Transfer
Telegraphic Transfer
Pay Order
-66-
SUBSIDIARY SERVICES
OF KARNATAKA BANK
The Karnataka Bank Ltd. has rendered lots of subsidiary services to its
Customer with reasonable service charges. Since its inception the Bank
has attached high priority to customer service. The main motto of the
Bank is "Service with a Smile". This motto added full benefits to its
slogan of "Growth with Stability".
Remittance of funds is major subsidiary service rendered by the Bank. It
has twin benefits of attracting new clients towards it and increasing its
commission, income.
The important Subsidiary services rendered by the 'Karnataka Bank Ltd.'
are as follows:
-67-
TELEGRAPHIC TRANSFER
In Telegraphic Transfer funds, are transferred from one branch to another
branch by coded telegraphic massage for payment to the beneficiary of
the TT by the drawee branch.
Telegraphic transfers can be made between branches, which have prior
arrangements in this regard. Branches can have reciprocal arrangements
for both outward and inward transfer or for either inward or outward
transfer only. The message should also contain the telegram serial number
pertaining to the receiving branch. The coded message should be
transmitted through telex.
The issuing branch should compare the confirmatory received from the
paying branch with the entry made in the Telegram Inward Register and
make a not of receipt of the confirmatory against the entry in the register.
If any discrepancy is noticed, it should be immediately followed up with
the other branch for necessary correction.
-68-
Payment due from the branch to the local parties / Banks, are also made
by issuing pay order. The commission is to be collected as applicable to
local drafts. Where a pay order is issued to third party at the request of
customer, the credit slip meant for DDs / MTs may be used. While
applying a pay order presented through clearing or across the counter for
payment or for credit of an account, it should be scrutinized in all respects
as in the case of cheques / drafts.
2.
The branch asks the hirer to fill in and sign a specimen signature
card, with his full name, address, specimen signature and a
password or a code word.
3.
4.
-69-
equipped with safes and storage rooms for the purpose of their business
modern bank is naturally a safe and convenient place to keep valuable in
safe custody.
MERCHANT BANKING
The RBI has allowed Indian Banks to undertake many ancillary services.
In addition to their main business of banking Merchant banking is among
one of the most important businesses now being undertaken by Banks.
-70-
-71-
-72-
ANNEXURE
Balance sheet of the last three years
Capital and Liabilities
March 05 March 06
March 07
121.25
121.27
121.35
121.25
121.27
121.35
0.00
0.00
0.00
Reserves
856.79
989.86
1,117.27
Revaluation Reserves
0.00
0.00
0.00
Net Worth
978.04
1,111.13
1,238.62
Deposits
Borrowings
243.66
182.69
Total Debt
11,080.72
13,425.85 14,458.18
424.19
420.74
534.05
Assets
-73-
687.68
535.39
826.82
684.80
679.22
334.69
Advances
6,287.44
7,791.57
9,552.68
Investments
4,555.72
5,548.58
5,048.16
Gross Block
196.21
219.52
235.50
Accumulated Depreciation
99.66
115.21
128.68
Net Block
96.55
104.31
106.82
0.00
0.00
0.00
Other Assets
230.25
302.10
361.68
Total Assets
Liabilities
Contingent Liabilities
2,040.08
2,412.70
3,427.90
363.36
463.09
672.88
80.66
91.62
102.07
Profit and loss account for the year ended 31st march, 2007
-74-
Table no.9
(ooos omitted)
For the year
ended
ended
ended
31.03.2005
31.03.2006
31.03.2007
Rs.
Rs.
Rs.
I. INCOME
Interest earned
839,93,33
1018,03,73
1256,25,04
Other income
221,14,86
166,80,15
174,27,27
Total
1061,08,19
1184,83,88
1430,52,31
Interest expended
523,04,35
652,06,63
836,39,05
Operating expenses
197,33,01
204,48,11
237,54,52
and 193,56,19
152,25,75
179,55,30
913,93,55
1008,80,49
1253,48,87
147,14,88
176,03,39
177,03,44
120,00,00
95
5,87
Total
296,04,34
177,09,31
106,00,00
107,00,00
1,25,46
1,38,21
II. EXPENDITURE
Provisions
contingencies
Total
III. PROFIT
from 0
Investment
Fluctuation Reserve
147,14,88
IV.
APPROPRIATIONS
Transfer to Statutory 90,00,00
Reserve
Transfer
to
Capital 0
-75-
Reserve
Transfer to Revenue 28,25,00
145,75,00
19,00,00
1,50,00
36,37,81
42,47,03
5,10,20
7,21,78
5,87
2,29
296,04,34
177,09,31
12,12,53,663
12,12,62,417
14.52
14,60
Reserve
Transfer
to
Other 1,20,00
Funds
Transfer to Proposed 24,24,81
dividend
Transfer to Tax on 3,44,12
proposed dividend
Balance carried over 95
to Balance Sheet
Total
Number
147,14,88
of
shares 4320,67,43
(Weighted
average)
Earning per share (Rs
per share of Rs. 10/each -see note No: 5
of schedule 17)
Basic & Diluted
34.06
Notes on account
Accounting Policies
-76-
AUDITED
Year
Ended
31.12.2007
31.12.2006
31.12.2007
31.12.2006
31.03.2007
Interest Earned
(a+b+c+d)
40546
32199
115011
90305
125625
a)
Interest/Discount
on
advances/bills
28862
21226
81930
57574
81352
b)
Income on
Investments
11383
10308
32210
30717
41270
c)
Interest on
balances with
Reserve Bank of
India and other
inter bank funds
268
240
788
1564
2516
d)
Others
33
425
83
450
487
7391
3971
17261
13329
17427
47937
36170
132272
103634
143052
28966
21695
79930
61205
83639
6823
5528
20736
17257
23755
3817
3024
11853
9733
12909
3006
2504
8883
7524
10846
2
3
4
5
Other Income
TOTAL INCOME
(1+
2)
Interest expended
Operating
exp
ense
s
(i+ii
)
i)
ii)
Employees Cost
Other operating
exp
ense
s
-77-
9
10
11
TOTAL
EXPENDITURE
((4+5) excluding
provisions &
Contingencies)
Operating Profit
befo
re
prov
isio
ns
&
cont
inge
ncie
s (36)
Provisions (other
than
tax)
and
Con
ting
enci
es
Exceptional Items
Profit (+)/Loss (-)
fro
m
Ordi
nary
Acti
vitie
s
befo
re
tax
(78-9)
Tax Expense
35789
27223
100666
78462
107394
12148
8947
31606
25172
35658
1050
619
2650
2300
8378
11098
8328
28956
22872
27280
4195
2940
10860
7845
9577
-78-
12
Net Profit
6903
5388
18096
15027
17703
6903
5388
18096
15027
17703
12135
12127
12135
12127
12135
(+)/
Los
s (-)
fro
m
Ordi
nary
acti
vitie
s
after
Tax
(1011)
13
Extraordinary
Item
s
(net
of
tax
exp
ense
)
14
Net Profit
(+)/
Los
s (-)
for
the
peri
od
(1213)
15
Paid up equity
shar
e
capi
tal
(Face Value Rs
10/-)
-79-
16
111727
Nil
Nil
Nil
Nil
Nil
13.11
11.83
13.11
11.83
11.03
Reserves
excl
udin
g
reva
luati
on
rese
rves
(as
per
bala
nce
shee
t of
prev
ious
acco
unti
ng
year
)
17
i)
Analytical Ratios
Percentage of
shar
es
held
by
Gov
ern
men
t of
Indi
a
ii)
Capital Adequacy
Rati
o
(%)
-80-
iii)
Earning per
sha
re
(EP
S)
(Rs)
a) Basic EPS
b) Diluted EPS
before
Extraordinary
items (net of Tax
expense)
b) ) Basic EPS
Diluted EPS
after
Extraordinary
items (net of Tax
expense)
* Not Annualised
iv)
18
NPA Ratios as on
date
a) Gross NPA
Net NPA
b) % of Gross
NPA
% of Net NPA
c) Return on
Assets* Not Annualised
Public
Shareholding
-No of Shares
-Percentage of
Share holding
5.69*
5.68*
4.44*
4.44*
14.91*
14.88*
12.39*
12.39*
14.60
14.60
5.69*
5.68*
4.44*
4.44*
14.91*
14.88*
12.39*
12.39*
14.60
14.60
37920
12825
3.56
1.23
0.38*
121343548
100%
38943
11883
4.32
1.36
0.35*
121260348
100%
-81-
37920
12825
3.56
1.23
1.05*
121343548
100%
38943
11883
4.32
1.36
0.99*
121260348
100%
38734
11604
3.95
1.22
1.15
121343548
100%
Notes:
1. 1.The Board of Directors have taken the above financial results for the quarter
ended 31st December 2007 on record at their meeting held on 30th January
2008.
2. The above results have been arrived at after considering usual and necessary
provisions as per RBI guidelines.
3. Provision for Employees Benefits for the quarter has been made on an
estimated basis pending actuarial valuation of the liability. Additional
provision (if any) required to comply with AS 15 (Revised) of The Institute of
Chartered Accountants of India has not been quantified.
4. The Bank has identified two-business segments viz Treasury and Other
Banking Operations and the Geographic Segments consist of the Domestic
Segment, as the Bank does not have any foreign branch. The segment results
are annexed.
5. During the nine months ended December 31, 2007, the ESOP Committee of
the Board of Directors has granted in aggregate 990200 stock options, grant
date being 21.08.2007 and 05.10.2007, to the employees of the Bank under
The Karnataka Bank Employees Stock Options Scheme 2006 (ESOS 2006) at
an exercise price of Rs 50 per share. These stock options would vest within a
period not exceeding three years in a graded manner i.e.40%, 30% and 30%.
Accordingly the Bank has transferred a sum of Rs 278.45 lakh being the
proportionate compensation expenses for the option of 40%.
6. Status of the shareholders complaints is as under:
Complaints
pending at the
beginning of the
quarter
Nil
Complaints
received during the
quarter
9
Complaints
redressed during
the quarter
9
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Complaints
pending at the
end of the
quarter
Nil
Segmentwise Results
PART A - Business Segment
For the three months period ended 31.12.2007
Particulars
UNAUDITED
Three Months Nine Months
ended
ended
31.12.2006
31.12.2007
Three
Months
ended
31.12.2007
Rs in Lakhs
AUDITED
Nine Months Year ended
ended
31.3.2007
31.12.2006
a)Segment Revenue
i) Treasury Operations
7552
5034
17622
16946
19867
40385
31136
114650
86688
123185
Total
47937
36170
132272
103634
143052
516
-1469
-2326
-1523
-4322
11266
10462
33358
26346
34294
Total
11782
8993
31032
24823
29972
684
665
2076
1951
2692
11098
8328
28956
22872
27280
4195
2940
10860
7845
9577
6903
5388
18096
15027
17703
b)Segment Results
i) Treasury Operations
Unallocated expenses
Profit before Tax
Income tax
Extraordinary
Profit/Loss
Net Profit
Other Information
Segment Assets
i) Treasury Operations
ii) Other Banking
Operations
188232
206930
188232
206930
156165
1638368
1349542
1638368
1349542
1448563
16374
11601
16374
11601
17524
1842974
1568073
1842974
1568073
1622252
181261
199959
181261
199959
149194
1646459
1342752
1646459
1342752
1438508
15254
25362
15254
25362
34550
1842974
1568073
1842974
1568073
1622252
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CONCLUSION
Karnataka Ltd. a premier private sector Bank in India, incorporated in the
year 1924 with a modest capital of Rs.11,580 has grown by leaps and
bounds in key areas of banking thanks to its Shareholders, Customers and
well wishers.
Karnataka Bank Ltd. has registered a net profit of Rs. 180.96 crore for the
9 months period ended 31st December 07 as against Rs. 150.27 crore for
the corresponding period last year, showing an increase of 20.42%. The
profit for the third quarter showed an increase of 28.12% over
corresponding quarter of the previous year from Rs.53.88 crore to
Rs.69.03 crore. On a year-on-year basis, the total business growth was at
17.62% with deposit growth of 16.76% and advances growth of 18.96%.
As at 31st December 2007, the deposits stood at Rs.15903 crore and
advances at Rs.10414 crore as against Rs. 13620 crore and Rs.8754 crore
as at 31st December 2006.
The aggregate investments stood at Rs. 5748 crore as at 31st December
2007. The CD ratio stood at 65.48%.
The net interest income for the nine months period has increased from
Rs.291 crore to Rs. 351 crore.
The Capital Adequacy ratio stood at 13.11%. The net NPA stood at 1.23%
as at 31st December 2007 compared to 1.36% of the corresponding
period of the previous year. Return on assets stands at 1.41%.
As on date, all the 416 branches are networked under core banking
solution covering 100% business.
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BIBILIOGRAPHY
B.S. Raman
Banking Theory
M.L. Seth -
V.B. Hansa -
Banking Theory
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