INDUSTRY PROFILE

Banks play an important role within the overall economic system by stabilising deposits from
round the country and making these funds available for investment, whether through lending
or purchasing assets. Today's banking system is significant for the financial well-being of
people , businesses, governments, and therefore the entire world, and is an integral aspect of
any country's economic success. We'll re-evaluate core industry principles, primary sectors,
and key components of the banking industry's business model and developments during this
post.

A bank may be a financial organization that gives its customers banking and other financial
services. Banks are a neighborhood of the financial services industry. Banks are a
neighborhood of the financial services industry, and that they play a critical role in global
economies. they need a crucial role in boosting economic process . Banking may be a
significant endeavour. Banks facilitate the movement of capital, allowing economies to
flourish and prosper. Businesses and governments require money to function, and banks
function mediators between fund providers and fund recipients. The Federal Reserve Bank of
India (RBI) claims that India's banking industry is satisfactorily capitalised and controlled .
The country's financial and economic conditions are significantly superior to those of the
other country on the earth . consistent with credit, market, and liquidity risk research, Indian
banks are silent and have fared well during the worldwide crisis.

Innovative banking concepts like payments and little finance banks have lately been
introduced within the Indian banking market. The RBI's new policies may go an extended
way toward assisting the domestic banking industry's reform. India's digital payments system
has advanced the foremost among 25 countries, with India's cash Service (IMPS) ranking
fifth within the Faster Payments Innovation Index (FPII).

HISTORY
In India, banking is that the foundation for the country's economic progress. With the
expansion of technology and consideration of people's demands, major changes within the
banking industry and administration have occurred over time banking in India features a long
history dating back to before the country's independence in 1947.
The Early Phase, which lasted from 1770 to 1969, was phase I clinical trial .
Phase II: From 1969 through 1991, the country was nationalised. Phase III: The
Liberalization or Banking Sector Reforms Phase began in 1991 and continues to the present
day.
Phase III: The Liberalization or Banking Sector Reforms Phase, which started in 1991 and
remains going strong today
The "Bank of Hindustan," founded in 1770 within the then-Indian city of Calcutta, was the
country's first bank. However, this bank didn't succeed and closed its doors in 1832.

Over 600 banks were registered within the country during the pre-independence period, but
only a couple of survived.
During British administration in India, the Malay Archipelago Company established three
banks referred to as the Presidential Banks: Bank of Bengal, Bank of Bombay, and Bank of
Madras. In 1921, all three banks were amalgamated into one single bank referred to as the
"Imperial Bank of India."
In 1955, the Imperial Bank of India was nationalised and renamed The depository financial
institution of India, which is one among largest private sector banks in India.
Definition
A banking in India has been defined in banking companies act1949 as:
"Banking means Accepting deposits of cash from the general public for the aim of lending or
investing, repayable on demand or otherwise, and withdrawal by cheque, draught, order, or
other means;"

Banking is defined because the business of accepting and securing money owned by people
and businesses, then lending it bent execute economic activities like creating a profit or
merely covering operating costs.

Indian Banking Regulations Act

The Banking Regulation Act of 1949 applies to all or any banks within the country. Other
acts, like the Negotiable Instruments Act and therefore the Companies Act of 1956, are
utilised as a supplement to the present act. it had been passed because the Banking
Companies Act 1949 and went into effect on March 16, 1949. it had been piece of legislation
to the Banking Regulations Act 1949 on March 1, 1966, and it had been made applicable to
Jammu and Kashmir in 1956. Primary agricultural credit societies, non-agricultural primary
credit societies, and cooperative land mortgage banks are exempt from the Banking
Regulation Act.
NATURE OF BUSINESS
Banking may be a business and like another business the purpose is that the amplification of
advantages through client care. the 2 primary items are Stores and Advances. On Stores it
pas’ premium while on Credits it charges revenue and therefore the rate on Stores is
consistently less than the pace of Advances. The contrast between these two comprises the
banks pay. Banking may be a business however exploitative is missing here. it's a completely
unique business of pooling together the reserve funds of the local area dispersed everywhere
and from an equivalent pool giving advances to the poor within the general public. during this
way it goes about as a connection between the savers and therefore the destitute. This one-of-
a-kind assistance is usually called utility help. within the average person's speech, it's
unquestionably a supplementary benefit . However, it varies from other business in numerous
regards. This business runs simply on the knowledge of the individuals from the general
population called the contributors who depend upon their reserve funds exclusively out of
their certainty and trust that they're going to revisit their cash with revenue at whatever point
they have . Insofar as there's certainty on the bank along these lines, the stores will attend the
bank. Also, within the event of advance. While giving, the bank rests full trust and certainty
on the Borrower that he will reimburse something very similar with premium. There might be
security reports undertaking to reimburse whenever for the asking by the bank and guarantee
protections for any possibility. Yet, the archives and protections are just guarantee and
optional and therefore the fundamental thought is simply the knowledge . Hence in both the
instances of stores and advances, certainty pays an important job.

Liberalisation
In the early 1990s the then Narasimha Rao government began a policy of liberalisation and
gave licences to a touch number of private banks, which came to be referred to as New
Generation tech-savvy banks, including banks like UTI Bank, ICICI Bank and HDFC Bank.
This move, alongside the rapid growth within the economy of India, kick started the banking
sector in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.
Nationalisation Of Banks
Nationalization of banks in India produced a contention which was pointless. Truth be told
the general public stores within the banks have expanded such tons of that it's perilous to go
away them within the private hands. Banks by propelling advances to the theorists and non-
need areas can play destruction with the economy of the country. So, banks were nationalized
within the bigger interests of the country.
Banks are over seers the general public cash however they were privately hands. a couple of
overseers of the banks wont to use assets for his or her own advantage by going into
association with some business they might authorize advances and obtain benefits.
Consequently, open cash was utilized for individual benefit. during a government assistance
express an administration can't rest over the difficulty that do damage to the general public
interest.

Banks, subsequently, wont to propel credits to the people or non-need areas. Arranged
economy can't work till all of the components impacting economy are outfitted toward that
path. Agribusiness and bungalow businesses were to be financed to offer a fillip to them. this
could be possible if the general public authority had an influence over the payment of Banks'
advances Nationalization is as per our public strategy of receiving communist example of
society. Some might say that enterprises which give legitimate spot to abuse need to are
nationalized first They fail to recollect that the control of the capital is neces¬sary on the
grounds that it offers ability to misuse.

One authentic analysis evened out against nationalization is that a couple of banks weren't
nationalized therefore the financial specialists won't got to endure. the general public
authority contended that the nationalized banks had the foremost extreme stores with them,
and different banks weren't during a situation to impact the economy of the country. Be that
because it may, there need to be a finished power over the banks assuming we'd like them to
support our economy. Nationalization of banks is that the appropriate advance the legitimate
way.
Competitive Analysis of Banking Industry
A competitive analysis in banking is critical during a crowded industry. Today, financial
institutions still face a mix of challenges like frequent regulatory changes, heightened
customer scrutiny, reputation damages, and thus the never-ending task of ensuring consumer
loyalty. To face these hurdles, banks need to provide quite various set of products and
services. to really succeed, banking institutions must conduct frequent competitive analysis to
understand a deeper understanding of their peers and thus the industry.
Economic Factors Affecting Banking Industry
Expansion Rates: At the purpose when expansion is high, banks will generally endure. this is
often on the grounds that swelling will generally influence the price of cash and this regularly
has an expanding influence within the financial area. apart from liquidity designs and cycles,
swelling causes shakiness in monetary standards. It likewise dissolves customer certainty
particularly unfamiliar financial backers who can pick whether to utilize a selected nation's
money.
Financial approaches: Macroeconomic arrangements can affect the financial area. within the
event that a nation makes negative approaches, the financial area will undoubtedly lose while
sound macroeconomic arrangements can have a big effect and empower a nation's banks to
actually develop.

Trade Rates: Trade rates across the planet additionally influence banks all round the globe.
Solid monetary forms, for instance , the US Dollar, English Pound, Japanese Yen, European
Euro and Canadian dollar among others cuttingly affect different monetary forms and
monetary business sectors on the earth . At the purpose when the trade rates for these
monetary forms fall the financial areas can encounter issues.
Laws and guidelines: Each nation has found out explicit administrative system for monetary
establishments to either give direction, administrative or observing jobs for these foundations.
These laws are significant choose significant choices, for instance , financing costs, banking
administrations, advance guidelines and surprisingly minor parts of banking like opening and
shutting hours. a rustic with severe laws and guidelines for the financial area can really
reduce business. By the by a liberal controller is additionally very perilous because a couple
of banks can without much of a stretch lose centre within the bid to form higher benefits.

Company History
a) Background and Inception of the Company:
J&K Bank was founded on October 1, 1938 under patent issued by then Maharaja of Jammu
& Kashmir, Maharaja Hari Singh. The Maharaja had invited eminent investors to become the
founding directors and shareholders of the bank.

The bank commenced banking business on Independence Day , 1939 and was considered the
primary of its nature and composition as a state-owned bank within the country. The bank
was established as a semi-state bank with participation in capital by state and therefore the
public under the control of government .

Post-independence, the 2 branches of the Bank out of 10 branches viz. Muzaffarabad

Rawalkot and Mirpur (now PoK) fell to the opposite side of the road of Control alongwith
cash and other assets.

The Bank is defined as a government company as per provisions of Indian Companies Act
2013. In 1971, the bank acquired the status of a Scheduled bank and was declared an ‘A’
class bank by Federal Reserve Bank of India in 1976. J&K Bank is that the scheduled
commercial and oldest private sector bank in India.
Jammu & Kashmir Bank Limited (J&K Bank) may be a nationalised bank under the
ownership of the Ministry of Finance, Government of India having its Corporate
Headquarters in Srinagar, J&K with its Zonal Offices in J&K, Delhi, Mumbai and Ladakh.

J&K Bank was incorporated on October 1, 1938 by then ruler of princely state of J&K
Maharaja Hari Singh with initial paid up capital of ₹ 5.00 Lakh. The bank registered a
complete business turnover of over Rs.1750 billion as on March 31, 2021.

J&K Bank operates on the principle of 'socially empowering banking' in line with its tagline
“Serving to Empower” and seeks to deliver innovative financial solutions to cater to the
financial needs of all segments of the society.
Jammu And Kashmir Bank Limited (J & K) a state owned bank was incorporated in 01
October 1938 and commenced its business from 04 July 1939 at in Kashmir (India). As on 31
December 2020 the bank had a distribution network of 956 branches and 1382 ATMs across
the country. It offers banking services under the three major divisions as Support services
Depository services and Third party services. The Bank operates mainly into four segments
comprising of Treasury Corporate/wholesale banking Retail banking and other banking
operations. consistent with the extended Central Laws of the State Jammu & Kashmir Bank
was defined as Government of Company as per the supply of Indian companies act 1956.
within the year 1971 the Bank received the status of scheduled bank. RBI declared it as 'A'
Class Bank within the year of 1976. During the year 1993 the Bank made traffic jam with
Reuter press agency for instantaneous information about global foreign currency rates and
fluctuations. within the year of 1995 Banking Ombudsman Scheme was launched in June and
a loan delivery system was introduced in April which was used for giant borrowers. During
the year of 1998 J & K had introduced a replacement term deposit scheme under the title of
Jana Priya Jamma Yojna carrying flexibility within the repayment schedule and within the
same year the bank introduced Housing Loan and Education Loan Schemes. The Bank had
entered into an agreement with IBA to attach its ATMs through a shared network within the
year 1999. to supply Internet Banking and for its e-commerce initiatives the bank made
traffic jam with Infosys Technologies and also within the same year J&K Bank had entered
into agreement with American Express to launch a co-branded mastercard . J&K Bank had
diversified into non-life insurance and depository business aside from life assurance and asset
management business within the year of 2000. The Bank had launched Global Access Card
(An International Debit Card) in association with Master Card International during the year
of 2003. During the year 2004 J&K Bank agreed with ICICI Bank to share the ATM network.
within the same year the bank had received the Asian Banking Award 2004 in Manila for its
customer convenience programme. Signed MoU with Bajaj Tempo within the year of 2004.
During the year 2005-06 J&K opened its branches in Chennai Kanpur Agra and Kolkata.
Also within the same year introduced new product and services for rural finance. During the
amount of 2006-2007 the bank introduced various hi-tech and customer friendly products.
The Bank and TATA Consultancy Services (TCS) Asia's largest IT company signed a
Memorandum of Understanding (MoU) to signal their intent to figure together to make an IT
blue-print for the bank. Going forward with its renewed business strategy J & K Bank had
opened its 564th branch at Lassipora Pulwama Srinagar in July of the year 2008.During the
fiscal year 2013-14 92 new branches were established; thereby taking the amount of branches
to 777 as on 31st March 2014 cover 20 states and one union territory.During the fiscal year
2013-14 187 ATMs both onsite & offsite were commissioned thereby taking the amount of
ATMs to 800 as on 31st March 2014.During the fiscal year 2014-15 40 new branches were
established; thereby taking the amount of branches to 817 as on 31st March 2015 cover 20
states and one union territory.During the fiscal year 2014-15 85 ATMs were commissioned
thereby taking the amount of ATMs to 885 as on 31st March 2015.During the year under
review bank increased its stake in JKBFSL by 100% by contributing Rs1000 lacs in share
capital of the corporate increasing its paid up capital to 2000 lacs for the year ended 31st
March 2015 as against Rs1000 lacs as on 31st March 2014.During the fiscal year 2015-16 40
new branches were established; thereby taking the amount of branches to 857 as on 31st
March 2016 cover 20 states and one union territory.During the fiscal year 2015-16 121
ATMs were commissioned thereby taking the amount of ATMs to 1006 as on 31st March
2016.During the fiscal year 2016-17 8 new branches were established; thereby taking the
amount of branches to 865 as on 31st March 2017 cover 20 states and one union
territory.During the fiscal year 2016-17 90 ATMs were commissioned thereby taking the
amount of ATMs to 1096 as on 31st March.2017.During fiscal year 2018-19 36 new branches
were established thereby taking number of branches to 938 as on 31st March 2019 cover 20
states and one union territory.During the fiscal year 2018-19 96 ATMs were commissioned
thereby taking the amount of ATMs to1294 as on 31st March 2019.During FY 2018-19 the
Bank launched a bouquet of latest products like Gold Loan Scheme Merchant Overdraft
scheme and deploying Direct Selling Agents (DSA) in ROI (Rest of India) for housing
loans.During the fiscal year 2019-20 15 new branches were established thereby taking the
amount of branches to 955 (including IARBs)as on 31.03.2020 cover 17 states and 4 union
territories. During the fiscal year FY19-20 3 EBUs/USBs were established 66 ATMs were
commissioned thereby taking the amount of ATMs to 1354 as on 31.03.2020. During the
FY2020 the bank has allotted an preferential allotment of 156592546 equity shares of Re. 1/-
each fully paid up for cash to the govt of Jammu and Kashmir at the difficulty price of Rs
31.93 per equity share.
The origin of Jammu and Kashmir Bank Limited, more commonly mentioned as J&K Bank,
are often traced back to the year 1938, when it had been established because the first state-
owned bank in India. The bank was incorporated on 1st October 1938 and it had been within
the following year (more precisely on 4th July 1939) that it commenced its business, in
Kashmir (India). it had been initially found out as a semi-State Bank, with its capital being
contributed by State also because the public under the control=of=state=government.
Jammu and Kashmir Bank had to face serious problems in 1947 i.e. at the time of
independence. With the partition of Pakistan, two out of the entire ten branches of the bank,
namely those in Muzaffarabad and Mirpur, fell to the opposite side of the road of control
(now Pak Occupied Kashmir), along side cash and other assets. At that time of your time ,
keep with the extended Central laws of the state, J&K Bank was categorized as a Government
Company, as per the provisions of Indian Companies Act 1956.

It was within the year 1971 that Jammu and Kashmir Bank was granted the status of a
'Scheduled Bank'. Five years later, it had been declared as "A" Class Bank, by the Federal
Reserve Bank of India (RBI). because the years passed on, the bank started achieving more
and more success. Today, it boasts of quite 500 branches across the country. it had been only
recently that Jammu and Kashmir Bank became a billion dollar company. Governed by the
businesses Act and Banking Regulation Act of India, it's regulated by RBI and SEBI. It finds
an inventory on the National stock market (NSE) and Bombay stock market (BSE) also .

b) Nature of Business Carried

The Bank operates mainly into four segments comprising of Treasury Corporate/wholesale
banking Retail banking and other banking operations. consistent with the extended Central
Laws of the State Jammu & Kashmir Bank was defined as Government of Company as per
the supply of Indian companies act 1956.
C) Vision, Mission, and quality policy
Vision
“Pioneering the economic and social transformation”
To become a committed partner in fostering economic and social transformation across the
country through a deep commitment to value creation for all our stakeholders, while
continuing to build on our historic business relationship with Jammu & Kashmir and Ladakh.
Mission
To acquire an enhanced business footprint across geographies and emerge as a prominent
national brand within the financial sector.
To position the Bank because the “Most Preferred Bank” for Customer focus, Operational
Excellence and High Integrity towards one and every one stakeholders.
To be the best-in-class financial intermediary, leveraging our digital and physical banking
channels;
To observe customer centricity through service excellence, integrity and transparency, and a
comprehensive range of innovative products and services aware of customer needs.
To be a lean, learning and efficient banking organization that specialize in prudent,
sustainable, profitable growth and value creation.
To adopt the simplest standards for corporate governance, business ethics and risk
management.
To vigorously promote financial inclusion as a business proposition to harness the potential at
rock bottom of the pyramid.

Quality policy
The Quality policy of Karnataka Bank Ltd is of providing Quick and Better service and their
by achieving Customer Satisfaction.

Promoters Information

Achievements/Rewards
Bank bagged “Karnataka Best Employer Brand Awards 2020” instituted by World HRD
Congress and endorsed by CHRO Asia, for having used marketing communications
effectively in attracting, retaining and developing talent and in retention policy.
Bank has bagged Certificate of Appreciation “Power To Persist (Sept 2020)” in recognition
of achievement of persistency target & Contribution towards Atal Pension Yojana from
PFRDA.
Bank’s Staff Training College has been reaccredited with the prestigious ISO 9001:2015
Certification by TVE Certification Services Pvt Ltd., Trichy.
Bank bags ‘Organization with Innovative HR Practices’ award under Dream Companies to
work for category instituted by World HRD Congress, received on 16-02-2021.
Bank bags ‘Dream Companies to work for’, award under Dream Companies to work for
category instituted by World HRD Congress, received on 16-02-2021.
Bank bags overall 8th Rank under Dream Companies to work for category instituted by
World HRD Congress, received on 16-02-2021

Products/Services
Products
Karnataka Bank Loans

Karnataka Bank loans are available to all bank customers. The bank offers its customers a
bouquet of loans that cater to all economic segments. Every loan scheme is tailored to the
need of the applicant.

Karnataka Bank loans are of the following types:

• Apna Ghar Home Loans: This Karnataka Bank home loan is given for persons who wish
to construct a house or buy a flat. Maximum loan amount is ` 50,00,000 per borrower. A low
rate of interest adds to the attraction of the Apna Ghar Home Loan.

• Varthak Loans: This loan is granted for the financing of working capital. This type of loan
is ideal for distributors, stockists, commission agents, and traders.

• Loans for Salaried Persons: Employed persons may take the loan for purchasing
consumer durables and other essentials for personal home use.

• Niveshan Loan: This loan is given for purchasing a new house. Loan amount is, however,
restricted to ` 15 lakhs.

• K-Power: Loans given through ATMs. Maximum loan amount is ` 15,000.

• Vidyanidhi Education Loan Scheme: This Karnataka Bank education loan can be taken
for financing studies both within India and outside the country. Money for hostel boarding
and air travel fees are given.

• Car Finance Scheme: Karnataka Bank car loans are granted for all types and price range of
vehicles. A maximum of 80% of the car price can be given as loan.

• Easy Ride: This loan is for purchase of two-wheelers. It is granted to professionals,

individuals, and companies.

• Udyog Mithra: This loan is ideal for professionals who wish to expand their professional
capacities. The loan money can be utilized to purchase computers and furniture.

Internet Banking

• Retail Customers - balance enquiry, recording stop-payment instructions, balance transfer

instructions, requests for Cheque books, account opening, payment of BSNL Mobile, Water
bills, Electricity.
• Corporate Clients -
Import/ Export Credit facilities, Inland Trade, Requests for Forward Contracts, corporate
account, Bank Guarantee
• Cyber kids (special facility for 12-18 years old kids)

Money Transfer

• Real Time Gross Settlement (RTGS)

• Western Union Money Transfer (WUMT)

• NEFT-Customers Facilitation Centres

NRI Banking

• Forex Facilities for Residents (Individuals) and Non Resident Indians (NRIs)

Business Banking

• Working Capital Finance

• Term Loans

• Infrastructure Finance

• Fund based and non-fund based Business Finance Products

Insurance Services

• Life insurance products of MetLife India Insurance Co. Pvt. Ltd.

• General Insurance products of Universal Sompo General Insurance Co. Ltd.

Personal Banking

• Savings Bank Accounts

• Current Accounts

• Money plant ATMs

• Deposit Products
• Loans

Services

The branches are available in 22 Indian states and 2 Union Territories. In August 2008, the
Karnataka Bank Limited Introduced Quick Remit, a facility to make money transfer easy
for Non-Resident Indians living in Canada, United States, and the UK.[8][9] The bank also
runs a 24-hour Internet banking service called Money Click.[10]
Karnataka Bank Limited provides business and personal banking products and services in
India. The bank operates in four segments: Treasury, Corporate/Wholesale Banking, Retail
Banking, and Other Banking Operations. It accepts savings and current accounts, cash
certificates, fixed and cumulative deposits, non-resident rupee accounts, ordinary non-
resident accounts, and foreign currency accounts; and offers loan products, such as vehicle,
home, education, personal, MSME, mortgage, women entrepreneur, gold, and other loans, as
well as loans against property and fixed deposits. The bank also provides debit, credit, gift,
deposit only, image, and travel cards; life, general, and health insurance products;
investments services; and remittance and other services. In addition, it offers forex services,
which include pre and post-shipment, export collection bills, export LC advising, inward
remittance facility, import letter of credit, import bill collection, buyer's credit, and outward
remittances. Further, the bank provides point of sale service for merchant's payment
solutions: and KBL e-COLLECT, a fee payment processing platform, which enables the
institution to offer parents and students a convenient way to pay their fees through a range of
payment options. Additionally, it offers various loans for agriculture; and other services, such
as Internet banking, mutual funds, demat services, locker facility, and funds transfer services.

Area of Operation
The bank at present has 410 branches, 106 ATM outlets, 7 Extension counters, 8 local
workplaces, 1 International Division, 1 Data Centre, 4 Service Branches, 2 Currency Chests,
Spread more than 19 States and 2 Union regions. By moving a portion of the non-monetary
tasks of the Bank like Management of substitute financial channels, Back-end preparing
exercises, IT project and backing, Digital abilities, Business Sourcing, Contact Centre
Management and so on to the auxiliary in a staged way, Karnataka Bank Limited will have a
recharged centre around its centre Banking business.

Future Growth Prospectus

With an economy of the nation developing at almost 8% there high development potential for
the bank. The bank is intending to empower 'Cash Click' as an instalment door for shopping
that overcast spaces of efficient Hotel Booking, Ticket Booking, Purchase of merchandise
and so on The Bank is likewise intending to present portable Top-up through ATMs and web
Banking. Further Bank is likewise intending to restrict for internet exchanging shares.
General Information About The Company

1.Coporate Identity Number (CIN) of the Company L85110KA1924PLC001128

2.Name of the Company THE KARNATAKA BANK

3.Registered Address Read. & Head Office,
Post Box No.599, Mahaveera Circle,
Kankanady, Mangaluru-575002
Karnataka, India.
4.Website www.karnatakabank.com
5.Email id info@ktkbank.com
6.Financial Year Reported 2019-2020
7.Sector(s) that the Company is engaged in National Industrial Classification:2008
(Industrial activity code-wise) Section K: Financial and insurance
Activities Code:64191
8.List three key products/services that the Company ▪︎Loans
manufactures/provides (as in balance sheet) ▪︎Deposits
▪︎Investment and Treasury
9.Total number of locations where business activity 22 States and 2 Union Territories
is undertaken by the Company
a. Number of International Locations Nil
(Provide details of Major 5)
b. Number of National Locations Located in 548 Centres with 848 Branches
pan India as on 31st March 2020
Markets served by the Company- Local National
/State/National/International
McKinsey’s 7’s Framework

McKinsey and Companies 7S structure gives a valuable method of contemplating inward

working of the association. The model was created by Tom Peter and Robert Waterman,
experts of McKinsey’s and friends. The 7'S Model was First distributed by them in the article
"Design isn't organization"(1980) and in the books "The Art of Japanese Management"(1981)
and "looking for Excellence".  The McKinsey Consulting Firm distinguished methodology as
just one of seven components showed by the best overseen organizations

The model depends on the hypothesis that, for an association to perform well, these seven
components should be adjusted and commonly building up. In this way, the model can be
utilized to assist with recognizing what should be realigned to further develop execution, or
to keep up with arrangement (and execution) during different sorts of progress.

Whatever the sort of progress – rebuilding, new cycles, hierarchical consolidation, new
frameworks, change of authority, etch – the model can be utilized to see how the authoritative
components are interrelated, thus guarantee that the more extensive effect of changes made in
one region is thought about.
 Chart No:1
Chart showing McKenney’s 7S Model

The Functioning of Karnataka Bank Ltd can be understood with the help of following 7’s:

 Structure
 Skill
 Style
 Strategy
 Staff
 Shared Value
Structure
Design addresses the way business divisions and units are coordinated and incorporates the
data of who is responsible to whom. As such, structure is the hierarchical outline of the firm.
It is likewise quite possibly the most apparent and simple to change components of the
structure

Structure at Branch level

The Karnataka Bank has totally 410 branches an on 31st March 2007.Each Branch is headed
by a branch manger who has the responsibility of overall administration of his or her branch.
The Karnataka Bank has eight territorial workplaces spread the nation over. Each territorial
office is going by an associate supervisor. The Provincial workplaces are liable for
controlling the branches going under them and furthermore for execution of choices taken at
the administrative centre of the bank.
Structure at Regional office Level
For working with simple organization, the bank is partitioned into various divisions with
every office headed by its individual departmental head who are answerable for the general
organization of their specialty and furthermore to complete different exercises going under
their specialties by taking the assistance of chiefs, officials. also, staff of their specializations.
The association design of the Karnataka Bank has been displayed in the outline beneath. The
Directorate involve the topmost position followed by the executive who is next in the chain
of command. In a higher degree of authoritative design there are DGM Human relations and
modern relations, Senior supervisor, arranging and improvement, GM Credit, GM
Depository, GM, recuperation Legitimate and RMD, And DGM review and Review.
Skill
Abilities allude to the way that representatives have what it takes expected to do the
organization's methodologies. Capable workers are the resources of the association. Abilities
of the representatives might be improved by giving fundamental preparing to them. The Bank
accepts that talented representatives add to the Success of the Bank.

Improvement of human asset is a significant factor for the advancement of any industry.
Banking isn't a special case for that. It includes different perspectives like ceaseless
preparing, compensations via advancement, appreciations and so on the bank HRD strategy is
directed by the Chinese Proverb "In case you are making arrangements for one year, develop
rice. In case you are making arrangements for a very long-time plant trees. In case u are
making arrangements for hundreds of years, foster men”. During the year 2006-2007,1424
officials, 517 representatives and 68 sub staff were given preparing under different
viewpoints to refresh/work on the information. The officials of the bank are likewise deputed
at Bankers Training College, Mumbai, National Institute of Bank Management, Pune,
Institute of Development and Research in Banking Technology, Hyderabad. At whatever
point Specialized preparing was affectionate vital
 Table No.1
Table showing the numbers of employees who underwent training during the year

Banks own training At bankers Training College At Work shops &Seminars

college (RBI)&other
Officers’ clerks sub Training colleges (Officers)
staff
709 517 68 260 455

Style
It is one of the seven switches which the top administration can use to achieve change in the
association. As indicated by MC Kinsey's Framework, becomes obvious through the
examples of activity taken by the individuals from the top supervisory crew throughout some
stretch of time. The MC Kinsey's Framework considers "Style" as more than the style of top
administration.

Karnataka Bank Ltd. follows a Top to down style of the board. It additionally works in a
participative style. The choices are taken by the top administration concerning matters
identified with the association. The choices identifying with office matters are taken by the
departmental heads. The bank follows a popularity-based authority style which permits the
representatives to participate in the dynamic interaction. Representatives are allowed to give
any thoughts, ideas and so forth, for the advancement of the association. This will be taken
with dynamic interview with the

Staff
The staff element includes the number of employees and the type under which they fall.
When compared to a living being, the employees are the cells of the organization. For
instance, like cells, they are comparatively more in number. A single cell cannot make a huge
impact, and the same goes for the employees. The staffs play a fundamental role in the
working system of the organization. Therefore, it is surreal to imagine an organization
function without staff. Staff implies that the association has recruited capable individuals
prepared them well and allocated them to the right positions. Staffs are HR working in an
association. They are liable for doing different exercises of the association viably and
effectively.
The Karnataka Bank has all around prepared, gave and talented staffs who buckle down for
the accomplishment of the bank. The quantity of individuals utilized by the bank remained at
4456 as on 31st March 2007. The Business per worker has improved from Rs. 4.78 crores as
on 31st March 2006 to Rs. 24 Crores as on 31st March 2007.The Bank during the 2006-2007
enrolled 74 new officials, 198 agents, and 32 sub staff.
 Table No.2
Table showing the total Staff Position as on 31-03-20

Officers Clerks Sub-Staff Total

As at the end of the 1594 2068 794 4456
year
Recruited during the 74 198 32 304
year

Strategy

Strategy implies activity an organization plans because of or fully expecting difficulties in the
outer climate. The Karnataka Bank, to react to the changes, has shaped the accompanying
activity plan with explicit reference to item, evaluating, and individuals

 Introduction of Internet Banking

 Expansion of Banks on ATM Network
 Introduction of Debit Cards
 Retailing in Securities

Action Plan on Pricing

The Bank intend to prepare workers on advertising of items like schematic credits Increasing
accentuation on charge based, Commission based exercises, Collection of service bills and
other expense-based administrations like common asset dissemination which the bank to be
more aggressive.

 protection, cash move and so on,

 The Bank has chosen to offer motivations to representatives for bunch execution

The fruitful execution of these methodologies or activity plans assists the manage an account
with acquiring upper hand over different banks.
System
Framework implies formal and casual systems that oversee ordinary exercises. The dynamic
frameworks inside the association can go from the executives’ foundations to organized PC
frameworks and formal and casual system that oversee the regular exercises of the Bank. The
System of the Karnataka Bank Includes
 Computer System
 Training System
 Control System
Computer system
Karnataka Bank was the principal bank to understand the significance of Centralized Banking
System and was the First to convey Core Banking framework 'Finacle'. A section from this
the bank has automated all exercises and branches so to offer speedy support to its Customers
Training System
In a help industry like bank, nature of the assistance offered to the clients is vital. To offer
such excellent assistance to its clients, the bank prepares its representatives in different
regions just as in trend setting innovation. The preparation is given at the Staff Training
College of the bank and by some specific external organizations.
Control System
The Bank has distinct control framework in all basic spaces of activity for example corporate
credit, forex, depository, and so forth, which are recorded and looked into every now and
then. The bank has additionally an undeniable interior review and examination system
through which all branches are put under customary investigation including the entire scope
of exercises i.e., Forex, Customer Complaints, Income spillages and so forth

Shared Values
Shared qualities allude to the directing ideas, qualities and goals that join an association in
some normal reason. They guide representatives of any association towards esteemed
conduct.

Significant concerns and objectives that are shared by the vast majority of individuals in a
gathering, that will in general shape bunch conduct, and that regularly endure extra time even
with changes in bunch participation. Shared qualities initially called as super ordinate
objectives; it is the directing ideas and standards of the association - qualities and desires,
regularly unwritten. They are additionally the things that impact a gathering to cooperate for
a shared objective. It goes about as a directing idea, basic thoughts around which a business
constructed. So, it should be basic, generally expressed at the theoretical level, have
extraordinary significance inside the association even though untouchables may not see or get
them.

The Karnataka Bank goes for the accompanying qualities

 Customer Satisfaction
 Quick and better Service
 Loyal to the Customers
 Honest in work

Swot Analysis
SWOT analysis is a technique developed at Stanford in the 1970s, frequently used in strategic
planning. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats and is
a structured planning method that evaluates those four elements of an organization, project or
business venture. A SWOT analysis is a simple, but powerful, framework for leveraging the
organization's strengths, improving weaknesses, minimizing threats, and taking the greatest
possible advantage of opportunities
SWOT examination of Karnataka Bank investigations the brand/organization with its
qualities, shortcomings, openings and dangers. In Karnataka Bank SWOT Analysis, the
qualities and shortcomings are the interior variables while openings and dangers are the
outside factors.
In Karnataka Bank SWOT Analysis, the strengths and weaknesses are the internal factors
whereas opportunities and threats are the external factors. SWOT Analysis is a proven
management framework which enables a brand like Karnataka Bank to benchmark its
business & performance as compared to the competitors and industry

Strengths
■ The factors that have contributed to the success of the Bank is its workforce because the
bank has highly educated workforce, young and energetic employees within the age group of
25 -45 This helps the Junior employees to learn from the experience of the senior employees

■ More than 470 branches across 20 states and 2 Union Territories

■ Accentuation on consumer loyalty

■ Has more than 5844 representatives and 4.84 million clients, remembering ranchers and
craftsman for towns and humble communities all through the country

■ Fast Remit, an office to bring in cash move simple for Non- Resident Indians living in
Canada, USA and the UK

Weakness
● Non-confirmation of Reserve Bank of India defaulters list while preparing credit
recommendations
● Delay in circle back to different records

● Bank had regularly engaged with successive check acquisition of huge sums past the
optional force.

● While opening unfamiliar letter of credit assessment report of the abroad party not got
bringing about devolvement/likely turns of events.

● Delay in crystallization of fare bills limited.

● Sanction agreements were not consented to by and large uncovering lacking/inadequate

instrument to screen and follow-up of such cases.

● The stocks hypothecated to the Bank were not sufficiently protected/not guaranteed now
and again
● There were occasions of successive returns of checks and the branches had not taken up the
matter with the borrowers worried to keep up with monetary discipline Less reach all over
country in terms of ATM’s, branches as compared to bigger banks
Opportunities
The Growth possibilities or the chances are extremely enormous as the bank had chiefly
focused on the southern area of the country in its prior years it has the chance to extend its
business to different pieces of the country wherein it can build its client base. The bank by
excellence of turning into an individual from ATM networks like 'VISA, 'NFS', 'Money Tree',
other than proceeding with the two-sided course of action with partnership Bank, has
empowered admittance to almost 1 million ATMs and 25 million POS across the globe for its
card holders. Bank is additionally working with internal settlement office through Western
Union Money Transfer which has empowered huge segment of the populace to get bother
free settlement from abroad. The bank is wanting to empower 'Cash Click' as an instalment
entryway for shopping that covers huge spaces of systematic Hotel Booking, Ticket Booking,
Purchase of merchandise and so on The Bank is additionally intending to present portable
Top-up through ATMs and Internet Banking, other than dispatching esteem options like SMS
cautions to Non-Money Click Customers, Utility bill instalment and Air ticket booking
through ATMs. Further Bank is additionally intending to restrict for internet exchanging
shares. The Bank is intending to expand the quantity of its ATMs to 1026 by 31.03.2020

Threats

As the bank larger part business comes from the south any impact to the economy here would
adversely affect the exhibition of the bank. The Bank is somewhat more modest when
contrasted with different banks like SBI and ICICI Bank and some others. Since it's a more
modest bank when contrasted with significant burdens like SBI and partnership Bank the
bank is consistently under treat of being taken over by different banks.
1.  Economic slowdown
2.  Highly competitive environment
3.  Stringent Banking Norms
BALANCE SHEET AS ON 31ST MARCH 2020

Schedule No As on 31.03.2020 As on
31.03.2019

CAPITAL AND
LIABILITIES
1 310,87,95 282,61,76
Capital
2 5659,56,41 5502,56,53
Reserves and surplus
3 71785,15,40 68452,12,28
Deposits
4 4065,11,80 3325,51,10
Borrowings
5 1492,77,20 1482,93,85
Other Liabilities and
provisions
Total
ASSETS
Cash and balances with
Reserve Bank of India 6 2756,05,04 3411,66,12
Balances with Banks and 7 163,44,02 198,08,73
Money at Call and short notice
Investments
8 17545,34,22 16184,98,87
Advances
9 56964,27,18 54828,20,10
Fixed Assets
10 826,41,89 774,99,60
Other Assets
11 5057,96,41 3647,82,10
Total
83313,48,76 79045,75,52
Contingent Liabilities 12 7723,75,78 6522,22,71
Bills for collection 2315,38,01 2229,88,31
Significant Accounting 17
Policies
Notes on Account
18
 PROFIT AND LOSS ACCOUNT FOR YEAR ENDING 31ST MARCH 2020

Schedule Year ended Year ended

No. 31.03.2020 31.03.2019

I. INCOME
Interest Earned 13 6474,76,99 5905,96,22
Other Income 14 1396,04,90 1001,95,57
Total 7870,81,89 6907,91,79

II. EXPENDITURE
Interest Expended 15 4444,41,24 4000,83,59
Operating Expenses 16 1769,64,12 1457,27,14
Provisions and Contingencies 1224,98,88 972,57,08
Total 7439,04,24 6430,67,81

III. PROFIT
Net Profit for the year 431,77,65 477,23,98
Profit brought forward 119,64,12 102,23,21
Total 551,42,460 579,47,19

IV. APPROPRIATIONS
Transfer to Statutory Reserve 110,00,00 180,00,00
Transfer to Capital Reserve 183,08,22 0
Transfer to Revenue Reserve 30,00,00 88,50,00
Transfer to special Reserve u/s 6,73,79 21,20,05
36(1) (vii)of Income Tax Act
Transfer from Investment Reserve
0 0
Account
Transfer to Investment
77,81 67,91,23
Fluctuation Reserve
0 0
Transfer to Other Funds
98,82,75 84,78,23
Dividend paid for 2019
20,31,89 17,42,73
Tax on dividend Paid
101,68,14 119,64,19
Balance carried to balance Sheet
551,42,60 579,47,19
Total

Earnings per share

Basic 13.89 15.35*
17
Diluted 13.89 15.35*
18
Significant Accounting Policies
 Notes on Account

*Previous year figures recomputed on

account of issue of bonus shares

The schedules referred to above from an integral part of profit and loss account

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2020
 Year Ended Year ended
March 31,2020 March 31,2019
A) CASH FLOW FROM
OPERATING ACTIVITIES
Net Profit after Tax and Extra Ordinary 43,17,765 47,72,398
items
Add:
Adjustments For:
Provision for tax 9,02,467 13,05,668
(Profit)/Loss on sale fixed Assets 7,071 -4,027
Depreciation on fixed Assets including 6,37,649 5,41,752
Lease Adjustment charges
Provision and contingencies 1,13,47,421 84,20,040
Amortisation of premium on held to 7,60,535 6,28,410
maturity investments
Loss on sale to SC/RC amortised during 0 0
the year
Write-off of fixed Assets 0 1,36,55,143 0 1,56,64,241
Operating Profit before Working Capital 17972908 15664241
Changes
Adjustment for:
i) (increase)/Decrease in -3,60,87,367 -7,14,10,823
advances &other assets
ii) (increase)/Decrease in -1,43,14,146 -85,12,910
investments
iii) Increase/(Decrease) in Deposits, 3,36,77,382 -1,67,24,131 4,40,31,981 -3,58,91,752
Borrowings & Other Liabilities
Cash Generated from Operations 12,48,777 -2,02,27,510
Less: Direct taxes paid 21,44,741 20,83,053
Net Cash Flow from Operating -8,95,964 -2,23,10,563
Activities (A

Year Ended Year Ended

March 31, 2020 March 31, 2020
B) CASH FLOW FROM INVESTING
ACTIVITIES
Purchase of Fixed Assets -5,75,290 -6,91,733
Sale of Fixed Assets 14,809 16,332
Net Cash used in Investing Activities -5,60,481 -6,75,401
(B)
TOTAL (A+B) -14,56,445 -2,29,85,964
C) CASH FLOW FROM
FINANCING ACTIVITIES
Proceeds from issue of share capital (net 61 1
of expenses)
Proceeds from long term borrowings -4,25,37,50 2,40,95,410
Dividend paid (Including Tax on -11,92,445 -10,22,096
Dividend)
Net Cash Generated from Financing -54,46,134 23,07,3315
Activities (C)
Net Increase in Cash & Cash -69,02,579 87,351
Equivalents (A+B+C)
Cash & Cash Equivalents as at the 3,60,97,485 3,60,10,134
beginning of the year
Cash & Cash Equivalents as at the end of 2,91,94,906 3,60,97,485
the year

KEY FINANCIAL RATIOS OF KARNATAKA BANK

 MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

PER SHARE RATIOS  

Basic EPS (Rs.) 15.52 13.89 16.89 11.52 19.38  

Diluted EPS (Rs.) 15.48 13.89 16.89 11.52 19.38  

Cash EPS (Rs.) 17.89 15.94 18.80 13.29 17.76  

Book Value [Excl. Revel 198.69 176.93 190.12 176.70 181.96  

Reserve]/Share (Rs.)

Book Value [Incl. Revel 213.66 192.05 204.70 191.43 181.96  

Reserve]/Share (Rs.)

Dividend/Share (Rs.) 1.80 0.00 3.50 3.00 4.00  

Operating Revenue / Share (Rs.) 200.48 208.27 208.97 191.91 183.48  

Net Profit/Share (Rs.) 15.52 13.89 16.89 11.52 16.00

ER EMPLOYEE RATIOS MAR 20 MAR19 MAR18 MAR 17  

MAR 21

Interest 7,401,038.71 7,609,319.43 7,137,114.44 6,626,451.0 6,497,181.68  

Income/ 7
Employee (Rs.)

Net Profit/ 573,054.74 507,435.07 576,724.83 397,810.38 566,672.35  

Employee (Rs.)

Business/ 151,227,358. 151,309,702. 148,979,243. 134,542,49 117,449,886.

Employee (Rs.) 86 43 26 9.3 48
PER BRANCH RATIOS MAR 20 MAR19 MAR 18 MAR 17  
MAR 21

Interest 72,554,303.84 76,353,418.63 70,645,480.86 67,796,877.50 67,783,015.69  

Income/
Branch
(Rs.)

Net 5,617,804.42 5,091,704.01 5,708,610.05 4,070,097.50 5,911,911.11  

Profit/
Branches
(Rs.)

Business/ 1,482,521,058.21 1,518,271,530.6 1,474,645,021.53 1,376,537,946.25 1,225,317,050.9

Branches 8
(Rs.)

KEY PERFORMANCE RATIOS MAR MAR MA MA MA  

21 20 R 19 R 18 R 17

ROCE (%) 2.37 2.02 1.86 2.13 1.58  

CASA (%) 31.48 28.90 28.06 27.98 29.03  

Net Profit Margin (%) 7.74 6.66 8.08 6.00 8.72  

Operating Profit Margin (%) -16.24 -14.89 -8.88 - -6.88  

11.59

Return on Assets (%) 0.56 0.51 0.60 0.46 0.70  

Return on Equity / Net worth (%) 7.81 7.84 8.88 6.52 8.79  

Net Interest Margin (X) 2.55 2.43 2.41 2.63 2.32  

Cost to Income (%) 41.35 38.04 35.17 38.98 30.82  

Interest Income/Total Assets (%) 7.28 7.77 7.47 7.70 8.08  

Non-Interest Income/Total Assets (%) 1.74 1.67 1.26 1.35 1.26  

Operating Profit/Total Assets (%) -1.18 -1.15 -0.66 -0.89 -0.55  

Operating Expenses/Total Assets (%) 1.96 2.12 1.84 1.90 2.03  

Interest Expenses/Total Assets (%) 4.73 5.33 5.06 5.06 5.76

VALUATION MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

RATIOS

Enterprise Value (Rs. 74,454.62 74,404.58 72,137.50 63,392.95 58,611.4  

Cr) 5

EV Per Net Sales (X) 11.95 11.49 12.21 11.69 11.30  

Price To Book Value 0.31 0.24 0.70 0.65 0.77  

(X)

Price To Sales (X) 0.31 0.20 0.64 0.60 0.77  

Retention Ratios (%) 100.00 100.00 82.23 65.28 100.00  

Earnings Yield (X) 0.25 0.33 0.13 0.10 0.11

Conclusion
The Karnataka bank is a Financial Institution and is the subject of this organizational study.
Industry profile, Company profile, Mc Kinsey 7S framework, SWOT analysis, Financial
Analysis, learning experience and Conclusion are among the five chapters of this study.
At Karnataka Bank, understand that each one customer are different in unique ways, which is
why, no matter the dimensions of your business or your aspirations, Bank treat all as
individual and special. This means offering you choices, not only in reference to our products
and services but also within the way you interact with us. Bank understand the changes in
your lifestyle, recognize these changes and support you with a high standard of
professionalism and repair.
As a premier bank, Bank have developed comprehensive range of customized products &
services suitable for every kind of market, trade or perceived need - Business or Personal.
They include, borrowing facilities, deposits, providing optimum returns on surplus funds or
helping with overseas transactions.
We believe in total quality at all levels. We have deployed the most modern information
technology to deliver products & services for your benefit with an aim to develop an effective
long-term relationship. But most of all, Technology is matched to your expectations of
service, for today & for the future.
Learning Experience
• While directing a thorough report on Prestige Construction, I took in an extraordinary
arrangement concerning how construction industry works and what and how rules ought to be
carried out to expand incomes and assist customers with achieving their objectives.

• This organizational study showed me why the financial parts of an organization

accounts are more critical to safeguard and utilize carefully subject to seriousness.

• The McKinsey 7s structure is an incredible method to offer standards dependent on

structure, skill, style, strategy, system, personnel, and shared values. It clarifies how an
enterprise might accentuate its arrangements to impact finance, client care, and different
regions.

• SWOT analysis of Prestige showed me the few factors that might be viewed as while
examining a construction organization's strengths, weaknesses, opportunity, and threats
dependent on profit, loss, debt, stock ownership, strong momentum score, non-core income,
and other factors.

• I've figured out how SWOT analysis might assist you with appreciating your
organization's current and future issue.

• Even though performing financial reports with ratio analysis was testing, it showed
me how to utilize cash flow, income statement, and balance sheets to calculate ratios, in
addition to other things.

• Because we can't fill in as assistants in an organization attributable to our present

conditions, we have mentioned to direct organizational study on a great organization.

• It likewise assisted me with getting a handle on the property development area

starting from the earliest stage, including how they work and accomplish their goals. By and
large, it was a compensating freedom to examine the construction from an assortment of focal
points.