KARNATAKA BANK

CHAPTER-01

INTRODUCTION

1.1 INTRODUCTION ABOUT THE ORGANIZATION STUDY:

An organization study is a social arrangement which pursues collective goal, which controls
its own performance, and which has a boundary separating it from its environment.
Organization study is nothing but internship which concerned on-the-job training for many
professional jobs, similar to an initiation, more often taken up by college and university
students during master degree in their free time to supplement their formal education and
expose them to the world of work. Organizational studies offer various occasion to in terms
during internship programs to expand familiarity in their choose area of work, to find out what
they have an important in an exacting in specific line of business, develop professional network
links, build interpersonal skills or get some credit points.

Organizational studies are the study of individual and group dynamics in an organizational
setting as well as the nature of organizations themselves. Whenever people interact with
employees in organizations, many factors come into play. Organizational studies attempt to
understand and model these factors. Organizational study is essential to any MBA graduate as
it keeps them to connect theory with practical.

Organizational study is a job-oriented process which focuses towards developing special skills
related to the job. Through an organization study process efforts are made to increase practical
skill with the theoretical knowledge which students learn in formal education institution.

It provides experience and knowledge classroom studies are restricted to books and theoretical
learning. But organization studies provide practical experience. Here students get not only first-
time experience of these theories, but also learn the application of these theories in real
challenges.

I have decided to do organization study at Karnataka bank limited, it is an Indian private

banking and financial services company.

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1.2 INDUSTRY PROFILE

The service sector, also known as the tertiary sector, is the third tier in the three-economy. Instead
of product production, this sector produces services maintenance and repairs, training, or
consulting. Example of service sector jobs include housekeeping, tours, nursing, and teaching.

A service sector is a sector that provides a variety of services to the people. In simple words, a
service sector is a medium of connection between the primary sector and secondary sector. The
other name for the service sector is the tertiary sector. The services like banking, Information
Technology, telecommunication, business, legal industry, storage and communication, education,
healthcare, etc are some services offered by the service sector.

Bank is a financial institution that provides banking and other financial services to their
customers. It plays major role in Indian economy. Banks play the roles of providing loans and
accepting deposits. This sector has translated the hopes and aspiration of millions of peoples
into reality. These are also non-banking institution that provide certain banking services
without meeting the legal definitions of a bank. Banks are the subset of financial services
industry.

A banking system also referred as a system provided by the bank which offers cash
management services for customers, reporting the transaction of their accounts and portfolios,
throughout the day. The banking system in India should not only be problem free but it should
be able to meet the new challenges passed by the technology and any other external and internal
factors. For the past three decades, India’s banking system has several outstanding
achievements to its credit. The banks are the main participants of the financial system in India.

The banking sector offers several facilities and opportunities to their customers. All the banks
safeguard the money and valuables and provide loans, credit and services. Such as checking
accounts, money orders, cashier cheques. The banks also offer investment and insurance
products.

1.2.1 Origin of banking industry in India

• Banking in India has started in the 18th century.

• Bank of Hindustan (1770-1832) and General Bank of India (1786-1791) were the very
first banks, which failed later.

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• The oldest bank which still has its existence is the State Bank of India, originated in
June 1806 as the bank of Calcutta, renamed as the Bank of Bengal in the year 1809.other
two banks were the bank of Madras and the Bank of Bombay.
• In the year 1921, these three banks got merged and become the Imperial bank of India
and renamed as the State Bank of India (SBI) in the year 1955.
• Before the RBI emerged in the year 1935, the SBI acted as the central bank. In the year
1960, the SBI took control over 8 subordinate banks, now called as associate banks.
• 14 major banks were nationalized in the year 1969 and 6 more banks were nationalized
in the year 1980.These nationalized banks have the control over the country’s banking
sector as they have a large network.
• At present we have 93 commercial banks,15 private sector banks, 44 foreign banks,27
public sector banks, out of which 21 are nationalized banks and 6 are SBI and its
associate banks.
1.2.2 Types of Banks
• Commercial Banks: Commercial Banks are regulated under the Banking
Regulation Act,1949 and their business model is designed to make profit. Their primary
function is to accept deposits and grant loans to the general public, corporate and
government. Commercial banks can be divided into-
Public sector Banks
Private sector Banks
Foreign Banks
Regional Rural Banks
• Small Finance Banks: This is a niche banking segment in the country and is aimed to
provide financial inclusion to sections of the society that are not served by other banks.
The main customers of small finance banks include micro industries, small and
marginal farmers, unorganized sector entities and small business units. These are
licensed under section 22 of the Banking Regulation Act,1949 and are governed by the
provisions of the RBI Act.
• Payments Bank: This is a relatively new model of bank in the Indian banking industry.
It was conceptualized by the RBI and is allowed to accept a restricted deposit. The
amount is currently limited to Rs.1lakh per customer. They also offer services like ATM
cards, debit cards, net-banking and mobile-banking.

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• Co-operative Banks: Co-operative banks are registered under the Cooperative

Societies Act,1912and they are run by an elected managing committee. These work on
no-profit no-loss basis and mainly serve entrepreneurs, small businesses, industries and
self-employment in urban areas. In rural areas, They mainly finance agriculture-based
activities like farming, livestock and hatcheries.

1.2.3 Functions of banks:

A. Primary6function
Here, main6functions of the banks are also recognized6as bank6functions. Those are
the key functions6of the bank.

That primary functions are as fo11ows.

1. Accepting Deposits

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Karnataka Bank co11ect deposits6from the pub1ic. Those deposits may be6diverse
types, such ass:

i. Saving deposits
ii. Fixed deposits
iii. Current deposits
iv. Recurring deposit

2. Granting6loans and advances

The Karnataka bank6gives loans and advances to some6entrepreneur and other

associate of the6community. The rates electric are higher than which6pays on the
deposit. The6dissimilarity in the6interest rate is it6 income.

The all types6of the Loans and advances6given by the banks ar6 as follows:

i. Overdraft
ii. Cash credit
iii. Loans
iv. Discount on bills of exchange

B. Secondary6function
The bank recital a set6of secondary functions6and it is called6as non-bankin6
functions.
Those significant6secondary are as fo11ows.
1. Agenc6 Functions
The bank does acts6as an agent to its6customers and for its6customers. The6bank
perform th6 quantity of agency6functions, these are as6follows:

i. Transfer6of Funds.
ii. Collection of6cheques.
iii. Periodic6payments.
iv. Portfolio management.
v. Periodic6collection.
vi. Other agency6functions.

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2. General6Utility6Functions

The bank do6some other functions, those6are called as general6utility functions, such
as

i. Issue6of Drafts, 1etter6of Credits, etc.

ii. Locker6Faci1ity
iii. Approving6or he1ping pay for the of6Shares
iv. Dea1ing6in Foreign6Exchange Project6Reports.
v. Social We1fare6Programmes
vi. Other Uti1ity6Functions

1.2.4 Roles of Karnataka bank

• Retail Banking: Karnataka Bank provides a range of retail banking services to
individuals, including savings and current accounts, fixed deposits, and personal loans.
• Corporate Banking: The bank offers banking services tailored for corporate clients,
such as business loans, working capital finance, and other financial products to
support the needs of businesses.
• Agri-Business Banking: Karnataka Bank likely engages in agri-business banking,
providing financial services to farmers and agricultural businesses, including crop
loans and Agri-term loans.
• International Banking: Facilitating international trade and transactions, Karnataka
Bank likely provides services such as foreign exchange, trade finance, and
international remittances.
• Digital Banking: Keeping up with technological advancements, the bank is likely
involved in digital banking services, offering online banking, mobile banking, and
other electronic financial services.
• Wealth Management: Karnataka Bank may provide wealth management services,
helping clients manage and grow their wealth through investment advice and financial
planning.
• Treasury Operations: Engaging in treasury operations, the bank manages its
investments, deals in government securities, and handles foreign exchange
transactions.

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• NRI Banking: Providing banking services for Non-Resident Indians (NRIs),

including NRI accounts, remittances, and other financial products tailored for the NRI
community.
• Financial Inclusion: Contributing to financial inclusion, Karnataka Bank likely
extends banking services to underbanked and rural areas, promoting economic
development in these regions.
• Risk Management: Like any other bank, Karnataka Bank is involved in risk
management, assessing and mitigating various risks associated with its operations,
including credit risk, market risk, and operational risk.
• Government Banking: The bank may serve as a banker to the government, handling
government transactions, managing public debt, and participating in government
schemes.
• Customer Service: Providing excellent customer service is a crucial role for
Karnataka Bank, ensuring customer satisfaction and loyalty through efficient and
responsive banking services.

1.3 INTRODUCTION TO ORGANIZATION/COMPANY:

‘Karnataka Bank ltd.’ is the6top ‘A’ c1ass schedu1ed6commercial Bank in the India.
This was6built-in on the February18th 1924. The6central registered head6office is in
Mangalore. Th6 bank commences its6commerce on May 23rd 1924 with an6early
capital of Rupees 11580 contribute6by 113 shareho1ders; Here Sri B.R.Vyasaraya
Achar was the 1st president of the Bank. In the banks6memorandum of6association,
the objective clause state6objective that6Bank6distant from6delivery on the general
functions of the banking6business, would be “Set6distant and6suitable from
the6annual net profit near6the general, 6mental, 6moral and6physical development6of
others helpful6use of the members6of the Dravidian6and Brahmin6society, such sum
might be deem healthy”.

The starting 3 branches6of this bank are Mangal’re Dongerkery, Udupi6Car Street and
Madras6George. The6bank deposit6was Rs.0.68 Lakhs at the6end of the year6of
operation. The bank was renowned its 25th anniversary6in the year61949. In that6time

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KARNATAKA BANK

it was gained6surplus of Rs.0.75 Lakhs. In6that, Rs.55.59 Lakhs were6deposites and

advances6of Rs. 39.39 Lakhs.

On 23rd November 1958, Sri K.S.N.Adiga becam6 the chairman of th6 bank. The first
real appreciation6for the Mangalore6based Bank came6on the year of 1959. The6bank
was being prominent6from ‘c’ class to ‘B’ class. This6bank took over6three
rural6banks in the year of l960. After that6in the year l969, this bank6opened 75
branches. Its deposits6cross l00 million and net6profit was Rs.3.05 Lakhs.

The6bank opened6its first branch6in the country’s financial6capital in the year 197l.
In the same year the6bank was also obtained6class ‘A’ by the reserve6bank of India.
On its 25th year of its6action, the bank’s overall6deposits were Rs.33.l4 Crores6and
advances were Rs.22.09 Crores. And the6branches were l46 and 1266emp1oyees.

Karnataka Bank Ltd6 launched its new symbol that the6star symbol as its visual
identity symbo6 in l977. That symbol made by late Dr. 6Shivaram Karanth,
it6conveys stability, discip1ine, 6harmony and6confidence. Here6staff training
co1lege6of the bank was started in Mangalore. That was6started on September 27th
1977. In l9976the foreign exchange6dealing of the banks6was started. 6That was
another6department recognized in Bangalore6afterwards it was shift to6the Mumbai
(l979).

This bank6achieves the goal6of Rs. 1 Billion in deposits6with the6combined 104.24

Crores as on6December 31st l979. The6first service branch6was opened in l994-95, at
Mumbai. The first industrial financial6branch was a1so6opened attBanga1ore on
March 20th 1995. The firstVagricu1tural deve1opment6branch was6opened on lst April
l995. The bank6entered to stock6markets on6October 1995. Public6issue was rupees
8lcr. This1was6oversubscribed.

Karnataka6banks1network now6extended it6 branches to 800. Extend across 22 states

and6two union6territories. That6has managed by6committed management6teams that
have6over 8l85 emp1oyees6and l46000 shareho1ders6that are more6than 8.2 million
customers.

Karnataka6bank hassab1e to6earn net profit6of Rs.370.7 Crores for the6year ended
31st March 2023. In6the financial6year 2022-23, Bank6has envisage a trade6turnover
Rs.1,48,449.27 Crores. The6expansion rate6of the profit is 7.69% percent. And6bank
having it’s own l188 ATMs.

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CHAPTER-02

ORGANIZATION PROFILE

2.1 BACKGROUND

Establishment: Karnataka Bank was founded on 18th February 1924, making it one of
the oldest commercial banks in India.
Headquarters: The bank's headquarters are located in Mangalore, Karnataka, India.
Branch Network: Karnataka Bank has a vast network of branches and ATMs across
India, serving both urban and rural areas.
Ownership: It is a private sector bank, and its shares are publicly traded on stock
exchanges.
Services: The bank provides a wide range of banking and financial services, including
retail banking, corporate banking, agricultural banking, NRI services, and more.
Customer Base: Karnataka Bank caters to a diverse customer base, including
individuals, businesses, and NRIs (Non-Resident Indians).
Technology: The bank has been actively adopting technology to enhance its digital
banking services, offering online and mobile banking options for customers.
Financial Performance: You might want to include information about its financial
performance, which can be obtained from annual reports and financial statement

2.2 NATURE OF THE BUSINESS

Taking deposits and lendin6 money is the main6nature of bank. It6issues overdraft6and
credit card, 6debit card, safeguard6of asset.

• Granting Loan: Karnataka bank provides short term and medium term loan to the
members and non members against security. The loan is provided to the businessman,
merchants, craftsman, salary earners etc. considering their needs. The loan is
provided to the members for children education, housing, purchasing consumer’s
products like television, computer etc.

• To act as an Agent: Karnataka bank provides all banking functions. As an agent of

accountholder, the bank makes payment of telephone bill, electric bill, LIC premium,

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children educational fees, house rent, housing loan installment, purchase and sale of
shares and debentures, etc. for these functions nominal bank charges are charged by
the bank. And also provides guidance to the members for proper investment.

• Discounting bill of exchange: When the credit transaction takes place between two
parties, the creditor draws bill of exchange for a specific period which is accepted by
debtor this bill of exchange is discounted by the bank for this interest is charged
which is known as discount.

• To provide Safe Deposit Locker: Karnataka banks provide safe deposit lockers to
its customer’s means depositors. The depositor can keep safely their valuables like
gold and silver ornaments, important documents in such locker. This service or
facility is provided by the bank for the safe custody of valuables of its customers.
Bank charges rent, as per the size of lockers.

• Modern banking services: Karnataka Banks also provides modern banking services
likes 24 hours ATM services to the members. This service is provided by the ATM
centers located nearby market, railway station, bus stand, etc. The bank also provides
other modern banking services like Electronic money transfer, core banking, e-
banking, mobile banking, Credit card, Debit card, etc. In Telebanking system a
specific phone number is allotted to the members through whom they can get all
information regarding their accounts like transaction, balance of their account,
current rate of interest, foreign exchange rate, etc.

• Helping for self- employment: Karnataka banks provide loan for self-employment
to the persons want to start their own business. Self-employed persons like work-
shop owner, machinery repairer, tailor, weaver, truck transporter, auto rickshaw
driver, etc. These persons get the financial help from Karnataka bank for self-
employment which helps to solve the problem of unemployment.

• Quick banking services: Due to globalization competition is increasing in all

sectors. The Karnataka bank provides quick banking services as per the needs of the
customers by charging reasonable charges. Members pay service charges to the bank.
The bank maintains good relation with customers and provides quick services to the
customers.

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• Financial management: Karnataka bank makes proper investment of funds. The

bank invests surplus fund as per the provisions and instructions of Reserve Bank of
India. After taking into consideration the cash requirement security (safety) and
return on investment.

• Training to staff and officers: The Karnataka bank provide professional training to
the staff, officers and employees of the bank. For this they arrange various workshops
to improve the quality of banking services. The success of bank is dependent on the
services provided by the bank

• Sustainable Banking: Karnataka Bank may have initiatives related to sustainable

and responsible banking, such as financing environmentally friendly projects or
incorporating eco-friendly practices in its operations.

2.3 VISION MISSION AND QUALITY POLICY

2.3.1 Vision statement:

Vision statement6of the bank6is:
“To be asprogressive, 6prosperous6and well6governed6bank”.

2.3.2 Mission statement:

The Karnataka bank’s mission6declaration of any organization normally6represents its
long term aims6and strategies. Every6organisation have6its own6missions,

Karnataka6banks mission6as follows:

“To be a techno1ogy6savvy, customerVcentric1progressive6bank with a6nationwide

presence, 6focused by the6highest standards6of corporate6authority and6guided by
sound ethical6va1ues”.

2.3.3 Quality policy:

The qu1ity6po1icy of6Karnataka Bank61td. is provided6that quick and6superior
services and their by6achieve customers6satisfactions.

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2.4 WORK FLOW MODEL:

This is the work flow model followed by the bank at the time of depositing and withdrawal
cash by customers. Which involves the following series of steps, they are
CUSTOMER APPROACHING THE BANK FOR ENQUIRY

INTRODUCTION

DOCUMENTATION

SAVING, FIXED, CURRENT AND RECURRING ACCOUNT

ACCOUNT HOLDER FACILITY

DEPOSITS

CASHIER

ACCOUNT OF THE CUSTOMER

CASH SUPERVISOR

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WITHDRAWAL

• Customer approaching the bank for enquiry:

Customer approaches the bank with inquiries about various services, account types,
and facilities.
Bank staff assists the customer, providing information on account options, interest
rates, and services offered.
• Introduction:
If the customer decides to open an account, the bank representative guides them
through the account opening process.
• Documentation:
Customer provides necessary documentation (e.g., ID, proof of address) as per
regulatory requirements.
Bank staff verifies the provided documents and details.
• Saving, fixed, Current and Recurring Account:
Based on the customer's needs and preferences, the bank representative explains
different account types (savings, fixed deposit, current, recurrent deposit, etc.).
The customer selects the type of account they wish to open.
• Account Holder Facilities:
Bank staff explains the facilities available to account holders, such as online banking,
mobile banking, ATM services, and other account management tools.
• Deposit:
Customer makes an initial deposit to activate the account.
For fixed deposits, the customer specifies the deposit amount, tenure, and interest
payment frequency.
• Cashier:
For transactions involving cash, the customer may interact with the cashier.
Cash deposits or withdrawals are processed at this stage.
• Cash Supervision:
A cash supervisor or relevant personnel oversees cash transactions to ensure accuracy
and adherence to security protocols.

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Regular monitoring of account activities for any unusual transactions or

discrepancies.
• Withdrawal Process:
When the customer wishes to withdraw funds, they initiate the request.
The bank processes the withdrawal, ensuring the availability of funds and proper
verification.

2.5 PRODUCT AND SERVICE PROFILE:

SAVINGS ACCOUNT: Savings accounts are an interest-generating deposit account which

provides a reasonable rate of interest in return for money deposited into the account by the
customer.

Features of Saving Account:

• The main objective of saving account is to promote savings

• Saving Account is of continuing nature. There is no maximum period of holding.

• A minimum amount has to be kept on saving account to keep it functioning

• No loan facility is provided against saving account

Advantages of Saving Account:

• Saving account encourages savings habit among salary earners and others who have
fixed income

• It enables the depositor to earn income by way of saving bank interest

• Saving account helps the depositor to make payment by way of issuing cheques

• It shows income of a salaried and other person earned during the year

CURRENT ACCOUNT: Current account is opened by businessmen who have a higher

number of regular transactions with the bank. It includes deposits, withdrawals, and contra
transactions It is also known as Demand Deposit Account.

Features of Current Account:

• Current account are operated to run a business

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• It is a non-interest bearing bank account

• It needs a higher minimum balance to be maintained as compared to the savings

account

• It charges interest on the short term funds borrowed from the bank

Advantages of Current Bank:

• It enables businessmen to carry out their business transactions properly and promptly

• The businessmen can withdraw from their current accounts without any limit, subject
to banking cash transactions tax, if any levied by the government

• It helps businessmen to make a direct payment to their creditors by issuing cheques

demand drafts or pay orders,etc

• It enables the current account holder to obtain overdraft (short-term borrowing)

facility

RECURRING DEPOSIT ACCOUNT: Recurring deposit account is generally opened for

a purpose to be served at a future date. Generally opened to finance pre planned future
purposes like, wedding expenses of daughter, purchase of costly items like land, luxury car,
refrigerator or air conditioner etc.

Features of Recurring Deposit Account:

• The main objective of recurring deposit account is to develop regular savings habit
among the public

• In India, minimum amount that can be deposited is Rs 10 at regular intervals

• The rate of interest is higher

• The period of deposit is minimum six month and maximum ten years
Advantages of Recurring Deposit Account:

• High interest rate

• No penalty if you miss a month

• Start with minimum Rs 2000 per month

• Best for short term goals recurring deposits

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FIXED DEPOSIT ACCOUNT: A Fixed Deposit is a type of an account opened with a bank
where an assured rate of interest is paid for keeping the funds for a particular period.

Features of Fixed Deposit Account:

• The main purpose of fixed deposit account is to enable the individuals to earn a higher
rate of interest on their surplus funds (extra money).

• The amount can be deposited only once. For further such deposits, separate accounts
need to be opened.

• The period of fixed deposits range between 15 days to 10 years.

• A high interest rate is paid on fixed deposits. The rate of interest may vary as per
amount, period and from bank to bank.

Advantages of Fixed Deposit Account:

• Fixed deposit encourages savings habit for a longer period of time

• Fixed deposit account enables the depositor to earn a high interest rate

• The depositor can get loan facility from the bank

• The bank can get the funds for a longer period of time

PIGMY DEPOSIT ACCOUNT: Pigmy Deposit Scheme is a monetary deposit scheme

introduced by syndicate bank, India. Money in amounts as small as five rupees can be
deposited into an account on a daily basis, by a bank agent collecting the money from the
account holder’s doorstep.

This scheme is deposited to attract small savings of all categories of depositors, whether the
small, poor or rich having the income either daily weekly, monthly or even though there is a
uncertain source of income.

The period should be for minimum 12 months every time while paying the amount to the
collecting agent the depositor should see that the necessary entries are made in the daily
collections memo and the agent should hand over receipt for the amount collected.

RTGS: The term real time gross settlement (RTGS) refers to a funds transfer system that

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allows for the instantaneous transfer of money and/or securities the term real-time, it means
the settlement happens as soon as it is received So, in simpler terms, the transaction settles in
the receiving bank immediately after it is transferred from the sending bank. Gross settlement
means transactions are handled and settled individually, so multiple transactions aren’t
bunched or grouped together. This is the basis of a real-time gross settlement system.

Real-time gross settlement lessens settlement risk also referred to as delivery risk overall, as
interbank settlement usually occurs in real-time throughout day-instead of simply all together
at the end of the day. This eliminates the risk of a lag in completing the transactions.

NEFT: NEFT stands for National Electronic Funds Transfer. NEFT is a one-to-one payment
facility that is regulated by the Reserve Bank of India across various public and private sector
banks. As per NEFT, one can transfer funds to another individual with an account in a
different bank. However, to enable this facility the concerned bank accounts must be NEFT
enabled. The payments as per the NEFT are processed and settled in half-hourly batches

The amount less than 2.50lakh is NEFT.

The amount greater than 2.50lakh is RTGS.

E-STAMPING: E-stamping is a computer based application and a secured way of paying

non judicial stamp duty to the government. The prevailing system of physical stamp
paper/franking is being replaced by electronically stamping system. Stamp duty in lieu of
transactions such as a property sale or purchase, formation of a business agreement or a deed
and others involving financial aspect is to be paid as a share to the government through the
purchase of a stamp paper.

Benefits of e-stamping

• E-stamp certificate can be generated within minutes.

• E-stamp certificate generated is tamper proof.

• Authenticity of the e-stamp certificate can be checked through the inquiry module.

• E-stamp certificate generated has a unique identification number.

• Specific denominations is not required.

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• E-stamp certificate can be checked by any person through recommended site.

LOAN: A Loan is a sum of money that one or more individuals or companies borrow from
banks or other financial institutions so as to financially manage planned or unplanned events.
In doing so, the borrower incurs a debt, which he has to pay back with interest and within a
given period of time. The recipient and the lender must agree on the terms of the loan before
any money changes hands .In some cases, the lender requires the borrower to offer an asset
up for collateral, which will be outlined in the loan document.
Loans:

• Varthak6Loan
his type of the61oan is arranged for th6 finance of operational6capital. These kinds of
loans6are cooperative for6distributor, stock dea1ers, 6commissions’ agents, and the
traders.
• Loans6for Salaried6Persons:
Remunerated people may be takes loans for purchase of the goods which is consumer
durables and the one-time basics for private residence use.
• Niveshan6Loan:
These kinds of loans6are giving to the people6who purchases of a new house. 6Loan
amount6is restricted to the rupees615 lakhs.
• K-Power:

This6type of loans are6very useful, loan6is given through6the ATMs. Here6maximum

loan amounts are6rupees 15,000.

• Vidyanidhi6Education Loan6Scheme:

In this6Karnataka Bank education6loan are given for students. 6This can be6taken for
finance6studies both within6India and outer of6India. Funds for6hostel board and air
travel6fees are also6given.

• Car Finance6Scheme:

Karnataka6Bank also five car6loans, these are6granted for all6types and all6price range
of6vehic1es. Here6maximum of 80% of the6car price can be6given as6loan.

• Easy6Ride:

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This6loan is giving for pay6for of two-wheelers. These are granted6to professionals,

persons, and6corporation.

• Udyog Mithra:

These6loans are supportive6for professional6who wish to enlarge their6specialized

Capacity . the loan funds can be utilized to bye goods and equipment.

• Home6Loans:

It begins/tries6social welfare programmes, 6such as adult6reading and6writing ability

programmes, 6public welfare6 (series of actions to reach goals), etc

Karnataka Bank gives fluctuated advance plans to people take into account the
individual necessity of purchasing or redesigning a house. They give home credits to
purchase another house, purchase a plot to fabricate another house, revamp the old
house, advance against property and so on. The sort of home advance plan is called
KBL Apna Ghar and its highlights are as per the following:

The advance time frame is 15 years and reimbursement occasion residency of year and
a half is likewise considered:

• It is for Indian occupants as it were

• It is for salaried personals over 21 years old

• It is payable in level with regularly scheduled payments

• Financing cost is 9.50% for credit sum up to Rs 30 lakh

2.6 Ownership pattern:

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 KARNATAKA BANK

SHAREHOLDING PATTERN

17%
23%
Promoters
Banks
FII'S
8%
Insurance
8% Mutual fund
4%
Indian Public
5% Custodians
Others

35%

2.7 Achievements and awards:

2023-24

• Bank conferred with ET Edge ICONIC BRANDS OF INDIA-2023 AWARD.

• Bank bagged ‘Business Icon Award –2023’ sponsored by ‘The Zee Kannada News
channel’.

• Bank has bagged ‘Exemplary Digital Transformation Strategy’ and ‘Outstanding Data
Analytics Initiative’ awards conferred by ‘Elets-Banking and Finance’

• Bank has won 3 prestigious awards at “Infosys Finacle Innovation Awards 2023” under the
categories ‘Transformation Excellence’, ‘Process Innovation’ & ‘Channel Innovation’.

2022-23

• Three Awards from Chamber of Indian Micro Small and Medium Enterprises (CIMSME),
as detailed here below:

o CSR Initiatives & Business Responsibility Bank- WINNER

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 KARNATAKA BANK

o Best MSME Bank – RUNNER UP

o MSME Friendly Bank –RUNNER UP

• ‘Prathista Puraskar – Digidhan Award’ from MeitY for highest percentage in BHIM-UPI
transactions.

• “Best Technology Talent – Runner Up” conferred by Indian Banks’ Association (IBA)

• ‘DX 2022 Awards’ conferred by Confederation of Indian Industry [CII] “Innovative

Excellence” in three categories

o HR NxT - Employee Engagement’

o ‘KBL Operations NxT - Operational Excellence’

o ‘KBL Customer NxT - Customer Experience’

• Agriculture Infrastructure Fund Awards 2022 at PUSA, Delhi, organised by Ministry of

Agriculture & Farmers Welfare

• ASSOCHAM Excellence Award – Runner up in Lending category

2021-22

• Kanhangad Branch has been adjudged as ‘Third Best Branch in Kerala State’ under Private
Sector Bank Category for the year 2020-21 by State Forum of Bankers’ Club (Kerala) in
SFBCK Banking Excellence Awards 2021.

• ‘National Best Employer Brand’ Award at the 16th Edition of Employer Branding Awards
of World HRD Congress, Mumbai

• 'Best MSME Bank of the year – Winner’ Award among Private Sector Banks at the 8th
MSME’s Excellence Awards Ceremony and Summit instituted by ASSOCHAM, New
Delhi.

• Prestigious ‘GOLD’ Award for outstanding achievement in Safety & Security in Banking
Sector conferred by sustainable Development Foundation at the 11th Exceed Occupational
Health Safety & Security Award & Conference 2021.

• Five Awards from CIMSME (Chamber of Indian Micro Small and Medium Enterprises),
New Delhi, as detailed here below:

o Best MSME Private Bank- Winner

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 KARNATAKA BANK

o Best MSME Friendly Private Bank- Winner.

o Best Branding Private Bank- Runner-Up.

o Best Private Bank for Promoting Social Scheme- Runner-Up.

o Best Private Bank of Implementing Covid Related Government Schemes- Winner.

• Three Runner- Up Awards in the ‘IBA-Banking Technology Awards 2022’ under the
Small Bank Category:

o Best Technology Bank of the Year.

o Best Use of AI/ML & Data Analytics.

o Best Fintech Adoption.

• Digital Transformation DX 2021 Award for Best Practice in Digital Transformation 2021
in recognition of the “Innovative” Best Practice – “KBL VIKAAS” instituted by
Confederation of Indian Industry (CII).

• Award of Excellence- ‘APY- Mega Login Stars’ from PFRDA (Pension Fund Regulatory
& Development Authority).

• Bank has won two DigiDhan awards instituted by Ministry of Electronics & Information
Technology for achieving the target with highest percentage in BHIM – UPI transactions
under the Private Sector Bank Category for FY 2019-20 & FY 2020-21.

• The RUNNER UP under ‘Customer Journey Reimagination’ category among the ‘Mid-
Size Bank segment’ by INFOSYS Innovation Global Awards 2021.

• Bank is conferred with ‘Top Organizations with Innovative HR Practices’ award at the
19th edition of Asia Pacific HRM Congress held on 26th October, 2021.

• Two prestigious awards from ASSOCHAM, New Delhi under Private Sector Bank
Category, for excelling in the areas of digitalization:

o Digital Services: Winner.

o Digital Lending: Runner- Up.

2020-21

• target for Bank bagged “Karnataka Best Employer Brand Awards 2020” instituted by
World HRD Congress and endorsed by CHRO Asia, for having used marketing

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 KARNATAKA BANK

communications effectively in attracting, retaining and developing talent and in retention

policy.

• Bank has bagged Certificate of Appreciation “Power To Persist (Sept 2020)” in recognition
of achievement of persistency target & Contribution towards Atal Pension Yojana from
PFRDA.

• Bank’s Staff Training College has been reaccredited with the prestigious ISO 9001:2015
Certification by TVE Certification Services Pvt Ltd., Trichy.

• Bank bags ‘Organization with Innovative HR Practices’ award under Dream Companies to
work for category instituted by World HRD Congress, received on 16-02-2021.

• Bank bags ‘Dream Companies to work for’, award under Dream Companies to work for
category instituted by World HRD Congress, received on 16-02-2021.

• Bank bags overall 8th Rank under Dream Companies to work for category instituted by
World HRD Congress, received on 16-02-2021.

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CHAPTER-03

MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE

MODEL WITH SPECIAL REFERENCE TO ORGANIZATION
UNDER STUDY

Mckensy’s 7S Framework:

The McKinsey 7s model is a strategic tool and framework that helps managers and
businesses assess their performance. The McKensey 7s model identifies 7 key elements for
an organization that need to be focused and aligned for successful change management
processes as well as for regular performance enhancements.

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• Hard elements:

The hard elements of the McKensey 7s model comprise of strategy, structure, and systems.
The hard elements of the model are easier to identify, more tangible in nature, and directly
controlled and influenced by the leadership and management of the organization.

Strategy:

The strategic direction and the overall business strategy for Karnataka Bank are clearly
defined and communicated to all the employees and stakeholders. This helps the
organization manage performance, guide actions, and devise different tactics that are
aligned with the business strategy. Moreover, the business strategy‘s definition and
communication also make operations for Karnataka Bank Turnaround more transparent
and aligns the responsibilities and actions of the company.

• Product (Service Offerings):

Banks offer a range of financial products and services, including savings accounts,
loans, investment options, and digital banking solutions. The key is to ensure that
these products meet the diverse needs of customers.
• Price (Costs and Fees):
Clearly communicating costs, fees, and interest rates associated with various services
is crucial. Transparency in pricing builds trust with customers and helps them make
informed financial decisions.
• Place (Distribution Channels):
Banks operate through physical branches, ATMs, online platforms, and mobile apps.
Providing a seamless and accessible multichannel experience ensures that customers
can access banking services conveniently.
• Promotion (Marketing and Communication):
Effective marketing and communication strategies are essential to create awareness
about banking services. This includes advertising campaigns, promotions, and
educational materials to inform customers about new products or features.
• People (Customer Service):
The personnel involved in customer interactions, from tellers to customer service
representatives, play a critical role. Well-trained and customer-focused staff
contribute to a positive service experience.

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• Processes (Efficiency and Effectiveness):

Streamlining internal processes ensures efficient service delivery. This includes
account opening procedures, loan approvals, and other operational workflows.
Efficiency contributes to faster and more reliable services.
• Physical Evidence (Branding and Atmosphere):
The physical environment of bank branches, as well as the overall branding,
contributes to the perceived value of services. A clean and welcoming branch
atmosphere, along with consistent branding, helps build trust and loyalty.

Structure:

Karnataka Bank has a flatter organizational hierarchy that is supported by learning and
progressive organizations. With lesser managerial levels in between and more access to the
senior management and leadership, the employees feel more secure and confident and also
have higher access to information. Moreover, the flatter hierarchy also allows quicker
decision-making processes for Karnataka Bank and increases organizational commitment
in the employees.

Systems:

Karnataka Bank has defined and well-demarcated systems in place to ensure that the

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KARNATAKA BANK

business operations are managed effectively and that there are no conflicts or disputes. The
systems at Karnataka Bank Turnaround are largely departmental in nature.

• Soft elements:

The soft elements of the McKensey’s 7s model, in turn, include shared values, staff, skills,
and strategy. These elements are less tangible in nature and are more influenced by the
organizational culture. As such, the management does not have direct influence or control
over them. These elements are also harder to describe and directly identify – but are
equally important for an organization’s success and improved performance.

Shared values:

The core values at Karnataka Bank are defined and communicated to foster a creative and
supportive organizational structure that will allow employees to perform optimally, and
enhance their motivation and organizational commitment

Skills:

Karnataka Bank has a commendable workforce, with high skills and capacities. All
employees are recruited based on their merit and qualifications. Karnataka Bank prides
itself on hiring the best professionals and grooming them further to facilitate growth and
development.
The skills which is needed in the organization are:

• Computer skill

• Math aptitude

• Problem solver

• Leadership skill

• Project management

• Communication

• Good listener.

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KARNATAKA BANK

Style:

Karnataka Bank has a participative leadership style. Through a participative leadership

style, Karnataka Bank is able to engage and involve its employees in decision-making
processes and managerial decisions. This also allows the leadership to regularly interact
with the employees and different managerial groups to identify any potential conflicts for
resolution, as well as for feedback regarding strategic tactics and operations.

Staff:

Karnataka Bank has a sufficient number of employees employed across its global
operations. Employees for different job roles and positions are hired internally as well as
externally – depending on the urgency and the skill levels required. Based on this, it is seen
that Karnataka Bank has employees who are skilled as per the requirements of their job
roles and positions. All employees are given in house training to familiarize themselves
with the company and its values. External training along with in house training is provided
for skill level enhancement.

Porter’s Five Force Model:

Porter Five (5) Forces Model was proposed by Michael E. Porter in 1979. The purpose
was to assess and evaluate the competitive positioning and strengths of business
organizations. The model has three horizontal competitive forces (Threat of Substitute
Products or services, the threat of new entrants and rivalry among existing firms) and
two vertical forces (Bargaining power of buyers and bargaining power of suppliers).

These forces shape the competition within any industry. The overall industry
competitiveness declines when these forces reduce profitability. Porter found SWOT
analysis lacking in rigor. Many new companies use the Porter Five (5) Forces Model to
decide whether it is profitable to enter in a particular industry.

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• Rivalry among existing competitors:

Porters Analysis Karnataka bank services adds to the high level of degree of rivalry
amongst banking industry. Since the services being offered and mainly similar, the
absence of distinction used by market more increases the degree of rivalry among
market.

o HDFC Bank

o SBI Bank

o ICIC Bank

o Kotak Mahindra

o Axis Bank

o IDBI Bank

• Threat of new entrants:

Karnataka Bank, being an established regional bank, has an advantage over

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KARNATAKA BANK

potential new entrants due to its existing customer base and brand reputation. The
regulatory requirements in the banking sector act as a deterrent to new players. The
market has a high threat of brand new entrants because it does not need high
investment in technology to go into the market. The purchase of products and
materials is fairly simple therefore little gamers can easily enter the industry.

o Axis Bank

o Bandhan Bank

o DCB Bank

o IDBI Bank

• Threat of Substitute:

Threat of substitute in Karnataka bank is comparatively low. The threats of

alternative might be low does not specifically have substitute. The competition for
urban cooperative bank is low. Hence the threats of substitute are low or nill.

o Non financial institute

o Financial institute

o Credit union

o Peer-to-peer borrowings

o Chit fund

• Bargaining power of suppliers:

There are four major suppliers

1. Customer deposits

2. Mortages and loans

3. Mortages based securities

4. Loans from other financial institution

By utilizing these four major suppliers, the bank can be sure that they have the

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KARNATAKA BANK

necessary resources require to services there customer barrowing needs while

maintaining enough capital to meet withdrawal expectation

The power of the suppliers is largely based on the market there power is often
consider to fluctuate between medium to high

• Bargaining power of buyers:

The bargaining power of buyers is low. One major factor affecting the power of
buyers is relatively high switching cost. If a person has one bank that services there
banking needs, mortgage, savings, checking etc. It can be a hassle for that person to
switch to another bank. To try and convince customers to switch to there bank they
will often time lower the price of switching though most people still prefer to stick
with there current bank. The internet has greatly increased the power of customer in
the banking industry.

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CHAPTER-04

SWOT Analysis

SWOT Analysis of the Karnataka bank analyses the brand by its strengths, weaknesses,
opportunities and threats. In The Karnataka bank SWOT Analysis , the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external
factors.

SWOT Analysis is a proven management framework which enables a brand like The
Karnataka bank to benchmark its business and performance as compared to the competitors.
The Karnataka Bank is one of the leading brands in the banking and financial services
sectors.

The article below lists the Karnataka bank SWOT, competitors and includes its target
market, segmentation and positioning. Let us start the cooperative bank SWOT Analysis:

In this article:

• Strengths

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KARNATAKA BANK

• Weaknesses

• Opportunities

• Threats

SWOT Analysis of Karnataka Bank:

For the Karnataka bank , SWOT analysis can help the brand focus on building upon its
strengths and opportunities while addressing its weaknesses as well as threats to improve its
market position.

The Karnataka Bank Strengths:

The strengths of the Karnataka bank looks at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brands strengths include
its financial position, experienced workforce, product uniqueness and intangible assets like
brand value. Below are the strengths in the SWOT Analysis of the Karnataka Bank:
• More than6470 branches across6over 20 states and 2 Union6Territories

• Accentuation6on consumer6loyalty

• Has6more than 58446workers and 4.846million clients, 6incorporating ranchers and

craftsman’s in towns6and residential areas6all through the6nation

• Fast6Remit, an administrative centre6to gain swap over6simple for the Non-Resident

Indians6livelihood in Canada6USA and the UK

• The Bank has a ethical policy which prevents it from investing in companies
involved in arms trade, genetic engineering, fossil fuel extraction etc. The ethical
policy is part of the bank constitution.

• The bank offers a variety of retail banking services such as current accounts,
mortgages, loans, credit cards investments etc.

• The bank caters to a wide customer base including individuals, businessmen,

corporate customers etc.

• The bank provides its customers with latest facilities like internet banking facility
and mobile banking facility.

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KARNATAKA BANK

The Karnataka Bank Weaknesses:

The weaknesses of a brand are certain aspects of its business which are it can improve to
increase its position further. Certain weaknesses can be defined as attributes which the
company is lacking or in which the competitors are better. Here are the weaknesses in the
Karnataka Bank SWOT Analysis:
• Less reach crosswise over nation as far as ATM's, branches when contrasted with
greater banks

• Brand perceivability is less because of absence of promoting

• The bank had to face a severe financial crisis which saw it being taken over by US
hedge funds.

• The bank has recently closed a lot of its branches and also terminated its off shore
activities.

The Karnataka Bank Opportunities:

The opportunities for any brand can include areas of improvement to increase its business.
A brand’s opportunities can lie in geographic expansion, product improvements, better
communication etc. following are the opportunities in the cooperative bank SWOT
analysis:

• The bank has come up with schemes such as the “golden Hello” to win back
customers after its 2013 financial crisis.

• The bank should introduce new products and schemes to bring in new customers. It
should also build relationship with existing customers to retain them.

• The bank should come up with better governance and be more transparent, in order
to restore customer confidence in the processes of the bank.
• Worldwide keeping money in regions with great pockets of Indian

population

• Rural keeping money and more administrations for the country regions

The Karnataka Bank Threats:

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KARNATAKA BANK

The threats for any business can be factors which can negatively impact its business. Some
factors like increased competitor activity, changing government policies, alternate products
or services etc. can be threats. The threats in the SWOT Analysis of the Karnataka Bank
are as mentioned:

• A more robust accounting system needs to be put in place. It was found that the
bank had a hole in its finances. Such scandals can erode customer confidence in the
bank.

• Default risk which is the risk that the bank may run into losses due to the counter
party defaulting on their liabilities.

• Abad economic outlook can cause serious damage to the financial situation of the
bank.

• The bank faces threat of running out of capital to run its day to day business due to
the severe financial crisis it is going through.

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CHAPTER-05

Analysis of Financial statements

5.1 Balance Sheet of Sakharaya pattana Karnataka Bank

BALANCE SHEET OF MARCH MARCH MARCH

Karnataka bank (IN Rs. 23 22 21
Cr.)

12 12 12
Months Months Months

EQUITY AND LIABILITIES

SHAREHOLDERS FUNDS

Equity Share Capital 1,035.53 925.37 530.36

TOTAL SHARE CAPITAL 1,035.53 925.37 530.36

Revaluation Reserve 0.00 0.00 0.00

Reserves and Surplus 1,035.53 927.37 530.36

TOTAL RESERVES AND 81,354.05 75,178.92 49,423.76

SURPLUSE

TOTAL SHAREHOLDER 81,354.05 75,178.92 49,423.76

FUNDS

Minority Interest 436.20 386.17 341.36

Deposits 995,909.81 973,228.15 665,588.6

Borrowings 71,263.34 95,752.70 68,867.53

Others liabilities and 52,676.86 54,470.82 29,878.24

provisions

TOTAL CAPITAL AND 1.202,675.79 1,199,942.14 819,671.9

LIABILITIES

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ASSETS

Cash and 40,153.72 34,244.78 28,225.35

balance with
Reserve
Bank of
India

Balance with 88,507.41 96,760.69 69,659.49

Banks
Money at
call and
Short
Notice

Investment 281,859.00 289,726.72 195,716.2

Advances 723,242.25 706,539.73 484,214.8

Fixed Assets 8,440.84 9,267.69 7,367.62

Other Assets 60,472.56 63,402.92 34,488.44

TOTAL 1,202,675.79 1,199.942.14 819,671.9

ASSESTS

5.2 Profit and Loss of Sakharaya pattana Karnataka Bank

PROFIT & LOSS MARCH 23 MARCH 22 MARCH

ACCOUNT OF 21
KARNATAKA BANK (in
Rs. Cr.)

12 months 12 months 12 months

INCOME

Interest / Discount on 50,052.120 54,115.77 34,388.97

Advances / bills

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Interest from Investments 17,077.12 18,097.36 12,786.72

Interest on balance with RBI 1,450.92 1,768.73 1,735.20

and Other Inter-Bank funds

Others 1,914.90 2,001.79 859.72

TOTAL INTEREST 70,495.06 75,983.66 49,770.61

EARNED

Other Income 12,364.44 10,317.32 6,294.49

TOTAL INCOME 82,859.50 86,300.98 56,065.10

EXPENDITURE

Interest Expended 41,686.04 48,532.37 31,290.30

Payments to and provisions 11,445.53 8,769.52 5,039.13

for employees

Deprecation 1,314.54 1,659.65 910.38

Operating expenses
(excludes employee cost & 7,783.58 7,648.02 5,338.47
Depreciation)

TOTAL OPERATING
EXPENESS 20,543.66 18,077.19 11,287.98

Provision Towards Income 4,727.05 -2,348.29 264.63

Tax

Provision Towards Deferred 0.00 0.00 0.00

Tax

Other provision and 15,073.80 21,493.52 12,788.67

contingencies

TOTAL PROVISION AND 19,800.85 19,145.23 13,053.30

CONTINGENCIES

TOTAL EXPENDITURE 82,030.54 85,754.79 55,631.38

NET PROFIT / LOSS FOR 828.96 546.19 433.52

THE YEAR

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NET PROFIT / LOSS 828.96 546.19 433.52

AFTER EI & PRIOR YEAR
ITEMS

Profit / loss 0.00 0.00 0.00

Brought Forward

TOTAL PROFIT/ LOSS 828.96 546.19 433.52

AVAILABLE FOR
APPROPRIATIONS

5.3 RATIO ANALYSIS:

1. CURRENT RATIO:
The current ratio is a liquidity ratio that measures a company’s ability to pay
short-term obligations or those due within one year. It tells inventors and
analysts how a company can maximize the current assets on its balance
sheet to satisfy its current debt and other payables.

Current Ratio= Current Assest/ Current Liability

Table no - 1

YEAR CURRENT ASSET CURRENT LIABILITY CURRENT RATIO

2023 3,743,82.13 52,676.86 7.11

2022 4,207,31.79 54,470.82 7.72

2021 2,936,02.04 29,878.24 9.83

GRAPHICAL REPRESENTATION NO -1

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12

10

8
Column1
6 series 2
Series 1
4

0
2023 2022 2021

ANALYSIS:
During the year 2023, 2022, and 2021, the current ratio is 7.11:1, 7.72:1, and
9.83:1 ratio has been increased it show the organisation current position of
assets and liabilities.

INTERPRETATION:
The following chart indicates that the company’s current ratio is lower this year
than it was last year, indicating that it has to increase in order to fulfil its
immediate responsibilities.

2. CASH RATIO:

The cash ratio, which contrasts total cash and cash equivalents with current
commitments, serves as a gauge of liquidity assets.

Cash Ratio= Cash/Current Liability *100

Table no-2

YEAR CASH CURRENT CASH

LIABILITY RATIO

2023 40,153.72 52,676.86 0.76

2022 34,244.78 54,470.82 0.63

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2021 28,225.35 29,878.24 0.94

GRAPHICAL REPRESTATION NO -2

0.9

0.8

0.7

0.6
Column1
0.5
Series 2
0.4 Series 1
0.3

0.2

0.1

0
2023 2022 2021

ANALYSIS:
The above mentioned table reveals that the cash ratios for the years 2023, 2022, and
2021 are 0.76, 0.63, and 0.94 respectively.

INTERPRETATION:

As per the above table analysis the cash ratio indicates the cash ratio indicates that the
company was able to happen short term commitments in year 2021 and 2017 as
compared to the few previous year and current year for the reason that the company
was able to utilize the cash proper but cash in the system is insufficient to pay for short
term liabilities.

3. PROPRIETARY RATIO:

The proprietary ratio describes the connection between the company’s total assets and
its “proprietors”. It aids in determining an organisation’s long-term capabilities and
firm-wide financial stability.

Proprietary Ratio=Shareholders Fund/Total Assets

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Table no :3

YEAR SHAREHOLDERES TOTAL ASSESTS PROPRIETARY

FUND RATIO

2023 81,354.05 12,02,675.79 6.76

2022 75,178.92 11,99,942.14 6.27

2021 49,423.76 8,19,671.90 6.03

GRAPHICAL REPRESETATION NO- 3

6.8

6.6

6.4 Column1
series 2
6.2
Series 1

5.8

5.6
2023 2022 2021

ANALYSIS:

According to the preceding table, the proprietary ratios for the next years are 2023-
6.76, 2022-6.27, and 2021-6.03.

INTERPRETATION:

The following chart explains that the proprietary ratio is higher throughout the
year, indicating that the stockbroker’s contribution to the firm is less, which
results in the company’s solid financial condition and more security for
investors who wish to invest in the company’s shares.

4. QUICK RATIO:

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The fast ratio is used to assess a company’s capacity to settle all of its debts, whether
through asset sales or new financing.

Quick Ratio=Quick Assest/ Quick Liability

Table no -4

YEAR QUICK ASSEST QUICK LIABILITY QUICK RATIO

2023 1,53,197.87 52,676.86 2.91

2022 1,58,721,65 54,470.82 2.91

2021 97,831.36 29,878.24 3.27

GRAPHICAL REPRESENTATION NO-4

3.3

3.2

3.1

Column1
3
Series 2
Series 1
2.9

2.8

2.7
2023 2022 2021

ANALYSIS:

The quick ratio in 2023, 2022, and 2021 is 2.91, 0.21, and 3.27,
respectively, which shows that the company can meet its present financial
obligations with the fast cash on hand.

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INTERPRETATION:

According to the quick ratio, the corporation was able to sustain a greater
profitability position this year compared to last.

5. NET PROFIT RATIO:

The organisation’s revenue is represented by net profit. The net profit margin,
which demonstrates the profit generated from each sale or other profitable
activity, expresses the percentage.

Net Profit Ratio = Net Profit after tax / Net sales * 100

Table no- 5

YEAR NETPROFIT NET NETPROFIT

AFTER TAX SALES RATIO

2023 70,495.06 828.96 85.04

2022 75,983.66 546.19 139.12

2021 49,770.61 433.52 114.81

GRAPHICAL REPRESENTATION NO-5

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160

140

120

100
Column1
80
Series 2
60 Series 1

40

20

0
2023 2022 2021

ANALYSIS:

The aforementioned table reveals that the respective years’ Net Profit Ratio are 2023-
85.04, 2022-139.12, and 2021-114.81.

INTERPRETATION:

The Net Profit ratio of the company indicates that company was able to maintain the
lower profitability position in currently year as compared to the previous year.

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PG Department of management studies, AIT Chikkamagaluru
KARNATAKA BANK

Chapter-06

LEARNING EXPERIENCE AND BIBILOGRAPHY

6.1 Learning experience

During one month of internship program at “Karnataka Bank” Branch almost all the desk has
been observed more are less. This practical orientation program, in first has been arranged for
gaining knowledge of practical banking and to compare this practical banking and to compare
this practical with theoretical knowledge. Comparing practical knowledge with theoretical
involves identification of weakness in the branch activities and making recommendation for
solving the weakness identified. Also, I learned as much as possible from the members from
the bank via good relationship. I increased communication skills and interpersonal skills.
Finally, through different departments and sections are tried to cover in which I got the chance
to gather practical experience for the internship program it is not possible to go to the depth of
each activity no branch because of time limitation. However, highest effort has been given to
achieve the objectives the internship program.

It is a very good opportunity to evaluate our self how capable we are adopting new changes or
to learn things in actual working scenario.

I had a great time working with the organization and have gained a lot of practical knowledge
in various departments such as customer services, cheque clearing, and Trade Finance and also,
I have learnt handling people is not an easy task because different people have different
behavior and we have to handle every kind of people in the organization. The culture of the
bank is very good, everybody id friendly with everyone and most of the employees helped me
to learn about banking.

Karnataka Bank was founded with an intension to serve agriculture, small business people and
the money lenders were charging an exorbitant rate of interest on loans. The borrowed couldn’t
repay the interest have to sell of all his properties to repay the loan. Karnataka Bank provided
loans to small business enterprises agriculture at a low rate of interest. The bank obtained
deposits from small, aged persons and gave them regular interest income. The bank has
guaranteed the deposits by insuring it in DICGCI.

The bank also works as a intermediary to government agency by paying pension, old age
pension, subsidies, reliefs the government also sends the direct benefits through the banks by

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PG Department of management studies, AIT Chikkamagaluru
KARNATAKA BANK

RTGS. The bank has provided a very good service to the customers. The customers are
confident that their hard-earned money is in safe hands.

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PG Department of management studies, AIT Chikkamagaluru