SYNOPSIS ON THE PROPOSED PROJECT WORK ON

THE TOPIC ENTITLED

“A STUDY FUND AND CREDIT MANAGEMENT AT KARNATAKA
GRAMINA BANK
Submitted to St joseph Evening college in partial fulfillment of the
requirement for
The Award of the degree of
MASTER OF COMMERE

SUBMITTED BY
Kumar KN
(REG NO 19sjem017)
Under the guidance of
PROF.RAVI RICHARD
DEPARTMENT OF COMMERC
 “A STUDY ON FUND AND CREDIT MANAGEMENT AT KARNATAKA
GRAMEENA BANK”

TITLE OF THE STUDY

A STUDY ON FUNDS MANAGEMENT AT KARNATAKA GRAMEENA BANK

INTRODUCTION
To start with performance in terms of profitability is a benchmark for
any business enterprise. This chapter includes the theoretical background
of ratio, ratio analysis, forms, steps, and its meaning and definitions, types
of comparisons etc.

The main objective of the research was credit management of Rural Bank of
Karnataka. Specific objectives were to investigate how non- Supervision of
borrowers influences the loan repayment, to establish how the diversion of loan
funds by borrowers leads to default in loan repayment, to examine the mechanism
of granting loans at Rural banks and to ascertain the problems encountered by
Rural banks in credit recovery. The study adopted a descriptive research design
which assisted to examine the objectives of the study. The study found out that the
loan repayment default was as a result of non-supervision of borrowers of the bank
staff, and also as a result of inadequate training of borrowers on utilization of loan
funds before they received loans. The findings also revealed that most borrowers
did not spend the loan amount on intended and agreed projects. It came out that
there are gaps in the credit management of the bank, which requires immediate
response to safeguard the future of the bank. The study recommends that for the
bank to reduce default in loan repayments, they should monitor the borrowers
regularly so as to ensure that they use the loans they received for the agreed and
intended purpose. Also training of borrowers before and after receiving loans
should be done focusing on areas such as business management, bookkeeping and
savings. Finally, the study recommends that since there is weakness in the credit
management system of the bank staff should be trained in modern and efficient
appraisal and recovery method. Further studies should be done on how credit
management can increase financial stability of Rural banks in Karnataka. This will
offer a broad analysis on impact of credit on profitability in Karnataka.

REVIEW OF LITERATURE/ GAPS

1) Swaranjeet Arora (2013) made an attempt to identify the factors that contribute
to credit Risk Analysis in Indian banks and to compare Credit Risk Analysis
practices followed by Indian public and private sector banks, empirical study
has been conducted and views of employees of various banks have been
tested using statistical tools. Present study explored the phenomenon from
different perspectives and revealed that Credit Worthiness analysis and
Collateral requirements are the two important factors for analyzing Credit Risk
from the descriptive and analytical results, it concluded that Indian banks
efficiently manage credit risk. The result also indicate that there in significant
difference between the Indian public and private sector banks in Analyzing
Credit Risk
2) Dr Yogieta S Mehra (2010) analyzed the impact of size and ownership of
banks on the range of operational risk management practiced by the banks
through execution of survey comprising of a questionnaire. The study aimed
to explore the range of practices used by Indian banks in management of
operational risk essential for achievement of advanced measurement
Approach ( hereafter referred to as AMA) for a cross section of indian banks
and perform a comparative analysis with AMA compliant banks worldwide.
The analysis was performed to extract the most important variables which
differentiate performance of one bank from other. The study provides a
conclusive evidence of heightened awareness and due importance given to
operational risk by indian banks. Size was observed to be a deterrent to
collection of external loss data, deeper level of involvement of operational
 risk functionaries, data collection and analysis. The practices of average and
small sized public sector and old private sector banks were observed to be
lagging behind that of new private sector banks in usage of BEICF’s (RCSA,
KRIs) usage of scenarios, updating of these indicators and collection and
usage of external loss data. Wide gap was observed in the range of practices
followed by indian banks and the AMA compliant banks worldwide.
3) Bodla, B S, Verma, Richa(2009) designed a paper to study the implementation
of the credit Risk Management Frame work By Commercial Banks in india.
The results shows that the authority for approval of credit Risk vests with
‘Board of Directors’ in case of 94.4% and 62.5% of the public sector and
private sector banks respectively. This authority in the remaining banks,
however is with the credit policy committee for credit Risk Management most
of the banks ( if not all) are found performing several activities like industry
study periodic credit calls, periodic plants visits developing MIS, risk scoring
and annual review of accounts However the banks in India are abstaining
from the use of derivative products as Risk hedging tools. The survey has
bought out that irrespective of sector and size of banks, credit Risk
Management framework in India is on the right track and it is fully based on
the RBI’s guidelines issued in this regard.
4) Diction O B Satish Kumar (2007) in their study evaluated the financial
performance of Indian private sector banks. Private sector banks play and
important role in development of Indian economy. After liberalization the
banking industry underwent major changes. The economic reforms totally
have changed the banking sector. RBI permitted new banks to be started in
the private sector as per the recommendation of narasimhman committee the
Indian Banking industry was dominated by public sector banks. But now the
situation has changed new generation banks with used of technology and
professional management has gained a reasonable position in the banking
industry. It summarized that ICICI Banks employees are those who
generate more profits. Similarly the operating profit is the highest among the
 private sector banks.

Ajit and Banger (1998) in their paper entitled “The Role and performance of
private sector banks in India 1991-92 to 1996-97” presented the tabulation of
performance of the private sector banks vis a vis public sector banks over the
period 1991-1997 using a number of indicators profitability ratio interest spread
capital adequacy ratio and the net NPA ratio. The conclusion is that Indian private
banks outperform public sector banks. What is of interest?, however is that they
find Indian private banks have higher returns to assets in spite of lower spreads

OBJECTIVES OF THE STUDY

1. To examine the impact of credit management on the profits of
the bank. (using interest earned – interest paid and Return on
investment)

2. To examine the effects of non performing on gross

advance and net advances on the profitability of the
bank

3. The Impact of Capital Adequacy Ratio on the Performance of the Bank.

Objectives need to be changed as I had suggested

during the meeting. Its sequencing also needs to
be changed.
RESEARCH DESIGN

● Statement of the problem (not mentioned anywhere)

● Objective of the study
● Scope of the study
● Limitations of the study
● Methodology of the study ( this needs more details )
● Research instruments
● Operational definitions of the concept where have included ?

SCOPE OF THE STUDY

The scope of the project is limited to the study and analysis of funds
management at Karnataka grameen bank. The study is analytical in
nature as the financial position of last 3 years is analyzed. Past figures
of balance sheet are analyzed to find out the overall management of
available fund in the bank. Since the study involves financial data, no
primary data can be collected and the available data are secondary in
nature. The data collected are within a period ranging from 2017 to
2019. Various management tools are used to find out the liquidit
\
LIMITATIONS OF THE STUDY
The study would be subjected to the following limitations.
 ⮚ The study would be based on the annual reports of the company.
⮚ The study concentrates only with the financial analysis.
⮚ The project period is short due to lack of time.
⮚ There are some facts and figures which are considered to be confidential and
hence complete data is not available.
⮚ The study would be based on information given by company officials.

METHODOLOGY OF THE STUDY

The research is analytical in nature within which the research is
conducted. It consists of collection of both primary and secondary data.
The collected data was be analyzed with the help of statistical tools and
efficient of techniques used as derivatives, percentage whenever
necessary the data was be presented by using tables chart diagram and
graph.

The study was started with a discussion with the Manager at Kaveri
Grameena Bank. – DESCRIPTIVE RESEARCH

Primary data

Interact with Karnataka gramina bank staff members in Service Department with the
form of Informal Interview.

Secondary data

The sources of secondary data are published materials such as Bank records, text
books, internet, Magazines and annual reports of Karnataka gramin bank