Pragathi Krishna Gramin BANK

A
PROJECT REPORT
ON
BUSINESS FAMILIARISATION REPORT ON PRAGATHI

KRISHNA GRAMIN BANK
A Report Submitted to Vijayanagara Sri Krishnadevaraya University, Ballari,

in partial fulfillment of the requirement for the award of the degree in
i Master of Business Administration.
REPORT SUBMITTED BY
AMEENA MUSRATH
REG.NO: MB200001
UNDER GUIDENCE OF
Dr. G P DINESH
Professor
MBA
Department
VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY

BALLARI-583101 2020-2021
PKG Bank Chitradurga
CERTIFICATE
VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY,

BALLARI.
This is to certify that AMEENA MUSARATH
Is a bona-fide student of Department of management studies in Business

Administration Vijayanagara Sri Krishnadevaraya University,
Jnanasagara Campus, Ballari. This Business Familiarization Report
“PRAGATHI KRISHNA GRAMIN BANK” has been prepared under
my guidance.
Master of Business Administration P G Studies VSKU Ballari

2
Place: Ballari
Date: 12-09-2021
DR. G P DINESH
PROFESSOR
STUDENT DECLARATION
I, AMEENA MUASARATH student of MBA at VSKUB, Ballari hereby declare
that the Project work entitled on PRAGATHI GRAMIN BANK is compiled and
submitted under the guidance of Dr. G P DINESH Sir. Whatever information
furnished in this Internship project report is true to the best of my knowledge.

3
Name: AMEENA MUSARATH
MBA 1st Year
TABLE OF CONTENTS
CHAPTER PARTICULAR’S PAGE NO
CHAPTER 1 INTRODUCTION ABOUT BUSINESS 5-8

FAMILIARIZATION REPORT
 INDUSTRY PROFILE
CHAPTER-2 COMPANY PROFILE

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 BACK GROUND 9-24

 NATURE OF BUSINESS
 VISION, MISSION AND
QUALITY POLICY
 PRODUCT/SERVICE PROFILE
 OWNERSHIP PATTERN
 ACHIEVEMENT/AWARD
 FUTURE GROWTH AND
PROSPECTS
CHAPTER-3 MCKENSY, S 7S FRAMEWORK 25-28
CHAPTER-4 SWOT ANALYSIS 29-30
CHAPTER-5 FINANCIAL STATEMENT 31-38
CHAPTER-6 FINDING AND SUGGECTIONS 39
CONCLUSION 40
BIBLIOGRAPHY 41
CHAPTER-1
1.1 INTRODUCTION ABOUT THE BUSSINESS FAMILIARIZATION

REPORT:
Organizational functioning is the important factor of the organization to achieve its
desired goals and objectives. And it requires the co-operation from all the levels of the

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organization for continuous functioning. This business familiarization report aims and
understanding the functioning of company at different departments.
As a part of our two-year MBA program, at the end of 2 nd semester we have to carry
on the business familiarization report about the organizational study in an
organization to understand functioning of the organization and its structure. And this
business familiarization report provided a great opportunity for me to consolidate the
theoretical foundation through practical experience. The main purpose of this
organizational study is to understand the working culture of the organization and to
apply theoretical concepts in real life situation at workplace for various functions of
the organization.
1.2 INDUSTRY PROFILE
INTRODUCTION TO BANKING SECTOR
A bank is a financial institution that provides banking and other financial

services to their customers. A bank is generally understood as an institution which
provides fundamental banking services such as accepting deposits and providing
loans. There are also non-banking institutions that provide certain banking services
without meeting the legal banks are a subset of the financial services industry. A
banking system also referred as a system provided by the bank which offers cash
management services for customers, reporting the transactions of their accounts and
portfolios, throughout the day. The banking system in India, should not be hassle free
but it should be able to meet the new challenges posed by the technology and any
other external and internal factors. For the past three decades, India’s banking system
has several outstanding achievements to its credit. The banks are the main participants
of the financial system in India.
HISTORY OF INDIAN BANKING SECTOR
The first bank in India, called The General Bank of India was established in
the year 1786. The East India Company established The Bank of Bengal/Calcutta
(1809), Bank of Bombay (1840) and Bank of Madras (1843). The next bank was Bank
of Hindustan which was established in 1870. These three individual units were called
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as Presidency Banks. Allahabad Bank which was established in 1865, was for the first
time completely run by Indians. Punjab National Bank Ltd, was set up in 1894 with
headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of
India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
In 1921, all presidency banks were amalgamated to form the Imperial Bank of India
which was run by European Shareholders. After that the Reserve Bank of India was
established in April 1935. At the time of first phase the growth of banking sector was
very slow. Between 1913 and 1948 there were approximately 1100 small banks in
India.
To streamline the functioning and activities of commercial banks, the

Government of India came up with the Banking Companies Act, 1949 which was later
changed to Banking Regulation Act 1949 as per amending Act of 1965. Reserve Bank
of India was vested with extensive powers for the supervision of banking in India as a
Central Banking Authority. After independence, Government has taken most
important steps in regard of Indian Banking Sector reforms. In 1955, the imperial
Bank of India was nationalized and was given the name “State Bank of India”, to act
as the principal agent of RBI and to handle banking transactions all over the country.
It was established under the State Bank of India Act, 1955. Seven banks forming
subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major
process of nationalization was carried out. At the same time 14 major Indian
commercial banks of the country were nationalized.
In 1980, another six banks were nationalized, and thus raising the number of
nationalized banks to 20. Seven banks were nationalized with deposits over 200
Crores. Till the year 1980 approximately 80% of the banking segment in the India
was under government’ ownership. On the suggestions of Narasimhan Committee, the
Banking Regulation Act was amended in 1993 and thus the gates for the new private
sector banks were opened.
The following are the major steps taken by the Government of India to
Regulate Banking institutions in the country: -

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1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major Banks.
1971: Creation of guarantee Corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 Crores.
OBJECTIVE OF THE STUDY
 The fallowing are the main objectives of the study

 To find out reasons for referring bank services
 To understand the facilities mostly availed by the respodents and the opinion
about the services
 To measure the satisfaction level of the customer
SCOPE OF THE STUDY
 Traditional branch based retail banking remains the most wide spread method
for banking transaction however the bank rapidly changing the way of
personal services.

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 Now commercial banking are introduced internet based e-banking system to

improve their operations and to reduce the cost.
 Despite all their efforts aimed at developing better and easier banking system.
 The system remains noticed by the customer.
 There fore there is need to understand user’s acceptance of banking and a need
to identify the factors that can affect their attention to use the banking services.
RESEARCH METHODOLOGY
SECONDARY DATA
 Secondary data was collected through website of bank formulas and books.
LIMITATIONS OF THE STUDY
 Due to shortage of time I have not been able to make depth study.
 This study is based on the prevailing respondents satisfaction. But their
satisfaction may change according to time and need etc..
 Only certain statistical test could be applied to validate the results of the study.
CHAPTER SCHEME
 The first chapter deals with introduction objective scope limitations of the
study.
 The second chapter deals with company profile.
 The third deals with theoretical background.
 The fourth chapter consists of data analysis and interpretation.
 The fifth chapter deals with finding, suggestions, conclusion and bibliograthy.
CLASSIFICATION OF BANKING INDUSTRY IN INDIA
Ministry of Finance
Ministry of Finance
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Reserve Bank of Indi

Reserve Bank of India
Scheduled Banks
Commercial Banks Co-operative Banks
Public Sector Banks Primary credit societies
Regional Rural Banks Central Co-operative
Private Sector Banks State Co-operative
Foreign Banks
CHAPTER-2
COMPANY PROFILE

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2.1Back Ground:
Organization of Pragathi Krishna Gramin Bank
Financial Inclusion & Deepening Award, Status Received the Skoch Award in
Order-of-Merit Category.Pragathi Krishna gramin bank with head office at ballari
came into started on 23rd august 2013. In Karnataka, Pragathi Krishna Gramin Bank
(PKGB) is now serving in 11 districts – Ballari, Bidar, Chikkaballapur, Chitradurga,
Davanagere, Gulbarga, Kolar, Koppal, Raichur, Shivamugga,Yadgiri.
The bank has a significant network of 644 branches with a large majority in
rural area as the branches are located 75 per cent in rural, 14 in semi-urban and 11 per
cent in locales. The bank has a client base of around 80 lacks.
PKGB is the 2nd largest RRB in India in terms of business with a deposit of
Rs 10, 105 crores and advances of Rs 9, 337 crores. The bank has special distinction
of earning profit every.
Year right from inception.
Issuance of ATM Rupay Cards.
Introduction of KYC Authentication Services offered by UIDAI.
Introduction of Demographic Authentication.
Leveraging of SMS Alerts facilities.
Eased the workload at the branch level.
Shortage of required skilled manpower.
Shortage of resources.
Non-availability of skilled workforce from the vendor site.
The clientele bases the bank caters is basically hailed from the rural areas and
they need lot of guidance from the bank staffs, especially administration lands.

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Further, as part of our social responsibility, the bank has taken up implementation of
FI in a very big way.
Introduction of IT Programmes has helped the bank in leaps and bounds to

achieve the business figures. PKGB is the leading RRB in Karnataka and the 2nd
largest RRB in India. Its branch penetration is in every nook and corner of the bank’s
operational areas.
Almost all the unbanked parts have been covered by the brick & mortar branches, by
Ultra Small Branches (USBs) or through Banking Correspondents (BCs).
2.2 Nature of business:
 A bank is a financial institution that provides banking and other financial

services to their customers.
 A bank Is generally understood as an institution which provides fundamental
banking services such as accepting deposit and providing loans.
 Banks are a subset of the financial services industry.
 Almost in any country banks represent main pillar of financial stability beside
financial intermediaries, banks play an important role as national financial
institution which in every day of its activities deal with humans.
 A banking system also referred as a system which provides and offer cash
management services for customer, reporting the transaction of their accounts
and portfolios throughout the day, trade with financial and banks financial
instruments, offer exchange of currency and disburse different type of fund.
 The banking sector offers several facilities and opportunities to their
customers.
 All the banks safeguard the money and valuables and provide loans, credit and
payment money order and cashier’s checks.
 The banks also offer investment and insurance products.
 The main advantages which differentiate bank from any other institution,
banks of offering and deliver payment system domestically and
internationally.
 Banks take deposits and give the loans as financial instruments.
 The banks are dealing with humans.
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 Today’s banks deal with different personality different consumer behavior,

manners and cultures.
 Customers have unlimited wants with very limited resources.
 Bank generates profit from customer’s activities and by offering different
services to them.
 Golden rule stated that customers is king.
2.3 VISION AND MISSION, QUALITY POLICY

1. VISION
“Promoting livelihood”
“To be a sound and dynamic banking entity providing financial services of

excellence with pans India presence”
2. MISSION
“To develop a range of quality financial services, and products to create
value for customers, shareholders and the society; to motivate people to
active excellence in performance leading to sustained profitable growth
and build a vibrant organization”
3. QUALITY POLICY
 Focused areas:
 Productivity
 Profitable revenue growth
 Balance sheet and cash flow strength
 Goals
 Customers satisfaction
 Employee motivation
 Increase in market share
 Increase in return asset

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2.4 PRODUCT/SERVICES PROFILE

 Product
Deposit:
Bank offers a verity of deposit to suit the specific needs of its customers.
The following are the deposits offered
Saving bank account
 Save while you can, draw when you need it.

 An account for individuals, non-trading organizations and permitted
institutions etc.
 Minimum Monthly Average Balance amount: Rs.500/- with or without cheque
book facility.
 Minors above the age of 10 can also open a Zero balance SB account and get
Junior Debit cards with cash withdrawal of Rs. 5,000/- (daily limit) and POS
limit of Rs. 2000/- can be availed. However, they are not entitled for Cheque
Book, Overdraft/TOD.
New Nitya Nidhi Deposit:

A Scheme which suits poor and rich alike
 Collection of your daily savings at your door steps.

 Scheme period 5 years. Closure before maturity permissible.
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 No restrictions/ceilings for daily savings.
A Saving Bank A/c with Personal Accident Insurance cover 3 schemes to choose
from:
 Hassle-free and uninterrupted renewal.
 The interest earned every year takes care of premium to be paid.
 Customers in the age group of 12-70 years are eligible to open accounts under
the above schemes.
Fixed Deposit :
“It is safe, Liquid and fetches high returns”
When you want to invest your hard-earned money for a longer period of time and get
a regular income, our Fixed Deposit Scheme is ideal.
 Minimum: Rs. 100/-
 Maximum: No Ceiling
How much can you invest??
Period of Deposit  Minimum: 15 days
 Maximum: 120 months

High Returns Attractive rates as applicable from time to time
Interest Payment  Monthly,
 Quarterly,
 Half-yearly
 Yearly (depositor's choice)

Pragathi Krishna Tax Saver Deposit (Term Deposit Account)
 Benefits of Section 80 C of the I.T Act 1961 extended to this deposit.
 Investment up to Rs.1.50 Lack deduct able from Income under Section 80C of
the I.T. Act 1961.
 Scheme available to individuals/firms/Institutions.

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 Fixed period of 5 years. No closure before maturity.
Kamadhenu Deposit:
“Our re-investment plan that multiplies your money” Apart from safety and liquid, it
offers you the highest growth option (Compound interest).
How much can you invest? Minimum Rs. 100/-
Maximum is no
Period of deposit Minimum 5 months
Maximum 10 years (can be for odd period also)

High returns Attractive rates as applicable from time to time
Interest payment One maturity
Easy liquidity Closure against deposit available
Deposit Scheme for Senior Citizens:

Fixed Deposits and Kamadhenu Deposits:
“We respect senior people not by words alone. But in needs too”. We offer 0.5% to
1% more interest to them on the above deposit schemes.
Recurring Deposit:
Make saving habit a rewarding recurring habit.
Ideal of convenient savings. Enables to build a sizable capital in a regular and
systematic way.
Amount of As low as Rs.50/- per month (in multiples of Rs.50/- no ceiling

deposit on maximum limit.
High returns Attractive rates as applicable from time to time. Interest
compounded every quarter.
Liquidity Closure before maturity permissible
Loan against deposit permissible

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DICGC COVERAGE:
INSURANCE COVERAGE ON DEPOSITS
All Deposits made by our Customers are covered under Deposit Insurance scheme of
Deposit Insurance and Credit Guarantee Corporation (DICGC), Mumbai up to Rs. 1
lack per party. Hence the Deposits with our Bank are safe and secure.
RATE OF INTEREST ON DEPOSITS
Bank has revised interest rates on Domestic & NRO Term Deposits w.e.f. 08.06.2018 as
below.
Period of Deposit Card Preferential Preferential Preferential Rates

to
Rate of Rates to Rates to Ex-Employee

Senior Staff
interest Citizens Members Senior citizen
07 days to 14 days* 4.75 5.25 5.75 6.25
15 days to 30 days 5.25 5.75 6.25 6.75
31 days to 45 days 5.25 5.75 6.25 6.75
46 days to 60 days 6.25 6.75 7.25 7.75
61 days to 90 days 6.25 6.75 7.25 7.75

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91 days to 120 days 6.50 7.00 7.50 8.00
121 days to 179 days 6.50 7.00 7.50 8.00
180 days to 269 days 6.60 7.10 7.60 8.25
270 days to less than 1 year 6.75 7.25 7.75 8.25
1 Year 7.25 7.75 8.25 8.75
Above 1 year to less than 6.80 7.30 7.80 8.30
3 years
3 years & above up to 5 years 6.80 7.30 7.80 8.30
Above 5 years & up to 8 years 6.70 7.70 7.70 8.20

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Above 8 years & up to 6.50 7.50 7.50 8.00
10 years
Pragathi Krishna Tax Saver 6.50 6.50 6.50 6.50
[5 years period]
* Rates are applicable only for single deposit of Rs.5 lac and above.
* Preferential Rate of Interest to Senior Citizen is not applicable to Recurring

Deposits.
The revised rates are applicable to all fresh term Deposits (RD/FD/KDR) opened on
or after12-06-2018 and also renewal of term deposit accounts maturing on or after 12-
06-2018.
NRE Deposits (w.e.f. 12.06.2018)
Period of Deposit Rate of Interest

1 Year only 7.25 %
Above 1 year to less than 3 years 6.80 %
3 years & above and up to 5 years 6.80 %
Above 5 years & up to 8 years 6.70 %
Above 8 years & up to 10 years 6.50 %
 Advances

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Bank provides financial assistance to meet varied need of customers
The following are the loans offered by bank

Agriculture -investment finance.
1. Plantation loan
Purpose: To grow/maintain horticulture crops & develop plantation crop.
Eligibility: Land holder having sufficient knowledge and interest in horticulture, with
irrigation facility and land found technically suitable.
Margin:
 No margin up to loan of Rs.1,00,000/-
 For above 1,00,000/- loan 15% to 25% margin.
Security: Hypothecation of crop, Charge over land/mortgage of land/Co-obligation...
Repayment: Maximum 15 years.
2. Minor Irrigation and pump selection
Purpose: For installation of pump set, submersible pump set, pipe line and Generators.
Eligibility: Should have minimum 2 acres of compact land.
Margin:
 No margin up to loan of Rs.1,00,000/-
 For above 1,00,000/- loan 15% to 25% margin.

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Security: Hypothecation of Assets/implements purchased out of loan proceeds, Co-

obligation and mortgage of land/charge over land.
3. Vehicle loans to agriculture:
Purpose: Purchases of new, two wheelers, three wheelers, Jeep, Agriculture produce

carriers.
Eligibility: Should have minimum 2 acres of irrigated land for purchase of two
wheelers and minimum of 8 acres of irrigated land for other vehicles.
Margin: 15% to 25% margin.
Security: Hypothecation of vehicle purchased out of loan proceeds, Co-obligation and
charge over land/ mortgage of land.
4. Loans to purchase tractor, power tillers, and agriculture implements
Purpose: Purchase of tractor, power tiller, crop and grains threshers, and pesticide
sprinklers and other machines/implements useful to agriculture.
Eligibility: Should have minimum 8 acres of irrigated land or 16 acres of dry land for
availing loan for purchase of tractor and power tiller.
Margin: 25% margin.
Security: Hypothecation of assets purchased out of loan proceeds, Co-obligation and
charge over land/ mortgage of land.
5. Sericulture loan

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Purpose: Mulberry crop, cocoon rearing, construction of sericulture rearing house and
purchase of equipment’s.
Eligibility: Should have
 Experience in sericulture
 Irrigated land
 Consent from sericulture department for raising crop/technical supervision.
 marketing facility

6. Dairy loans:
Purpose: To purchase cross breed cows, buffaloes, construction of cow shed, grass
cutting machines etc.
Eligibility: Should have-
 Experience in the activity
 Veterinary facilities
 Sufficient fodder for animals.
Margin: 15% to 25% margin .

Repayment: Maximum 5 to 7 years.
7. AGRICULTURE GODOWN LOANS:
Purpose: For storing agricultural produce in scientific manner and to store the produce
till the farmer gets good price for the produce.

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Eligibility: Individual, group of farmers, NGOs, SHGs, Co-op institutions,

Companies, Corporations and APMCs are eligible
Subsidy: 25% subsidy is available from GOI. SC/ST and women beneficiaries of
eligible for 33.33% subsidy. 25% agriculturist and 15% for traders.
Security: Mortgage of godown proposed to the constructed, Co-obligation and charge
over land/ mortgage of land.
8. LOAN FOR PURCHASE OF AGRICULTURE LAND
Eligibility: Small and Marginal Farmers with ceiling on land holding as prescribed.
Margin: No margin his stipulated for loans up to Rs.100,000/-. In case of loans for
higher amount, a minimum of 10% margin.
Security:
 Mortgage of land proposed to be purchased out of loan.
 Hypothecation of Crops grown from time to time on the land.
 Additional collateral security, depending upon merit of each case.
 Co-obligation.
Quantum of loan: The Quantum of loan will depend upon valuation as assessed by
bank or the registration value whichever is lower and value of stamp duty, registration
charges for sale/mortgage deed.
Repayment: From 7 to 12 years in half yearly/ yearly installments.
 Account:

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“Banks offer a variety of deposits to suit the specific needs of its

customers.”
The following are the deposits offered
Saving:
Requirement:
Two (2) photos
Address proof (you can provide any of the following)
 Ration card
 Driving license
 Voter card
 Passport
 Electricity bill
 Telephone bill
 Gas connection slip
“Identification proof” (you can provide any of the following)
 Ration card
 Driving license
 Voter card
 Pass port
 PAN card

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 SERVICES:
 Banking services through core banking system (money can be draw all over
India)
 ATM facility.
 Safe deposit locker facility.
 RTGS/NEFT facility.
 Various types with attractive rate of interest.
 Various types of loans facility with competitive rate inters.
 Gold loans at 11% interest – instant sanctions assured.
 Immediate sanction of loans.
 Bill/DDS facility.
 Pan card services.
 E-stamping facility.
 All deposits up to Rs One lack covered under DICGC insurance.
 Internet banking facility
RuPay ATM Debit Cards:
 Our Bank is issuing the following types of Rupay cards in association.
 with NPCI and Canara Bank.
 ATM cards - Withdrawing cash and other services at ATMs only.
 Debit Cards.
 * Withdrawing cash and other services at ATMs.
 * Point of Sales (PoS) terminals at selected shops/merchant establishments for p
urchases/making.
 bill payments.
 Rupay ATM debit card and kisan cards.

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RTGS & NIFT
Online Purchases
We have entered into arrangements with NPCI and Merchant Aggregators for
providing Online Purchase facility to our customers using Debit Card in various
merchant sites.
RuPay E-commerce thru NPCI Pay secure.
The service is available on almost all merchant sites. Customer can transact up to
Rs.25000/ day through this channel.
As every transaction in this channel prompts for OTP, customer need to register
his/her mobile number with us to avail the facility.
Debit Card + PIN thru Our Payment Gateway:

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Under this option customer is allowed to transact up to Rs.5000/day. The transaction

can be completed by using Debit card details and PIN.
Customer can choose any of the above two options/both options for completing the
payment.
2.5 OWNERSHIP PATTERN
1. Sri R Ravikumar
Chairman
Pragathi Krishna Gramin Bank
2. Smt. S Suchitra
Asst. General Manager,
RRB Division, PC & FI Wing,
Canara Bank
3. Sri Jagadish I
Asst. General Manager,
Canara Bank, Regional Office
4. Sri. Agarwal
Deputy General Manager,
NABARD
5. Smt. Ramakumari M
Deputy General Manager,
Reserve Bank of India
Dept. of Non-Banking Supervision

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6. Dr. K V Rajendra, I.A.S.

Chief Executive Officer,
Zilla Panchayath,
BALLARI
ACHIEVEMENTS / AWARDS
ACHIEVEMENTS:
Our Bank is second largest RRB in India and first in Karnataka State with a business
of Rs.16,697 crores with ATM network 0f 155, largest network of RRB in Karnataka.
AWARDS:
“Inclusion Finance India Awards” for role played by RRBs and Cooperative Banks.

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Future growth and prospects.
 Pragathi Krishna Gramin bank he will open all district and taluk branches.
 To reach 1000 crores fixed deposits.
 To consider as a schedule bank.
 Operate multistate co-operate bank.
 To increase low-cost format.
CHAPTER-3
MCKENSY’7S FRAMEWORK
The seven – Ss is a framework for analyzing organizations and their effectiveness. It

looks at the seven key elements that make the organizations successful, or not;
Strategy, structure, system, style, skill, staff and shared values.
Consultants at McKinney and company developed the 7s model in the late 1970s to
help managers address the difficulties of organizational change. The model shows that
organization immune systems and the many interconnected variables involved make
change complex, and that an effective change effort must address many of these
issues simultaneously.

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Module – a systemic approach to improving organization
The 7-s module is a tool for managerial analysis and action that provides a structure
with which to consider a company as a whole so that the organizations problems may
be diagnosed and a strategy may be developed and implemented.
The 7-s diagram illustrates the multiplicity interconnectedness of elements that define
an organizations ability to change the theory helped to change managers thinking
about how companies could be improved. It says that it is not just a matter of devising
a new strategy and following it through. Nor is it a matter of setting up new system
letting them generate improvements.
“Shared value” is commonly held beliefs, mindsets, and assumptions that shape how
an organization behaves – its corporate culture. Shared values are what engender trust.
They are an interconnecting center of the 7Ss model. Values are the identity by which
A company is known throughout its business areas, what the organization stands for
and what it believes in central and attitudes.

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Super – ordinate goal Pragathi Krishna Gramin bank is called “shared

value” when the model was first developed, these are the core values of the company
that are evidence in the corporate culture and the general work ethics.
The Super ordinate goals are the fundamentals ideas around which are built. They are
the blood motions of the directions of the directions of the organization.
1. STRUCTURE:
The way the organization is structured and who reporters to whom. Organization
structure refers to the formal relationship among various relationship, line of
communication, rules and procedures which exists to guide the various activities
performed by the various hierarchical position in the organizational structure.
Following is the organizational structure of Pragathi Krishna Gramin bank,
Chitradurga
2. SYSTEM

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 The daily activities and procedure that staff members engage in to get the job
done.
 It refers to all rules and regulations procedure that complement the
organization structure.
 Uses systemized process in all fields like manufacturing, quality control,
accounting, requirements etc.,
3. STAFF
Pragathi Krishna Gramin bank recognizes that its people are the primary sources of its
competitiveness and committed to equal employment opportunities for attracting best
available talents and it aims to pursue management designed to enrich the quality of
life of its employee, develop their potential and maximize productivity. Also aims at
ensuring transparency, fairness and equity in all its dealing with its employee.
4. SKILL
 Here at Pragathi Krishna Gramin bank, includes following facilities available

to ensure maximum development of employee’s skills.
 E learning facilities available on the bank intranet which was facilities by
computerized literacy training.
 Safety training received special attention based on the common guideline’s
identification of skill gaps.
 Faculty supports.
 Up-skilling employees though the process based, on the job training.
5. STRATEGY
The main strategy of Pragathi Krishna Gramin bank is to develop the quality of any
&service to suit specific customer needs in line with change the demands. It is also
trying to consolidate and enlarge manufacturing facilities to meet customers expecting
quality standard reasonable prices and satisfied the customer needs and wants.

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6. STYLE
Management system of the PKG Bank is very good and they leadership style is
democratic sometime. During the time of March end, the employees of the bank are
works till night sometimes it shows the team work of the bank employees. Employees
of the PKG Bank is co-operative type work followed.
7.SHARED VALUE
The experience includes friendly staff, interesting music, and a comfortable meeting
place and competitive the company has used all the available resources in an efficient
and effective manner the Pragathi Krishna Gramin bank it share values like observes
the ethics, trust, respect individuals, conduct the business.
CHAPTER-4
SWOT ANALYSIS FOR A BANK

33
A SWOT analysis of a bank formally evaluates the financial institutions strengths,

weaknesses, opportunities and threats. This analysis identifies these four main
elements to help upper management better leverage its strengths to take advantage of
future business opportunities while better understanding its operational weaknesses to
combat threats to potential growth. A SWOT analysis can also many other scenarios,
such as new business initiatives, marketing budgets or even advertising campaigns.
STRENGTH
 Innovative schemes
 Technologically advance
 The utilizing the time according to the situation effectively

34
 Competent, committed and hardworking staff.
WEAKNESS
 Inadequate publicity
 Low international presence
 Customer service is lesser as compared to another bank
 Members not able to do self-appraisal of projected investment.
OPPORTUNITY
 Agriculture based consultancy

 Increased branch and ATM network will enable the bank to
 improve the client base.
THREATS
 Highly competitive environment

 Changing government and RBI policies
 Competition from micro-finance institutions and banks.
 Technological changes in the financial and business sector

35
CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENT
Introduction
Analysis and interpretation are the process of identifying strengths and weakness of a
firm by properly established relationship between two items. It is useful for decision
marking, there are number of methods or techniques, which are generally used in
analysis of financial services.
Meaning of Analysis:
It refers to the proper arrangement of data where in the total figures are regroup in to
their distinct or different parts.
Meaning Introduction:

36
If refers to the comparison of various components and definite conclusion may be

drawn about the earning, capacity, efficiency, profitability, liquidity, solvency and
trend etc.…
Analysis and interpretation:
It is a process of establishing the meaningful relationship between the items of two

financial statements with the objective of identifying the financial and national
strengths and weaknesses this process includes bolls analysis and interpretation.

37
Balance Sheet as on 31st 03-2017 And 2018
Liabilities 2017 (P Y) 2018 (C Y)

Share Capita and Reserve 10584379696.53 12290328463.54
a. Issued and paid-up capital 636655900.00 636655900.00
b. Share Capital Deposit 0.00 0.00
c. Reserves and Surplus 9947723796.53 11653672563.54
Total Deposits 153613267355.35 161467250705.55
a. Demand Deposits 7485840419.31 6122197933.18
b. Saving Bank Deposits 50023442737.09 50622837953.86
c. Term Deposits 87671649393.38 86468498270.39
d. Inter Bank Deposits 8259667383.35 18096531923.89
1.Demand Deposit 88215010.35 81652824.89
2. Term Deposit 8171452373.00 18014879099.00
e. Credit Balance in 128795376.52 96559319.44
KCC/OD/OCC/Loan A/c
f. Saving Bank –NRO 620623.00 645751.71
g. Saving Bank –NRE 247737.66 6428384.08
h. Fixed Deposits –NRO 6000000.00 0.00
i. Fixed Deposit – NRE 2500000.00 11500000.00
j. Kamadhenu Deposit-NRO 0.00 238213.00
k. Kamadenu Deposit –NRE 32224043.00 41812956.00
l. Recurring Deposit-NRO 0.00 0.00
m Recurring Deposit –NRE 50000.00 0.00
Borrowings 20016197011.00 25359400061.00
a. Sponsor Bank 2500000001.00 1000000001.00
b. NABARD 17510665010.00 24357188060.00
c. OTHERS 5532000.00 22120000.00
d. Overdraft in Term Deposits with 0.00 0.00
SBI/SBM?SBH
Other Liabilities(a+b+c) 3925016086.19 6168079961.24
a. Bills Payable 1212413.14 1094151.14
b. Interest provision on Deposits 381970255.83 601439454.46
c. Others
3541833417.22 5565546361.64

38
Reserve Fund/Back end Subsidy 751547949.32 837904661.21

Head Office A/c 0.00 0.00
Demand Drafts 485043353.71 409263396.77
Pragathi Gramin Bank DD 348556698.16 290050702.96
Canara Bank DD 136486655.55 119212693.81
Provision & Contingencies 2752822490.52 2855400082.59
Inter SOL A/c 0.00 0.00
Proxy A/c 0.00 0.00
Net Profit 3517020975.50 4238761423.55
Total 195645294918.08 213626388761.45
Assets 2017 (P Y) 2018 (C Y)

Cash 2107048040.50 1952451420.00
a. Cash in Hand 1952250740.50 1886151880.00
b. Cash in ATM /CAM 154797300.00 66299540.00
Balance with Bankers 8951672619.92 8972186896.45
Net Advance (Including B/P & Debit Balance 123999815520.0 140620061998.55
in SB 8
a. Priority Sector 126592401221.55
b. Non-Priority Sector 109548163079.4 14027660777.00
1
14451652440.67
Advance – IBPC -7000000000.00 -7000000000.00
Investments 6033797634.78 60769682981.44
a. SLR Investments 56586658743.78 45230802780.44
b. Non SLR Investments 3751317701.00 15538880201.00
Fixed Assets 52071058.00 50347734.00
a. Land & Buildings 52071208.00 50347734.00
b. Other fixed assets -150.00 0.00
Other Assets 486184833.55 516860216.62
Sundry Assets (a+b+c) 6666854106.10 7597285228.91
a. Stock & Stamps 4346205.12 10594886.75
b. Prepaid Expenses & Receivables 2003793148.48. 2106284549.64
c. Others 4658714752.50 5480405792.52
Branch Adjustments A/c 12849487.84 54684885.60
a. DDS Paid 33945.00 33945.00
b. BRB 9185.00 657.00
c. Miscellaneous 12806357.84 54650283.60

39
Demand Drafts 0.00 0.00

a. Pragathi Gramin Bank DD 0.00 0.00
b. Canara Bank DD 0.00 0.00
Head Office A/c 31847374.20 92759776.28
Inter SOL A/c 0.00 0.00
Profit & Loss A/c 0.00 0.00
Proxy A/c 0.00 67623.60
Net Loss 0.00 0.00
Total 195646319484.9 213626388761.45
7
ANALYSIS AND INTERPRETATION OF DATA
A) SHARE CAPITAL
Year 2017 2018

Share capital 636655900 636655900
SHARE CAPITAL
636655900
636655900
SHARE CAPITAL
2017 2018
INTERTPRETATION
From the above graph it is clear that amount of share capital is constant from year to
year. The amount of this share capital in the year 2017 Rs. 636655900, in the year
2018 Rs. 636655900. It shows that no changes in the share capital.
B) DEPOSITS

40
Year 2017 2018

DEPOSITS 153613267355 161467250705
DEPOSITS
161467250705
153613267355
2017 2018
DEPOSITS
INTERPRETATION
From the above graph it is clear that bank’s deposit is increased from year to
year. The amounts of deposits are increased to Rs161467250705 from Rs.
153613267355. It means that Bank has maintained very good relationship with
its customers. So deposits are in upward trend.
C) PROFITS
Year 2017 2018

PROFIT 3517020975 4238761423

41
PROFITS
2017 2018
45%
55%
INTERPRETATION
From the above graph it is clear that the profit of the bank is increased from year to
year. Profit of the bank in the year 2017 Rs. 3517020975, but in the year 2018 it
increased up to Rs. 4238761423. It shows that Bank is growing in upward
movements.
D) BORROWINGS
Year 2017 2018

Borrowing 2001619701 25359400061

42
s 1
BORROWINGS
BORROWINGS
25359400061
20016197011
2017 2018
INTERPRETATION
From the above graph it is clear that the borrowings of the bank are increased
from year to year. In the year 2017 the borrowing will be Rs.20016197011,
but in the year 2018 it increased up to Rs.25359400061. It shows that the
borrowing of the bank is increased by year to year in upward movement.
E) ADVANCES
Year 2017 2018

Advances 123999815520 140620061998
43
ADVANCES
2017
47%
2018
53%
INTERPRETATION
From the above graph it is clear that the Advances of the bank is increased
from year to year in an upward movement. It represents the bank is growing in
good manner by providing more loan to the customers. In the year
2017advance Rs. 123999815520 but in the year 2018 it grows at Rs.
140620061998.
FINDING AND SUGGECSTIONS
FINDING:

44
 Pragathi Gramin Bank having good brand image in the minds of

customers.
 Pragathi Gramin Bank providing the digital services to their customers.
 Most of the customers of Pragathi Gramin Bank already benefited
through facilities like NEFT/RTGS, mobile banking ATM’s RUPAY
cards.
SUGGECTIONS:
 bank should consider the present competition and should act according
to the customer’s needs.
 Should have good relationship with customers to existing customers
and attract new customers with other services.
 Attract more customers towards digital banking other than business
and employee’s occupation people.
 More awareness should be created among the female customers.
 More than should be one special officer appointed for rending these
special services.
CONCLUSION

45
The business familiarization report study undertaken has helped to gaining lot of the
knowledge of the risk management from the “PRAGATHI KRISHNA GRAMIN
BANK LTD”. Credit risk management determine the rate of lending and how recover
the lend amount to customers in various sectors. This helped to know the effective
risk management tool of the PKG Bank.
The PKG Bank is in growing stage it will definitely serve entire Karnataka in future
days. It gave more importance to farmers that will help to improve and increase the
operation in the effective and efficient way. This project will also help to understand
the stage of bank and what are the expectations of the new customers.

46
BIBLIOGRAPHY
 Annual financial report
Website:
 www.pragathikrishnabank.com
 Internet
 Books
 News paper
 Article

47

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BUSINESS FAMILIARISATION REPORT ON PRAGATHI

A Report Submitted to Vijayanagara Sri Krishnadevaraya University, Ballari,

VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY

VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY,

This is to certify that AMEENA MUSARATH

Is a bona-fide student of Department of management studies in Business

Master of Business Administration P G Studies VSKU Ballari

I, AMEENA MUASARATH student of MBA at VSKUB, Ballari hereby declare

submitted under the guidance of Dr. G P DINESH Sir. Whatever information

furnished in this Internship project report is true to the best of my knowledge.

Master of Business Administration P G Studies VSKU Ballari

Name: AMEENA MUSARATH

MBA 1st Year

CHAPTER PARTICULAR’S PAGE NO

CHAPTER 1 INTRODUCTION ABOUT BUSINESS 5-8

CHAPTER-2 COMPANY PROFILE

Master of Business Administration P G Studies VSKU Ballari

 BACK GROUND 9-24

CHAPTER-3 MCKENSY, S 7S FRAMEWORK 25-28

CHAPTER-4 SWOT ANALYSIS 29-30

CHAPTER-5 FINANCIAL STATEMENT 31-38

CHAPTER-6 FINDING AND SUGGECTIONS 39

1.1 INTRODUCTION ABOUT THE BUSSINESS FAMILIARIZATION

Master of Business Administration P G Studies VSKU Ballari

1.2 INDUSTRY PROFILE

INTRODUCTION TO BANKING SECTOR

A bank is a financial institution that provides banking and other financial

HISTORY OF INDIAN BANKING SECTOR

To streamline the functioning and activities of commercial banks, the

Master of Business Administration P G Studies VSKU Ballari

1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major Banks.

1971: Creation of guarantee Corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 Crores.

OBJECTIVE OF THE STUDY

 The fallowing are the main objectives of the study

SCOPE OF THE STUDY

Master of Business Administration P G Studies VSKU Ballari

 Now commercial banking are introduced internet based e-banking system to

LIMITATIONS OF THE STUDY

CLASSIFICATION OF BANKING INDUSTRY IN INDIA

Reserve Bank of Indi

Commercial Banks Co-operative Banks

Public Sector Banks Primary credit societies

Regional Rural Banks Central Co-operative

Private Sector Banks State Co-operative

Master of Business Administration P G Studies VSKU Ballari

Organization of Pragathi Krishna Gramin Bank

Year right from inception.

Issuance of ATM Rupay Cards.

Introduction of KYC Authentication Services offered by UIDAI.

Introduction of Demographic Authentication.

Leveraging of SMS Alerts facilities.

Eased the workload at the branch level.

Shortage of required skilled manpower.

Non-availability of skilled workforce from the vendor site.

Master of Business Administration P G Studies VSKU Ballari

Introduction of IT Programmes has helped the bank in leaps and bounds to