Final Print

KARNATAKA BANK LIMITED
EXECUTIVE SUMMARY
A study on financial performance of Karnataka Bank limited is undertaken on order to know the financial performance and position of the bank and to know the strength and weakness of the bank and to assess the profitability of the bank. Analysis of financial statement is the tool used as a yardstick for evaluating the financial condition and performance of the business firm. PROJECT TITLE: Analysis of financial statement (With the reference of Karnataka Bank LTD) This research has been conducted to know and understand the business operations of Karnataka Bank. An attempt is made to study the financial performance and the factor influencing the financial aspects. The research also extended his scope to analyze the liquidity position, strength and weakness of the bank in handling the financial operations. For a systematic study, tables and graphs were drawn wherever required. Basically the scope of the study was limited to HUBLI Regional office of Karnataka Bank. But consolidated financial reports of all the division in India were considered for analysis. Inter branch comparison was not possible. Limitations of past records, time constraints etc. have their impact on the study.
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI
OBJECTIVE:
To study the sources from which funds have been
generated and the channels through which they have been directed during the year To know how the working capital has been affected. To get exposed to all the Dept. of the organization. To know the cash impact on current assets and To know the financial strength and weakness of
liabilities during the year. organization.
Methodology:
Primary data: Primary data is collected from finance executives, observation, discussing with different dept. of organization. By interacting with branch manager and staff members.
Secondary data: Past records Annual reports Boucher Companys publications Internet
Findings: They heavy competition leads to increase in the operating expenses. The banks earning capacity is moving upward as the bank implemented an aggressive financial policy by keeping its short-term liquidity position under threat. It continuously expands its net assets that help it to earn more returns. ATM centers are less in Karnataka location. Conclusion: The over all performance of the Karnataka Bank is good. The aggressiveness shown by the bank in its financial operations helped it to maximize its earnings. Courtesy of the employee is found excellent which reveals the fact that bank has made a unique place for itself in the minds of customers. Create the awareness of the product and services of the bank. Recommendation: Bank has to go for branch expansion process in the vast Indian rural market by providing much ATM facilities in Taluk places. An effective service to the customers is the vital factors for success in the industry, which the bank has to facilitate. Give the more preference to the primary sector and benefits to the small scale industries. Give valid support to sick companies by the way of Technology up gradation.
INTRODUCTION EVOLUTION OF BANKING:

Banking is one from or another was in existence even in ancient times. The writing of manu and kautilya and the teaching of Christ contained references to banking. Extenuations revealed the existence of banking activities in Babylonia much before Christ. However, modern banking is recent origin. It came into existence only after the industrial revolution. After the industrial revolution, with the increase in the size of industrial and business units, joint stock company from the business organization came into existence. This form of organization encouraged people with small means to become shareholders of big industrial and business enterprises; still, there were certain sections of public who were not prepared to invest their money on share of joint stock companies. But they were willing to part with their surplus money, is there were assured of repayment of their money with some interest thereon. So, naturally there arose the need for the formation of financial institutions called joint stock banks were setup after the industrial revolution. So modern banks are of recent development.
HISTORY OF BANKING EVOLUTION IN INDIA:

Banking was in existence in India from early times. The writing of manu and kautilya contained references to banking. But modern banking stared in India only from beginning of the 19th century. The earliest commercial banks were started in India by the employees of the easy India Company. These banks were known as Agency Houses. They were found mostly in the port cities of India. Such as Kolkota, Mumbai and madras. They were mainly trading, speculation, etc. most of them failed soon after their establishment because of their combining banking with trading and speculation, and mismanagement. The first joint stock bank to be setup in India was the Bank of Hindustan. It was established in Calcutta. It was under European management. But it failed. The other joint stock banks to be established at the time were Bank of Bengal [1806], The Bank of Bombay [1840] and the Bank of Madras [1843]. These banks were started with the financial participation of the Government. So, they were called Presidency Banks. Besides their normal commercial banking functions, they were also given the right of note issue is their respective regions.
They continued till 1921 when they were amalgamated converted into the Imperial Bank of India.
The first purely Indian joint stock bank to be established in the country was the Oudh commercial Bank. It was setup in 1889. it was followed by Punjab National Bank in 1894 and the peoples Bank in 1901. The swadeshi movement of 1905 gave great stimulus to the starting of several Indian banks. The Indian commercial banking system had to pass through a series of financial crisis, and so, its growth was very slow during the first half of the 20th century. Further many banks failed during this period as a result of financial crisis. For instance between 1913 and 1922, as many as 108 banks failed. It is only after independence, the Indian banking system has made rapid progress. Today, the Indian commercial banking system is one of the well developed commercial; banking systems in the world.
MEANING OF BANK:
Authorities on banking are divided in their opinions regarding the origin of the term Bank. According to some, the English word Bank is derived from the Italian word Bank, the Latin word Bancus and French word Banque which means bench. The term Bank derived from the German word Bank, which means a joint stock or common fund raised from the large number of members of the public. The contend that early European bankers raised a common fund or heap money raised from the public. The term Bank should be traced to the German word bank.
DEFINITION OF THE BANK:

Dr.H.L.Hart defines a banker as One, who is the ordinary course of his business, honors cheques drawn upon him by person from and for whom he receives money on current accounts. The Indian banking regulation act of 1949 defines the term Banking company which transit the business of banking in India. And the banking as accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise. As per this act, the term banking includes not only the above mentioned important activities, but also several other activities such as collection of cheques, draft and bills, remittance of safe custody deposits, etc. which are generally referred to as subsidiary services.
INDUSTRY PROFILE
The organized banking system in India is broadly divided into three categories, i.e. the central bank known as the Reserve bank of India, the commercial banks and the co-operative banks. The reserve bank of India is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in country, it is known as the RESERVE BANK as it keeps the reserve of all commercial banks. Banking regulation act of India, 1949 defines banking as accepting. For the purpose of lending or investment of deposits of money form the public, repayable on demand or otherwise and withdrawal by cheques, draft, and order Most of the activities a bank performs are derived form the above definition. In addition, Banks are allowed to perform certain activities, which are ancillary to this business of accepting deposits and lending. A banks relationship with the public therefore revives around accepting deposits and lending money. Another activity, which is assuming increasing importance, is transfer of money-both domestic and foreign-from one place to another. This actively is generally known as Remittance business in banking parlance. The so-called forex (foreign exchange) business is largely a part of remittance. It involves the buying and selling of foreign currencies. The law governing banking activities in India is called negotiable instruments act 1881 the banking activities can be classifies as: Accepting deposits form public /others(deposits) Lending money to public(loans) Transferring money form one place to another(Remittance) Acting as trustees Acting as intermediaries 8

Keeping valuable in safe custody Collection business Government business Commercial banks have been in existence for many decades. After 1969 commercial banks are broadly classified into nationalized or public sector and private sector banks. The state bank of India and associate banks along with another 20 banks are the public sector banks, the have not been nationalized, and branches of foreign banks operating in India. The (RRBS) came into existence since the middle of 1970s with the specific objective of providing credit and deposit facilities particularly to the small and marginal farmers, agricultural laborers and artisans and the small entrepreneurs. Primary co-operative credit societies or banks were originally set up in villages to promote thrift and saving of the farmers and to meet their credit needs of cultivation, the central or distinct co-operative banks above them state co-operative bank, these have now spread to the urban areas. Under the RBI act 1934, banks were classified as scheduled banks and non-scheduled banks the scheduled banks are those, which are entire in the second schedule of RBI act, 1943 they are those, which are entered in the second schedule of RBI act, 1934 the y are banks, which have paid up capital and reserves of an aggregate value of not less than 5 lakh and which satisfy RBI that their affairs are carried out in the interests of the depositors, all commercial banks- Indian and foreign, regional rural banks and state cooperative banks are scheduled banks. Non-scheduled banks are those, which have not been including in the second schedule of RBI act 1934. The present banking scenario in the country looks extremely promising . for the past few years most of the banks have posted very good results quarter after quarter and are displaying their ability for high growth ,

banks such as the union bank of India, Vijay bank, Indian overseas bank and UCO banks have come out with their initial public offering . Banks are classified into several types based on the functions they perform. Commercial bank. Investment or industrial banks. Exchange banks Co-operative banks. Land development banks. Savings banks. Central banks.
(1) Commercial banks Commercial banks perform all the business transaction of a typical bank. Commercial banks accept three types of deposits, like savings bank deposit, fixed deposit and current deposit, they accept these deposit, which are payable on demand or in short notice, as such they lend or invest only for short duration , they fords for short term needs of trade of commerce, (2) Investment or industrial bank Investment banks are those banks, which provide funds on long term for industries; these banks have specialized in providing long term loans to industries with a view to buy plant of machinery. The investment banks obtain funds through share capital, debentures and long term deposits from the public they float bonds for the sake of mobilizing funds to provide funds for big industries corporations, these banks also under write or issue new shares of debentures of industrial concerns ,.
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3) Exchange banks Exchange Banks are known as foreign banks or foreign exchange banks. The foreign exchange banks provide exchange for imports trade. Their main function is to make international payment through purchased sake of exchange bills. 4) Co-operative Banks Co-operative Banks are promoted to meet the banking requirements of consumers. They are established not only in the urban areas but also in the rural areas. In the rural areas these banks supply finances to agriculture, while in the urban areas they provide finance to consumer goods. 5) Land Mortgage Banks Whenever agriculturist requires investment loans, they have to approach land development banks. Where loans are given on long-term basis. They provide loans on the security of the land. 6) Savings Banks Savings banks are specialized financial institutions established to mobilize savings from the people. The primary object of the commercial banks is to promote thrift among the low and middle-income groups. The banks also offer interest on these deposits. 7) Central Banks Central bank in an apex bank in the country, which keeps the entire banking system unified, controlled and regulated. In fact, the central bank is the bank, which formulates the monetary policy. It regulates the notice issue. In India, the Reserve Bank of India is the central Bank of India.
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STRUCTURE OF BANKING SYSTEM IN INDIA

Reserve Bank of India
Scheduled Banks
Non-Scheduled Banks
Co-operative
banks
Commercial banks
Co-operative
banks
Commercial banks
Indian banks
Foreign Banks
Public sector Banks
Private sector Banks
State Bank of India & its associates
Other nationalized Banks
Regional Rural Banks
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COMPANY PROFILE
INTRODUCTION
Earlier South Kanar district, the cradle of banking, has witnessed the birth of 22 banks since 1906. Four of them have grown big enough to be nationalized while one remains in the private sector as a progressive bank. It is the youngster (not in age, but in size) among the Pancha Pandavas of the South Kanara born banks:
YUDHISTHIRA BHIMA ARJUN NAKULA SAHADEVA
CANARA BANK CORPORATION BANK SYNDICATE BANK KARNATAKA BANK VIJAY BANK
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THE GENESIS (ORIGIN/GENERATION)

Karnataka Bank appeared in the banking scne when already there were 5 local banks operating in a district two in Mangalore-Kanara bank ltd and Jayalaxmi Bank ltd : Two in Udapi Kanara banking ltd (Udapi) ltd. And Pangal Nayak Bank ltd. And one in Puttur-Kanara enterprises ltd. Besides these banks, the Imperial bank of India and Nedungadi bank ltd. were having branches in Mangalore. The South Kanara district Central co-operative bank were also functioning in the district, four branches of banks were already operating in Mangalore city, when Karnataka bank made its entry the city was emerging as a business centre, connected by rail to madras, by ship to Bombay and by the road to the coffee growing areas in the interior. The genesis of the 22 banks born in South Kanara district from 1906 to 1945 can be traced to the initiative taken by few enlightened persons in public life to promote banking companies to help the society financially. Karnataka bank also emerged in a similar manner, in a meeting held at Mangalore in 1924 under the chairmanship of Dr.Ramarao, who was a member of the council of stated: it was decided to promote a banking company. The articles of association restricted the eligibility of share holding to the person of several sub division of the Dravidian community among whom inter-dining was by customs permitted. The memorandum of association also reflected the desire of the promoters in contributing to the welfare of the community. The nine founder director of the bank included four landlords, four high court advocates and retired engineer, all hailing from within the district.
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The growth of Karnataka bank may be analyzed in detail during the four different periods as stages. During the formative period from 1924 to 1939, next was the transitional period from 1940 to 1953 during the nature of banking activities. The next 15 years, from 1954 to 1969, would be termed as the period of consolidation when social controls were introduced and finally, 14 banks were nationalized. They years from 1970 onwards may be termed as a period of Great Expansion.
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HISTORY
Banking is tough business. As the periodical collapse of well known banking houses only shows, this is a business that demands unfailing strength of character. Accurate judgment a sense of balance, sure-footedness, vision, innovation. To survive and prosper in the banking industry and you need all these and many more. For over eight years, only one private sector bank in dakshina kannda has consistently display these qualities and proved itself to be winner Karnataka bank. Karnataka Bank was born in the year 1924, at a time when the enterprising people, hundreds of banks and lesser entities were born at time. Among them many banks met a premature death while a few merged with others. Only a few went on to become prestigious institutions on their own right. Even among these, the big four- bank, Syndicate bank, corporation bank and Vijay bank succumbed to the wave of nationalization of the socialist era. Only Karnataka bank ltd managed to hold on to its mooring in the private sector-a fact which puts it in an enviable position in excitement of todays new-gen banking. Since its inception in the year 1924, with a modest capital of 11580, the bank has grown by leaps and bounds in key areas of banking. The bank took shape in the aftermath of the partition zeal that engulfed the nation during the freedom. Movement of the twentieth century India the idea of launching a bank first dawned upon a group of prominent advocates and businessmen from the Dravidian Brahmin with the lofty social goal of fillip to agriculturists, hoteliers and small businessmen. At a meeting held at Mangalore in 1924 under the chairmanship of Dr.U Rama Rao, who was a member of the madras legislative council, it was decided to promote a banking company.
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Accordingly, a Certificate of Incorporation was obtained in the name of the Karnataka Bank Ltd. From the office of the Assistant Registrar of joint stock companies, of the south canara. Thus a humble of the bank was made on the 18th Feb.1924. The memorandum of association in its objects clause, inter alias, stated that the bank, part from carrying on the general functions of banking business, would: set apart and appropriate from the annual net profit towards the general, mental, moral and physical advancement or other beneficial purpose of the member of the Dravida Brahmin community, such sums as may be deemed fit. It reflected the desire of the promoters in contributing to the welfare of the community. The initial shareholders were Sri.Nellikai Vennket Rao, Sri.Pejavar Narayanachary, Sri.Kalmadi Lakshaminarayana Rao, SriB.R.Vysaraya Achar, Sri.Pangal subbarao, Sri.Udapi Venkatarao, Sri.Sheshabhatt Bhide, Sri.Naricombu Rama Rau, Sri.Kakkunje Sadashiva adiga became the founder Director of the bank. Sri.B.R.Vyasaraya Achar was elected the founder president. The residence of Bhide at Dongerkery, Mangalore was leased to the bank to house its Head office, which however, was bought later. The Bank stared its operations from May 23rd 1924. In fact, the initial years were not eventful, as it had to overcome teething troubles. The nascent was trying to establish a firm ground for itself. Only six branches were opened in span of two decades. The banks deposits and advances saw a steady growth. However, it was Sri.Kakkunje Suryanarayana Adiga, son of the Founder Directors Sri.Kakkunje Sadashiva Adiga, instrumental in taking the bank to new heights. He was inducted into the Board of Director in 1945
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following his fathers death. The young Adiga soon rose to status of eminence in the Board of as a natural concomitant of his zeal and dynamism.
His eventless work resulted in the banks inclusion in the second schedule of the Reserve Bank of India Act 1958. The bank gradually started to spread its wings far and wide. In the sixties three smaller banks Sringeri Sharada Bank ltd. Sringeri, Chitaldur Bank ltd, and Bank of Karnataka was merged into the bank. With the amalgamation of smaller banks, it consolidated its position as a stronger bank despite the small size. The Daily savings scheme the legacy of the Sharada Bank, was resumed as Hanoi Deposit scheme to mobilze enough resources. In subsequent years the bank was elevated from D class to Aclass. Following the retirement to Sri. Achar in 1958 after putting in 34 years at the helm, KSN Adiga ascended the post as the part time Chairman. However, Adiga became full time chairman in 1971 and by then the number of branches had crossed 100. Later D.Veerendra Heggade of Sir Kshetra Dharmasthala was inducted to the Board of Directors. In the Golden jubilee year, the banks deposit stood at 33.14 crore and advances Rs.22.09 crores with 146 branches and 1263 employees. Owing to its growth the process of decentralization started with a opening of the Regional office in Bangalore, a forerunner for the opening of seven more offices in future. A Separate department for foreign exchange business was established in Bangalore, which however, was shifted to Mumbai later. In 1979,when Adiga retired from the post, the bank had attained the Rs.100 crore marks in deposits with the aggregate deposit being Rs.104.24 crore. Post retirement, Adiga continued his association with the bank as director. Sri.K N Basri, who was the General Manager since 1984 and assisted Vyasaraya Achar and KSN Adiga, during their tenure of part time chairman, as Chief Executive Officer, became the chairman.
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In 1995-96, the deposits grew by almost 40% to Rs. 1855.31 crore and advances reached Rs.1185.42 crore while net profit zoomed by 101% to Rs.25.24 crore. The credit deposit ratio reached 64% one of the highest in the industry. CRISAL, Indias top credit rating agency, awarded the topP1+ rating of the bank Certificate of Deposit (CD) program for three consecutive years from 1996 to 1999. These rating offer ample evidence of the premier status attained by the bank in the private banking sector at the national level. In 1997-98, the FE-BRIS survey rated the bank as the top bank among all time Indian banks private and public put together. The Head Office, which was shifted to a multi-storeyed building at Kodialibali way back in 1972, was again moved to a a new complex near Mahaveer Circle in 2003. Benefited its growing stature and size, the administrative office is located at a spacious complex measuring 1,25,000 Sq.ft. the imposing building with aesthetically laid landscape has, of the course, become a prestigious land mark in Mangalore. Quality of the service rendered by an organization is very much dependent on the people employed by it. This more pronounced in a service industry like a bank. A qualitative and timely service is the primary concern of the Karnataka bank ltd. To enhance the efficiency of the employees, the staff training section was upgraded to a full-fledge staff training college in 1977 itself. Beside the personnel are also sent to specialized training at other organizations. The outstanding performances are being aptly rewarded with annual awards.
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Sri. Ananthakrishna is holding the rein of the bank since 2000. His forword thinking has brought in tremendous development matching the fast changing banking scenario. The Bank is marching ahead with confidence. The bank was among the first few to foresee the emergence of centralized banking and to realize that core baking will be the critical driving force to meet the challenge in the competitive environment. As early as march2000, when all traditional banks were busy discussing their IT strategies, the bank did exactly what any forword looking bank should have done it decided to go for core banking e-platform for gaining business agility and a competitive advantage in the market place. The state-of-the art Finacle, the centralized core banking solution, provided by infosys, Bangalore, was chose by the bank to set up a core banking e-platform to replace its legacy system. Today, the bank has over 230Branches situated in important location spread over 15 state and two union territories of the country connected to the data centre, Bangalore. With the adoption of Finacle Anytime/Any where banking, and networking of 230 branches/ offices have enabled the bank in offering customer centric valueadded products and services like milti-Brach Banking (MBB), Flexi deposit (K-Flexi),ATM card-linked credit facility (K-power) and collection of utilities bills. The Banks total business has crossed Rs.17,000 crore as at 31 st March 2005. Deposits have increased to Rs. 10837.06 crore at the end of March 2005 from Rs.9406.94 crore during the same period last year thus recording a growth of 15.20%. Advances have touched Rs. 6287.44 crore at the end of the year as against Rs.4667.91 crore as on 31.03.2004 indicating a rise of 34.69%. There is a phenomenal reduction in net NPA which stood at 2.29% at the end of March 31, 2005.The bank has been rewarded its shareholders with consistent dividend payment every year during the last three decades.
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Karnataka Bank is deeply committed to its social obligations of extending credit and other banking services to rural customers. With 93 branches in rural areas, the bank has acquired the reputation of being an approachable bank attuned to the special needs of the rural economy. It is expected that the year 2005-06 would be favorable to Banks with a robust pick up in credit. Bank hopes to do better during 2005-06. The Corporate Plan for 2005-06 includes the following targets: Business Turnover - Rs.20, 000 crore (Deposit: Rs.12, 500 crore & Advances: Rs.7,500 crore). New Branches - Tally of branches to reach 400 Networking of branches - To be extended to 300 Number of Bank's own ATMs - 100 Exploiting the technology to the optimum level with the twin objective of improving the quality of service and convenience at affordable costs will be our focal point for the year. Launching of products such as Internet Banking, Mobile Banking, distribution of Mutual Funds, widening the tie-ups with other banks/agencies for providing services, etc are the moves for achieving the above objectives. The bank has entered into an agreement with M/s Bajaj Allianz General Insurance Company Ltd. For marketing their general insurance product. This facility is already available in most of the branches and the bank proposes to improve the reach in the coming year. The bank has plans to market units of mutual fund and Gilt also in its strategy to make the bank a financial supermarket for the customers. The banks plan to open 20 new branches in important centers during the period is expected to its volume of business substantially.
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Liberalized norms for priority sector advances and treatment of agriculture NPAs announced in the monetary policy on May 18, 2004, will help flow of credit to this sector. Competition from domestic/foreign players and increasing disintermediation pose greater challenges in attracting new customers. The bank has implemented suitable strategy in this regard. Recovery department exclusively set up during the last year to intensify recovery, has adopted strategic efforts to bring down the level of NPAs. With over 80 years of experience at the forefront of providing professional banking service to customers, the bank today has a national presence with a network of 370 branches across 16 state and two union territories. Administered through eight regional offices, an International Division and the Head office at Mangalore, specialized branches have been established to cater to customer segments in core areas such as agriculture, industrial finance and foreign exchange. Incorporating modern technology, the bank offers a wide spectrum of domestic and international banking solution fine-tuned to customer needs and perception. With the dedicated management team, over 4,300 employees, 60,000 shareholders and over 28 lakh customers, Karnataka bank has emerged as a leading financial services institution in India. The ceaseless and committed support of its customers continues to be the foundation of all the progressive endeavors of the bank. Through the augmentation of functional efficiency by upgrading work related technology, value added products and services and building a brand equity by focused attention on core competence, the bank reiterates its commitment to ensure the continuing appropriateness of its slogan Service with a smile.
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FOUNDER DIRECTOR B.R.VYSARAYA ACHAR

In south India the temples of Nepal, nagarshilpa are very rear Mangalores Kadri Munjunatheshwar temple is one of them this temples architecture belongs to tradition of Irvatturaya of Bale bile. Historical affamed this won the praises of kinds of Vijaynagar Empire in such household as the son of Ramacharya and Mahalaxmi, B.R.Vyasaraya was born. He was a famous lawyer in dealing with civil cases. Later he became president of the bar. His thinking and struggle gave rise to Karnataka Bank, He was president from 1924 to 1958.
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FIRST TORCH BEARERS

Founder Board of Directors: 1. Sri. B.R. Vyasaraya Achar 2. Sri. Netlikai venka Rao 3. Sri. Pejavar Narayanacharya 4. Sri. Kalmadi Laxminarayana Rao 5. Sri. Pangal Subba Rao 6. Sri. Udapi Venkat Rao 7. Sri. Shesha Bhat Bhide 8. Sri. Naricombu Ramu Rau 9. Sri. Kakkunje sadashiva Adiga President Director Director Director Director Director Director Director Director
GALAXY OF CHAIRMAN:
1. Sri. B.R.Vyasaraya Achar (Part time) 3. Sri. K. Suryanarayana Adiga 28-1-1971 18-2-1979 24 23-5-1924 23-11-1958 27-1-1971 2. Sri.K. Suryanarayana Adiga 24-11-1958

(full time) 4. Sri. K.N.Basri 5. Sri. P.Raghuram 6. Sri. P.Sundar Rao 7. Sri. H.M.Rama Rao 8. Sri. U.V.Bhat 9. Sri.M.S.Krishna Bhat 10. Sri.Ananth Krishna 15-6-1979 16-6-1980 11-1-1990 11-1-1990 28-6-1993 12-7-1995 13-7-2000 19-2-1980 15-6-1985 10-1-1989 10-1-1993 27-6-1995 12-7-2000
CORPORATE MISSIOM
"Our mission is to be a technology savvy, customer centric progressive bank with a national presence, driven by the highest standards of corporate governance and guided by sound ethical values."
FACT OF BANK
While the government is particular in giving a boost to the agrarian sector through loans from banks and reform now, Karnataka bank had made substantial amounts of advances to the sixties itself. Pat came, not a pat on the back, but a prompt reprimand by the Reserve Bank of India for the substantial lending.
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Karnataka Bank was the first bank from south Kanara to open it branch in madras, the capital of madras presidency in 1930. That, in fact was the second branch of bank at the place 550 miles away, thanks to a few of the directors who were residing there.
The logo of a start was designed by the late Dr. Shivarama Karanth and was released with the blessing of sir Abhinva Vidyatheertha Swamiji of Sringeri Math 1977. The symbolizes stability, discipline, harmony and confidence.
BACKGROUND OF THE LOGO:

Every institution has its own to go, it is the prestige, proud ness and existence of that institution and has come off with the time and situation and is the symbol of existence of that institution. The system of banking is to have a good relationship with customers. To have a closed relation with customers.
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Logo should be simple and beautiful. By this logo customers should be able to see the interior system of the bank. The customers should feel that it is their own bank. The person who had such dreams Sri.Adiga with at his dreams met Dr. Shivaram Karanth who was compared from Pikaso to Michelangelo from Ravivarma to K.K.Hebbar. Simple lines came from Dr. Karanths pen became the Logo of the Karnataka Bank. It is not only the symbol of Hindu tradition, but also the seat of Lord Ganesh. It is the symbol of growth, discipline and is of twinkling star in the banking industry. It is also the symbol of safety of customers deposit so it has different and more meaning. The logo was formally given to the bank in 1977 by H.H.Jagadguru Parampujya Shri. Shri.Shri.Abhinava Swamiji of Sringeri.
THE BANK ON A GLOBAL PATH:

During the year 1977, when bank was 53 years old. The Reserve Bank of India (RBI) under the Foreign Exchange Regulation Act issued license during May 1977 to handle foreign exchange business.
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The Central Foreign Exchange Department (CFED) was established in Bangalore during June 1977. corresponding relationship was established with foreign bank, accounts were was opened in foreign currencies, a branch each in Mangalore, Bangalore, Cochin, Goa, Madras and Bombay was designated for handling forex business and trained personnel were provided to them. Having put in place the required infrastructure, the Bank commenced handling forex business by the end of the year. In the fitness of things, the CEFD was shifted to Bombay on July 1 1979 and now the CEFD is renamed as International division With direct online connectively with SWIFT and all the foreign banks holding banks foreign currency accounts of the bank.
Presently, 3 Overseas Branches, each in Mumbai, New Delhi and Bangalore Besides nine designated branches in Cochin. Chennai, Salem, Jaipur, Kolkota, Tirupur, Mangalore, Ludhiyana and Secundabad, are actively financing and facilitating import/export business of the Banks customer. For the year ended march 31,2005, a merchant business turnover of Rs.4800 crore was transacted through twenty foreign currency account held aboard with foreign banks and in association with eight nine foreign banks in forty two countries of the world.
Business Profile.
The Karnataka Bank LTD. A private sector bank, was incorporated on February 18th,1924 at Mangalore. The bank has a national presence through a widespread network of 389 branches. Specialized branches have been established to cater to the needs of key customer segment in the core area of agriculture, industrial finance and
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foreign exchange. The branches network is administrated by eight regional offices and an international division with overall supervision and control by the head office. Personalized customer service is its key success factor. The bank has a wide range of deposit schemes offering the twin benefits of liquidity and high interest rates.
The bank has 280 braches wholly/partially computerized. Of these, over 80 branches in Bangalore, Mangalore, Chennai, Mumbai and Delhi have network to the data centre in Bangalore enabling centralized processing and retrieval of data. The network will eventually cover 125 branches in all major centers, accounting for about 75% of the total business. The bank is now aiming at a total business of Rs.20,000 crore by 31 march 2005. It plans to put in place additional products to enhance customer satisfaction and to increasing income stream with the help of upgraded technology. The Bank has already put in the place an elaborate risk monitoring and asset liability management system Long.
SOURCES OF FINANCE
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According to Period
According to Ownership
According to Source of Generation
Long Term
Short Term Public Deposits Trade Creditors Advance From Commercial customer
Own Capital
Borrowed Capital
Internal Source
External Source
Share Debenture Long term Loans
Share Capital Retained Earning Surplus
Securities Loans Debenture Public Deposit Loans
Retained Earnings Depreciation Fund
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KARNATAKA BANK LIMITED MILESTONES:

1924 Incorporated on the 18th of February and commenced Business at Mangalore Dongerkery on the 23rd of May with an initial paid up Capital of Rs. 11,580/1930 The second branch was opened at Chennai-George Town.
1934
The third branch was opened ay Udapi-car street. At the end of the First Decade of existence the bank had deposits of Rs.13.5 lakhs and Advances of Rs.14.8
1947 1949
The first branch at Bangalore was opened at Kempe Gouda Road. In its silver Jubilee year, the total Deposits of the bank were Rs.55.59 Lakhs and Advances Rs.39.39 lakhs with 9 branches.
1958
The bank was included in the second schedule of the RBI Act 1934. Sri.K.S.N.Adiga became the chairman of the bank.
1959 1960 1964
The bank was upgrade from D class to C class. Sringeri Sharada Bank LTD was taken over. Chitaldurgb Bank Ltd The first ever Registered Bank LTD (1870) in Karnataka was taken over. The paid up capital of the Bank was raised from Rs.8 lakhs to Rs.15 lakhs.
1966 1968 1970
Bank of Karnataka LTD was taken over. The Bank was upgrade from C class to B class. The paid up capital was enhanced from Rs.15 lakhs to Rs.20 lakhs. The 100th Branch was opened at Manipal.
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1971
The Bank opened its first branch in Mumbai at fort area. Sri. K.S.N.Adiga took over as whole time chairman and chief executive officer.
1972
The Banks own multistoried Head office building built at a cost of Rs.20 lakhs was in angulated by Sri. T.A.Pai, the minister for Railways. The Bank was upgraded from B to A class.
1974
During the Golden Jubilee year, the Bank had Deposit of Rs. 33.14 crores and Advances of Rs. 22.09 crores with 146 branches and 1314 employees.
1975 1976
The 150th branch was opened at Bagalokt . The authorized capital was increased to Rs. 1 crores. The first Regional office was opened at Bangalore.
1977
The 200th Branch was opened at Narve. The Bank adopted the emblem as its logo-A record number of 29 branches were opened. The Bank introduced Foreign Exchange Business. The paid-up capital was increased Rs.20 lakhs to Rs.30 lacks. A full fledged staff Training college was established.
1978
The first Branch at Delhi was opened at Connaught place. The paid up capital was increased from Rs. 30.lakhs to Rs. 40 lakhs. The Bank mobilized record a deposit of Rs. 17 crores and the increase in advances was of the order of Rs. 13 crores.
1979
Sri K. N. Adiga, chairman, retired from the services of the Bank. Sri. K. N. Basri was appointed as chairman. The central Foreign Exchange Dept. was shifted from Bangalore to Mumbai. Deposits crossed the Rs. 100 crores mark to reach Rs. 104.24 crores as on 3112-1979.Staff Training college was shifted to Dongerkery Mangalore from Head office.
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1980 1984),
Regional offices opened at Hassan, (shifted to shimoga in Hubli, Mangalore, Mysore, Chennai and Mumbai. Sri P. Raghuram Joined the Bank as chairman. The Paid up capital was increased to Rs. 50 lakhs.
1982
The 250th Branch was opened at Bangalore koramangala extension. The paid-up capital was increased from Rs.50 lakhs to Rs.70 lakhs.
1984
In the Diamond Jubilee year, total Deposit crossed Rs.200 crores Diamond Jubilee Cash Certificate (DJCC), a new Deposit scheme, was introduced, which received good response from the public. ABHYUDAYA house magazine was introduced.
1985
The paid-up capital of the Bank was increased from Rs.70 lakhs to Rs.1 crore. The total Deposit crossed Rs.250 crore
1986
The total deposits crossed Rs.300 crores. The Bank installed an In house computer at the Head office.
1987
Deposits crossed Rs. 350 crores.
1988.89 The Banking year was extended from Dec 1988 to March 1989. Deposits crossed Rs.400 crores. Mumbai-Borivli Branch was declared as the first model Branch of the Bank.
1989-90 Service Area approach was introduced in 163 branches covering 1355 villages. Suvama Nidhi Deposit scheme was launched. Bank introduced Krishi card and started a merchart Banking Division. Deposit crossed Rs.500 crores.
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1990-91 The paid-up capital was increased to Rs.4.50 crores. 1991-92 The Bank introduced Stock invest with a view to facilitating the investors. 1993-94 The first overseas Branch was opened at Mumbai. A currency chest was opened at Bangalore. The Bank crossed the covered figure of the Rs.1000 crores of deposits. 1994-95 The first service branch was opened at Mumbai. 1995-96 Lease finance business was launched. The right-cum public issues was over subscribed by nearly 2.5 times, deposit difficulty market condition. Deposits grew by about 40% to Rs. 1855.31 crores. Net profit up by 101% to Rs.25.24 crores branch strength swelled to 295 top P1+ credit rating awarded for the banks certificate of Deposits (CD) programmed by CRISIL, Indias top credit rating agency. 1996-97 Deposits crossed the Rs.2500 crores mark to reach Rs.2510.59 crores. Net profit was up by 61% to Rs.40.71 crores. 300th branch opened at Bangalore Vijayanagar. Branch strength reached 306-Top P1+ credit rating was awarded for the second concutur time by CRISIL for the banks CD programmed financial express-BRIS survey awarded the top place to the Bank among all times tested Indian private Banks. The tenure of offices of Sri.Krishna Bhatt, chairman was extended for further 3 years up to 12-7-2000 by RBI.
1997-98 Deposit grew by 36% Rs.3408.35 crores while net profit zoomed by 43% to aggregate Rs.58.16 crores owned funds grew to by Rs.227.96 crores. Branch strength reached 324 of which 101 branches were computerized.top1 P1+ credit rating for CDs was renewed for third consecutive year by CRISIL.EF-BRIS survey awarded the top rank to
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the Bank among all time tested Indian Banks, public or private A record divided of 45% was declared to shareholder. 1998-99 Platinum jubilee year of the Bank Deposits crossed Rs.4350 crores. Net profit up to Dec 1998 was Rs.4185 crores. The Bank was awarded the top rank among time-tested Indian private banks in the CMIE Economic Times Survey. 1990-00 Bank opened a new branches at Rode (2nd branch), Triupur (2nd branch) Bangalore (Sanjaynagara), Koimbattur (Ramnathpuram), Amrutsar, Jalandar, Coonoor, Delhi (Laxminagar), Bangalore (K.H.Road). Deposit increased to Rs.5174.17 crores recording rise of 18.07%. 2000-01 Deposits of the bank increased to Rs. 7001.48 crore. Banks total business crossed Rs. 10,000 crores. Bank declare highest dividend of 60%. New Regional office at Delhi was opened. A foundation stone for Banks new corporate office building at KanKnadi Bangalore was lead. Bank opened 3 new branches in Bangalore (overseas branch), New Delhi (Lajpathnagar) and Mysore (Vijaynagar 2nd stage). Bank embarked upon large scale technology initiative in the banking operation and new generation centralization core banking technology called finacle the banking was commissioned. During the year 70 branches were net worked. 2001-02 Bank continue to declare highest dividend 60%.
2002-03 Banks total business crossed Rs.12000 crores. Bank issued bonus shares in the ratio of 1:1 and right share in the ratio of 1:2 post bonuses. Thus, net owned funds of the bank increased to Rs. 583.40 crores. Bank opened four new branches at Shalimarbag , New Delhi, R T. Nagar Bangalore, Powai Mumbai and Lucknow, Bank installed its 12 ATM in three metropolitan cities of Bangalore, Mumbai and Chennai. Bank entered into an agreement with corporation bank for
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sharing ATMs. Bank took up corporate agency for marketing a various products of M/S Met Life Insurance PVT LTD Co. Bangalore. Bank corporate goal of achieving deposit of Rs.10,000 crores and advances of Rs. 5,000 crores. 2003-04 New head office complex building was opened, 200 branches were finagled. Bank entered into an agreement with Alliance Bajaj Insurance Company LTD, to market general insurance products. 2004-05 Opening of branches in Northern and North Eastern part of the country at places like Guwahati, Siliguri, Kolkota, Allahabad, Agra, Kanpur, Bilaspur, Bhopal, Jodhpur, Panipath, etc. during the current year. The ATM outlets will be increased to 125.The started DEMAT services, cyber kids banking, retail banking.
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PRODUCT AND SERVICE PROFILE

Karnataka bank LTD as a premier private sector bank has developed customer centric products. They include various borrowing facilities, deposits account to the different class of people in the society. Solving personal financial needs various customer is priority task for KBL. KBL aims to maximize the portfolio returns of the customer. KBL has following products to take care of specific banking needs of various customers.
Personal Banking
Multi Branch banking It is a special facility that allows you to operate your SB or Current Account through a network of branches where you have your account. This facility is available at 250+ branches across the country. Its like having your own account whenever you are in any of these cities. Who can open Multi Branch Banking Facility? Any customer who is eligible to open a Saving Bank Account or a Current Account can open the privileged account and avail multi branch banking facility. This facility, which is offered at no extra cost, is ideally suited for people on the move and for firms/companies operating between networked cities. Minimum balance for Multi Branch banking facility is as shown in following table
Particulars Savings Bank (Privilege) 5,000/Money Pearl 10,000/Current Account Privilege Money Money Money Ruby Sapphire Diamond 50,000/1,00,000/- 3,00,000/-
QAB* (Rs.)
QAB =Quarterly Average Balance
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Scheme of the Product Cash Withdrawal up to Rs. 100000/- per day and only for self cheques Unlimited Cash Deposit Balance Enquiry Transfer of Funds Remittances Issue of Pay order or Demand Draft Empowered with anywhere banking for both deposits and withdrawals within the network. Instance remittance of funds across centers One can enjoy 7 days of banking The risk of carrying heavy cash while traveling between cities is minimized as cash withdrawal is possible at networked cities. No need to carry DD/Pay order Faster collection of Cheques K Flexi option can be availed by Multi Branch banking account holder K Power facility with free Visa Debit International Card with credit facility up to Rs. 15000/-. Collection of BSNL Telephone Bills at Goa and Bangalore and Cellone Bills all over Karnataka.
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Multi City Cheques All Multi Branch Banking account holders are eligible for Multi City Cheques (At par Cheques) facilities wherein the Cheques repayable at centers mentioned on the reverse of the Cheques book.
On demand, the MBB account holders may be provided with specially designed Multi City Cheques with 16 digits account number specified on it. All savings Privilege account holders and Money Pearl, Money Ruby, Money Sapphire and Money Diamond account holders are eligible for Multi City Cheques facility. Centers identified for payable at par are ninety in numbers at present.
International Debit Card Karnataka Bank now introduces another exciting product called MoneyPlantTM International Debit Card that gives you access to your account whenever you want, wherever you want.
MoneyPlantTM International Debit Card allows you to purchase goods at Merchant Establishment and also gives freedom to withdraw cash from ATMs in India and abroad. This card gives you the freedom of making the purchases without the hassle of paying in cash. No need to carry the cash or no need to pay the bill at the end of the month, your purchase will be debited to your account instantly.
You can use MoneyPlantTM International Debit Card at the following locations.
All Karnataka Bank ATMs All VISA / PLUS ATMs All merchant Establishments for purchases. At Corporation Bank ATMs and other shared Networks 39

You can use your Debit card as a credit card with credit facility of maximum limit of Rs. 15000/- for 45 days under K Power Scheme Features of Debit Card Valid in India and Overseas Uses to make purchases at over 1, 17, 000 outlets in India and over 13 million outlets worldwide. Used for cash withdrawal at over 13, 000 ATMs in India and over 8.7 lacks ATMs worldwide. No monthly outstanding in case of Debit Card. Your account will be instantly debited to the extent of your purchase or the amount withdrawn Limit Per day per card ATM Rs. 15000/
Limit Per day per card POS Rs. 25000/- (At Merchant outlet) You can avail a facility called K Power. This is a special facility that enables you to draw cash from any ATMs even if there is no balance in you account, which may be treated as personnel loan. Maximum permissible limit per card is Rs. 15000/-. The interest rate of PLR + 3% is charged on daily balance outstanding, the amount withdrawn is required to be repaid within a maximum period of 45 days from respective withdrawals.
Interest applied at the end of each calendar month as on the last day of the month. You can have advantage of K Flexi scheme with Debit Card and K Power facilities.
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Annual Charges and Transactions charges for using the Debit Card Annual Fee No Charges Annual Fee for add on Cards No Charges There is no charge if the card is used at a Karnataka Bank ATM There is no charge if the card is used at a Merchant Establishment for purchases Procedure to be followed in case Debit Card is lost or stolen. If your card is lost/stolen please call our toll free number 1600-425444 and obtain registration number for future reference. You may also report the loss of card to branch where you maintain your debit card account. Your card would be deactivated immediately to prevent misuse. If your card is lost/stolen while you are overseas, you can call the VISA Global emergency help line. K-Flexi account o It is a Savings Bank account linked term deposit which combines the benefits of high interest of a term deposit and liquidity of Savings Bank account to give you the best returns for your money. o Any individual other than a minor can open this account. All existing resident Savings account holders are eligible to opt for this scheme, by giving a simple mandate. o Joint accounts are permitted under the scheme provided none of the account holders are minors. o In case of existing account, just sign a simple mandate requesting for the facility. If not, just walk into any of our
Networked Branches
and open a new Savings Privileged Account.
o For the amount held in term deposit, a higher interest is paid depending upon the period for which deposit is kept / run. For the amount held in Savings account, interest is paid as per Savings rules.
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o You will decide period of deposit. It can be for a period of 30 days and maximum period of 36 months. o Period of deposit should be decided, first at the time of opening the account. You have the privilege of changing the period option once in every quarter thereafter. o In the absence of any specific instructions, the deposit will be renewed for the same period as initially made at the interest prevailing on the due date. o You can operate your K-Flexi account like any other Savings Bank account and issue Cheques/withdraw the amount etc.
Deposits
Abhyudaya Cash Certificate: A growth oriented scheme with maximum returns. Money invested multiplies after the specified period. The minimum period of deposit is 6 months and the maximum period is 120 months. This is a re-investment plan and has a maturity value based on interest compounded on quarterly basis.
Fixed Deposits: A high interest deposit scheme for specified periods ranging from 15 days to 10 years with interest payments made monthly, quarterly, half-yearly or yearly as required by the depositor.
Ready Money Deposit: A unique term deposit cum overdraft account, whereby a minimum deposit of Rs.10, 000/- enables you to withdraw upto 75% of the amount by cheque without presentation of the deposit receipt. Soulabhya Deposit: A flexible 'twin gain' Deposit Scheme that allows withdrawal of deposits in units of Rs.1, 000/- each in case of need, without affecting the interest payable on the remaining units. Minimum amount of deposit is Rs.5, 000/- and in multiples of Rs.1, 000/- thereto.
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Soulabhya Deposit: A flexible 'twin gain' Deposit Scheme that allows withdrawal of deposits in units of Rs.1, 000/- each in case of need, without affecting the interest payable on the remaining units. Minimum amount of deposit is Rs.5, 000/- and in multiples of Rs.1, 000/- thereto. Cumulative Deposit: A monthly deposit scheme whereby a fixed amount is to be contributed monthly for a minimum period of 6 months and a maximum of 10 years. This is an ideal scheme to save a fixed amount for future plans such as education, buying a home etc. The maturity value of the investment is calculated based on the interest cummulated over the period of investment Platinum Lakhpathi: A recurring deposit scheme wherein a fixed monthly amount deposited over a period of 45 months to 120 months in multiples of 15 months becomes over a lakh of rupees at the end of it. Insurance linked Savings Bank Deposit: Free accident insurance coverage with your savings account! By maintaining a stipulated minimum balance in SB account, you become entitled to free accident insurance coverage of up to Rs.2 lakh and Rs.10, 000/- towards re-imbursement of hospitalization expenses arising out of accidents. K-Flexi Deposit: Savings Account that provides Fixed Deposit Interests! A facility for all existing account holders that maximizes the returns on surplus funds in the account. The stipulated level at present is Rs.10,000/-. Whenever the balance in the SB a/c surpasses this amount, the excess amount gets transferred to a term deposit in multiples of Rs.5,000/- for a specified period and earns interest applicable to a term deposit of that period. Resident Foreign Currency (Domestic) Account: Foreign currency in USD, GBP and Euros may be deposited. This account can be opened as a current account only. The account carries no interest with it and there is no minimum amount for opening the account. Foreign exchange acquired in the form of currency notes, travelers cheque, gifts, honorarium received outside India, gifts received from relatives and earnings through the export! Of goods and services, can be credited to this account.
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NRI Services: Wide range of Deposit schemes for Non-Resident Indians. It includes Non Resident Rupee Account (NRE), Foreign Currency NonResident (Bank) Scheme (FCNR [B]) and Non Resident (Ordinary) Account (NRO) with very attractive and competitive rates. Resident Foreign Currency (RFC) (Domestic) Account for returning Indians is also available. Senior Citizens Deposit Scheme: Respecting our elders through additional interests for their savings and other benefits.
Loans
Vidyanidhi Education Loan Scheme: Finance your child's studies in India and abroad. The loan covers expenses for tuition fees, books, study material, hostel boarding and air travel. Easy to apply, Easy to get. Apna Ghar Home Loans: Fulfill your dreams of buying or constructing your own home with our housing loan scheme. The maximum quantum of loan is Rs.50 lakh per borrower. Easy Formalities, Quick decision and Low Interests! Car Finance Scheme: Finance the purchase of a new car of your choice upto 85% of the invoice value excluding vehicle tax and insurance. Car Finance Scheme also finances the purchase of second hand cars. Varthak Loans: Finance for Working Capital. Traders, commission agents, distributors, dealers and stockiest with business licenses are eligible to avail finance for working capital to keep things running smoothly. Easy Ride: KBL loan scheme versatile loan for 2 wheelers. Available for individuals, professionals and companies. Scheme for Salaried Persons: Finance for your changing personal needs. As you and your family grow, your needs will keep changing and so will priorities. This scheme for permanent employees of reputed companies or
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institutions is for the purchase of consumer durables, religious ceremonies, educational or medical expenses, home repairs and obsequies. Udyog Mithra: Helping you in your profession. If you are a Doctor, Lawyer, Engineer, Chartered Accountant or Tax consultant with 2 years of experience and are a customer of the bank, you are eligible for finance to purchase medical equipment, machinery, computers, books, furniture and furnishings for the setting up of your own office or workplace.
Niveshan Loan: Buy a Site for your New Home. Finance for the purchase of house sites (converted land only). Loan amount of Rs.15 lakh or 75% of the registration value of the site whichever is less, can be sanctioned. Krishi Card: A Credit Card for Agriculturists. Innovative credit card extending finance for various activities under agriculture. The Krishi Card covers crop loans, crop Insurance, agri-inputs like fertilizers etc. and personal accident Insurance. K-Power: Instant Personal Loan through ATMs - ATM cards with special facility to withdraw cash from any Money plant ATMs, and from Corporation Bank ATMs, even if there is no balance in your account. You can withdraw up to Rs.15, 000/- as a personal loan.
Internet Banking
Money Click Our Internet Banking facility 'MoneyClickTM' lets you to manage your finances in the comfort of your home or your office as per your convenience. 'MoneyClickTM' is a Self-service Channel, which is available 24 hours a day and 365 days a year in an absolutely simple, friendly but secured environment
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Money Click-Retail Money Click-Retail offers different online services to our retail/individual customers, like balance enquiry, requests for Chequebooks, recording stop-payment instructions, balance transfer instructions, account opening and other forms of traditional banking services. This also offers
bill payment services utility
to our valued customers for payment of BSNL, MOBILE,
Electric, Water Bill etc
Mobile Banking
With Karnataka Bank, Banking is no longer what it used to be. Karnataka Bank offers Mobile Banking facility to all its Bank customers. Karnataka Bank Mobile Banking enables you to bank while being on the move. Karnataka Bank Mobile Banking can be divided into two broad categories of facilities:
Alert Facility
: Karnataka Bank Mobile Banking Alerts facility keeps you
informed about the significant transactions in your Accounts. It keeps you updated wherever you go. to
Request facility
Karnataka Bank Mobile Banking Requests facility with to get the required details
enables you to query for your account balance. You have to send SMS 9880654321
Key word
Mobile Banking Alerts:
Karnataka Bank Mobile alerts provides you with the following alerts: Transaction Alert - You receive an alert when your account is credited/debited. Cheque Bounce Alert - You receive an alert if the cheque you deposited in your A/c is not honored.
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Cheque Paid Alert - You receive an alert when any Cheque is paid from your A/c. Clearing Cheque Deposited, Regularized - You receive an alert when Cheque deposited in clearing, regularized. Maturing Term Deposit Accounts - You receive an alert, before the maturity of your Term Deposit A/c. Matured Term Deposit Accounts - You receive an alert, when Term Deposit A/c is matured. Standing instructions to Operative Accounts - You receive an alert, when any Standing Instruction is executed in your A/c.
Mobile Banking Requests
Karnataka Bank Mobile requests provides you with the following requests: KBAL Account Balance Inquiry.
( KBAL password A/c Number or (KTRN password A/c No.)
'KBAL password' - for primary A/c Balance) KTRN - Last 5 transactions in your Account. KPWD password) KSUS - Suspend you from SMS Banking. (KSUS password )
Change SMS password.
( KPWD present password new
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Business banking
Continuous improvement is the only business strategy that can provide you with a clear competitive edge and keep you ahead of the fierce competition. We understand the dynamics of competition in today's fast changing world. We understand the growth need of every business irrespective of the size. We offer a variety of carefully drafted tailor made Banking products to help your business get that edge in this competitive environment.
We provide Working Capital Finance, Term Loans and Infrastructure Finance to help your Business grow. With providing these type of finances to start an industry, to financing your working capital, we have Business Finance Products both fund based and non-fund based suited to all sectors of Industry. Contact our nearest Branch and we shall be happy discuss how we can help you achieve more in your business. Working capital financing Fund Based credit facilities such as Cash Credit, Overdraft, and Discounting & Purchasing of Bills etc. Export! And Import Finance.Non-fund Based credit facilities such as Letter of Credit, Bank Guarantees (Performance / Financial) etc.
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Term-Loan Fund Based finance for capital expenditure / acquisition of fixed assets towards setting up / capacity expansion of a business or industrial unit. Nonfund Based finance in the form of Deferred Payment Guarantee (DPG) for acquisition of fixed assets towards setting up of / capacity expansion of a business or industrial unit Finance under Technology up gradation scheme. Infrastructure Financing Financing for all kinds of infrastructure projects, such as, Power Generation, Transmission & Distribution, Road constructions, Construction of Bridges on the Road / Railway Lines, Air/ Sea Port-development activities, Telecom, Water supply system, Urban Development etc. Business Finance Products 1. Retail trade - Helping your Retail Business Grow. Finance for every business entrepreneur in the retail trade. 2. Finance to small scale Industry - Helping you to start your own small industry. 3. Project finance - Helping to start a larger Business. Either short or long term you have flexible options. 4. Finance to Medium and Large scale Industries - Need based finance for acquiring assets and raw materials at attractive interest rates. 5. Export finance - Finance to help your export business. Timely assistance to perform your export obligation. 6. Agriculture Finance - Finance for various Agriculture activities. Come to the pioneers in many agro based credits.
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Insurance Banking
In conformity with our Endeavour to become a financial supermarket and to provide total financial solutions to our customers, we have diversified into marketing of life insurance products of MetLife India Insurance Co. PVT. LTD, an affiliate of MetLife, 136 years old, largest life insurance company in USA. We offer a wide range of solution to help you plan for your various financial needs like your childrens education & wedding, your retirement, protection of your housing loan repayment, protection for your family etc.
For further detail, please click the link: www.metlifeindia.com We have also entered into a memorandum of understanding with Bajaj Allianz General Insurance Co. LTD. (BAGICL) for distribution of their general insurance products through our branches. You can now get your assets insured against fire, burglary and a host of other eventualities. You can also cover yourself as well as your near and dear once against the contingencies of accidental death, hospitalization etc. For further detail, please click the link: www.bajajallinze.co.in At Karnataka bank, we look at Insurance as a means to the total protection of your family and your assets.
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Money Transfer
1. Western Union Financial Services Western Union Financial Services International has a legacy of public trust built through more than 150 years of extra ordinary continuous service. This international money transfer system facilitates quick, secure, reliable and convenient transfer of funds all over the world. Neither the sender nor the receiver has to have a Bank account with us and the receiver pays no fee. The person who remits you the money will fill in a prescribed form giving details of beneficiary and deposit the money along with the requisite service charges (fee) at its agent abroad. The remitter will give one Test Question and its answer for identification of beneficiary. The remitter then gets a receipt with Money Transfer Control Number (MTCN) which he will inform to you as the beneficiary of the transfer. The amount so deposited will be available to you within 10 seconds. You walk into any of the branches of our Bank offering this facility in India, fill in the form giving information available with you including MTCN, test question etc., along with proof of identification like ration card / driving license / voter identity card/credit card etc. The paying branch will access the Western Union System for authorization and make payment. 2. Real Time Gross Settlement (RTGS) System: RTGS is a payment system in which both processing and final settlement of fund transfer instructions take place on real time basis. It is a gross settlement system where fund-transfers are settled individually, i.e. without netting debits against credits. RTGS effects final settlement continuously and the settlements are immediate, final and irrevocable. Each
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Bank branch participating in the RTGS is identified by a unique Indian Financial System (IFSC) Code. [CLICK HERE] to get the IFSC code for your Branch. With the advancement of the Technological changes in the Banking industry the RTGS introduction has become a boom in settling the interbank funds instantaneously. The Customer can avail this facility and make instantaneous transfer of funds to beneficiarys account Karnataka Bank became a member of Real Time Gross Settlement (RTGS) System from 16th July 2004 and has been settling Inter-Bank transactions in Mumbai since then. Money Quick services can be accessed by customers which uses RTGS service This MONEY QUICK facility provides INTERBANK funds transfer. Minimum amount that can be transferred: The minimum amount for interbank funds transfer facility for customers under Money Quick is fixed at Rs. 50,000 (Rupees Fifty thousand only). Charges for transfer of funds: Service Charges equal to DD Commission
for equivalent amount as per the existing circular plus Rs. 100. No concession in service charges is allowed, even though the Customer is enjoying concession in DD or any of the charges. TO BE READ AS Service charges for outward remittance is Rs. 2/- per thousand plus Rs. 100/(fixed) with service tax (@12.24%) for the total amount. No concession in service charges is allowed, even though the customer is enjoying concession in DD or any of the charges. Service charges for inward receipt Rs. 100/- fixed + s.tax @12.24%
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Demat Service
Depository Participant Services Karnataka Bank has been foraying into newer areas of banking products and services to meet the increasing needs of its customers. As a further step towards this Karnataka Bank has become a Depository Participant of Central Depository Services (India) Limited (CDSL) and has launched the DP services from 16-03-2006 . Introduction to Depositary services: A Bank where its Head Office provides the facility of opening and conduct of Accounts through its branches, a Depository institution extends various services to the investors through its agents known as Depository Participant. In India, now there are two Depositories. They are CDSL and NSDL. Participant can be anybody who complies with the eligibility requirements. Participant (DP) can be a Bank also. All the various functions undertaken and enabled through Demat accounts is referred to as DP activity. Under the depository system, a demat account holder or holder/owner of securities who is entitled to all the benefits (such as dividend or interest/bonus or right shares etc), is known as a Beneficial Owner (BO). However, in the books of the issuer company, the name of the Depository will appear as the Registered Owner against those securities which are held by the BO in his demat account with that Depository.
Prerequisites of opening a Demat Account: The formalities involved in opening a bank account and a demat account are similar. An investor desirous of holding his securities in electronic form can open a demat account with a DP of his choice by completing necessary account opening formalities after furnishing proof of his/her
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identity, photograph and proof of address. An agreement with the DP in the prescribed format is to be executed by paying requisite stamp duty.
Dematerialization of Securities: After getting the demat account number from the DP, the BO can cause credit of fresh purchases of securities to his demat account and/or transfer the balances held in demat account held with other DP to this newly opened demat account. He can also tender the securities held by him/her in physical form to DP for dematerialization and credit to the demat account. After necessary verification, DP forwards the physical securities (duly defaced) either to the company or to their duly appointed RTA (Registrar and Transfer Agent) who, after necessary scrutiny, destroys the certificates in physical form and authorizes the depository to give corresponding (electronic) credit to the subject demat account. The details and balance in the BO account recorded and maintained with the Depository are available to DPs in their office through the continuous connectivity via V-sat or leased lines. The DP is required to provide the BO, at regular intervals, with a statement of account, which gives the details of transactions and closing balance.
Designated Branches to undertake Depository services: To begin with the Bank will provide DP services from the below mentioned Branches and gradually the services will be made available from more centers.
1) Mumbai - Andheri West 2) Bangalore - Kasturba Road 3) Mangalore Kodialbai 4) New Delhi - Connaught Place
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5) Chennai - Thambu Chetty Street
Depository Customer has to provide a debit authorization for recovery of depository fees. Annual maintenance charges are non-refundable and are levied upfront for a period of one year at the beginning of the financial year Value of transaction will be in accordance with rates provided by the Depository All the instructions for transfer must be received at the designated branches of the bank latest by 4.00 pm for the next day's pay-in. The Billing/ Recovery interval of the charges is at the sole discretion of Karnataka Bank Ltd. All instructions for transfer must be received at the designated branches of the bank at least 1 day before the 'execution' date. Same day execution / late instructions will be accepted on a "best effort basis" at the sole risk and responsibilities of the BO [account holder(s)]. The bank will not be held responsible for non-execution of any "same day" instruction. The bank also reserves the right to charge additional fee/s for processing 'same day execution' instructions. Please note that in case we are unable to recover charges due to inadequate balances in the bank account / invalid bank account /inadequate advance deposit, the bank reserves right to " freeze" depository account for "debit transaction". Any non-Customer (i.e. the one not holding any regular operative account with our bank) has to keep with us a refundable, interest free, Advance Security Deposit of a sum of Rs.5000/INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI
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Any other charges specified by CDSL/or by the Bank from time to time.
ATM Service
In a major step towards ushering in convenience-Banking for the Customers, Karnataka Bank has entered into ATM sharing arrangement with IDRBT-NFS, established by Reserve Bank Of India and Cashtree ATM Networks. The NFS Network with IDRBT has 18 member Banks and covers 5380 ATMs while Cashtree Network has 10 member Banks and covers around 1600 ATMs. All Debit & ATM card holding Customers of Karnataka Bank can avail the facility of withdrawal through Banks Money Plant ATMs and Shared Network ATMs in this arrangement Free of Cost. Customers can Avail Cash Withdrawal and Balance Inquiry Facility in the following ATMs. The Official Logos of the Networks shown below can be used identify the member Bank ATMs. All The Member Banks Customers of both networks can avail of acquirer services at all Karnataka Bank ATMs across the country Important Note for Card holders: It is strongly recommended and advised that before using any ATM other than Karnataka Banks ATM, our card holders shall look for the specific Network 'LOGO' in which he/she intends to do the transaction. At present we are enabling , for our card holders , FREE* of charge (no transaction fee) transactions under certain networks, it shall be clearly understood that for any transaction done in other than KBL/Corp, Bank/NFS or Cashtree Network, the users account will be debited with the applicable transaction fee Through the Money plant ATM Card you can withdraw, get Mini Statements, find out Balance, change PIN, request for Loans, request for Statements & Cheque Books.
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You can link your various accounts across different Karnataka Bank Networked Branches to a single Money plant Card. This gives you a facility to use one card to access & withdraw from any of your accounts of Karnataka Bank. Money plant ATMs cards can also be packed with K-Power, a special facility to draw money from your savings account even when you run short of balance.
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DETAIL STUDY OF DEPARTMENTS

ECONOMIC SCENARIO: The Indian economy has continued its good performance in fiscal 2004-05 also and undergone significant structural changes due to ongoing economic reforms. The central government started divesting its stake in a number of PSUs at the fag end of the year. Foreign Institutional Investors (FIIS) invested heavily in our country. These have made the capital market buoyant. The advance estimate released by the central statistical organization (CSO) in February 2004 has replaced the GDP growth much higher at 8.1% as against 4.0% in the previous year. This places our country among the fastest growing economies in the world during the current year. The buoyancy has been visible in most sectors of the economy. While the agriculture sector is poised to grow at 9.1% this year, manufacturing and services sectors are like to grow at 6.5% & 8.4% respectively. The annual inflation rate as measured by variations in the Wholesales Price Index (WPI), on appoint- to point basis, declined for 6.6% at end of the march 2004 to 4.55 by end of-march 2005. the annual growth in Broad Money supply was 16.4% Vis--Vis 15% a year ago. The foreign exchange reserves crossed the USD 100-billion marks and stood at USD 113.0 billion by end-March 2004, compared to USD 75.4 billion at the end of previous years.
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PERFORMANCE OF YOUR BANK.

(Rs.in crores) Particular Deposit Advances Investment Total income Operating Profit Net profit 2004-05 10837.06 6287.44 4555.72 1061.08 340.71 147.15 2003-04 9406.94 4667.91 4878.91 1118.73 329.79 133.17
We are happy to report that your bank
with nesses
satisfactory growth in all the key business variables during the year, the total business turnover of the bank touched Rs, 17124 Cores, an increase of 21.67% over the preceding year, the net interest income rose from rs213.68 crores in 2003-04 to Rs, 316.89 crores, there by registering a growth of 48.30% due to good growth in advances and considerable reduction in interest cost, The total deposits of the bank grew from Rs.9406.94 crores in 2003-04 to Rs.10837.06 crores during the year report, registered a growth of 15.20%.the share of low cost deposits of the bank namely savings and current account deposits have shown a steady increase. The total advances grew from Rs. 4667.91 crores in fiscal 2004 to rs.6287.44 crores in fiscal 2005an increase of 34.69%.the share of agriculture advances increased 522.49 crores to Rs. 621.12 crores. The priority sector advances increased from Rs. 1910 crores to Rs .2094 crores. The lending under various socio-economic schemes has shown satisfactory progress. The total investments of the bank as on 31st march 2005 stood at Rs 4555 .72 crores as against Rs 4878. 91 crores. Due to volatile interest
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rates and the expectation of hardening interest rate, your bank reduced its exposure to investments, especially long dated government bonds. The average modified duration of the investment portfolio (ASF) category has come down from 6.36 years to 4.40years.
Profit
During the year, your bank posted an operating profit of RS 340.71` crores, as against RS. 329.79 crores for the fiscal 2004. the net profit of the bank increased form 133.17%crores to RS. 147.15 crores, thereby registering a growth of 10.50%
Appropriations
The net profit of Rs. 14714.64 lakh along with a sum of RS. 0.24 lakhs brought forward from the previous year aggregated RS.14714.88 lakhs is appropriated as under. The corresponding figures for the previous year were RS.13389.41 lakhs. 1. Transfer to statutory reserve 2. Transfer to Revenue& general Reserve 3. Transfer to exchange fluctuation fund 4. Transfer to development fund 5. Transfer to proposed dividend (including tax there on ) 6. Balance carried to balance sheet Total 2768.93 0.95 14714.88 9000.00 2825.00 100.00 20.00
DIVIDEND
Keeping in mind the overall performance of the bank and the positive outlook for your banks future, your directors are pleased recommend a dividend of 20% on the expanded capital base. The total amount of dividend proposed to be distributed is RS, 27.69 crores (including dividend distribution tax), which as 51.81% higher than the amount distributed during 2003-04
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(RS.18.24 crores). The dividend pay-out ratio proposed for the year stands higher at 18.81% as compared to 13.70% during the year 2003-04.
Earning per share/book value

The earning per share (weighted average) and the book value of the share stood at RS .34.06 and RS.80.67 respectively as on march 31.2005.
Profitability and Working Results:

The net profit of your Bank rose to Rs. 147.15 crore from Rs.133.17 crore registering a growth of 10.50% in 2004-05. The Operating Profit of your Bank grew by 3.31 % to Rs. 340.71 crore during 2004-05 from Rs.329.79 crore in the previous year.
NET OWNED FUNDS AND CAPITAL ADEQUACY RATIO:

The net owned funds of your bank increased form 698.15 crores to Rs. 978.04 crore, registering a growth of 40.09% your bank successfully raised its their capital by way of a rights issue priced at Rs . 20%- pre share in the ratio of 2;1 with this rights issue, the paid up capital of your bank as on 31st march 2005 increased to Rs 121.25 crores form Rs. 40.43 crores as on 31st march 2004, the directors of your bank thank you for your overwhelming support for the right s issue of the bank . The capital adequacy ratio increased form 13. 03% as on 31st march 2004 to 41.16% as on 31st march 2005 the bank as been consistently maintaining capital adequacy ratio well above the norm of 9% stipulated by the reserve bank of India.
FOREX BUSINESS
During the year, the bank achieved foreign exchange business turnover of RS. 4010.16 crores as against Rs. 3336.00 crores for the previous year, registering a growth of 20.20% the advances to export sector increased for m Rs. 620.25 crores to Rs. 702.32crores.
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Market Capitalization:
The Market Capitalization of the Bank, which was at Rs.534 crore as at March 2004 rose to Rs.858 crore as at March 2005.
NON-PERFORMING ASSETS
Your bank has been very focused on containing the nonperforming assets, through better credit monitoring as well as intensified drive for the recovery of the impaired assets and check any further slippage. To have a more focused approach toward recovery process, the bank opened asset recovery branch at Mumbai and Chennai during the year under report. Besides taking help of the SAFFAESI act 2002 for speedy take over and disposal of the assets of defaulting borrowers, the bank has sold some of its NPAS to asset Reconstruction Company of India ltd. (ARCIL). As a consequence of the list focused approach at keeping the NPAOS at minimum possible level, the banks net NPA s as on 31st march 2005 reduced to 2.29% during the previous year.
CREDIT RATING
The credit rating agency, ICRA LTD.., one of the leading credit rating agencies of the country has accorded a1+ rating to the banks certificate of deposit program. The rating symbol. A1+ indicates highest degree of safety for timely payment of principal and interest.
DISTRIBUTION NETWORK
During the year under report, the bank opened 12 new branches at Raipur, navi Mumbai-koparkhairnae, Mumbai thakur village, Nasik, navi Mumbai-seawoods. Dehradun, New delhi-r.k. puram, new delhiINSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI
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dwarka Mumbai-santacruz (west). Visakhapatnam shantipuram, Chennai-k.k. Nagar and Mysore- bogadi in addition to 2 asset recovery management branches at Chennai and Mumbai and one customer care centre at Bangalore. As on mach 31. 2005 , the bank had 381 branches, 8 regional offices, one international division one data centre, 3 service branches, 2 currency chests, 10 extension counters, spread across 17 states and 2 union territories, the banks own training college was shifted to the old head office building at kodealbail, Mangalore, further, during the year 2004-05 the bank shifted 19 of its branches to more spacious premises and , it merged its cavalry road,, Bangalore branch with industrial finance ranch, Bangalore,
Technology Initiatives:
Your Bank has given due importance to technology in order to keep pace with other Banks who rely on technology enabled services to cater to the plethora of customer needs and expectations. Now our customers have the advantage of Any time Anywhere Banking at over 276 offices nationwide. The pact for mutual sharing of ATMs with Corporation Bank enables customers to withdraw their money round the clock at over 850 ATMs located countrywide. The Bank has been offering a wide range of customer centric and customer friendly value-added products & services like Multi-Branch Banking (MBB), Flexi Term deposit (K-Flexi), ATM Card linked credit facility (K-Power), collection of utility bills, etc. You will be delighted to know that your Bank launched Moneyplant International Debit Card which can be used anywhere in India and abroad where VISA/VISA Electron sign is displayed. The card holder can access his account at 13000 Visa ATMs in India and over 8.7 lakh ATMs globally. The card can be used for purchases at 1,17,000 merchant locations nationally and over 13 million international locations. A pact has already been inked for other banks' network/shared viz. network 'Cash Tree', and 'NFS' for greater access.
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The Bank is all set to launch Internet Banking shortly. Introduction of Demat Services, distribution of Mutual Fund products are on the cards. A product called 'Money Quick' for customer to customer remittance through RTGS is launched today at all our networked branches. Your Bank plans to bring more number of branches under the Core Banking Solution (CBS) and also launch a range of new products and delivery channels in the near future.
MANAGEMENT DISCUSSION AND ANALYSIS Economic Scenario.

It was yet another year of good growth for the Indian economy, despite the deficient monsoon. The growth in GDP for the year 2004-05 was 6.9%which is on top of higher increase of 8.5% in the previous year. While the industry grew by 8.3% as against 6.5% in the previous year, due to deficient monsoon, the agricultural sector slowed down. The agricultural and allied sector estimated to have increased by 1.1% as compared with 9.6% in the previous year. The average annual inflation as measured by variations in the whole sale price index (WPI) was much higher at 6.4% as compared to the 5.4% during the previous year, largely on account of sharp increases in commodity prices, especially oil and iron & steel, I fact, the inflation as measured by WPI reached by WPI reached very high level of 8.7% during august 2004 , prompting the government as well as the Reserve Bank of India to take various fiscal and monetary measures, like hike in Reverse Repo Rate increase in CRR, reduction in import tariffs duty to rein in the price increase , as a result of these measures, the point to point inflation gradually eased off to 5% by march 2005 .
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On the foreign exchange front, the rupee showed mixed trend against world currencies , while it depreciated marginally by 0.8%againest US Dollar depreciated 6.2% against Euro, 3.1% against pound sterling , but appreciated by 1.9% against Japanese yen despite the widening trade deficit, , the foreign exchange reserve rose to us$ 141.5 billion , an increase of over Rs$ 28.5 billon during the year, helped largely by surging receipts which included software services as well as portfolio/ direct investments in to the country.
Banking Scenario
During the year 2004-05 the aggregate deposits of the scheduled commercial banks grew by 14.1% (Rs.2, 11,963 crores) against as 17.5% (Rs.2, 23,563 crores) during the previous year. The lower deposits growth was partly attributed to reduction in NRI deposits with the banking system. Contrary to the sluggish growth in deposits, in bank credit registered a strong increase of over 265 as compared to 15.30% in the previous year. The incremental non-food credit-deposit ratio was as high as 100.70%, while the incremental investment deposit ratio 25.10% from 58.20% in the previous year, there by accommodating the higher credit demand to a large extent. Going forword, with the economic growth picking up pace and the investment cycle on the way to recovery, the banking sector is poised to benefit immensely due its role as key financial intermediary. The revived credit off take (both from food and non food segments) and structural reforms have paved the way for a change in the dynamics of the sector itself. Besides gearing up for the compliance of Basell norms, the sector is looking forword to consolidation and investment on the FDI front.
Opportunities Ahead
Your bank has been at the fore front of providing cutting edge banking technology to the rapidly evolving needs of the customers and this has opened up new opportunities to bank. The adoption of core banking solution FINACLE in 2000 envisaging Any time/Any where Banking and
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networking of 276 branches/ offices up to 31st march 2005 have enabled your bank in offering customer-centric value added product and services like multi branch banking, multi city Cheques, flexi-term deposits (K-flexi), ATM card linked credit card facility (K-power) collection of utilities bills etc. The Bank is planning to bring more number of branches under the centralized network and launch new product and delivery channels like Demat services, inter banking Cash tech for fast collection of cheques etc. besides, the bank has entered in to the an agreement with Cash Tree for bank sharing ATM network of other banks, which will provide access for the customer to more than 1200 ATM network of other banks in addition to the necessary infrastructure switching over to RTGS for customer transaction there by benefiting our customers to reduced transaction time and settlement risk. During the year the bank has lunched MoneyplantInternational debit card to facilitate wider access to ATM both domestically and internationally and also at merchant place.
SEGMENT REPORTING
The bank has identified two business segments viz., Treasury and other Banking operations. Treasury operations Treasury operation mainly comprises of supply statutory Liquidity ratio (SLR) and non SLR investment. During the year ended-March 31, 2005, the bank has earned total revenue of Rs. 295.07 crore from Treasury (Previous year Rs. 409.20), with a net result of Rs.81.80 crore (Previous year Rs.140.22) . Other Banking operations Other banking operation mainly consists of Advance portfolio of the bank and SLR securities to the extent of SLR requirement. During the year-ended March 31, 2005, the Bank has earned total revenue of Rs.766.01 crore from other Banking operation (Previous year Rs.709.54crore), with a net result a net of Rs. 183.29 crore (Previous year Rs. 83.85 crore).
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Risk and Concerns Risk is the integral part of the banking business and your bank aims to achieve an appropriate trade off between risk and return and there by maximize shareholder value. Of the various types of risk the banks are exposed to, the more important are credit risk, market risk (which including liquidity risk and price risk) and operation risk. Effective risk management is critical to the bank success. Under the supervision of the Board Directors, your bank has already formed committees of executives, for identification, measurement, monitoring and management risk, to mitigate their advance impact on its financials, your bank has finalized its Road Map for BASEL II implementation and has initiated the necessary steps to streamline systems. Strategies for a smooth transition to BASEL II framework. Internal control systems The Board of Director of the bank have already put in place well articulated internal control measures commensurate with the size of the organization and complexity of operations. The audit committee of the Board of Director is supervising the internal audit and compliance functions. The system of regular inspection, credit inspection, short inspection and concurrent audit of select branches from part of the internal control mechanism. Besides, the bank has been ensuring stock audit and credit audit of large borrowing accounts by professional audit firms to further strengthen on credit administration. The Bank has already introduced Risk-Based Internal Audit system, as mandated by the Reserve Bank of India. Adequate measures have been taken to work under the computerized environment. The computerized operations are subject to EDP/IS audit to mitigate the associated risks. Is audit of Data Centre, Bangalore was done by an external IS Audit firm, as prescribed by the Reserve Bank of India. Operational performance We are happy to report that the overall financial performance of the bank during the year 2004-2005 has been satisfactory. The total income of the bank was Rs.1,061.08 crore and total expenditure was Rs.720.37 crore for the year ended 31.03.2005. Further the total interest expenditure of the
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bank reduced from Rs.634.77 crore as on 31.03.2004 to Rs.523.04 crore as 31.03.2005. Human Resource Development Your bank believes that the knowledge and skill levels of its employee are the key to the achievement of its corporate goal and hence attaches top priority to impart adequate training to its employees. To keep its employees fully geared up to meet the challenges of changing market dynamics, changing regulatory requirement and the diverse range of activities that the bank is undertaking, the bank impacts the necessary training through its in house Training through college. To supplement the in-house training facilities, your bank has also been regularly deputing its offices to participate in programmers. Workshops and seminar on various specialized financial areas conducted by leading organizations. As in the past, the bank has maintained a cordial and healthy industrial relationship with the employees. The number of people employed by the Bank stood at 4393 as on 31st march 2005. The business per employee (excluding inter-bank) has improved from Rs.3.20 crores as on 31st march 2004 to Rs.3.81 crores as on 31st march 2005. Corporate Goal In the light of increased optimism for industrial growth, your bank has envisaged to achieve a total business turn over of Rs.20,000 crores, comprising of a deposit target of the Rs.12,500 crores and Advances targets of Rs.7500 crores for the year ending 31st march 2006. The bank is confident of achieving of the same through better customer services and operational efficiency. Besides, the bank has plan to increase its total number of business units to 500, by increasing the total number of branches to 400 and own ATM network 100 by march 2006.
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Board of Directors During the year under report Sri B.V.Acharya retried as Director of the bank, with effect from 26 November, 2004 on completion of 8 tears of Directorship. The Board places on record its appreciation of the active involvement and useful services rendered by Sri.B.V.Acharya all these years. During the year, Sri S.R.Hegde, Advocate and retired legal Advisor to Reserve Bank of India and Dr.N.Seshsgiri, Former special secretary of Govt. of India on the ministry of Information Technology were introduced as additional Director of the Bank with effect from 26 th March 2005. The Board welcomes Sri S.R.Hegde and Dr.N.Seshagiri and seeks their guidance. The Board expresses its deep regret and sadness at the demise of two of it guided spirits, Sr. K.K.Rao, former Director of the Bank and Sri P.Madhava Rao, Legal Advisor of the Bank. The Board places on record its sincere gratitude towards the valuable services and guidance provided by them all these years. Corporate Governance Your Bank is committed to best practical of Corporate Governance to protect the interest of all the stakeholder of the bank, namely, shareholders, depositors and customers and aims to maintain transparency at all levels. A detailed report on Corporate Governance practices is given in the Annexure to this report.
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Directors Responsibility Report As per Section 217(2AA) of Companies (Amendment) Act, 2000, your Directors report that: The Accounts for the year 2004-05 were prepared by following the Accounting Standards in so far they apply to Banks. Accounting policies adopted and applied consistencyly by the Bank are in tune with the RBI guidelines issued from time to time. Reasonable prudent judgments and estimates have been in made in the accounts, so as to give a true and fair view of the state of a affair of the Bank and of the profit of the Bank for the financial year ended 31-03-2005. The Bank had taken proper and sufficient care for maintaining adequate records in accordance with the provisions of the Companies Act in so far as they apply to Banks. The annual accounts for the year ended 31-03-2005 have been prepared on a Going Cocernbasis Statutory Disclosure Considering the nature of the bank, the provision of Section 217(1)(e) of the Companies Act, 1956 related to conservation of energy and technology absorption do not apply to your Bank. The Bank, has however, used information technology extensively for its operations. There were no employees who were in the receipt of remuneration for which particular of employees have to be disclosed pursuant
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to section 217(2A) of the Companies Act, 1956, read with companies Rules 1975 and hence they are not applicable. Acknowledgement Your Director would like to place on record their sincere gratitude to the Reserve Bank of India, other government and regulatory authorities, financial institutions, correspondent banks for their continued support and guidance. Your Director also places on record their gratitude to the banks shareholder, depositors and customers for their continued support, patronage and goodwill. Your Director expenses their deep sense of appreciation to the employees, who have continued to display outstanding professionalism and commitment in your Banks quest for sustained growth and profitability and look forward to their contribution in scaling greater heights. Business Banks Business Turnover - Rs.20,000 crore (Deposit: Rs.12,500 crore & Advances: Rs.7,500 crore).
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Theoretical background of the study

Finance and related concepts Meaning of Finance
Finance is the support to any business in terms of money or moneys worth. It is the lifeblood of the economy. Finance includes determining what has to be paid for raising the money on the best terms available and utilizing the available funds in the best possible way.
Definition of Business finance

The activity concerned with planning, raising, controlling and administering of funds used in business Guttmann and Dongall.
Sources of Finance
Short term requirement for meeting working capital needs usually needed for a period within one year. Long-term requirement are required to a great extent for meeting fixed capital requirement, usually needed for a period exceeding one year.
Functions of finance
1. Investment Decision Capital Budgeting Working capital management 2. Financing Decision.
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3. Dividend Policy Decision.
Analysis of Financial Statement

Meaning Financial statement are essential tool for portraying the summarized picture of the financial and economic condition of firm based on the data that firm has collected in the books of A/c. Some author have defined the Financial Statement as follows Financial statements are the blue print of the financial affairs of the business enterprise Financial analysis Concept Financial analysis is an analytical study of the financial statement. The prime aim is the diagnosis of the financial health of the business enterprise. According S.K.Kapur Financial statement is a process of selling, classifying, comparing per pertinent data and information and high lighting significant relationship among various items relating to the financial position and performance of an enterprise and drawing proper conclusion from them. Importance of Financial analysis. It helps in diagnosis of the financial health of the company for the management, creditors, lendings institutions and Banks etc. The management is guided in its decision making process are regarding the following points. 1. In judging the areas of efficiency and inefficiency for appropriate action. 2. In judging whether they are moving towards the goals of the enterprise or drifting away from the main objective. 3. Controlling the operations.
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4. Measuring the success or failure of the enterprise as a whole. It help in judging the liquidity position and the solvency of the business enterprise. It is helpful to the lending institutions and Banks to judges the growth potent ional and weak area before granting them any loans or advances.
Tools of Financial analysis

The following tools and techniques are generally followed for evaluating the financial performance of the business enterprise. 1. Comparative Financial statement. 2. Common size financial statement. 3. Trend analysis. 4. Fund flow. 5. Cash flow. 6. Ratio analysis.
Comparative Financial statement.

The figures from the financial statements of the two or more years can be arranged in such manner so as to enable comparison over a period of time. Figures appearing in the same row against the item head are compared for the relevant periods to drive meaningful inference and conclusion. According A.F.Foulkecomparative financial statement are statement of the financial position of a business so designed as to provide time prospective to the consideration of various elements of financial position embodied in such statement. Advantages 1. It enhances the usefulness of yearly figure. 2. It brings about better comparison more clearly and vividly. 3. It reveals the continuous story of the figure making it more meaningful.
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4. It explain the cumulative effect on the financial position of the concern.
Limitations. 1. If the principle and practices of accounting are not consistently followed on a year to year basis, it would give absurd results. 2. The effect of price level changes are ignored which renders the comparison meaningless. 3. The years considered for comparison should not be abnormal years in any way which would fail to bring out meaningful comparison. Common size statement Financial statements that depict financial data in the shape of vertical percentage are known as common size statement. Such statement all figures in converted to a common unit by expressing them as a percentage of a key figure in the statement. The total of financial statement is reduced to 100 and each item is shown as component to the whole. Advantages : Common size statement reveals the relationship of the individual figures with the figure brining out more meaningful inference. It brings about the proportion of the various individual component in relation to the base figure. Assessment of performance becomes more easily drawn.
Limitations. They fail to reveal the variations in the respective individual items between different years or periods. There are no established standard proportions and therefore, they may not prove to be very useful.
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If different companies considered in the common size statement follow different accounting practice and policies, the inference would be meaningless.
TREND ANALYSIS In financial analysis, the direction of changes over a period of years is a crucial importance. Trend analysis or Time Series are immensely helpful in making comparative study of the financial statement for several years. That each items bears to the same items in the base year. Any intervening year may also be taken as the base year. Each item of base year is taken as 100 and on that basis the percentage for each of the items of each of the years is calculated. These percentages can also be taken as Index numbers showing relating changes in the financial data resulting with the passage of time. Computation: A statement is taken as a base with reference to which are other statements are studied. Every item in the base statement is taken as 100. Trend percentages are calculated in comparison to the base year and interpretations are made. The method of trend percentages is useful, analytical device for the management. Since by substitution of percentages for large amounts the brevity and readability are achieved. Also trend analysis leads you to question the causes for the tendency, in turn the identification of causes leads to identifying the remedial measures to be taken if any.
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ANALYSIS AND INTERPRETATION OF FINANCIAL PRFORMANCE OF TEXPORT OVERSEAS THROUGH TREND ANALYSIS. Trend analysis is for studying financial statements over a period of time. Since direction of changes over a period of year is of crucial importance in financial analysis. This kind of analysis is particularly applicable to the items of profit and loss account. It is advisable that trends of sales and not Income may be studied in the light of two factors the rate of fixed expansion or secular trend in the growth of the business and the general price level it might be found in a practice that a number of firms would show a persistent growth over period of years. But to get a true trend of growth, the sales figure should be deflated for rising price level. When the resulting figures are shown on graph, we will get trend of growth devoid we price change. Another method of scoring trend of growth and one which can be used instead of adjusted sales figure or as check on them is to tabulate and plot the output or physical volume of sales expressed in suitable units of measure. If the general price level is not considered while analysis trend of growth, it can mislead management. They may become and all optimistic in periods of prosperity and pessimistic in dull periods. PREPARATION OF TREND ANALYSIS CHART: The first step in trend analysis is the preparation of a trend statement. For this purpose a base year is chosen and for conversion the base year figures is given a value of 100. and the figure of the subsequent years are converted in relative terms of the base years value of 100. the objective is to have an idea about movement of the financial statement variable over time.
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USES OF TREND ANALYSIS: Progress of the business over the time can be assessed by calculating trend of sales, cost of sales, production, profit, capital employed etc., Ratios trends are obviously more meaningful than the grand of absolute figures . Comparative trend data of the business and its competition provides a data base for assessing the strength and weakness of the business.
Shortcomings of Trend Analysis: Since the time series data are influenced by inflationary factors, it becomes difficult to segregate the inflationary growth and real growth by trend analysis. Selection of a base for trend analysis is a critical point. A base year should be a normal business year. If it is a year of boom, then obviously a down turn is forth coming and if it is year of recession, than and upswing is obvious. And there by base would be either abnormally high or low. But in practice it is really difficult to select such a normal year.
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Comparative Balance Sheet (As on 31-March, 2003 & 2004)

Particular 2003 2004 (000s omitted) Increase or Increase decrease in or amount decrease in % (-)48,49,37 (-)11.09 (+)81.61 (+)10.07 (+)20.01 (-)13.9 (+)14.12 (+)17.76 (+)17.76
A) CURRENT ASSETS Cash & Bal. with RBI Bal. with bank& money at call &short notice Investment Advances Other assets Total of A B) Fixed assets Fixed assets Total of B Total of (A+B) C) CURRENT LIABILITIES Deposits Borrowings Other liabilities Total of C
437,27,24 198, 51, 36
388,77,87
360,52,68 4432,61,31 3899,70,08 217,61,65 9185,71,64 79,11,62 79,11,62 4878,90,50 4667,91,50 187,33,42 1,0483,46,02 93,17,15 93,17,15
(+)162,01,32 (+)446,29,24 (+)768,21,42 (-)30,28,23 1297,74,38 (+)14,05,53 (+)14,05,53
9264,83,26 10576,63,17 (+)1311,79,91 (+)14.15
8291,72,07 165,34,48 224,36,29
9406,93,68 183,28,13 288,26,13
(+)1115,21,61 (+)17,93,65 (+)63,89,74
(+)13.45 (+)10.79 (+)28.48
8681,43,94 9878,47,94
40,43,45 657,71,78
(+)1197,05,00 (+)13.78
(+)77 (+)114,74,14 (+).02 (+)21.13
D) Long-term
liabilities Share capital 40,42,68 Reserve&surplus 542,97,64
Total of D Total of (C+D)
583,40,32 698,15,23 (+)114,74,91 (+)19.67 9264,83,26 10576,63,17 (+)1311,79,91 (+)14.15
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Comparative of fixed assets of 2003 & 2004
Comparative of Fixed Assets
950000 900000 Amount 850000 800000 750000 700000 2003 Years 2004 Fixed Assets
(Figure-01)
Fixed Assets
As compare fixed assets of 2003-04 increased to 17.76% (Rs.140553). During the year they have purchased fixed assets and other assets (Including Furniture & Fixture).
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Comparative of Current assets of 2003 & 2004
Comparative of current assets
106000000 104000000 102000000 100000000 98000000 96000000 Amount 94000000 92000000 90000000 88000000 86000000 84000000
current assets
2003 Years
2004
(Figure-02)
Current assets
As comparing current assets 2003-04 increased by 14.12% (Rs.1297, 74, 38). During the year Balances with Bank increased by 81.61% , in this other deposits accounts &with other institution amount also increased and investment increased by 10.07%,Advances increased by 20% ,but cash and balance with RBI decreased by 11.09% and also other assets decreased 13.09%.
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Comparative of Long-term liabilities 2003&2004
Comparative of long-term liabilities
7000000 6800000 6600000 6400000 6200000 Amount 6000000 5800000 5600000 5400000 5200000
long-term liabilities
2003 Years
2004
(Figure-03)
Long-term Liabilities
As comparing long-term liabilities in between these years they increased by 19.67 %( 114, 74, 91). Reserve and surplus increased by 21.13% during the year reserve and surplus premium have added
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Comparative of Current liabilities 2003&2004
Comparative of Current Liabilities
100000000 98000000 96000000 94000000 92000000 Amount 90000000 88000000 86000000 84000000 82000000 80000000
Current Liabilities
2003 Years
2004
(Figure-04)
Current Liabities
As comparing current liabilities increased by 13.78%, in this Deposits -13.45%, Borrowing- 10.79% and other liabilities and provision increased by 28.48%.
83
Comparative Balance Sheet (As on 31-March, 2004& 2005)

Particular 2004 2005 (000s omitted) Increase or Increase decrease in or amount decrease in % (+)298,89,91 (+)76.88 (+)89.94 (-)6.62 (+)34.69 (+)14.52 (+)18.56 (+)3.62
A) CURRENT ASSETS Cash & Bal. with RBI Bal. with bank& money at call &short notice Investment Advances Other assets Total of A B) Fixed assets Fixed assets Total of B Total of (A+B)
388,77,87
687,67,78
360,52,68 4878,90,50 4667,91,50 187,33,42 1,0483,46,02 93,17,15 93,17,15
684,80,09 4555,71,67 6287,44,06 214,52,98 124301658 96,55,23 96,55,23
(+324,27,41 (-)323,27,41 (+)16195256 (+)272056 (+)19467056 (+)33,808 (+)33,808
10576,63,1 7
9406,93,68 183,28,13 288,26,13
12526,71,8 1
10837,05,81 243,65,84 467,96,10
(+)19500864
(+)3.62 (+)18.44
C) CURRENT
LIABILITIES Deposits Borrowings Other liabilities Total of C (+)14301213 (+)60,37,71 (+)179,69,97 (+)15.20 (+)32.94 (+)62.33
9878,47,94
11548,67,7 5
121,25,01 856,79,05
(+)1670,19,81 (+)16.90
D) Long-term
liabilities Share capital Reserve surplus 40,43,45 657,71,78 (+)80,81,56 (+)199,07,27 (+)199.86 (+)30.26
698,15,23 10576,63,1 7
978,04,06 12526,71,8 1
(+)2798883 (+)19500864
(+)40.09 (+)18.44
84
Comparative of Current assets of 2004 & 2005
Comparative of current assets
125000000 120000000 115000000 Amount 110000000 105000000 100000000 95000000 2004 Years 2005 current assets
(Figyre-05)
Current assets
As comparing current assets increased by 18.56% in that Cash and Balance with RBI increased by 76.88%, Balance with Bank increased by 89.94%, Advances increased by 34.69% and other assets 14.52% as comparing investment decreased by 6.62%
85
Comparative of fixed assets of 2004 & 2005
Comparative of Fixed Assets
970000 960000 950000 Amount 940000 930000 920000 910000 2004 Years 2005 Fixed Assets
(Figure-06)
Fixed Assets
As comparing fixed assets increased by 3.62%(Rs.33808). During the year they have added fixed assets & other assets (Including furniture and fixtures).
86
Comparative of Long-term liabilities 2004&2005
Comparative of Long-term liabilities
10000000 8000000 Amount 6000000 4000000 2000000 0 2004 Years 2005 Long-term liabilities
(Figure-07)
Long-term Liabilities
As comparing Long term liabilities in between these years they increased by 40.08 %( 2798883). In this Share capital increased by 200%, they issued fresh shares and Reserve and Surplus increased by 30.26%
87
Comparative of Current liabilities 2004&2005
Comparative of Current liabilities
120000000 115000000 110000000 Amount 105000000 100000000 95000000 90000000 2004 Years 2005 Current liabilities
(Figure-08)
Current Liabilities
As comparing current liabilities in between these year increased by 16.90%, in this Deposits -15.20%, Borrowing- 32.94% and other liabilities and provision increased by 62.33%.
88
Common Size of Balance-Sheet of 2004 and 2005 Particular

A) CURRENT ASSETS Cash & Bal. with RBI Bal. with bank& money at call &short notice Investment Advances Other assets Total of A B) Fixed assets Fixed assets Total of B Total of (A+B)
2004
Percentage
2005
Percentage
388,77,87
3.68 3.40
687,67,78
5.48 5.47
360,52,68 4878,90,50 4667,91,50 187,33,42 1,0483,46,02 93,17,15 93,17,15 46.13
684,80,09
44.13
1.33 99.11 0.89 0.89
4555,71,67 6287,44,06 214,52,98 124301658 96,55,23 96,55,23
36.36
50.19
1.71 99.21 0.79
10576,63,1 7
9406,93,68 183,28,13 288,26,13
100
12526,71,8 1
10837,05,81 243,65,84 467,96,10
0.79 100
C) CURRENT
LIABILITIES Deposits Borrowings Other liabilities Total of C 88.96 1.73 2.73 86.51 1.95 3.73
9878,47,94
93.42
11548,67,7 5
121,25,01 856,79,05
92.19
D) Long-term
liabilities Share capital 40,43,45 Reserve&surplus 657,71,78 0.37 6.21 0.97 6.84
698,15,23 10576,63,1 7
6.58 100
978,04,06 12526,71,8 1
7.81 100
89
Common size of Balance sheet Aessets

Percentages of Assets 100% 80% 60% 40% 20% 0% Investment Advances Bal. with bank& money at Other assets fixed asset Cash & Bal. with RBI
3.68 3.4 5.48 5.47 36.36 50.19 1.71 0.79
2005
46.13
2004
44.13 1.33 0.89
Total Assets
(Figure-09) In the both period Bank invested its fund more in current and liquidity assets by 99.1% and 99.21%. This shows that liquidity of the Bank less in fixed assets from 0.89% and 0.79% and this shows no much lock up of funds in fixed assets and used in productive purpose.
90
Common size Balance sheet of Liabilities

Percentage of liabilities 100% 80% 60% 40% 20% 0%
86.51
1.95
3.73
0.97
6.84
2005 2004
88.96
1.73
2.73
0.37
6.21
os it s
ia bi lit ie s
Liabilities
(Figure-10) In both period Banks current liabilities were 93.42% and 92.19%. This shows Bank have used debt capital as compare to equity capital and there fore we can say that Bank is taking benefits of trading on equity.
In the both period percentage of deposits (88.96% & 86.57%) show that the more funds are generated by the way of deposits from account holder in Bank not from other Banking institutions. It shows that credit worthiness of Bank in customer account holders mind.
Re se rv e& su rp l
Bo rr ow
De p
O th e
Sh
ar e
rl
ca pi ta l
in g
us
91
Trend Analysis
Trend Chart
Deposits Advances Investmen ts Total Income Operating profit Net Profit 2001 607550 282822 278701 74337 13607 4541 2002 700148 341754 346715 98426 25088 9113 2003 829172 389970 443261 105070 25337 11012 (000s omitted) 2004 2005 940694 1083706 466792 628744 487891 455572 111874 32979 13317 106108 34071 14715
Trend Percentages
2001 Deposits 100 Advances 100 Investmen 100 ts Total 100 Income Operating 100 profit Net Profit 100 2002 115 121 124 132 184 201 2003 136 138 159 141 186 243 2004 155 165 175 151 242 293 (000s omitted) 2005 178 222 164 143 250 324
Note: Here base year is 2001
92
Deposits
Trend curve of Deposits
200% 150% 100% 50% 0% 2001 2002 2003 Years 2004 2005 Deposits
Percentages
(Figure-11) By trend values we can understand that the organization have increasingly getting deposits from it customers. However there has been a substantial increase in the amount of deposits in the year 2005 by 23%
93
Investment
Trend curve of Investments
200% 150% 100% 50% 0% 2001 2002 2003 Years 2004 2005 Investments
Percentages
(Figure-12) Analyzing the trend curve of investments tells that the increasing investment attitude throughout the study period by Bank.
94
Advances
Trend curve of Advances
250% 200% Percentages 150% Advances 100% 50% 0% 2001 2002 2003 Years 2004 2005
(Figure-13)
Above chart shows that the Bank is using it fund in advancing which is increasingly year by year.
95
Total Income
Trend curve of Total Income

160% 140% Percentages 120% 100% 80% 60% 40% 20% 0% 2001 2002 2003 Years 2004 2005 Total Income
(Figure-14)
The percentage in the table shows that total income increased during the year 2001, 02, 03 and 2004. But there is a sudden decrease in 2005 @ 8%.
96
Operating Profit
Trend curve Operating Profit

300% 250% Percentages 200% 150% 100% 50% 0% 2001 2002 2003 Years 2004 2005 Operating Profit
(Figure-15) The following trend curve shows that the Bank is gaining more and more operating profit by year to year. The percentage of operating profit increasing increase due to control on operating expenses by Bank. It shows the Banks cost consciousness.
97
Net Profit
Trend curve of Net Profit

350% 300% Percentages 250% 200% 150% 100% 50% 0% 2001 2002 2003 Years 2004 2005 Net Profit
(Figure-16) The net profit is also increasing from 2001-2005. Increased percentage was very high in year 2002 and 2004 but slight increase during year 2003 and 2005.
98
Finding
The Karnataka Bank is a focusing on full utilization of the available source of without keeping any assets idle. The deposits of the bank are raised over the year and the advance also moving upward. The bank use deposits as well as other financial sources to provide for advances. So as to earn maximum profit these by contributing to the value of the company.
ATM centers are less in the Karnataka location.
The fixed assets margin of Karnataka bank has been maintained consistently. This would indicate proper management of staff costs.
99
Conclusion
Courtesy of the employee is found excellent which reveals the fact that bank has made a unique place for itself in the mind of customers. Staff members will interact immediately when customers approach them, as the result a good customer relationship is built. There as a stiff competitation with other nationalized and private banks like SBI, SBM,, HDFC and ICICI etc. which come-up with attractive loan facility scheme. The bank should increase the loan facility to the former at reasonable or lower interest rate. Bank can enter into the rural market by opening branches and ATM facility in most of Taluk places.
100
Recommendation
There is need of increase of the number of ATM centers. Bank should expand there operation in Taluk places. Proper match must be ensured in the profile of advances and deposits. Give the more preference to the primary sector and benefits to the small scale industry. Give valid support to the sick companies by way of Technology up gradation. Bank has to attract the customer producing an effective advertisement using some emotional aspects with to the services provided by the bank, to create the awareness of the product. The portion of accrued interest in total current assets is increasingly drastically. It is suggested to acceleration to the interest collection process and then advance the same so as increase the profitability.
101
APPENDIX
List of Tables Tables numbers 1 2 3 4 Names Comparative Balance Sheet Comparative Balance Sheet Common Size Balance Sheet Trend Analysis Chart Page number 79 84 89 92
Tables numbers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Names Comparative of Fixed Assets Comparative of current Assets Comparative of Long-Term Liabilities Comparative of Current Liabilities Comparative of Current Assets Comparative of Fixed Assets Comparative of Long-term liabilities Comparative of Current Liabilities Common Size Balance Sheet of Total Assets Common Size Balance Sheet of Total Liabilities Trend Curve of Deposits Trend Curve of Investment Trend Curve of Advances Trend Curve of Total Income Trend Curve of Operating Profit Trend Curve of Net Profit
Page number 80 81 82 83 85 86 87 88 90 91 93 94 95 96 97 98
102
BIBLIOGRAPHY FINANCIAL MANAGEMENT BY I.M.PANDY MANAGEMENT ACCOUNTING

103
KARNATAKA BANK LIMITED BY M.A.SAHAF ANNUAL REPORTS, MAGZINES AND BROCHUERS.

WWW.KARANATAKABANKLTD.COM
104

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KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

liabilities during the year. organization.

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INTRODUCTION EVOLUTION OF BANKING:

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

HISTORY OF BANKING EVOLUTION IN INDIA:

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

DEFINITION OF THE BANK:

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

STRUCTURE OF BANKING SYSTEM IN INDIA

Public sector Banks

Private sector Banks

State Bank of India & its associates

Other nationalized Banks

Regional Rural Banks

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

YUDHISTHIRA BHIMA ARJUN NAKULA SAHADEVA

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

THE GENESIS (ORIGIN/GENERATION)

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

FOUNDER DIRECTOR B.R.VYSARAYA ACHAR

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

FIRST TORCH BEARERS

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, HUBLI

KARNATAKA BANK LIMITED