Brinda Project Final

A STUDY ON THE PERFORMANCE OF VIVID
DEPOSIT SCHEMES AT KARNATAKA GRAMIN

BANK
CHAPTER 1
INTRODUCTION
MEANING OF BANK
A bank is an intermediary that accepts deposits and channels those deposits into lending activities.
Banks are a fundamental component of the financial system, and are also active players in
financial markets. The essential role of a bank is to connect those who have capital (such as
investors are depositors) with those who seek capital (such has individuals wanting a loan, or
businesses wanting to grow)
DEFINITION OF BANK
Bank is an institution that deals in money. Prof Kinley defines a bank as “an establishment which
makes to individuals such advances of money as may be required and safety made and to which
individuals entrust money which is not required by them for use. A bank performs two important
functions:
I. Accepting of deposits and

II. Lending the deposits to the needy people
MEANING OF BANKING
Banking is generally regulated industry, and government restrictions on financial activities by

banks have varied over time and location. The current set of global standards is called Basel II. In
some countries such as Germany, banks have historically owned major stakes in industrial
corporations while in other countries such has the United States banks are prohibited from owning
non-financial companies. In Japan, banks are usually the nexus of a cross-shareholding entity
known as the keiretsu. In France, banks prevalent, has most banks offer insurance services (and
now real estate services) to their clients.
1 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

BANK
The most recent trend has been the advance of universal banks, which attempt to offer their
customers the full spectrum of services under the one roof. The oldest bank still in existences is
Monte die Paschi di Siena, headquartered in Siena. Italy which has been operating continuous
since 1742
DEFINITION BANKER
A person who is doing the banking business is called a banker. He must perform following
essential functions such as receiving deposits of various kinds, lending money or creating credit,
issuing cheques, honoring cheques and collecting cheques.
TYPES OF BANKS
TYPES OF RETAIL BANKS COMMERCIAL BANK
The term Bank’s activities can be divided into retail banking, dealing directly with individuals and
small businesses; business banking; providing services to mid-market business; corporate banking;
directed at large business entities; private banking; providing wealth management services to
individuals and families; and investment banking, relating to activities on the financial markets.
Most banks are profit making, private enterprise. However, some are owned by government, or are
non-profit organizations used for a normal Bank to distinguish it from an investment bank. After
the great Depression, the U.S. Congress required that banks only engage in banking activities,
whereas investment banks were limited to market activities. Since the two no longer have to be
under separate ownership, some use the term “Commercial bank” to refer to a bank or a division
of a bank that mostly deals with deposits and loans from corporations or large businesses.
 COMMUNITY BANKS
Locally operated financial institutions that empower employees to make local decisions to
serve their customers and the partners.
 COMMUNITY DEVELOPMENT BANKS

Regulated banks that provide financial services and credit to under -served markets or
populations.

BANK
 POSTAL SAVINGS BANKS
Savings banks associated with national postal systems.
 PRIVATE BANKS
Banks manage the assets to high net worth individuals.
 OFFSHORE BANKS
Banks located in jurisdictions with low taxation and regulation.
Many offshore banks are especially private banks.
 SAVINGS BANK
In Europe, savings banks take their roots in the 19th or sometimes even 18th century. Their
original objective was to provide easily accessible savings products to all strata of the
population. In some countries, savings banks were created on public initiative; in others,
socially committed individuals created foundations to put in place the necessary
infrastructure. Nowadays, European savings banks have kept their focus on retail banking:
payments, savings products, credits and insurances for individuals or small and medium-
sized enterprises. Apart from this retail focus, they also differ from commercial banks by
their broadly decentralized distribution network, providing local and regional outreach and
by their socially responsible approach to business and society.
 BUILDING SOCIETIES AND LANDS BANKS

Institutions that conduct retail banking.
 ETHICAL BANKS
Banks that prioritize the transparency of all operations and make only what they consider
to be socially-responsible investments.

BANK
ROLE OF COMMERCIAL BANK
The commercial role of banks is not limited to banking, and includes:
1. Issue of banknotes (notes issued by a banker and payable to bearer on demand) processing
of payments by way of telegraphic transfer, EFTPOS, internet banking or other means.
2. Issuing drafts and bank cheques.
3. Accepting money on term deposit
4. Lending money by way of overdraft, installment loan or otherwise providing documentary
and standby letters of credit (trade finance), guarantees, performance bonds, securities
underwriting commitments and other forms of off-balance sheet exposures safekeeping of
documents and other items in safe deposit boxes.
CURRENCY EXCHANGES
Acting as a 'financial supermarket' for the sale, distribution or brokerage, with or without advice,
of insurance, unit trusts and similar financial products.
ECONOMIC FUNCTIONS OF BANKS
The economic functions of banks include:
Issue of money-In this form of bank notes and current accounts subject to cheques or payment at
the customer’s order. These claims on banks can act as money because they are negotiable and /or
repayable on demand, and hence valued at par. They are effectively transferable by mere delivery,
in the case of banknotes, or by drawing a cheque that the payee may bank or cash.
Netting and settlement of payments- banks act as both collection and paying agents for
customers, participating in interbank ok clearing and settlement systems to collect present, be
presented with and pay payment instruments. This enables banks to economies on reserves held
for settlement of payments, since inward and outward payments offset each other. It also enables
the offsetting of payment flows between geographical areas, reducing the cost of settlement
between them. Credit intermediation- banks borrow and lend back-to-back on their own account as
middle men.

BANK
Credit quality improvement- banks lend money to ordinary commercial and personal borrowers
(ordinary credit quality), but are high quality borrowers. The improvement comes from
diversification of the bank’s assets and capital which provides a buffer to absorb losses without
defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the
bank gets into difficulty and pledges assets as security, to rise the funding it needs to continue to
operate, this puts the note holders and deposits in an economically subordinated position.
MATURITY TRANSFORMATION- bank borrow more on demand debt and short term debt,
but provide more long term loans. In other words, they borrow short and lend long. With a
stronger credit quality than most other borrowers, banks aggregating issues ( e.g. accepting
deposits and issuing banknotes) and redemptions ( e.g. withdrawals and redemptions of
banknotes), maintaining reserves of cash, investing in marketable securities that can be readily
converted to cash if needed, and raising replacement funding as needed from various sources ( e.g.
wholesale cash markets and securities markets).
MEANING OF DEPOSIT ACCOUNT
A Deposit Account is an Account, savings or other type of bank account, at a banking institution
that allows money to be deposited and withdrawn by the account holder. These transactions are
recorded as a liability for the bank, and represent the amount owed by the bank to the customer.
Some banks charge a fee for this service, while others may pay the customer interest on the funds
deposited.
MAJOR TYPES OF ACCOUNTS
Checking accounts: A deposit account held at a bank or other financial institution, for the
purpose of securely and quickly providing frequent access to funds on demand, through a variety
of different channels. Because money is available on demand this account are also referred to as
demand account or demand deposit accounts.
Savings accounts: Accounts maintained by retail banks that pay interest but cannot be used
directly as money (for example; these accounts let customers keep liquid assets while still earning
a monetary return.

BANK
Money market deposit account: A deposit account with a relatively high rate of interest, and
short notice (or no notice) required for withdrawals. In the United States, it is a style of instant
access deposit subject to federal savings account regulations, such as a monthly transaction limit.
TIME DEPOSIT
Money deposited at the banking institution that cannot be withdrawn for a present fixed 'term' or
period of time. When the term is over it can be withdrawn or it can be rolled over for another term.
Generally speaking, the longer term is better the yield on the money.
LEGAL FRAMEWORK
Although restrictions placed on access depend upon the terms and conditions of the account and
the provider, the account holder retains rights to have their funds repaid on demand. The customer
may or may not be able to pay the funds in the account by cheques, internet banking, EFTPOS or
other channels depending on those provided by the bank and offered or activated in respect of the
account.
The banking terms "deposit" and "withdrawal" tend to obscure the economic substance and legal
essence of transactions in a deposit account. From a legal and financial accounting standpoint, the
term "deposit" is used by the banking industry in financial statements to describe the liability
owed by the bank to its depositor, and not the funds (whether cash or checks) themselves, which
are shown an asset of the bank.
For example, a depositor opening a checking account at a bank in the United States with $100 in
currency surrenders legal title to the $100 in cash, which becomes an asset of the bank. On the
bank's books, the bank debits its currency and coin on hand account for the $100 in cash, and
credits a liability account (called a demand deposit account, checking account, etc.) for an equal
amount. (See double-entry bookkeeping system.) In the audited financial statements of the bank,
on the balance sheet, the $100 in currency would be shown as an asset of the bank on the left side
of the balance sheet, and the deposit account would be shown as a liability owed by the bank to its
customer, on the right side of the balance sheet.
The bank's financial statement reflects the economic substance of the transaction -- which is the
bank, has actually borrowed $100 from its depositor and has contractually obliged itself to repay
the customer according to the terms of the demand deposit account agreement. To offset this

BANK
deposit liability, the bank now owns the actual, physical funds deposited, and shows those funds as
an asset of the bank.
FRACTIONAL-RESERVE BANKING
Fractional-reserve banking is the banking practice in which banks keep only a fraction of their
deposit sin reserve (as cash and other highly liquid assets) and lend out the remainder, while
maintaining the simultaneous obligation to redeem all these deposits upon demand. Fractional
reserve banking necessarily occurs when banks lend out any fraction of the funds received from
deposit accounts.
Money multiplier:
The most common mechanism used to measure this increase in the money supply is typically
called the money multiplier. It calculates the maximum amount of money that an initial deposit
can be expanded to with a given reserve ratio
Sweep account:
A sweep account is an account set up at a bank or other financial institution where the funds are
automatically managed between a primary account and secondary investment accounts.
Transactional account
A transactional account (North America: checking account or chequing account, United Kingdom
and some other countries: current account or cheques account) is a deposit account held at a bank
or other financial institution, for the purpose of securely and quickly providing frequent access to
funds on demand, through a variety of different channels. Because money is available on demand
these accounts are also referred to as demand accounts or demand deposit accounts.

BANK
HISTORY OF DEPOSIT
1836 Jun 1, 1836 - CONDITION OF THIRTY-SIX DEPOSIT BANKS, JUNE 1,
1836. Source: Dewey, Financial History of the United States, p. 283 $57 million,
while the banks held only $10.5 million in gold.
1872 Jun 8, 1872 - 1 In the amount here stated as the outstanding principal of the public
debt are included the certificates of deposit outstanding on the 3oth of June, issued
under act of June 8, 1872, for which a like amount in United States notes was on
1882 Jul 12, 1882 - ACT JULY 12, 1882. 313. Sec. 8.—That national banks now
organized (or Act July 12, hereafter organized), having a capital of one hundred
gfc82g. £2 S2t! ^; and fifty thousand dollars, or less, shall not be required L-, i.e.
to keep on deposit or deposit...
1891 Nov 27, 1891 - One of the pet creations of President William H. Beers of the New-
York Life Insurance Company is the Manhattan Safe Deposit and Storage
Company in the basement of the New-York Life Building at 346 and 348
Broadway. But for the important fact that the stock of this truly remarkable safe...
1901 Jan 20, 1901 - She :ambo to the bank, told the story of her mother s life, showed
letters from him which proved her Identity, his history mil pedigree as he had
given it to the bank, and then secured a deposit of a little over '300 that stood to
his credit. So thoroughly was she identified that the...

BANK
1907 Jan 1, 1907 - Another feature of the savings in Los Angeles is that 40 per cent of
all the money on deposit is with savings banks. That is to say, on January 1,
1907, the total deposits in all the banks in Los Angeles—. One savings bank
alone, the Security, had deposits...
1909 Jun 30, 1909 - The deposit of the ratifications shall take place, in any case, on
the 30th of June, 1909, if the Powers which are ready to ratify furnish nine
Judges and nine deputy judges to the court, qualified to validly constitute a
court. If not, the deposit shall be ...
1913 Jun 18, 1913 - "2. That the deposit of $2500 made by or for the
Defendant CC Rush on June 18, 1913, was not general and not a special
deposit, nor was it a deposit in trust. "3. That the plaintiff, under its bankers'
lien, had a right to apply said deposit of $2045 in ...
1933 1933 - long-dormant deposit insurance legislation is simple. In 1933, the

United States had just suffered the worst economic contraction in its history,
and proponents of deposit insurance offered it as a prophylactic against a
repetition of the disruption and depositor ...
2012 Dec 6, 2012 - Contemporary Economic Policy; July 1, 1996 ; 700+ words ... ...
paper examines the current status of deposit guarantees in Japan and how they
have functioned Japan and reviews the history of deposit guarantees in
the
Past several years. During ... publicly available data and facts ...

BANK

THE IMPOSTANTS OF BANK DEPOSITES
1. Individual bank deposits provide the least expensive cost of new money for the bank to
loan out.
2. The large amounts of people and deposits help the banks make lots of profit since the
banks charge at prime rate (set indirectly by the country's bank) and the banks pay a low nominal
interest on the deposits. Money is needed to add new infrastructure (road, bridges, sewers,
factories, etc.) and capital equipment (machinery, assembly robots, etc.) in order to grow the
economy.
3. The banks are reluctant to borrow from other banks or other source (such as rich persons)
since the interest rate charges is much higher than the banks would pay individual deposits.
4. Since the amounts of deposits are very high in some countries, such as Japan and China,
this new capital (or money) has fueled growth over the past few years.
5. As a consequence, economists always consider bank deposits as part of the overall money
supply for the economy.
DEPOSIT SCHEME
INTRODUCTION
A deposit scheme is an account at a banking institution that allows money to be held on behalf of
the account holder. Some banks charge a fee for this service, while others may pay the client
interest on the funds deposited. The account holder retains rights to their deposit, although
restrictions placed on access depend upon the terms and conditions of the account and the
provider. The banking terms "deposit" and "withdrawal" actually tend to obscure the economic
substance and legal essence of transactions in a deposit account.
From a legal and financial accounting standpoint - and as counter-intuitive as it may seem -the
term deposit is actually used by the banking industry in financial statements to describe the
liability owed by the bank to its depositor, and not the funds (whether cash or cheques)
themselves, which are shown an asset of the bank Typically, an account provider will not hold the
entire sum in reserve, but will loan the money out at interest to other clients, in a process known
as fractional-reserve banking. It is this process it allows providers to pay out interest on deposits.
By transferring the ownership of deposits from one party to another, they can replace physical
cash as a method of payment.
In fact, deposits account for most of the "money supply in use today. From an economic
standpoint, the bank has essentially created "economic money". There are various ways in which
bank deposits arise. Customers may deposit actual cash or they may deposit rights to receive cash;
these rights to receive cash may be in the form of a cheques, a bill, a promissory note owing to
them, etc. deposits may also arise out of loans granted by the bank or through the process of
discounting customer’s bills. In this case, they are known as created deposits. In actual practice,
the amount of such deposits is much larger than that of the deposits received in hard cash or in the
form of rights to receive cash. Typically, an account provider will not hold the entire sum in
reserve, but will loan the money out at interest to other client and it is the process which allows
providers to pay out interest on deposits. So it is said “Loans are the children of deposits and
deposits are the children of loans”.
DIFFERENT TYPES OF DEPOSIT SCHEMES
There are two categories of deposits.
I Demand Deposit.
II. Term deposits.
I Demand Deposit:
Demand deposits are is a type of deposits payable on demand as and when the customer want
withdraw the money, they can withdraw the fund.
Different types of demand deposits,
a) Savings deposits
b) SB Gold schemes
c) Karnataka Garmin champs deposits’ schemes
a) Savings deposits.
Savings deposits are meant for saving purposes can be open individual, firm, company. The
interest for this scheme is 3.5% per annum.
b) SB Gold schemes:
In this scheme is the minimum amount for operating or opening the account is Rs 50000.the
period of interest payable half yearly, every February and august on the minimum balance in the
account, between the 10th and last day of the month. The rate of interest is 3.5% per annum.
c) Karnataka Garmin champs deposits scheme.
Basically an SB deposit’s for children. the children up to the age of 12years(i.e., till 11years, 364
days).the initial deposits can be any nominal amount of Rs 100, no penalty in the case of non-
maintenance of minimum balance, the rate of interest is 3.5%.
2. Current account.
In current deposits it is a statement of business committees there is no restriction for number of

with drawls.
The rate of interest for these account holders is nil.
II. Time deposits/Term deposits:
Are payable on completion of specified period even though amount kept in fixed deposit can be
closed before maturity.
The time deposits are high rate of interest; the minimum/maximum period of time deposits is 7
days to 120 months.
TYPES OF TERM DEPOSITS
a) Fixed deposits schemes
b) Kamadhenu deposits
c) Karnataka Garmin tax savers scheme
d) Recurring deposits scheme
e) Ashraya deposits scheme (for senior citizen)

f) Karnataka Garmin auto renewal deposits (card)
a) Fixed Deposit:
Term deposits are payable on specified period of the time under fixed deposits. Interest can be
payable monthly, quarterly, half yearly.
b) Kamadhenu deposit:
In this scheme the alternate interest under Kamadhenu deposits get commanded component on
quarterly basis it is alternative deposit for large no of the customers.
c) Karnataka Garmin tax saver schemes:
To avoid the tax amount can be deposited in this scheme interest earn in this scheme is fully
exempted from tax.
d) Recurring deposits scheme.
Recurring deposit scheme for regular monthly installment interest under recurring deposit is full
exempted in the interest tax.
e) Ashraya deposits scheme:
The deposit for the senior citizen who have completed 60 years under this scheme 0.5% more or
additional interest rate will be given for senior citizen.
f) Karnataka Garmin auto renewal deposit:
Under this scheme deposit will be automatically renewal and compellation of specific period as
per the depositor required. The rate interest scheme deposit is fixed by RBI other than saving bank
accounts the individual bank can offer rate interest according to prevailing the market conditions.
CHAPTER II
REVIEW OF LITERATURE AND RESEARCH DESIGN
INTRODUCTION
Research design in the conceptual structure wit in research is conducted. It constitutes the
blue print for the collection, measurement and analysis of data. Research design pertains to
decisions regarding what when how much by what concerning on inquiry.
According to Nachmias "A research design is the programs that guide them in
investigation of process of collecting, analyzing and interpreting observation”.
TITLE OF THE STUDY:
“A STUDY ON THE PERFORMANCE OF VIVID DEPOSIT

SCHEMES IN KARNATAKA GRAMIN BANK AT HOSKOTE”
REVIEW OF LITERATURE:
To understand the measures taken for managing the different deposit schemes and Interest
rates on deposit in bank this study was conducted. It was first important to understand the
problem addressed in the study. Hence with an intention to gather all- important bits of
information through secondary data, the literature review was carried out.
This study required a lot of information regarding deposit schemes as it is very essential
entity in bank, which needs to be carefully assessed. Purposes of literature review in
innumerable research. There is a plenty of literature availability on the topic of “A study
on the performance of Vivid Deposit Schemes”. Many text books and the relevant
websites provide good coverage of the subject.
Purpose Literature review is the beginning of the primary data collection. It acts as a gate
way to the familiarity exercise by getting exposed to the study field in details. Literature
review included texts, databases, internet, journals and dailies. The work
Specify needs f references and citations makes secondary data quite valid. Literature
review forms the integral parts of larger research.
Secondary data from sole basis for research in some instances. Above all secondary data
has proven to be less costly readily available, less time consuming and less effort required
compared to primary data.
Literature review provides support to validate secondary data hence complementing the
field data conclusion.
It has also been observed that secondary data gives insight into the research details. It is
mandatory to examine secondary data as a perquisite for accuracy and relevance for
primary data and subsequent analysis.
ARTICLE 1 Bank of India offers new deposit scheme.
Newspaper article from: Statesman (India) June 12, 2006 700+ words ...India launched a
new special long-term deposit scheme called Shatabdi Deposit Scheme offering higher
interest rates. The scheme...bank here today. The minimum amount for the deposit scheme
is Rs 5,000 and one can opt for annual...
ARTICLE 2 Deposits mobilization could pose challenge, says bankers'.
News wire article from: PTI - The Press Trust of India Ltd. June 8, 2006 700+ words
...pointing to customers' preference for long term deposits. BOI had yesterday launched a
long-term deposit scheme called Shatabdi Deposit Scheme at an interest rate of eight per
cent per annum for tenures of eight to ten years. But A K Khandelwal...
ARTICLE 3 INDIA Nedungadi Bank plans for centenary year (165).
News wire article from: Business Line April 26, 1999 700+ words ...approval of the
Department of Posts to release a postal stamp carrying the message of the centenary
celebrations. A Shatabdi Deposit Scheme with novel features would be launched. The
bank has also proposed to hold seminars on economic and banking...
BOI undertakes social initiatives on its 100th year.
News wire article from: PTI - The Press Trust of India Ltd. June 10, 2006 700+ words
...management programs, a press release said today. The bank has also launched a few
innovative deposit schemes like Shatabdi deposit scheme that gives an eight per cent
interest per annum to deposits with tenure of 8 to 10 years. Senior citizens
ARTICLE 4 Deposits mobilization could pose challenge, says bankers'.
PTI - The Press Trust of India Ltd.; Jun 8, 2006; 510 Words ...pointing to customers'
preference for long-term deposits. BOI had yesterday launched a long-term deposit
Scheme called Shatabdi Deposit Scheme at an interest rate of eight per cent per annum for
tenures of eight to ten years. But A K Khandelwal...
BOI undertakes social initiatives on its 100th year.
PTI - The Press Trust of India Ltd.; Jun 10, 2006; 354 Words ...management programs, a
press release said today. The bank has also launched a few innovative deposit schemes like
Shatabdi deposit scheme that gives an eight per cent interest per annum
ARTICLE 5 FIXED DEPOSIT ARTICLES
Co-operative Bank Fixed Deposits
If we look at the return provided by various cooperative banks, we immediately find that
they are higher than returns provided by the various nationalized and private banks. For
amount less than 15 lakhs, the returns provided by various cooperatives banks, SBI and
ICICI are as follows:
ARTICLE 6 Ore deposits Main article: Mineral resource classification
An ore deposit is an accumulation of ore. This is distinct from a mineral resource as

defined by the mineral resource classification criteria. An ore deposit is one occurrence of
the particular ore type. Most ore deposits are named according to either their location (for
example, the Witwatersrand, South Africa), or after a discoverer (e.g. the Kambaldanickel
shoots are named after drillers), or after some whimsy, an historical figure, a prominent
person, something from mythology (phoenix, kraken, serepentleopard, etc.) or the code
name of the resource company which found it (e.g. MKD-5 is the in-house name for the
Mount Keith nickel ).
New Company Accounting By: Ike Agni
Starting a new business is exciting, but in that excitement are lots of decisions to become
made. Out of all them all, the financial backbone of your business needs to
Be seriously taken into consideration. A large part of which are the accounting decisions
you'll require making.
STATEMENT OF THE PROBLEM:
In our country, the uncontrolled growth of population has created a number of

infrastructural problems such as capital formation, transport, telecommunications, power,
water, roads housing and the like. The total requirement due to LPG need of capital as for
different sectors is growing at faster rate.
While deposits savings and deposits of different like current deposit, fixed deposit,
Kamadhenu deposit has not increased. The interest also fluctuating according to RBI
policies. The different policies are different from one to another policy regarding the
customers availed about different policies of the bank for continue or to mean the factors
need such as education, marriage, construction of house etc...These deposits are the
importance of lower and middle class people.
The public private participation helped the people saving the amount in different deposits
accounts and deposits schemes. What are the various factors that influence these different
schemes? An attempt has been made to understand these at Karnataka Garmin Bank,
eliciting information from Banker, borrowers and the general public serves the purpose of
the topic. Therefore the presence study was taken up.
OBJECTIVES OF THE STUDY:

The research was conducted specifically on Karnataka Garmin bank. This study has
certain objectives which act as guidelines.
The objectives framed are:
 To ascertain the different deposit schemes in Karnataka Garmin bank

 To study the steps taken by RBI with regard to different deposits.
 To understand the perception of the customers for depositing amount in bank.
 To study the customer satisfaction regarding deposit schemes, interest rates and
performance of bank
SCOPE OF THE STUDY:

The scope of this study was mainly confined to the banking industry in Karnataka Garmin
bank; the study covers deposit schemes, fluctuations on deposits for the last 2 years. The
bank for the study was Karnataka Garmin bank. It includes two RBI guidelines,
instructions on
Prime accepting rate and the like. The customers of the deposits are the other segment of
the study.
OPERATIONAL DEFINITION OF CONCEPTS:
Bank : A Bank is a financial institution which accepts, for the purpose of lending or
investment of deposits of money from public, repayable on demand or otherwise and
withdraw able by cheques, draft or otherwise, also providing various other services.
Banker: Middlemen between savers and investors and acts for some consideration. It
includes housing loan business too.
Customer: Beneficiaries who availed bank loans at Karnataka Garmin bank, Hoskote
town are customers for the purpose of this project report.
Loans: It is a document in writing and acknowledgement of debt, in which banker pays

lump sum amount to customer in return customer has to repay the same along with at
different interest rates from time to time.
EMI (Equitable Monthly Installment): It is the amount, which the taker/borrower

should repay to the bank every month and the amount which he/she repay will be fixed by
the bank.
Card : A general term for any plastic card which a customer may use to pay for
goods and services or to withdraw cash.
PIN (Personal Identification Number) : A confidential number, which allows customers

to buy things withdraw cash and use other electronic services offered by the bank.
ATM: An automated teller machine [ATM] or freestanding machine, which a customer
can use their card in to get cash, information and other services.
Originator: A company [either a retail or service organization] which collects payments

from a customer's account in line with the customer's instructions.
Unpaid Cheques: This is a cheque which, after being paid into the account of the person
it is written out to, is returned 'unpaid' [bounced] by the financial institution whose
customer issued the cheques.
Security: A word used to describe valuable items such as title deeds to houses, share
certificates, life policies and so on, which represent assets used as support for a loan or
other liability.
Password: A word or an access Code which the customer has chosen, to allow them to
use a phone or internet banking service. It is also used for identification.
Cheques: A cheques, which has not been paid because the date written on the cheques is
too old [normally older than six months].
RESEARCH M E T H O D O L O G Y :
Methodology is defined as “A particular or a set of procedures. The analysis of these

principals or procedure of enquiry in a particular field”
Research is an organized enquiry carried out to provide information for solving problems.
Business research is a systematic inquiry that provides information to guide business
decisions that includes reporting, descriptive, exploratory and predictive studies. This
study is based on both descriptive and exploratory type of study. The information is
gathered from various sources like internet, magazines, text books etc.
This chapter gives a clear picture of how the study has been carried on it summarizes the
procedures followed in this study.
COLLECTION OF DATA
Primary data: The methodology adopted to collect the primary data and secondary
data. Primary data were collected for meeting the specific objectives of the study. The
primary data was collected through questionnaire, answered by the concerned authority in
the respective Karnataka Garmin bank.
A. Primary data:
 Having discussion with department officers of the company to get the general
information about the company and its activities.
 Having face to face discussion with company officials.
 Having discussion with accounts department officials to get the clear picture
about financial activities.
 By taking guidance from the company guide and department guide.

 By collecting the sample survey from the customers to find the performance of vivid
deposit schemes.
B. Secondary data: The secondary data were collected from the various sources
like selected books, articles, Karnataka Garmin publications, newspapers. In the
study, the secondary data has been collected from various sources such as old
project report, articles, magazines, journals, internet etc…
Sampling size
It is a case study discussed with Bank manager concerned persons belonging to Karnataka
Garmin bank was interviewed for the accomplishment of this study. The people who
availed the Different deposit scheme to the customers represent the whole population. The
sample size for the research study were 100 respondents, who availed bank deposits
scheme of varying amount for different tenures.
LIMITATIONS OF THE STUDY:
The respondents were reluctant to answer some of the questions and data collection was
cumbersome to some extent.
 This study is limited to Karnataka Garmin bank only.

 The Study experienced time and money constraints.
 The study is mainly based on primary data.
 As majority of the customers, they might be biased in giving the information.
OVERVIEW OF CHAPTER SCHEME

The study report will be presented in chapter 5 as indicator below
CHAPTER1: INTRODUCTION
It deals with theoretical back ground of the study
CHAPTER 2: RESEARCH DESIGN

It deals with Review of Literature, Statement of the problem, Objectives of the study, Scope of the
study, Research methodology, Sources of the data collection, Limitation of the study and the
chapter scheme.
CHAPTER 3: COMPANY PROFILE

This chapter deals with the history of the company Nature of the business, Vision Mission and
Objectives of the bank.
CHAPTER 4: ANALYSIS AND INTERPERATION OF DATA

It deals with the Analysis and Interpretation of the data collected from the company. By
distributing the sample survey of questionnaire to the bank customers to analysis and
interpretation of performance of vivid deposit schemes.
CHAPTER 5: SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSTION.

This chapter deals with the summary of findings though data analysis and Interpretation from the
previous chapter, and gives suitable suggestions based on the study made from this project.
ANNEXTURES
The sources from where the data is collected.
BIBLIGROAPHY
In these study journals, magazines and websites were referred.
CHAPTER-3
COMPANY PROFILE
Karnataka Gramin Bank

Native name Karnataka Gramin Bank
Type Bank
Industry Banking, Insurance, Capital Markets and allied industries
Predecessor Cauvery Kalpatharu Gramin Bank, Chikkamagalur Kodagu
Gramin Bank and Visvesvaraya Gramin Bank
Founded 1 November 2012;

6 years ago as Karnataka Gramin Bank
Headquarters Bhallari
Number of 1106 Branches in 19Districts of South Karnataka
locations Head Office: Bellary
Area served Karnataka
Key people  Chairman: Srinath H Joshi
 General Manager (Administration): S J F Ravindranath
Products Deposits, Personal Banking Schemes, C & I Banking Schemes,

Agri Banking Schemes, SME Banking Schemes
Services Loans, Deposits, ATM Services, National Electronic Fund

Transfer (NEFT), Internet Banking, Mobile Banking, Aadhaar
Enabled Payment System, Debit Card[1]
[2]
Total assets
Number of 1797 (as on 31 Mar 2016)[3]
employees
Canara bank (holds 35.00% shares)
Parent
Website www.KarnatakaGraminbank.com
BACKGROUND AND INCEPTION OF THE STUDY

One of the Regional Rural Bank established under Regional Rural Bank Act 1976. Kaveri
Gramin) Bank is Pragathi Krishna Gramin bank on 24th May 2006 by amalgamation of
Karnataka Gramin Bank and Kalpatharu Gramin Bank. The Bank established as Karnataka
Gramin bank on Apr 14 2019 sponsored by State Bank of Mysore. Now presently it is
amalgamated as Karnataka Gramin bank under the sponsorship of Canara bank .Jointly
owned by Government of India, The Canara bank Government of Karnataka. A Scheduled
Commercial Bank permitted to carry all kinds of business. Head office of Karnataka Gramin
bank is at Bellary.
The chairman of Karnataka Gramin bank is Srinath h Joshi. Care concern for customer is the
motto of the bank. Under the District credit plan. The bank as fared well in achieving the
Now amalgamated with Mandya Visveshraya Bank and Kodagu Gramin Bank. After this
amalgamation the bank name was changed to Karnataka Gramin Bank. The objective of
amalgamation is to strengthen the Bank so that it can better to the clientele in the farm and
non-farm sector more efficiently and contribute for the development of the area.
Karnataka Gramin Bank, Hoskote
The bank credit-linked 1, 00,077 Self Help Groups (SHGs) by extending financial assistance
to them
Consequent upon amalgamation, the operational area of the Bank spreads to ten districts
Mandya, Mysore, Coorg, Chikkamagalur, Hassan, Bangalore Rural, Ramanagar, Bangalore
Urban, Tumkuru and Chamarajanagar districts. The Bank has 1106 Branches. The bank
opened its 1106h branch at saraswathpuram, Mysore on 31-12-2017
In the area of operation, the Bank is a forerunner catering to the needs and aspiration of
farming community, business class, professional and self- employed persons, artisans engaged
in cottage and tiny industries and other sections of the society.
The business turnover of the Bank is over Rs 13000 crore from 502 Branches – all
computerized to extend efficient customer service with smile by 1797 staff members. The
Bank’s initiatives in farming, nurturing and credit linking Self Help Groups have been
appreciated in all forums. Bank has also formed and linked Joint Liability Groups. The Bank
has identified the wishes and aspiration of the client and has number of innovative products to
suit every need. Details are furnished everywhere.
As per the directive of RBI, all our 1106 Branches are migrated to CBS (Core Banking
System) and working in common platform. Bank has taken up implementation of financial
inclusion and appointment of business correspondents in villages where population is more
than 2000 in the command area of the bank.
NATURE OF THE BUSINESS CARRIED

Karnataka Gramin bank bring a major public sector banks in India, is well known for its
Banking operations that is, it provide various services and products to the customers by means
of Kisan Gold Card, Term Deposit Accounts, Credit Cards, Personal Banking Loan Schemes
at CBS branches and term deposits schemes as it products. Other than the banking operations it
also provides Insurance banking, General banking, Social banking and Agricultural banking to
the various customers in India.
VISION, MISSION AND QUALITY POLICY OF KARNATAKA BANK
VISION
Envisions being trustworthy, efficient and strong bank committed to increasing our market
share by generating innovative customers centric services and products igniting the passion
and creative talents in human resource leveraging technology to expand the clientele and
deliver quality and value leading to customer delight.
MISSION
Amplify the frontline capabilities to serve customers develop processes leveraging technology
dynamically locate and empower people fast cycle knowledge into innovative products create
possibilities to reach the business innovative and position the bank as a rising star in the financial
horizon.
QUALITY POLICY
 To carry on general business of Banking and other Banking activities to the
members and customers.
 To provide effective efficiency of Banking Activities.
 To supplement the effort of Government Extension System.
 To make available supplement sources of input supply and services to needy
farmers.
 To provide gainful employment to agriculture graduated in new emerging areas
in agricultural sector.
PRODUCTS SERVICES PROFILE
 Kisan Credit Card
 SBI Life House Insurance Scheme
 Kisan Gold Card
 Loans For Agriculture
 Advance Against Pledge of Warehouse Receipts
 Kisan Chakra
 Farm Mechanization
 Horticulture Plantation
 Rural Go Downs
 Cultivation Of Medicinal and Aromatic plants
 Agriculture Debt Wavier And Debt Relief Scheme 2008
 Business loan under MSNE (Micro small and medium enterprises
 Housing loans under priority sector.
 Loans to SHGs and JLG (joint liability groups)
 Loans under all government sponsor schemes.

KISAN CREDIT CARD
PURPOSE for meeting the crop production requirement of the farm
ELIGIBILITY All farmers including tenant farmers

NATURE OF CREDIT  Credit extended in the form of a revolving
LIMIT cash credit
 Provides for any number of drawls and
remittance within the limit
 Eligible Limit: scale of Finance for each crop
in the proposed cropping pattern followed by the
farmer for the current year and subsequent four
years.
 Consumption requirement of the farmer
may also be considered.
VALIDITY Five years. However the account to be reviewed on annual
PERIOD basis by remitting a minimum of the limit availed plus
interest and other charges debited
OPERATION OF THE Any number of drawls and remittances within the limit.
ACCOUNT Drawls by means of withdrawals. Cheques book facility may
also be extended in eligible cases
ISSUANCE OF The farmers under the scheme will be issued with a credit card
CARD CUM PASS cum passbook
BOOK
RATE OF  Up to Rs. 3 lakhs 7.00% per annum
INTEREST provided the account is regular
 Interest rate in all other cases as applicable to
Priority Sector advances.
KISAN GOLD CARD
PURPOSE General purpose loan for meeting agricultural and

consumption purposes against agriculture property.
ELIGIBILITY Formers having excellent repayment track

records for at least past 3 years
AMOUNT OF  50% of the value of land mortgaged as
LOAN collateral security or
 3 times the annual income of the farmer
maximum rupees 3.00 lakh
PERIOD OF 3-5 years
LOAN
TYPE OF Agricultural term loan
FACILITY
RATE OF As applicable to agricultural term loans
INTEREST
 Valuation of land- as per sub registered
rates
 Original Land Records should be made
available
FARM MECHANIZATION
PURPOSE Purchase of tractors and power tillers

ELIGIBILITY Farmers / Applicant should have a minimum land
holding of
 4 acres of perennially irrigated land or
 8 acres of dry land
 2.5 acres of irrigated land and 5 acres
of dry land
LOAN AMOUNT Based on the quotation for the supply of tractor /
power tillers and required implements to the
maximum of 90% of the cost of machinery
REPAYMENT 7-9 years. Repayable in yearly/ half yearly installment
RATE OF INTEREST Special rates as farm mechanization are

treated as Trust Area Advance.
Present Rate 12%
INSURANCE Vehicle to be insured comprehensively with bank
clause.
OTHER CONDITIONS New tractors or power tillers:
It will be ensured that the tractor will have a
minimum of 1000 hours of productive work in
agriculture per year on own farm and custom hiring
(50% on own farm) for power tillers 150 hours of
productive work will be adequate
Second Hand Tractors:
Tractors must not be more than 7 years old would
only be eligible for finance
HORTI CULTURE PLANTATIONS
PURPOSE To encourage cultivation of horty culture like coconut,
mango, pomegranate, grapes, pepper, coffee, alma, recont,
betel vine and other horty culture crops
ELIGIBILITY All farmers having own land suitable for
cultivation of the selected crops
LOAN AMOUNT As per unit cost fixed by NABARD from time to time.
AND MODE OF The disbursement will be made in stages over the years till
DISBURSEMENT the plants starts yielding
TYPE OF ATL
FACILITY
REPAYMENT Repayable in half yearly/yearly installments and period of
advance is extendable up to 15 years based on the age
which the plantation starts economic yield. Until such time
the gestation period for repayment of loan is allowed.
However, interest has to be serviced during the gestation
period
INTEREST RATE As applicable to ATL
OTHER CONDITIONS  Assured irrigation/ bore well with sufficient
yield or any other perennial source
 Income sources for substance and servicing
of interest during the gestation period
 Soil and water test report for the suitability
to be produced at the time of sanction.
 Assured availability of marketing to be
ensured
AREA OF OPERATION
Karnataka Gramin bank is a major public sector bank which provides efficient and effective
services to the customers of the bank is rendering services through various delivery channels
which consisting in different localities of the bank.
01 Mysore
02 Mandya
03 Bangalore (Urban)
04 Bangalore (Rural)
05 Tumkuru
06 Hassan
07 Coorg
08 Chikkamagalur
09 Chamarajanagar
10 Ramanagar
11 Shivamogga
12 Mangalore
13 Uttarkannada
14 Kunta
15 Dakshina kannada
16 Bijapura
17 Chikkodi
18 Belagum
19 Dharavada
OWNERSHIP PATTERN
The Bank is sponsored by State Bank of Mysore. Jointly owned by Government of India,
Canara bank and Government of Karnataka, share capital contributed in the ratio of 50:35:15
respectively. A Scheduled Commercial Banks permitted to carry all kinds business.
COMPETITORS INFORMATION:
For any industries there are number of competitors who themselves try to emerge with
innovation products and services in order industries. They provide products and services in
order to satisfy the customers, which are economy to their purchasing habits. Likewise
Karnataka Gramin bank also having its competitors likes all public sector banks in India and
private sector banks.
Karnataka Gramin bank is having major competitors to their banking activities.
 Pragathi Gramin Bank.

 The Mandya City Cooperative Bank
 DCC Bank
 Industrial Cooperative Bank
INFRASTRUCTURE FACILITY
 CBS Branches
 Close circuit TV and time clock facility
 RTGS (Real Time Gross Settlement)
 Security arrangement
 Strong and safe room for currency chest
 Training hall.
ACHIEVEMENT AWARD
The bank has been adjudged the Best Overall Performer under SHG-Bank Linkage programme
during 2008-2009 amongst the regional rural bank operating in the state for the fourth
consecutive year by NABARD. Its Sira Branch in Tumkuru district has been adjudged the best
performer under the category “Highest Quantum of Loan Disbursed to SHGs” among regional
branches in the state.
 The Bank has best adjudged as the BEST RRB by State Bank of India among the
RRBs sponsored by Association Banks of SBI for excellent performance in 2006-
2007 and 2007-2008.
 The Bank was honored by NABARD for excellent performance in Credit Linkage
of SHGs for the year 2006-2007, 2008-2009 and also for the year 2011-2012 at
the State Level.
WORK FLOW MODEL: Work flow model of the bank is shown below:
DEPOSITS
Customer approaching the bank
Introduction
Documentation
Saving, Fixed, Current and recurring account
Account Holder facilities
Deposits
Cashier
FUTURE GROWTH AND PROSPECTS
 The bank is putting its strategy in place to increase its portfolio under SMEs,
mid corporate, SSIs, Retail business and customer credit.
 Under resource mobilization point their focus is to shed high cost bulk deposits
and to rely more on low cost deposit. Interest area being strengthening SB
component of the deposits.
 Bank also has an ambitious plan to reduce its excess SLR portfolio and to invest
it in quality high yielding advances.
 Bank has evolved many strategies to improve its bottom line in the current
fiscal.
 The bank wants to expend their branches and activities.
MCKINSEY’S 7S FRAME WORK OF KARNATAKA BANK

The 7s model was developed by McKinsey’s is an important part of the organization. The two
persons who developed this model were Tom Peters and Robert Waterman, who were
consultants at the McKinsey’s. They had published their 7s model in their respective articles
named, “the art of Japanese management (1981)” and “in search of excellence (1982)”.
McKinsey’s company 7s framework provides a useful framework for analyzing the strategic of
an organization.
 Structure:
The bank has a well-organized structure with a sound foundation of so many branches and a
well-defined reporting architecture as the body to support. The corporate governance which is
the breath sustaining the momentum is through a very talented board of directors including
government appointed directors employee and office representative directors guided by RBI,
ministry of finance, government of India which forms the super structure.
 Skills:
The blend of management skills with employee orientation and employee’s skills with
organizational loyalty is unique to old Karnataka Gramin Bank. Training policies and
programmers’ are suitably designed and updated on a continuous basis to upgrade the
knowledge levels and skills of its executive’s offices and workmen on par with the best in the
industry.
 Styles:
The conduct of the operations as well as administration at each operational unit having
effective internal control has a vivid style by itself. Every branch manager has his own style of
functioning individually but collectively is a bank team member, which is the brand equity of
the bank. The style of the bank is business or in administration has a unique niche in the
industry poised to excel among the peers. The bank and relationship among employees was
cordial in nature.
 Strategy:
Being one of the leading public sector banks with a culture of well managed private sector
professional institution, the strategy of the bank in to be a premier among the peers and to
excel in all the parameters are it business or social responsibility. To be the faithful and
friendly financial partner to their beloved clients
 System:
The system and procedures of the banks are a time tested one on sound and scientific
foundation. The systems and procedures are well defined and are available with all the
hierarchy as on need to know basis. The bank was using financial software for the operation of
the bank which was introduced by the other company.
 Staff:
The staff composition is so mixed and having experience and loyalty to the institution as the
core credentials reflecting the customer’s loyalty and ethics. The bank has ventured into a
recruitment drive at all levels to ensure the mix of experience and youth at appropriate level
and also to ensure the age profiles of the cadre match with technological advancement.
 Shared Values:
The Bank is involved in the corporate social responsibility to actively participate in the
development of the society. It provides educational facility to the poor students.
The McKinsey 7S’s model is one that can be applied to almost any organizational or team
effectiveness issue. If something within your organization or team is not working, chances are
there is inconsistency between some of the elements identified by this classic model. Once
these
Inconsistencies are revealed, you can work to align the internal elements to make sure
they are all contributing to the shared goals and values.
The process of analyzing where you are right now in terms of these elements is worthwhile in
and of itself. But by taking this analysis to the next level and determining the ultimate state for
each of the factors, you can really move your organization or team forward.
SWOT ANALYSIS:
SWOT is an acronym for Strengths, Weakness, Opportunities and Threats. By definition,

Strengths(S) and Weakness (W) are considered to be internal factors over which you have
some measure of control. Also, by definitions Opportunities (o) and threats (T) are considered
to be external factors over which you have essentially no control.
SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic
position of the business and its environment. Its key purpose is to identify the strategies that
will create a firm specific business model that will best align an organization’s resources and
capabilities to the requirements of the environment in which the firm operates. In other words,
it is the foundation for evaluating the internal potential and limitations and the probable / likely
opportunities and threats from the external environment. It views all positive and negative
factors inside and outside the firm that affect the success. A consistent study of the
environment in which the firm operates helps in forecasting / predicting the changing trends
and also helps in including them in the decision-making process of the organization.
 Strength:
 Fundamentally strong bank with a good capital bare.
 Goodwill and market reputation prevailing in the sector.
 Staffs are highly qualified.
 Large range of products and services to the customer.

 Weakness:
 Lack of awareness of products and services through advertising and
other media.
 The bank has a bit slow in implementing of core banking solutions in its
branches.
 Opportunities:
 Economic prosperity and the consequent increase in purchasing power
have given a fillip to a customer base.
 To capture more market in home loans, small scale sectors and medium
enterprises.
 Threats:
 Competition from all nationalized banks, private banks and foreign
banks.
 Unforeseen economic conditions prevailing in the country.
 Frequently change in rules and guidelines by the Reserve Bank of India

and Government.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION OF DATA ANALYSIS AND
Analysis of data is process of inspecting, cleaning transforming and modeling data with the
goal of discovery useful information, suggesting conclusion and supporting decision
making. Data analysis has multiple facets and approaches encompassing diverse technique’s
under a variety of names in different bushiness science and social science domains.
The data analysis is a process for obtaining raw data converting in to information useful for
decision making by users. Data is collected and analyzed to answer questions, test hypothesis
are disprove theories.
INTERPRETATION
Interpretation is the act of explaining, reframing, or otherwise showing your own

understanding of something. A person who translates one language in to another is called an
interpreter because they are explaining what a person is saying to someone who doesn’t
understand. Interpretation requires you to understand the price of music, test, language or
idea, and then give your explanation of it. A computer may produce masses of data, but it
will require your interpretation of the data for people to understand it.
TABLE – 4.01
TABLE SHOWING THE PURPOSE OF DEPOSIT IN KARNATAKA

GRAMIN BANK.
Particular No of respondents Percentage
Saving purpose 40 40%
Safety purpose 20 20%
Child education 10 10%
Child marriage 20 20%
Earning interest 05 05%
Investment purpose 05 05%
Analysis:
From the above table it clears that the purpose of customer deposit in Karnataka Gramin Bank.
Most of them 40% customers have deposited for saving purpose, 20% for safety purpose, 10% for
child education, 20%for child marriage and 05% for interest purpose respectively.
CHART–4.01
CHART SHOWING THE PURPOSE OF DEPOSIT IN
KARNATAKA GRAMIN BANK.
40
40
35
30
25 20 20
20
15 10 No of respondents
10 Percentage
5 5
5
0
Interpretation:
From the above chart the majority of deposits are made for the purpose of savings.
TABLE -4.02
TABLE SHOWING AMOUNT DEPOSITED IN BANK.
Particulars No of respondents Percentage
Below Rs 10000 30 30%
Rs 10000 to Rs 50000 45 45%
Rs 50000 to 100000 15 15%
Above 100000 10 10%
Analysis:
From the above table we can analyze the amount deposited by the customers, 30%.of the
respondents have deposited below 10,000. 45% have deposited between Rs 10000 to
50,000.15% customers have deposited amount between Rs. 50000 to 100000 and 15%
have a deposit above 100000.
CHART – 4.02
CHART SHOWING AMOUNT DEPOSITED IN BANK.
Percentag
50
%
45 e
%
45
%
35
40% 30
% %
30
%
Percentag
25 15 e
% % 10
20 %
%
15
% Below Rs 10000Rs 10000 to Rs Rs 50000 Above
10 50000 to 100000
% 100000
5%
0%
Interpretation:
The above chart shows that the majority of the respondents have deposited amount in the
bank between Rs 10000 to 50,000 i.e. 45%,
TABLE-4.03
TABLE SHOWING DEPOSIT SCHEMES THE CUSTOMER PREFER
TO DEPOSIT.
Saving deposit 40 40%
Current deposit 15 15%
Fixed deposit 35 35%
Kamadhenu 10 10%
Analysis:
From the above table we can understand the customer’s preference of the deposit scheme,
maximum 40% of customers prefer the saving deposit, 15%, 35%, and 10% prefer the
current deposit, fixed, Kamadhenu deposit respectively.
CHART – 4.03
CHART SHOWING DEPOSIT SCHEMES THE CUSTOMER
PREFER TO DEPOSIT.
Interpretation:
From the above chart we it is clear that from the various deposit schemes majority of the
customers prefer to have saving deposit.
TABLE – 4.04
TABLE SHOWING THE TERM OF CUSTOMER DEPOSIT IN
Particular No of respondents Percentage
7 days to 365 days. 10 10%
1 year to 3 years 25 25%
3 years to 5 years 35 35%
Above 5 years 30 30%
Analysis:
From the above table we can understand the Term of deposit in KARNATAKA Gramin
bank, in the bank maximum 35% of customers prefer 3 years to 5 year term 10%, 25% and
30% prefer for a deposit term of 7 days to 365 days, 1 year to 3 year, above 5 years
respectively.
CHART –4.04
CHART SHOWING THE TERM OF CUSTOMER DEPOSIT IN

KARNATAKA GRAMIN BANK
Customer
deposit
35%
30%
25%
20%
Percentage
15%
10%
5%
0%
7 days to 3651 year to 3 3 years to 5above 5 years
Days.Years Years
Interpretation:
From the above chart it is evident that the majority of the customers have deposits terms
for 3 years to 5 years.
TABLE – 4.05
TABLE SHOWING INTEREST EARNING FROM VIVID DEPOSIT
ACCOUNT.
2% p.a 05 05%
2.5%p.a 11 11%
3.5%p.a 64 64%
Above 3.5%pa 20 20%
Analysis:
From the above table we can analyze the interest earnings from vivid deposit account.
Majority of the customers are receiving interest at 3.5% p.a and 0.5%, 11%, 20% of
customers receiving interest at 2% p.a, 2.5% p.a and 3.5% p.a respectively.
CHART –4.05
CHART SHOWING INTEREST EARNINGS FROM VIVID DEPOSIT
AMOUNT.
Percentage
70%
60%
50%
40% Percentage
30%
20%
10%
0%
2% p.a 2.5%p.a 3.5%p.a Above 3.5%pa
Interpretation:
From the above chart we can interpret that the majority of the customers earned interest
from vivid deposit at 3.5% P.a.
TABLE – 4.06
TABLE SHOWING CUSTOMER SATISFATION WITH VIVID
DEPOSIT SCHEME BANK.
Yes 65 65%
No 35 35%
Analysis:
From the above table it clear that the customers are with vivid deposit scheme from bank,
65% of customers prefer the scheme and 35% of customers does not prefer the scheme.
CHART –4.06
CHART SHOWING CUSTOMER SATISIFACTION WITH VIVID
DEPOSIT SCHEME.
900%
800%
700%
600%
500%
400%
300%
200%
100%
0%
YES NO
Interpretation:
From the above chart it is very evident that the majority of customers are satisfied with
vivid deposits scheme.
TABLE – 4.07
TABLE SHOWING THE AVAILING OF LOAN FACILITY ON
VIVID DEPOSIT SCHEME.
Yes 43 43%
No 57 57%
Analysis:
The above table shows the customer feedback regarding the loan facility given under vivid
deposit. The 43% of customers said that the loan facility was provided and 57% of the
respondents said that loan facility was not provided.
CHART –4.07
CHART SHOWING THE AVAILING OF LOAN FACILITY ON
VIVID DEPOSIT SCHEME.
57%
Percentage
43%
No
Yes
No of
57
respondents
43
Interpretation:
From the above chart the majority of customers said that loan facility was not provided to
them on the vivid deposits scheme.
TABLE – 4.08
TABLE SHOWING THE EXTENT OF CUSTOMER GETTING LOAN
ON VIVID DEPOSIT.
30% 10 10%
50% 21 20%
80% 59 59%
More than 80% 10 10%
Analysis:
The above table shows the extent of customers getting loan on vivid deposit. Maximum
59% of customers received 80% as loan on the deposited amount 10% customer received
30% loan on the deposit 20% received 50% loan and another 10% customers received
more than 80% as loan on the deposit amount.
CHART –4.08
CHART SHOWING THE EXTENT OF CUSTOMER GETTING
LOAN ON VIVID DEPOSIT.
70
60
50
40
Percentage
30 No of respondents
20
10
0
30% 50% 80% More than 89%
Interpretation:
From the above chart it is clear that majority of the customers received 80% loan on vivid
deposits.
TABLE – 4.09
TABLE SHOWING THE DOCUMENT SUBMITTING BY
CUSTOMER TO DEPOSIT IN KARNATAKA GRAMIN BANK.
Election id 54 54%
Pass port 05 05%
Driving license 10 10%
Ration card 31 31%
Analysis:
The above table shows the document submitted by customer to deposit In KARNATAKA
Gramin bank. Majority 54% of customers submit Election ID, 05% 10% and 31% of
customers submit pass port, driving license, ration card respectively.
CHART –4.09
CHART SHOWING THE DOCUMENT SUBMITTING BY
CUSTOMER TODEPOSIT IN KARNATAKA GRAMIN BANK.
60
50
40
No of respondents
30
Percentage
20
10
0
Election id Pass portDriving licenseRation card
Interpretation:
From the above chart we can interpret that the majority of the customer’s submitted
election ID as document submitted for deposits creation.
TABLE- 4.10
TABLE SHOWING THE CUSTOMER SATISFACTION WITH THE
PROCEDURE FOLLOWED BY BANK DURING VIVID DEPOSIT.
Yes 83 83%
No 17 17%
Analysis:
The above table shows customers satisfaction with respect to the procedure followed by
bank during vivid deposit opening, maximum 83% of customers are satisfied and 17% of
customers are not satisfied with respect to the bank procedures.
CHART –4.10
CHART SHOWING THE CUSTOMER SATISFACTION WITH THE
PROCEDURE FOLLOWED BY BANK DURING VIVID DEPOSIT.
90
80
70
60
Percentage
40
30
20
10
0
Yes No
Interpretation:
From the above chart it is clear that majority of the customers are satisfied with the
procedure followed by bank during vivid deposit opening.
TABLE – 4.11
TABLE SHOWING THE CUSTOMER SATISFACTION WITH

CLAIM PROCEDURE OF DEPOSITAFTER THE EXPIRY OF TERM
OF DEPOSIT.
Yes 86 86%
No 14 14%
Analysis:
The above table shows the customers satisfaction with respect to the claim procedure of
deposits after expiry of the term of deposit by the bank. 86% of customers are satisfied
with the banks claim procedure on deposit after the expiry term of the deposit.14% of
customers are not satisfied with the claim procedure.
CHART –4.11
CHART SHOWING THE CUSTOMER SATISFACTION WITH
CLAIM PROCEDURE OF DEPOSIT AFTER THE EXPIRY OF
TERM OF DEPOSIT.
90
80
70
60
Percentage
40
30
20
10
0
Yes No
Interpretation:
From the above chart we can interpret that majority of customers are satisfied with claim
procedure of deposit after the expiry of term deposit followed by bank during the claim
procedure.
TABLE -4.12
TABLE SHOWING THE TYPES OF DEPOSIT SELECTED BY
CUSTOMER.
Kamadhenu deposit 15 15%
Vivid deposit scheme. 15 15%
Recurring deposit 23 23%
Ashraya deposit. 47 47%
Analysis:
The above table shows the type of term deposit selected by customers at the bank. 47% of
the customers selected the Ashraya deposit scheme and where 15%, 15%, 23% preferred
Kamadhenu deposit, vivid deposit scheme, and recurring deposit respectively.
BANK
CHART –4.12
CHART SHOWING THE TYPES OF TERM SELECTED BY
CUSTOMER.
50
45
40
35
30
25
20
15
10
5
0
sit e
epo m it
d che os it
nu s p os
he sit e
ad p o gd ep
m de r
ir n
yad
Ka id cu a
viv Re hr
As
Interpretation:
From the above chart it is clear that majority of the customers preferred to select Ashraya
deposit.

BANK
TABLE -13
TABLE SHOWING THE CUSTOMER SELECTING THE TYPE OF
DEMAND DEPOSIT SCHEMES.
Saving deposit 63 63%
Current deposit 37 37%
Others specified 00 00%
Analysis:
From the above table we can understand the customer’s choice on the type of demand
deposit scheme, 63% of customers prefer saving deposit and 37% of customers prefer the
current deposit.
84 ST. ANNE’S DEGREE COLLEGE FOR WOMAN

CHART –4.13
CHART SHOWING THE CUSTOMER SELECTING THE TYPE OF
DEMAND DEPOSIT SCHEMES.
70
60
50
40
Percentage
20
10
0
Saving deposit Current deposit Others
specified
Interpretation:
From the above chart it is clear that majority of customers prefer saving deposits in
demand deposit schemes.

TABLE -4.14
TABLE SHOWING THE REASON FOR CUSTOMER PREFERENCE
IN KARNATAKA GRAMIN BANK AS COMPARED TO OTHER
BANK.
Particulars No of Percentage
Respondents
Personal contact 23 23%
37%
Quick services 37
Quality 29 29%
Services
Convenient timing 11 11%
Analysis:
From above table we can understand the reason for customers preference of Karnataka
Gramin bank when compare to other banks. 23% of customers prefer Karnataka Gramin
Bank to other banks due to personal contact, 37% of customer prefers due to quick
services, 29% of customers prefer due to the quality services and 11% of customers prefer
due to convenient timing of the bank.
CHART –4.14
CHART SHOWING THE REASON FOR CUSTOMER PREFERENCE
IN KARNATAKA GRAMIN BANK AS COMPARED TO OTHER
BANK.
100%
100%
100%
99%
99% Percentage
99% No of respondents
99%
99%
98%
Personal Quick QualityConvenient
Contact Services Servicestiming
Interpretation:
From the above chart the majority of the customers prefer Karnataka Gramin bank since
the bank provides quality, quick services and personal contact as compared to other
banks.
TABLE -4.15
TABLE SHOWING THE OTHER SERVICES PROVIDED BY
Paying telephone bill 37 37%
Paying electric bill 47 47%
Water bill 10 10%
Any other bills 06 06%
Analysis:
The above table clearly shows the various other services provided by KARNATAKA
Gramin bank, 37% of customers uses telephone bill payment service, 47% of customers
make use of the electricity bill payment services, 10%, 6% of customers make use of the
water bill payment any other bill payment service.
BANK
CHART –4.15
CHART SHOWING THE OTHER SERVICES PROVIDED BY
Interpretation:
In the above chart we can interpret that majority of respondents make use of telephone bill
payment and electric bill payment services provided by Karnataka Gramin bank.

TABLE –4.16
TABLE SHOWING THE CRITERIA ON WHICH THE CUSTOMER
LOANS ARE SCANTIONED
On your deposit 05 05%
On your property 70 70%
On your solvency 10 10%
On your surety 15 15%
Analysis:
The above table shows the criteria on which the customer’s loans are sanctioned by the
bank. 70% of customers receive loan on the basis of their property, 5%, 10%, 15% of
customers receive loan on the basis of their deposit, solvency position and on their security
respectively.
CHART –4.16
CHART SHOWING THE CRITERIA ON WHICH THE CUSTOMER
LOANS ARE SCANTIONED
Interpretation:
In the above chart we can clearly interpret that majority of customers loan are sanctioned on the
basis of the value of the customers property.
TABLE – 4.17
TABLE SHOWING THE SECURITY ISSUED BY BANKER TO
CUSTOMER ON THEIR DEPOSITS.
Bonds 90 90%
Any other 10 10%
Analysis:
The above table clearly shows the security issued by banker to customers on their deposits.
90% of customers are given BOND by the bank and only 10% customers are provided
with other security.
CHART –4.17
CHART SHOWING THE SECURITY ISSUED BY BANKER TO
CUSTOMER ON THEIR DEPOSITS.
Interpretation:
From the above chart we can clearly interpret that majority of the customers are given bonds as
security by the banks towards the deposits.
TABLE – 4.18
TABLE SHOWING THE CUSTOMERS RESPONSE ON THE
FORMALITIES TO BE COMPILED WITH BANK WITH RESPECT
TO VIVID DEPOSIT.
Too lengthy 20 20%
Minimum 15 15%
Reasonable 65 65%
Analysis:
The above table shows the customers response on the formalities to be adhered with
Karnataka Gramin bank while opening Vivid Deposit. 20% of the customers where of the
opinion that the procedures were too lengthy, 15% customers said that it were minimum
and 65% said that the bank procedures were reasonable.
CHART –4.18
CHART SHOWING THE CUSTOMERS RESPONSE ON THE
FORMALITIES TO BE COMPILED WITH BANK WITH RESPECT
TO VIVID DEPOSIT
Interpretation:
From the above chart we can interpret that majority of customers felt that the formalities to be
complied with bank while opening Vivid Deposit was reasonable.
TABLE –4.19
TABLE SHOWING THE CUSTOMES REASON BEHIND
DEPOSITING AMOUNT IN VIVID DEPOSIT SCHEME.
Earning interest 47 47%
Safety 17 17%
To meet the future need 35 35%
Any other 00 00%
Analysis:
The above table shows the customers reason for depositing amount in the vivid deposit
scheme. 47% of customer preferred to deposit for earning purpose and 17%, 35%, 00% for
safety.
CHART –4.19
CHART SHOWING THE CUSTOMES REASON BEHIND
DEPOSITING AMOUNT IN VIVID DEPOSIT SCHEME
Interpretation:
From the above chart we can interpret that majority of customers prefer to deposit amount in
Vivid Deposit Scheme for the sake of earning interest.
TABLE –4.20
TABLE SHOWING THE HOW THE CUSTOMER MATCH THE
DIFFERENTIAL FINANCE
Savings 40 40%
Borrowings from 20 20%

relatives.
Borrowing from 30 30%

friends.
Other sources. 10 10%
Analysis:
From the above table we can understand how the customer is able to match the differential
amount. 40% of customers match the differential amount from their savings, 20% of
customers borrow from relatives, and 30% of customers borrow from friends, 10% of
customers from other sources respectively.
CHART – 4.20
CHART SHOWING HOW THE CUSTOMER MATCHES THE
DIFFERENTIAL FINANCE.
Interpretation:
From the above chart we can infer that majority of customers match the differential
finance required by them from their savings and form borrowing from other relatives.
CHAPTER - V
SUMMARY OF FINDINGS, CONCLUSION AND
SUGGESTIONS
FINDING OF THE STUDY
1. Among 100 respondent 40% of respondent select saving purpose deposits and
the remaining 60% select others 4 types of deposit.
2. Among 100 respondent the amount deposited by the customers , 30% of their
respondents have deposited below 10000, 45% have deposited between Rs.
10000 to 50000, 15% customers have deposited amount between Rs. 50000 to
100000 and 15% have deposited above Rs. 100000.
3. Among 100 respondent 40% customers prefer the saving deposit and remaining
15%, 35%, and 10% prefer Current Deposit, Fixed and Kamadhenu
respectively.
4. The study reveals that maximum numbers of respondent have deposit for 3 years
to 5 years. Therefore remaining 10%, 25% and 30% switch to other terms
respectively.
5. Majority of respondent have earns up to 3.5% rate of interest per annum.
6. A majority of the customers are satisfied with the vivid deposit scheme bank.
7. 57% of customer are not availing loan facility on v i v i d deposit scheme where
as 43% of customer are availing loan facility on deposit.
8. 59% of customers are getting 80% of loan on vivid deposit amount, remaining
switch to other.
9. 54% of customers are submitting election ID, and the remaining submit
passport, driving license and ration card as proof.
10. Among 100 respondent 83% of customer were satisfied with bank deposit
procedure, remaining 17% is not satisfied.
11. Study reveals that 86% of respondent are satisfied bank claim procedure.
12. Majority of respondent 47% selected Ashraya term deposit scheme, 23%
preferred recurring deposit and 15% preferred to have vivid deposit scheme and
Kamadhenu deposit.
13. 37% of customer are preferred Karnataka Gramin bank when compared to other
banks for their quick services, 29% preferred for their quality services, 23% for
their personal contact and 11% preferred since the bank had convenient timing.
14. Maximum 63%of customers are having saving bank deposit and 37% of
customers have current deposit
15. Only 5% of respondent were sanctioned loan on their deposit amount, 70% of
the respondents received loan based on their property, 10% on solvency
position, and 15% on security. Therefore it clear that the customers were given
loan based on the value of their properties.
16. Among the various other services provided by KARNATAKA Gramin bank,
47% of customers make use of the electricity bill payment services and 37% of
customers use telephone bill payment service and10%, 6% of customers make
use of the water bill payment any other bill payment.
17. 90% of depositors are provided with bond for their deposit amount as security.
18. Regarding Vivid Deposit opening formalities at the bank 65% of customers felt
that the procedure was reasonable, 20% felt that the formalities were too lengthy
and 15% felt it was minimum.
19. 47% of customer made deposits with Karnataka Gramin bank for earning
interest, remaining 36% and 17% of customer deposited to meet future
requirements, and for their safety purpose.
20. 40% of customers are bridging the gap for their required differential finance
from saving deposit.
SUGGESTIONS FOR THE STUDY

1. The bankers are required to give the details and information about the bank to the
customers.
2. The detail information about the banking policies should be providing to the customers.
3. The bank should inform the customers about their different deposit schemes.
4. The bank should provide the terms and conditions for deposit creation to the customers.
5. Since the interest rate is important and factor the bankers should provide detailed
information about the same to the customers.
6. The bankers can update the customers about the other new schemes of deposit.
7. The bankers can provide information about the various others benefits which the
customers can avail from the bank.
8. The bankers should try to smoothly motivate and acquire the customers towards
their deposit schemes.
9. The bankers should provide full information about the bank formalities for
account/deposit opening, closure, procedure for loan etc. to the customers.
Conclusion
This study required a lot of information regarding deposit schemes as it is very essential
component of the bank. The bank offers new deposit schemes like Kamadhenu deposit,
vivid deposit scheme, Recurring deposit and Ashraya deposit to the customer’s preference
for long term deposit.
Customers more prefers to the saving deposit scheme based on their income. Even the Fixed
deposits are offered by various banks in India. Customers can deposit lump sum amount and the
payment can be obtained after the maturity period or monthly basis the deposits are safe and
secured to meet your financial goals without any issues. The public and private participation
helped the people saving the amount in different deposit accounts in different schemes.
BIBLIOGRAPHY
BOOKS
 L.M. Bhole, Financial Institutions & Markets, Third Edition, Tata M.C. Grow
Hill Publishing Company Limited, Page No.129, 139.
 Reddy Appannaiha, Theory & Practice of Banking, Seventh Edition,
Himalaya Publishing House, Page No.149-156.
 Dr. P K Srivastava, Banking Theory & Practice, Millenious Edition, Himalaya
Publishing House, Page No.61-65.
WEBSITE:
 www.wikipedia.org
 www.google.com
 www.rbi.org
OTHER SOURCE:
 Annual Report of Karnataka Gramin bank (2018-19).

ANNEXURE
A SURVEY TO FIND THE PERFORMANCE OF VIVID DEPOSIT SCHEMES
1. For what purpose have you made a deposit in Karnataka Gramin Bank
 Savings purpose
 Safety purpose
 Child education
 Earning interest purpose
 Investment purpose
 Any other specify
2. How much amount have you deposited in bank?

 Below ₹ 10000
 ₹ 10000 – 50000
 ₹ 50000 – 100000
 Above ₹ 100000
3. Which deposit scheme do you prefer?

 Savings deposit
 Current deposit
 Fixed deposit
 Kamadhenu deposit
4. Term of your deposit in Karnataka Gramin Bank

 7 days to 365 days
 Above 1 year to 3 years
 3 years to 5 years
 Above 5 years
5. How much interest are you getting from Vivid deposited amount in Karnataka Gramin
Bank
 2% per annum
 2.5% per annum
 3.5% per annum
 Above 3.5% per annum
6. Are you satisfied with vivid deposit scheme

 Yes
 No
7. Does the bank provide loan facility on Vivid deposit scheme

 Yes
 No
8. To what extent you can get loan on your Vivid deposit

 30%
 50%
 80%
 More than 80%
9. What are the documents required to be submitted by you to the bank while making a
deposit
 Election ID
 Driving licences
 Passport
 Ration card
10. Are you satisfied with the procedure followed by Karnataka Gramin Bank for making
vivid deposit
 Yes
 No
11. Are you satisfied with the claim procedure of deposits after the expiry of term in
Karnataka Gramin bank
 Yes
 No
12. Which type of term deposit you prefer

 Kamadhenu deposit
 Recurring deposit scheme
 Ashraya deposits scheme
 Vivid deposit scheme
13. In demand deposit which deposit do you have in bank

 Savings bank
 Current deposit
 Other specified
14. Why do you prefer Karnataka Gramin Bank as compared to the other banks
 Personal contact
 Quick service
 Quality service
 Convenient timings
15. What type of other services are provided by bank to you

 Paying telephone
 Electric bill
 Water bill
 Any other
16. Does the bank provide any loan facility

 On your deposit
 On your property
 On your solvency
 On surety
17. Kind of security bankers will require for loan

 Bond
 Guarantee
 Security
 Any other
18. Formalities compiled with the bank with respect to vivid deposit is
 Too lengthy
 Minimum
 Reasonable
19. How did you match the differential finance

 Savings
 Borrowing from relatives
 Borrowing from friends
 Other sources
20. Purpose of your money deposited in the vivid deposit scheme

 Earnings interest
 Safety
 To meet future need
 Any other

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A STUDY ON THE PERFORMANCE OF VIVID

DEPOSIT SCHEMES AT KARNATAKA GRAMIN

I. Accepting of deposits and

Banking is generally regulated industry, and government restrictions on financial activities by

1 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

TYPES OF RETAIL BANKS COMMERCIAL BANK

 COMMUNITY DEVELOPMENT BANKS

2 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

 BUILDING SOCIETIES AND LANDS BANKS

3 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

ROLE OF COMMERCIAL BANK

The commercial role of banks is not limited to banking, and includes:

ECONOMIC FUNCTIONS OF BANKS

The economic functions of banks include:

4 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

MEANING OF DEPOSIT ACCOUNT

MAJOR TYPES OF ACCOUNTS

5 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

6 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

7 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

1836 Jun 1, 1836 - CONDITION OF THIRTY-SIX DEPOSIT BANKS, JUNE 1,

8 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

1933 1933 - long-dormant deposit insurance legislation is simple. In 1933, the

repetition of the disruption and depositor ...

9 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

10 ST. ANNE’S DEGREE COLLEGE FOR WOMEN

DIFFERENT TYPES OF DEPOSIT SCHEMES

There are two categories of deposits.

II. Term deposits.

Different types of demand deposits,

c) Karnataka Garmin champs deposits’ schemes

c) Karnataka Garmin champs deposits scheme.

In current deposits it is a statement of business committees there is no restriction for number of

The rate of interest for these account holders is nil.

II. Time deposits/Term deposits:

TYPES OF TERM DEPOSITS

a) Fixed deposits schemes

c) Karnataka Garmin tax savers scheme

d) Recurring deposits scheme

e) Ashraya deposits scheme (for senior citizen)

c) Karnataka Garmin tax saver schemes:

d) Recurring deposits scheme.

e) Ashraya deposits scheme:

f) Karnataka Garmin auto renewal deposit:

REVIEW OF LITERATURE AND RESEARCH DESIGN

TITLE OF THE STUDY:

“A STUDY ON THE PERFORMANCE OF VIVID DEPOSIT

ARTICLE 2 Deposits mobilization could pose challenge, says bankers'.

ARTICLE 3 INDIA Nedungadi Bank plans for centenary year (165).

BOI undertakes social initiatives on its 100th year.

ARTICLE 4 Deposits mobilization could pose challenge, says bankers'.

BOI undertakes social initiatives on its 100th year.

ARTICLE 5 FIXED DEPOSIT ARTICLES

Co-operative Bank Fixed Deposits

ARTICLE 6 Ore deposits Main article: Mineral resource classification

An ore deposit is an accumulation of ore. This is distinct from a mineral resource as

New Company Accounting By: Ike Agni

STATEMENT OF THE PROBLEM:

In our country, the uncontrolled growth of population has created a number of

OBJECTIVES OF THE STUDY:

The objectives framed are:

 To ascertain the different deposit schemes in Karnataka Garmin bank

SCOPE OF THE STUDY: