AN ORGANISATIONAL STUDY AT KARNATAKA BANK LTD CHITRADURGA

Submitted in partial fulfillment of the requirements of MBA Degree course of Bangalore university By

VISHAL CHOPRA.V REG.NO. O5XQCM 6116 2005-2007

Under the Guidance & supervision of
Prof. B.V. RUDRAMURTHY MPBIM (Internal Guide) RAMACHANDRA.H.KULKARNI OFFICER KARNATAKA BANK Ltd.

M.P.BIRLA INSTITUTE OF MANAGEMENT

Associate Bharatiya Vidya Bhavan #43 Race Course Road , BANGALORE-56000

M.P.BIRLA INSTITUTE OF MANAGEMENT

EXECUTIVE SUMMARY
The MBA course offered by Bangalore University has a unique syllabus which requires its MBA students to undertake an internship with any of the leading business houses for a period ranging from 6-8 weeks during the second semester. The purpose of this internship is to enable the students to appreciate and understand the nuances of practical world vis--vis the theoretical input administered during regular academic sessions . This helps in creating managers Who are equipped with the experience of linking the theoretical input with those of practical exposure and come out with creative solutions/ ideas in enhancing the business . In partial fulfillment of MBA degree of Bangalore University I took up this organizational study. Experience and knowledge I gained from KARNATAKA BANK LTD. are elaborated in the following pages. This report includes the history of Indian Banking sector and an overview of KARNATAKA BANK LTD. and banks profile . later pages elaborate various kinds of products and services offered by Karnataka bank, branch profile, share prices at NSE , share capital structure, continuous improvement, essentials records require in all branches as per RBI norms, some important definitions , risk categorization of customers,etc/.

Vishal chopra.v

DECLARATION
I, VISHAL CHOPRA hereby declare that internship training report entitled ORGANIZATIONAL REPORT AND MICROSCOPIC STUDY
AT KARNATAKA BANK LTD. has been undertaken and Completed

under the valuable guidance of Prof. B.V.RUDRAMURTHY (INTERNAL GUIDE) & MR. RAMACHANDRA .H. KULKARNI (OFFICER KARNATKA BANK LTD.) , AND in Partial fulfillment of MASTER OF BUSINESS ADMINISTRATION (MBA) PROGRAM and it is my original work and not submitted for any award Of any other degree, diploma fellowship or any other similar title of Prizes

Place : BANGALORE Date :

Name: VISHAL CHOPRA.V reg.no:05XQCM6116

GUIDES CERTIFICATE
This is to verify that the report entitled AN INTERNSHIP REPORT ON ORGANIZATIONAL STUDY at KARNATAKA BANK LTD done by VISHAL CHOPRA.V bearing reg.no 05XQCM6116 is bonifide work Carried under my guidance during the academic year 2006/2007 In a partial fulfillment of requirement for the award of MBA DEGREE By BANGALORE UNIVERSITY. To the best of my knowledge this Report has not formed the basis for the award of any other degree

Place : BANGALORE B.V.RUDRAMURTHY Date : (PROFESSOR)

Principals certifiate
This is to certify that this report entitled AN INTERNSHIP REPORT ON ORGANIZATIONAL STUDY at KARNATAKA BANK LTD. has been prerared by VISHAL CHOPRA.V bearing reg.no: 05XQCM6116 under the guidance and supervision of Prof.B.V. RUDRAMURTHY of

M.P.BIRLA INSTITUTE OF MANAGEMENT , BANGALORE

Place : BANGALORE Date :

Name: N.S.MALAVALLI (PRINCIPAL)

ACKNOWLEDGEMENT
I am happy to express my deep sense of gratitude to.PROF.B.V. RUDRAMURTHY (PROFESSOR M.P.BIRLA INSTITUTE OF MANAGEMENT) and RAMACHANDRA.H.KULKARNI (OFFICER KARNATAKA BANK.) for their encouragement, guidance and many variable ideas that are imparted to me for my project I extend my sincere thanks to various people at KARNATAKA BANK LTD. Who have been instrumental in providing me the information required without which I couldnt have completed my internship I have gained a lot of knowledge, both theoretical and practical, throughout the course of carrying out this project ; I also learned a lot of intricacies of actual business world I would also like to sincerely thanks to all my lecturers and friends for the help in completing my project successfully

(VISHAL CHOPAR.V) REG.NO: 05XQCM6116

TABLE OF CONTENTS
INDUSTRY PROFILE COMPANY PROFILE PRODUCTS & SERVICES OFFERED BY KARNATAKA BANK SHARE CAPITAL STRUCTURE AS ON 31-03-2006 PRESS RELEASE OF FINANCIAL STATEMENTS FOR QUARTER ENDING 30-06-2006 6. THE AIM OF CONTINOUS IMPROVEMENT 7. SHARE PRICE AT NSE FROM 20-07-2006 TO 31-08-2006 8. RISK CATEGORIZATION OF CUSTOMERS 9. BRANCH PROFILE 10. DISPLAY OF ITEMS & MAINTANENCE OF RECORDS AS PER RBI NORMS 11. SOME ESSENTIAL DEFENITIONS 12. FAIR PRACTICE CODE 13. SWOT ANALYSIS 14. SUGGESTIONS/ RECOMMENDATIONS 13. BIBILOGRAPHY

1. 2. 3. 4. 5.

INDUSTRY-PROFILE
BANKING SYTEM IN INDIA

INTRODUCTION The Reserve Bank of India (RBI) is Indias Central Bank . Though Public sector banks currently dominate the banking industry ,various private and foreign banks exist. Indias government owned banks dominate the industry ,Their performance has been mixed. Government is disinvesting some of its stake in these public banks.

INDIAN ECONOMIC AND BANKING SECTOR 1. Indian banking system continued with its healthy trend during the fiscal 2004-05 notwithstanding an erratic monsoon and inflationary pressures primarily on account of a steep rise in international oil prices. Despite the shortfall in contribution of Agriculture in our GDP, both Industrial production and Service sector recorded higher growth in 2004-05 with overall GDP growth estimated at around 6.09%. The year also witnessed robust growth in exports taking the country's export earnings reach an all time-high level of US $ 80 billion. The country's foreign exchange reserve burgeoned to US $ 140 billion, thanks to the continuing inflow of FDI and FII. What is more heartening in recent years is that the character of the Indian economy has started showing signs of getting transformed into a developed one, with an ever increasing contribution of industries and the Service sector in GDP replacing the hitherto dominant Agriculture sector. The Capital market too, during the fiscal, maintained its buoyancy with Sensex touching the peak level during March 2005. The banking scrip in stock exchanges, for the first time, caught the fancy and imagination of investing community with the result that banking share index reached historical peak in March 2005. the the the the

Seeds of change have truly been sown during the year just concluded. The regime of tightening of Prudential norms, increased need of transparency and disclosures, more and more adherence to the internationally accepted accounting standard and adoption of rigorous risk management practices have come to stay in the industry, with inter-se competition amongst the banks getting more and more fierce. Recent policy pronouncements and prescriptions for a phased autonomy to banking as an institution have added a new dimension to the competitive environment. Basel II is at the doors, the compliance of which is a sine qua non in globalised banking scenario

BANK PROFILE
At Karnataka Bank, we understand that all customers are different in unique ways, which is why, regardless of the size of your business or your aspirations, we treat every one as individual and special. This means offering you choices, not only in relation to our products and services but also in the way you interact with us. We understand the changes in your lifestyle, recognize these changes and support you with a high standard of professionalism and service. As a premier bank, we 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.

HISTORY Karnataka Bank Ltd., a premier private sector bank in India, was incorporated on February 18th, 1924 at Mangalore, a coastal town of Dakshina Kannada district in Karnataka State. The bank took shape in the aftermath of patriotic zeal that engulfed the nation during the freedom movement of 20th Century India. Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd., Chitladurg Bank Ltd. and Bank of Karnataka. With over 82 years experience at the forefront of providing professional banking services and quality customer service, we now have a national presence with a network in excess of 398 branches across 18 states and 2 Union Territories Managed by a dedicated & professional management team, we have over 4,346 employees, 93,066 shareholders and over 2.6 million customers. Today, we have emerged as a leading financial service institution in India

TECHNOLOGY We have throughout the years focused on one task, one mission - "To Give You The Best in Services and In Products". Among other Banks, it was Karnataka Bank who first realised the importance of having a centralised Banking system and was among the first to deploy the core banking system in the year 2000. This system enabled us to store and processes all the customers' accounts from one single place the data center at bangalore. To ensure that you have the Best, we have deployed the State-Of-Art technology from the best players in the Industry like Infosys, Sun and Wipro. These systems provide the highest reliability thus enabling us to offer to you Non-Stop services

We have taken a lead and implemented a Disaster Recovery Centre. This centre will replicate the Banks Centralised Banking system and all its data. This centre will also be the backup for the ATM operations. In the event of a natural disaster at Bangalore, this centre will immediately come into force and provide full continuous service. Leaving nothing to chance. We have ensured your business is protected by Non-Stop Banking Technology Initiatives: Your Bank has given due importance to technology in order to keep pace with other Banks who rely on technology enabled services to cater to the plethora of customer needs and expectations. Now our customers have the advantage of Any time Anywhere Banking at over 276 offices nationwide. The pact for mutual sharing of ATMs with Corporation Bank enables customers to withdraw their money round the clock at over 850 ATMs located countrywide. The Bank has been offering a wide range of customer centric and customer friendly valueadded products & services like Multi-Branch Banking (MBB), Flexi Term deposit (K-Flexi), ATM Card linked credit facility (K-Power), collection of utility bills, etc. You will be delighted to know that your Bank launched Moneyplant International Debit Card which can be used anywhere in India and abroad where VISA/VISA Electron sign is displayed. The card holder can access his account at 13000 Visa ATMs in India and over 8.7 lakh ATMs globally. The card can be used for purchases at 1,17,000 merchant locations nationally and over 13 million international locations.

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A pact has already been inked for other banks' network/shared viz. network 'Cash Tree', and 'NFS' for greater access. The Bank is all set to launch Internet Banking shortly. Introduction of Demat Services, distribution of Mutual Fund products are on the cards. A product called 'Money Quick' for customer to customer remittance through RTGS is launched today at all our networked branches. Your Bank plans to bring more number of branches under the Core Banking Solution (CBS) and also launch a range of new products and delivery channels in the near future.

MISSION STATEMENT
"Our mission is to be a technology savvy, customer centric progressive bank with a national presence, driven by the highest standards of corporate governance and guided by sound ethical values."

Monetary Policy: Bank rate kept unchanged at 6.00 per cent. In view of the prevailing macro economic and overall monetary conditions, the fixed reverse repo rate by 25 basis points under liquidity adjustment facility (LAF) of the Reserve Bank has been increased to 5.00 per cent from 4.75 per cent with effect from April 29, 2005 The minimum maturity period of certificates of deposit (CDs) reduced from 15 days to 7 days. RBI will persist with its efforts to ensure quality of banking services, in particular, to small individual depositors

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Services and Products The Bank provide various products & services to its customers. It has a wide range of products and services. Following are some of its services 1. K-flexi deposit 2. Savings bank account 3. Fixed deposit 4. Abhyudaya cash certificate 5. Ready money deposit 6. Soulabhya deposit 7. Cumulative deposit 8. Senior citizen deposit scheme 9. NRI schemes 10. Vidyanidhi education loan scheme 11. Scheme for financing Salaried Persons 12. Udyog mitra loan scheme for professionals 13. Varthak loan for the traders 14. Vahana mitra finance for commercial vehicle 15. K-Power personal loans 16. Easy ride for two wheelers 17. Car finance for new and second hand cars 18. Niveshan loan for house sites 19. Apna ghar home loan 20. Insta cash for consumption purposes 21. Lease & Encash for property owners 22. Swarna nidhi for resident women 23. Ravi kiran for solar lighting & heating 24. Krishik Sinchana for irrigation 25. Krishik sarathi for farm mechanization 26. MBB ACCOUNT Some of them are explained below

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K-flexi deposit It is a Savings Bank (SB) A/c. Linked term deposit which combines the benefits of high interest of a term deposit and liquidity of SB account to give you the best returns for your money.Any individual other than a minor can open this account. All existing resident SB Account holders are eligible to opt for this scheme, by giving a simple mandate. But none of the account holders should be minors. In case of existing account, just sign a simple mandate Requesting for the facility. If not, just walk into any of our designated branches (list of which is furnished) and open a new SB Privileged Account. For the amount held in term deposit, a higher Interest is paid depending on the period for which deposit is kept/run. For the amount held in SB A/c., interest is paid as per SB rules. You will decide on the period of deposit. It can be for a minimum of 30 days and maximum of 36months. First at the time of opening the account. You have the privilege of changing the period option once in every quarter thereafter. In the absence of any specific instructions, the deposit will be renewed for the same period as initially made at the interest rate prevailing on the due date. You can operate your account just like any other SB A/c. and issue cheques / withdraw the amount etc.Whenever balance in the SB account goes beyond the stipulated level (at present Rs.10,000/-), the amount beyond stipulated level will get transferred to term deposit account in multiples of Rs.5,000/- for a period specified by you earlier and earn interest applicable to term deposits of that period.

If you issue cheques in your SB Account, we will transfer amounts in units of Rs.1,000/- from your term deposit account to SB A/c. to the extent required. All this happens automatically, thus we take care of your banking, giving you the flexibility of using that time the way you want to. It will continue to earn interest at contracted rates, we take care of your interest by following the intelligent concept of Last in first out (LIFO) so that your interest loss is always minimum. You can thus optimize your earnings with minimum interest loss, with the benefit of high liquidity. All other benefits of operating your account at anyother linked branches under Multi Branch Banking facility is also available to you without additional cost. All your transactions are routed through your K-Flexi SB account. Hence, no hassle of keeping track of multiple account. Except maintaining minimum balance of Rs.1,000/- and quarterly average balance of Rs.5,000/- in your SBA/c. All these facilities come to you absolutely FREE. 13

K-power K-Power ATM cards offer a special facility to valued customers like you. The card enables you to draw cash from any Money plant ATM of Karnataka Bank and also of Corporation Bank even if there is no balance in your account. You can draw from Rs.5,000/- to Rs.15,000/- (depending on the limit) which is treated as a personal loan. Any individual SB account holder with a satisfactory operation for past six months is eligible. You could be a salaried employee, a professional or even someone receiving regular income from rent, pension etc. Your account should show a regular deposit of at least Rs.5,000/- per month over the past six months to make you eligible for a K-Power ATM card. Depending on the limit set by your Branch Manager you can draw upto Rs.15,000/- in multiple of Rs.100/-. The withdrawal can be made only through Moneyplant ATM of Karnataka Bank and of Corporation Bank and not over the counter. Interest at PLR+3% is charged on daily balance outstanding at monthly intervals. No further withdrawals under this facility will be allowed if the amount withdrawn is not repaid within 45 days of its withdrawal. you can have advantage of K-Flexi and Multi branch banking along with KPower. If you are an account holder who meets the criteria you can apply for an ATM Card and the K-Power linkage simultaneously. You will need - Proof of residence. - Income proof such as salary certificate, Form 16 or I.T. returns. - The ATM Card will be issued immediately and the K-Power limit sanctioned within 7 days after processing and verification. - If you already have an ATM Card you need to apply for K-Power limits with the above mentioned documents so the limits may be activated. The limits sanctioned on the K-Power ATM Card are Independent of other limits. However, the limit is valid for a period of 12 months and need to be renewed thereafter. Please note that the facility can be withdrawn at the discretion of the Branch Manager

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Salaried personyour dreams Permanent employees of established reputed companies, firms, institutions, Govt. undertakings, schools, colleges and universities aged not more than 55 years and with a minimum remaining service of 3 years. a) Purchase of household articles / consumer durables b) Childrens education c) Marriage and thread ceremony of self / dependants d) Medical expenses of self / dependants e) Obsequies expenses f) Repair of own house Maximum 10 times of monthly gross salary of which 50 % can be availed as over draft. Upto 5 years. On reducing balance method. Co-obligation of third party / co-employee who should be a Permanent employee of established reputed companies, firms, institutions, government undertakings, schools,colleges, universities etc.

Car-finance a) An individual who is an income tax assessese. b) A company / firm availing the loan in its name or in the name of its executive / managing director / managing partner. Purchase of new vehicle / second hand vehicle not older than 3 years from the date of registration of the vehicle. Upto 85% of the invoice value excluding vehicle tax and insurance in case of new vehicles & not exceeding Rs.3.00 lakhs in the case of second hand vehicle.Upto 60 months (new vehicle) and 34 months (second hand vehicle). a) Hypothecation of vehicle to be purchased. b) Third party co-obligation / guarantee in case of individuals.On reducing balance.

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Vidyanidhi Any student, representing himself / herself if major, or a minor student represented by parent or guardian, of Indian nationality, who has secured admission to a professional / technical / other course, in India or abroad. Graduate Courses - B.A., B.Sc., B.Com., B.C.A., B.B.M.; Post Graduate Courses - Masters and Ph.D; Diploma in Engineering; Professional Courses Engineering, Medical, Agriculture , Veterinary, Law, Dental ,Management , Computer, Pharmacy, Physiotherapy, Hotel Management , ICWA, CA,CFA; Courses conducted by IIM, IIT, XLRI, NIFT; Courses offered in India by reputed foreign universities; Evening Courses of approved Institutes; Other Courses leading to Diploma /Degree conducted by Colleges / Universities approved by UGC / Govt. / AICTE / AIBMS / ICMR; Courses offered by National Institutes and other reputed private Institutions Graduation - Only for job oriented professional / Technical courses offered by the reputed Universities; Post Graduation - MCA, MBA, MS; Courses conducted by CIMAA in London, CPA in USA For studies in India - a maximum of Rs.7.50lakh For studies abroad - a maximum of Rs.15.00lakh Tuition Fees; Hostel Fees and Boarding and Lodging Fees if resident outside Hostel;Studies in India Studies Abroad Examination / Laboratory and Library Fees; Purchase of Books/Study material / Equipment And Uniforms; Caution Deposit / Building Fund / Refundable Deposits (supported by Receipts issued by the Institution ) ; Travel expenses/passage money for study abroad; Purchase of Computer if certified as essential for completion of course; other expenses like Project Work, Study Tour and Thesis, which are necessary for completion of course Upto Rs.2 lakh - nomargin required Above Rs.2 lakh - 25% for studies in India and abroad. Scholarship/ Assistantship may be reckoned as part of margin. Margin may be brought in on year -to-year basis as and when Disbursements are madeo n a pro-rata basis For loans up to Rs.2 lakh: Loan shall be given jointly with Parent / Guardian. A Guarantor with networth not less than loan amount shall join the transaction in addition to Parent / Guardian. For loans above Rs.2 lakh: Loan shall be given jointly with Parent / Guardian and collateral equal to 100% of the loan is required. In case land and buildings are already mortgaged, the same can be used as security on II charge basis provided adequate security cover of100%of the loan amount is available . Computers purchased with the loan would have to behypothecated to the Bank.

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For loans up toRs.4 lakh: 12%p.a. at present. For loans aboveRs.4 lakh: 12.50% at present The loan shall be repaid in 5 to 7 years after commencement of repayment. If the student secures employment during the gestation period, the repayment schedule should be advanced to commence immediately. The completion of the course includes internship or apprenticeship if compulsory for award of Degree. If the student does not complete the course within the scheduled time, a maximum time limit of 2 years is permitted. If the student is unable to complete the course for reasons beyond his control then extension may be granted if deemed necessary to complete the course. The accrued interest during the repayment holiday will be added to the principal and repayment in equated monthly installments (EMI) shall be fixed. There is a holiday on repayment for the duration of the Course extending up to 6months or 1 year after getting a job, whichever is earlier. Simple interest will be charged during the loan repayment holiday. Compounded interest rates will apply after the loan holiday with monthly rests. Penal interest at 2% will be charged for loans above Rs.2 lakh for the overdue amount and overdue period

Easy-ride 1. Individuals possessing a valid two wheeler driving licence who are:a) Within the age limit of 21 to 55 years in case of salaried persons and 21 to 60 years in case of businessmen / professionals / self employed persons b) Confirmed employees having put in minimum service of 34 years c) Having a gross monthly salary of Rs.4,500/- /gross monthly income of Rs.3,500/-. II. A company / firm, availing the loan in its name or in the name of executive / managing director / managing partner: Upto 15 times the net take home salary (in the case of salaried persons) or equivalent of declared annual gross income (in the case of professionals / businessmen / self employed persons), not exceeding 90% of the invoice value of the vehicle. Road tax and insurance are excluded. Upto 60 months. Repayment by equated monthly instalments. On reducing balance method. a) Hypothecation of vehicle purchased. b) Third party solvent co-obligant/guarantor (Can be waived subject to conditions). c) Depending on the period of loan, security deposit equivalent of one to five monthly instalments. 17

a) Proof of income (Salary certificate, income tax returns / assessment orders, audited financial statements etc.) b) Proof of residence. c) Bank pass book / statement of account.

Udyog-mitra Doctors / Regd. Medical Practitioners (having passed qualified examination from a recognised university in allopathy / homeopathy / ayurvedic sciences) / Lawyers / Engineering consultants. i. Purchase of medical equipments /machineries / computers. ii. Furnishing the office, purchase of furniture, books etc. iii. Payment of advance rent for setting up an office. a) Upto 90% of the cost of the assets to be purchased in case of purpose (i)mentioned above. b) Upto 80% of the cost in case of purposes (ii) and (iii) mentioned above, subject to a maximum of Rs.75,000 in rural areas, Rs.1,00,000 in semi-urban areas, Rs.1,50,000 in urban areas and Rs.2,00,000 in metropolitan areas. Upto 5 years for purposes (i) and ( ii) Upto 24 months for purpose (iii) a) Hypothecation of assets to be purchased (purposes-i and ii). b) LIC Policies (SV), NSCs (FV), term deposits of the bank atleast to the extent of 25% of loan amount. OR Equitable mortgage of immovable property of the value not less than 50% of the loan amount. c) Third party solvent co-obligant / guarantee. Upto Rs. 2 Lakhs : 11% Above Rs. 2 Lakhs : 12%

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Nivesana loan Finance for the purchase of House sites(converted land only) a) Individuals who are residents of India. b) Salaried persons aged 21 years and above who are in confirmed service with a minimum service of 3 years and a minimum gross monthly salary of Rs 6,000/c) Businessmen/Professionals/self employed persons aged 21 years and above, with a minimum experience of 3 years and a gross annual income of Rs60,000/. d) Non-Resident Indians are also eligible 75% of the Registration Value of the site or Rs15 lakh, whichever is less. The Maximum period available for the loan is 7 years a) Mortgage of site/ property to be acquired. b) Guarantee of the spouse or third party guarantee. Upto 5 years: 8.50% Between 5 to 7 years:9% In equated monthly installments (EMIs) Terms and conditions and interest rates are subject to change from time to time. *Sanctions at the sole discretion of the Bank. a) Construction/purchase of house/flat b) Renovation/remodeling/repair to existing house /flat. a) Individuals who are residents of India. b) Salaried persons aged 21 years and above who are in confirmed service with a minimum service of 3 years and a minimum gross monthly salary of Rs6000/-. c) Businessmen/Professionals/ self employed persons aged 21 years and above, with a minimum experience of 3 years and a minimum gross annual income of Rs 60,000/-. a) 60 times of latest monthly take home (net) salary in case of salaried persons. b) 5 times of latest annual net income + depreciation provided, if any, as per P/L A/c in case of traders / professionals / self employed persons. c) Rs 50 lakh. Whichever is lower. Upto Rs 10 lakh or 40% of the value of the house/flat, whichever is lower. Upto 15 years. Repayment holiday upto 18 months considered. Repayment period within 70 years Of For
purchase/construction For renovation/ repairs:

a) Mortgage of house property to be constructed/purchased/ repaired/ remodeled / renovated. b) Guarantee of the spouse wherever applicable in the absence of which third party solvent guarantor. c) Third party guarantee not mandatory. In equal/equated monthly installments (EMIs)- 25% of the total cost in case of house/flatup to 5 years old. more than 5 years old and up to 20 years old. - Reduction in margin by and up to 10% considered on special conditions. - 30% of the cost for renovation/repair.

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Up to 5 years: 8.50% Above 5 years to 10 years: 8.75% Above 10 years to 15 years for loans up to Rs 15 lakh:9% Above Rs 15 lakh: 10% Interest calculated on daily reducing balance, ensuring lowest EMI. - One time processing fee@ 0.5% of loan amountminimum 500/- up to Rs 2 lakh. Above Rs 2 lakh@0.25% of loan amount- mInimumRs 1000/-. - No penalty for foreclosure. - No administration or documentation charges. - Option of single premium Life Insurance cover. Terms and conditions and interest rates are subject to change from time to time *Sanctions at the sole discretion of the Bank.

Vahana mitra Finance for the purchase of new Autorickshaw, Jeep, Car,maxi cab traveler TATA Sumo, TOYOTA Qualis, Bus, Lorry, etc., Any individual, Hindu Undivided Family, Partnership Firm or any registered Company. A maximum amount of up to 85% of the invoice value for a new vehicle ex cluding vehicle Tax and Insurance, Permit etc. For body building charges up to 75% of the quotation furnished by the vehicle body builders, vehicles are to be purchased will be hypothecated andwould be required.The vehicle to be purchased will be hypothecated and equitable mortgage of property valued at not less than 50% of the loan amount, acceptable to the Bank. Liquid securities like NSC's , KVPs, LIC Policies with SV and Deposits equivalent to not less than 35% of the loan amount or more. On reducing balance method For Buses and Trucks a maximum repayment period of 84 months (including holiday period) is allowed, while for all other vehicles, it is 60 months of equated monthly installments. which are to be registered as Public Transport Vehicles only. For loans up to Rs.10 lakh: For loans over Rs.10 lakh: or third party solvent co-obligation / guarantee

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Multi Branch Banking Account Multi Branch Banking is a special facility that allows you to operate your Savings or Current Account in any city through a Network of branches other than the branch where you have your account. At present, this facility is available at 332 networked branches across the country covering 166 cities. This Multi Branch Banking account has many features including Cash Withdrawal up to Rs.1,00,000/-, Unlimited cash deposit, Transfer of funds, Collection of BSNL / MTNL Telephone bills at Goa, Bangalore and Mumbai, as well as CellOne bill payments all over Karnataka and Immediate credit of local / outstation cheques up to Rs.15,000* amongst others.

Scheme of the Product

Cash Withdrawal up to Rs. 100000/- per day and only for self cheques Unlimited Cash Deposit Balance Enquiry Transfer of Funds Remittances Issue of Pay order or Demand Draft

Empowered with anywhere banking for both deposits and withdrawals within the network. Instance remittance of funds across centers One can enjoy 7 days of banking No need to carry DD/Pay order Faster collection of cheques K Flexi option can be availed by Multi Branch banking account holder K Power facility with free Visa Debit International Card with credit facility up to Rs. 15000/-. Collection of BSNL Telephone Bills at Goa and Bangalore and Cellone Bills all over Karnataka.

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Multi City Cheques

All Multi Branch Banking Current account holders are eligible for Multi City Cheque (At par Cheque) facilities wherein the cheques repayable at centers mentioned on the reverse of the cheques book. On demand, the MBB account holders may be provided with specially designed Multi City Cheques with 16 digits account number specified on it. Money Pearl, Money Ruby, Money Sapphire and Money Diamond account holders are eligible for Multi City Cheque facility. Centers identified for payable at par are 106 in numbers at present Along with these services bank also provides Customer-centric value added products like :1. Multi Branch Banking 2. Multi City Cheques 3. Flexi term Deposits 4. ATM card linked with Credit Facility i.e., K-POWER 5. Collection of utility Bills 6. Visa International Debit Card 7. Internet Banking 8. Cash-Tech for Fast Collection of Cheques 9. Demat Accounting 10. Booking of Tickets of Railways & Airlines , Mobile top-Up Services 11. Donations To Temple & Undertaking distribution 12. Insurance tie Ups with Bajaj Allianz & Met-Life Insurance Bank has a network of nearly 400 branches & have 75 own ATMs .I t has 900 & Above ATMs sharings with Corporation bank . Karnataka bank Accounts Can be accessed at over 7500 ATMs under NFS & Cash Tree. Bank has also tied-up with Visa International which enables its card holder to access at over 9,45,000 ATMs & over 22 million POS Globally under the Visa Network.

The bank also avails locker facility the requirement for this service are that one should hold an SB a/c in the branch. The locker charge are to be paid on monthly basis based upon the size of the locker. The rent varies on its size from RS 550/- to RS 1500/-

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Share Capital structure as on 31-03-2006

--------------------------------------------------------------------------------------------------------------------------

Authorised Share Capital 15,00,00,000 Equity Shares of RS 10/- Each

150,00,00,000/-

Issued Capital 12,13,96,376 Equity Shares of RS 10/- Each

121,39,64,000/-

Subscribed Capital 12,12,76,898 Equity Shares of RS 10/- Each

121,27,69,000/-

Called-Up Capital 12,12,60,348 Equity shares of Rs 10/- Each + Forfeited Shares ------------------------------------------------------------

121,26,03,000/98,000/--------------------121,27,01,000/---------------------

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PRESS RELEASE

KARNATAKA BANK POSTS FIRST QUARTER PROFIT OF RS. 41 CRORES

Mangalore-based premier private Sector Bank, Karnataka Bank Limited has posted a net profit of Rs.41.03 crore for the first quarter ended June 06. The total business turnover of the Bank stands at Rs.20786 crore. On an year on year basis the deposits grew by 28.11% to reach Rs. 12984 crore from Rs.10136 crore and advances grew by 25.86% to touch Rs.7802 crore from Rs. 6199 crore. Compared to the first quarter of the previous year, the Gross income of the Bank rose from Rs.288.38 crore to Rs. 337.04 crore. The operating surplus rose from Rs.87.94 crore to Rs.94.58 crore. The net interest income rose from Rs. 90.crore to Rs. 101.73 crore.The capital adequacy ratio stands at 11.28% as against the RBI stipulation of 9% after taking into account the market risk as per Basel accord.The Bank which has 398 branches at 19 States and 2 Union Territories has plans to increase the number of branches to 415 during the year. The Bank plans to concentrate opening of branches in Northern and North Eastern part of the country at places like Silguri, Allahabad, Agra, Kanpur, Bilaspur, Bhopal, Jodhpur, Panipath, etc. during the current year. The ATM outlets will be increased to 125.The Bank has networked 328 offices under Core Banking Solution with business coverage of 96%.The Bank has envisaged to achieve a total business turnover of Rs.25,000 crore, comprising of deposit of Rs.15,000 crore and advances of Rs.10,000 crore for the year ending 31st March 2007. The Bank proposes to launch tie up with M/s Franklin Templeton Asset Management (I) Private Limited for distribution of their mutual fund products during 1st week of August 2006.

24

KARNATAKA BANK LIMITED

Regd. & Head Office: Mangalore 575002

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31.03.2006

Rs. in Crore AUDITED

Quarter ended 31.3.2006

Quarter ended 31.03.2005

Year ended 31.03.2006

Year ended 31.03.2005

Interest Earned (a+b+c+d) 1 270.88 206.72 1018.04 839.93

a)

Interest/Discount on advances/bills

167.53

111.43

614.70

459.20

b)

Income on Investments

95.21

84.98

372.25

356.82

c)

Interest on balances with Reserve Bank of India and other inter bank funds

7.53

6.54

31.06

20.10

d)

Others

0.61

3.77

0.03

3.81

2 TOTAL (1+2) Interest expended Operating expenses (e+f) Payments to and provisions for employees INCOME A 308.07 245.26 1184.84 1061.08

Other Income

37.19

38.54

166.80

221.15

169.79

123.09

652.07

523.04

41.47

52.03

204.48

197.33

e)

16.31

30.79

116.14

125.16

25

f)

Other operating expenses TOTAL EXPENDITURE (3+4) (Excluding provisions & Contingencies) OPERATING PROFIT (AB)(Profit before provisions & contingencies) Other Provisions & Contingencies Provisions for taxes NET PROFIT (C-DE) Paid up equity share capital Reserves excluding revaluation reserves Analytical Ratios Percentage shares held Government India of by of

25.16

21.24

88.34

72.17

211.26

175.12

856.55

720.37

96.81

70.14

328.29

340.71

20.24

-4.81

59.20

100.46

25.56

34.70

93.06

93.10

51.01

40.25

176.03

147.15

121.27

121.25

121.27

121.25

989.86

856.79

i)

Nil

Nil

Nil

Nil

ii)

iii)

Capital Adequacy Ratio (%) Earning per share (Rs) * Not Annualised @Weighted Average

11.78

14.16

11.78

14.16

4.21* @ @ @ @

8.09*

14.52

34.06

Aggregate of Nonpromoter Share holding -No of shares -Percentage of share holding

121260348 100% 100% 100% 100%

121240348

121260348

121240348

26

Notes: 1. The net profit for the year ended 31-03-2006 is arrived at after making necessary provision for taxes, NPAs, Standard Advances, Investments, Gratuity, Pension, etc. 2. The Board of Directors have recommended a dividend of 30% on the equity shares. 3. The Bank has identified two business segments viz Treasury and Banking operations and the Geographic Segments consist of the Domestic Segment only as the Bank does not have any foreign branch. The segment results are annexed. 4. Status of the shareholders complaints is as under: Complaints pending at the beginning of the quarter Nil Complaints received during the quarter 48 Complaints redressed during the quarter 48 Complaints redressed after the quarter Nil

5. Previous years figures have been regrouped/rearranged wherever necessary to conform to the current years classifications. 6. The Board of Directors have taken the above financial results for the year ended 31 March 2006 on record at their meeting held on 25th May 2006.
st

27

SEGMENTWISE RESULTS
PART A: BUSINESS SEGMENTS:

For the year ended 31.03.2006

RS .IN CRORES
Treasury Business Segment s Other Banking Operations Year ended Total

Year ended

Year ended

31.03.2006

31.03.2005

31.3.2006

31.3.2005

31.03.2006

31.03.2005

Particulars

Revenue

219.80

295.07

965.04

766.01

1184.84

1061.08

Result Unallocated expenses Profit before tax Income tax Extraordinary profit/loss Net profit

11.50

81.80

284.12

183.29

295.62

265.09

26.53

24.84

269.09

240.25

93.06

93.10

0.00

0.00

176.03

147.15

Other information Segments Assets Unallocated Assets Total Assets Segments Liabilities Unallocated Liabilities Total Liabilities

2616.02

2215.82

12194.97

10196.17

14810.99

12411.99

142.28

114.73

14953.27

12526.72

2546.32

2117.03

12102.48

10134.74

14648.80

12251.77

304.47

274.95

14953.27

12526.72

PART B: GEOGRAPHIC SEGMENTS: There is only Segment i.e. Domestic Segment

28

Continuous improvement.... Continuous improvement is the only business strategy that can provide you with a clear competitive edge and keep you ahead of the fierce competition. We understand the dynamics of competition in today's fast changing world. We understand the growth need of every business irrespective of the size. We offer a variety of carefully drafted tailor made Banking products to help your business get that edge in this competitive environment.

We provide Working Capital Finance, Term Loans and Infrastructure Finance to help your Business grow. With providing these type of finances to start an industry, to financing your working capital, we have Business Finance Products both fund based and non-fund based suited to all sectors of Industry.

Contact our nearest Branch and we shall be happy discuss how we can help you achieve more in your business.

In conformity with our endeavour to become a financial supermarket and to provide total financial solutions to our customers, we have diversified into the marketing of life insurance products of MetLife India Insurance Co. Pvt. Ltd, an affiliate of MetLife, the 136 year old, largest life insurance company in the USA. We offer a wide range of solutions to help you plan for your various financial needs like your children's education & wedding, your retirement, protection of your housing loan repayments, protection for your family etc. For further details, please click the link: www.metlifeindia.com We have also entered into a memorandum of understanding with Bajaj Allianz General Insurance Co. Ltd. (BAGICL) for distribution of their general insurance products through our branches. You can now get your assets insured against fire, burglary and a host of other eventualities. You can also cover yourself as well as your near and dear ones against the contingencies of accidental death, hospitalization etc. For further details, please click the link: www. bajajallianz.co.in At Karnataka Bank, we look at Insurance as a means to the total protection of your family and your assets.

29

DEPOSIT RATE OF INTEREST : 7 to 14 days -> Domestic - 4.50% , Senior Citizens - 4.50% ,*Single Deposit of Rs.1 Crore & Above - 4.50%| 15 days to 45 days -> Domestic - 4.50%, Senior Citizens - 4.50% ,*Single Deposit of Rs.1 Crore & Above 4.50% | 46 days to 90 days -> Domestic - 5.00%, Senior Citizens - 5.00% ,*Single Deposit of Rs.1 Crore & Above - 5.00% | 91 days to 179 days -> Domestic - 5.25%, Senior Citizens - 5.25% , *Single Deposit of Rs.1 Crore & Above - 5.25% | 180 days to less than 1 year -> Domestic - 5.50%, Senior Citizens - 5.50% , *Single Deposit of Rs.1 Crore & Above - 5.50% | 1 year to 3 years -> Domestic - 6.00%, Senior Citizens - 7.00% , *Single Deposit of Rs.1 Crore & Above - 5.75% | Above 3 years -> Domestic - 5.75%, Senior Citizens - 6.75% , *Single Deposit of Rs.1 Crore & Above - 5.75% Note: * For the Purpose of ceiling of Rs.1 crore ,all the deposits of one party/institution including Senior Citizens' made on a single day at all our branches shall be considered as single bulk deposit

30

The fastest way to receive money worldwide 1. Western Union Financial Services

Western Union Financial Services International has a legacy of public trust built through more than 150 years of extra ordinary continuous service. This international money transfer system facilitates quick, secure, reliable and convenient transfer of funds all over the world. Neither the sender nor the receiver has to have a Bank account with us and the receiver pays no fee. The person who remits you the money will fill in a prescribed form giving details of beneficiary and deposit the money along with the requisite service charges (fee) at its agent abroad. The remitter will give one Test Question and its answer for identification of beneficiary. The remitter then gets a receipt with Money Transfer Control Number (MTCN) which he will inform to you as the beneficiary of the transfer. The amount so deposited will be available to you within 10 seconds. You walk into any of the branches of our Bank offering this facility in India, fill in the form giving information available with you including MTCN, test question etc., along with proof of identification like ration card / driving licence / voter identity card/credit card etc. The paying branch will access the Western Union System for authorisation and make payment. Note: Available at Designated Money Transfer Branches 2. Real Time Gross Settlement ( RTGS ) System: RTGS is a payment system in which both processing and final settlement of fund transfer instructions take place on real time basis. It is a gross settlement system where fundtransfers are settled individually, i.e. without netting debits against credits. RTGS effects final settlement continuously and the settlements are immediate, final and irrevocable. Each Bank branch participating in the RTGS is identified by a unique Indian Financial System (IFSC) Code. to get the IFSC code for your Branch. With the advancement of the Technological changes in the Banking industry the RTGS introduction has become a boom in settling the Interbank funds instantaneously. The Customer can avail this facility and make instantaneous transfer of funds to beneficiary`s account Karnataka Bank became a member of Real Time Gross Settlement (RTGS) System from 16th July 2004 and has been settling Inter-Bank transactions in Mumbai since then.

31

Money Quick services can be accessed by customers which uses RTGS service This MONEY QUICK facility provides INTERBANK funds transfer. Minimum amount that can be transferred: The minimum amount for interbank funds transfer facility for customers under Money Quick is fixed at Rs. 50,000 (Rupees Fifty thousand only). Charges for transfer of funds: Service Charges equal to DD Commission for equivalent amount as per the existing circular plus Rs. 100. No concession in service charges is allowed, even though the Customer is enjoying concession in DD or any of the charges. TO BE READ AS Service charges for outward remittance is Rs. 2/- per thousand plus Rs. 100/- (fixed) with service tax (@12.24%) for the total amount. No concession in service charges is allowed, even though the customer is enjoying concession in DD or any of the charges. Service charges for inward receipt Rs. 100/- fixed + Service.tax @12.24%

32

Karnataka Bank Share Price From 20-7-2006 To 31-8-2006

Series Date Prev Close0 Open High Low Close Total Trd Qty Turnover in Lacs 133.82 EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ 31-Aug-2006 112.20 113.25 113.25 110.00 110.40 283793 316.28 30-Aug-2006 112.05 112.30 113.40 111.75 112.20 313891 352.62 29-Aug-2006 113.00 112.25 114.00 111.40 112.05 182523 206.43 28-Aug-2006 110.30 110.90 114.20 110.00 113.00 674639 761.36 25-Aug-2006 111.40 113.50 113.50 109.60 110.30 258840 287.40 24-Aug-2006 111.15 111.50 111.90 109.60 111.40 508464 561.87 23-Aug-2006 110.20 110.50 112.75 110.00 111.15 654605 729.44 22-Aug-2006 106.85 107.10 110.90 107.10 110.20 719452 790.96 21-Aug-2006 106.20 107.00 109.80 105.10 106.85 229994 246.36 18-Aug-2006 107.75 108.00 108.65 105.40 106.20 242157 257.75 17-Aug-2006 105.55 106.00 108.50 103.70 107.75 670871 712.36 16-Aug-2006 103.10 104.50 106.95 104.00 105.55 454386 479.07 14-Aug-2006 100.15 100.90 103.90 100.90 103.10 393414 404.98 11-Aug-2006 98.40 98.75 102.50 98.75 100.15 345664 347.49 10-Aug-2006 98.75 99.00 99.90 96.55 98.40 98415 97.00 09-Aug-2006 97.60 95.10 99.50 95.05 98.75 159092 157.12 08-Aug-2006 94.70 95.50 98.25 95.50 97.60 135832 132.46 07-Aug-2006 96.20 96.00 96.95 94.10 94.70 214018 203.31 04-Aug-2006 98.40 99.40 99.40 95.50 96.20 425248 412.51 03-Aug-2006 97.95 99.20 99.85 97.70 98.40 397612 393.98 02-Aug-2006 95.20 96.50 99.30 95.25 97.95 761798 741.39 01-Aug-2006 95.00 93.05 95.95 93.05 95.20 186815 177.62 31-Jul-2006 95.10 96.00 96.25 94.75 95.00 252282 240.06 28-Jul-2006 95.40 96.90 98.00 94.50 95.10 415694 399.00 27-Jul-2006 92.20 92.95 96.50 92.00 95.40 822730 778.60 26-Jul-2006 90.65 91.10 92.90 90.00 92.20 419873 384.10 25-Jul-2006 86.10 87.00 93.25 87.00 90.65 772375 698.19 24-Jul-2006 81.40 81.80 87.10 81.80 86.10 420931 359.08 21-Jul-2006 82.55 81.50 82.50 80.70 81.40 65643 53.35

EQ

20-Jul-2006

80.25

81.25

83.90

81.25

82.55

161610

33

Risk Categorization of Customers by the Bank

The Bank Categorizes its Customer into Three Level :1. High-Risk Customers 2. Medium-Risk Customers 3. Low-Risk Customers They are Broadly defined below 1. High Risk Customers:The High-Risk Customers are Classified Below A. Trusts, Charities, NGOs , Organizations receiving Donations B. Companies having Family Share holdings/ Beneficial Ownership C. Firms with Sleeping Partners D. Accounts Under Foreign Contribution & Regulation Act E. PEPs of Foreign Origin F. Clients Accounts opened by Professional Intermediaries G. Those with Dubious Reputation as per public Information available H. Accounts of non Face-to-face I. Non Resident customers residing in high risk rated countries J. Persons Engaged in certain Professions where money Laundering possibilities are high Eg:- Antique dealers , Money Service , ETC.. K. Customers whose annual Turnover is Above Rs.50lakhs

Medium Risk Customers Following are the customers who comes under into this categoty A. Customers whose annual Turnover is Above 10lakhs & upto 50lakhs B. Non Resident Customers residing in Medium Risk rated Countries

Low Risk Customers Following are the customers who comes under this category A. Salaried persons, Government Owned Companies, Regulatory & Statutory bodies B. Customer Whose annual turnover is upto RS 10lakhs C. All others not included under above two categories

34

BRANCH PROFILE
The KARNATAKA Bank branch at CHITRADURGA is one of the oldest branch. It is opened on 30-12-1964. The branch has completed 42 successful years. The branch has 4000 Deposit accounts having total of 17.22crores 5700 savings bank accounts having total of 5.38crores 250 current accounts having total of 2.42crores 50 MBB accounts having total of 0.75crores The branch also provides loans for various purposes , 400 Term loan account worth Rs. 2.72crores 14 overdraft account worth Rs. 3.25crores 95 demand loan account worth Rs. 0.95crores The branch has also involved in money transfer. It has transfered 2,10,37,106.74 Rs. Through Western Union Money Transef.

The branch position as on 08-08-2006 Total Deposits 25,89,04,487.21 Total Inter bank Deposits ---------------------(current account+ SB account + term deposit) Total advance 13,35,48,127.67 Total income Total expenditure Net profit Total turnover 57,15,329.50 -41,26,394.46 15,88,935.04 39,24,52,614.88

The branch also issues bonds like Abyudaya cash certificate (Re-Investment plan) present rate is 8 % Normal Fixed Deposit Present rate is 8% Cumulative Deposit (Monthly at fixed amount 8%)The interest is calculated cumulatively

Gold Mortgage :

35

The bank also undertakes the Gold Mortgage. The person who want to mortgage the Gold to the bank should have an account in the branch where he want to mortgage it. The banker then sends the Gold Ornaments to its Gold Appraisal who values it. Then the bank will give 75% of the valued amount or RS 450/- per gram whichever is less. After the valuation of its Quality the bankers pays the amount to the account holder. And after paying the amount and gold is found ungenuine the appraisal has to make good for it from his pocket. The Party has to sign few documents and has to sign a Bond Paper of required amount of the appropriate amount. The amount will be calculated @ 5 % on the valued amount.

What happens if party fails to pay the sum ? In case if the party fails to pay the amount & take back its securities . The bank will then give notice to them before the due date . even after receiving the notice and parties doesnt respond to it , then the bank will sell off the securities through the auction & the notice regarding Auction should be given in the Newspaper . Bank will then auction the securities & amount from auction should be used to set-off the securities value & if it is found that money is excess than the securities the excess amount will be paid to the Party .

DISPLAY OF ITEMS & MAINTANENCE OF RECORDS AS PER RBI 1. Display of copy of RBI license 2. Display of time norms of various types of transactions 3. Display of notice of banking ombudsman scheme-2002 36

4. 5. 6. 7.

Display of minimum balance requirement in SB & CA Display of latest balance sheet & profit or loss account of bank Display of weekly holiday, working & business hours Display of trilingual brouchers/pamphlets containing customer useful information 8. Display of changes in interest rates 9. Display of changes in service charges 10. Display of holiday list 11. Display of loss of token 12. Display of notice of facility of exchange of foiled/ mutilated notes 13. Display of notice of Auction sale of securities / fixed assets 14. Display of registration & enrollment certificate under respective state governments 15. Display of notices covering strike by employees 16. Display of termination of appointments of employees 17. Provision of compliant / suggestion box along with slips 18. Having counter ENQUIRY or MAY I HELP YOU? 19. Follow clean note policy of RBI 20. Provision of cheque drop box facility & facility for acknowledgement of cheque at regular collection center 21. Issue of cheque books on request only to depositor / his authorized representative 22. Maintenance of form D register under equal remuneration act 23. Display of notice of issuing receipt to the tenderor for the forged notes detected in case so tendered 24. Display of statement in table F u/s 223 of companies act 1956 25. Display of bankers fair practice code 26. Display of deposit policy of bank 27. Implementation of GOIPORIA committee recommendations 28. Conduct of periodical customer meet 29. Implementation of KYC norms

KNOW YOUR CUSTOMER The concept of Know Your Customer is introduced to avoid the dangers of Operational, Legal & Reputation risks involved, including the consequential losses arising out of banking operations by adhering to the various systems & procedures laid down for Opening & conduct of bank accounts

37

The Know Your Customer (KYC) guidelines go beyond merely establishing the identity of the person & satisfying about his credentials by obtaining an introductory reference from a known person KYC guidelines are applicable to all types of accounts including Borrower accounts . the responsibility of the bank doesnt end with the opening of account & monitoring the transactions during few initial months after opening of an account but goes throughout the life of the account

Objectives of KYC 1. 2. 3. 4. 5. 6. 7. 8. To obtain protection U/S 131 of Negotiable Instrument Act To minimize frauds To check misappropriations To weed out undesirable customers To prevent Money Laundering To minimize risk on account of any inadvertent Overdrafts To satisfy that the proposed customer is not an undischarged insolvent To avoid opening of accounts with fictitious names & addresses

FAIR PRACTICE CODE FOR LENDERS The working group of lenders liability laws constituted by the government of India recommended for the introduction of FAIR PRACTICE CODE for lenders.

38

Reserve Bank of India in consultation with government, selected banks & financial institutions has examined the feasibility of introducing the fair practice code for lenders. Reserve Bank of India has finalized the guidelines & advised Banks & financial institutions to adopt the broad guidelines & frame the fair practice code duly approved by their Board of Directors. To fall in line with Reserve Bank of India guidelines the bank has evolved Fair practice code approved by Board of Directors.

Guidelines 1. Application for loans & processing 2. Loan appraisal & terms & conditions 3. Disbursement of loans & changes in terms & conditions 4. Post disbursement supervision 5. General

Dispute Resolution 1. The respective regional heads are empowered to dispose off disputes in regard to sanction of loans & advances coming under powers of branch heads 2. In regard to sanction coming under power of regional heads , deciding authority shall be respective deputy general manager/ general manager 3. In regard to sanctions coming under power of deputy general manager at head office. General manager shall be deciding authority 4. In respect of sanctions coming under the power of general manager, chief general manager, EC, Board, chairman shall be deciding authority

MONEY LAUNDERING It is estimated that the size of Money Laundering Worldwide through the balancing channel is more tan 500 US Billion dollars to 1 million Dollars annually. A record estimate has projected that Worldwide. Money Laundering not only economically destabilizes a country but also exposes it to the terrorist attacks threatening its integrity and sovereignity.

39

It conceals the huge illegal profits generated by unscrupulous organized criminal group in various fields. The culture of these group is criminogenic and are regulatory resistant. The speed & ease of modern electronic finance have contributed a lot to the growth of this crime. The emerging technologies associated with stored value smart cards , digital cash & electronic commerce will pose on unprecedented challenge to regulators generally & law enforcement

What is Money Laundering ? Illegal Money Money Laundering refers to Conversion/ Laundering of money which is illegally obtained so as to make it appear to originate from a legitimate source. It is Invested/ transfer of money flowing from racketeering , drug transaction& illegal sources into legitimate channels so that its original source cannot be traced. Multiple Transactions Money Laundering generally involves a series of Multiple transactions used to disguise a source of financial assets. So that these assets may be used without compromise the criminals who are seeking to use the funds. These transactions fall into 3 stages - Placement - Layering - Integration

Objectives of Money Laundering Concealing the true Ownership of illegally obtained money through placement, layering & integration of such funds Financing cross-border terrorism

40

Disposal of Proceedings of Crime Cash deposits in fictitious names Bogus trading Smurfing Purchase of bank drafts, Payorders, bankers cheques Etc Use of Banks Loans Benami Transactions Stock Exchange operations Real Estate Transactions Use of Lottery tickets Use of Gold, Precious stones Etc Hawala operations Import & export transactions

Across the world , Banks have become a major target of Money Laundering Operations & Financial crime because they provide a variety of services & instruments that can be used to conceal the source of money. Banks & Financial Institutions are liable for Prosecution if their employees become involved in Money Laundering Activity. At the Same time , norms for record keeping , reporting account opening & transactions monitoring are being introduced by the central banks across the globe for checking incidence of Money Laundering.

41

Preventive Measures Account Opening. Monitoring of transctions. Operation under Dormat accounts. Collection of Cheques / Demand drafts Etc Compliance with provision of law. Technology Related services.

Cash
Cash may be handled by a single cash clerk/ more, depending on the necessity . When there is more than 1 cash clerk , responsibility of single lock cash box & transfer from & to the double lock cash closing of cash & writing of cash register will be entrusted to anyone of them. Closing of cash Cash clerk entrusted with the responsibility of writing the cash register & holding single lock cash box key The particulars are to be labeled & signed packets of notes & cash should be entered in cash register.

42

The cashier should make good any shortage in cash on the same day & if excess found it should be credited on the sundry liabilities suspense account , by preparing a slip.

Clearing
There are different types of clearing . Each type of clearing is governed by the guidelines issued by RBI / Concerned authorities from time to time, regarding the mode of conduct of clearing , admission of bank branches , minimum amount of instrument , accounting procedures , returning of unpaid instruments , number of clearing per day Etc. Clearing consists of two parts: The cheque drawn on clearing house member banks , received for collection & presented by bank to other banks are OUTWARD CLEARING CHEQUE. Cheques drawn on the bank & presented by other clearing house member banks at the clearing house are INWARD CLEARING CHEQUES. 43

Bills for Collection

Bills for collection handled by the banks are of two types - Inward bills: Inward bills are those which are received by bank branch for collection from outstation parties or branches/ other outstation banks & drawn on parties residing within the area of its operation/ local parties. - Outward bills Outward bills are those which are drawn on outstation parties & tendered by local parties / banks for collection.

44

Safe Deposit Lockers & Safe Custody of Articles

Safe Deposit Lockers : - Introduction - Letting Out Lockers - Operation of Lockers - Renewal / Termination of agreement - Collection of rent - Loss of Key - Miscellaneous

Safe Custody of Articles : Introduction Accepting Articles for Safe Custody Accepting Securities for Safe Custody & Collection of Interest Withdrawal Returning Articles by Post Delivery of an article to an agent 45

Issue of Duplicate Receipt Miscellaneous

BANKS FAIR PRACTICE CODE Introduction: As directed by the Reserve Bank of India, the bank has adopted Fair Practice Code for Lenders as approved by the Board of Directors.
GUIDELINES: 1. APPLICATIONS FOR LOANS AND THEIR PROCESSING Loan application forms in respect of priority sector advances up to Rs.2.00 lakhs will include all information about the fees/charges, if any payable for processing, prepayment options. All loan applications will be acknowledged and time schedule within which loan application up to Rs.2.00 lakhs will be disposed off will be indicated in the acknowledgement of such applications The loan applications will be verified within 7 days of receipt and will intimate the borrower the additional details/documents required if any, immediately. In the case of borrowers seeking loans up to Rs.2.00 lakhs, the Bank will convey in writing the main reason/reasons for rejecting of the loan application within 15 days of receipt of completed application

46

2.

LOAN

APPRAISAL

AND

TERMS

AND

CONDITIONS

Bank ensures that there is proper assessment of credit application of borrowers The bank will convey to the borrower the sanctioned credit limit along with the terms and conditions with due acceptance of the borrowers Terms and conditions and other covenants governing the credit facilities given by the Bank shall be arrived after negotiation and shall be reduced in writing. A copy of the loan agreement with copy of each of all enclosures quoted thereof will be furnished to the borrowersCredit facilities are considered solely at the discretion of the Bank and the Bank does not have any obligations to approve/disapprove the facilities, allow drawings beyond the sanctioned limits, honouring cheques issued for the purpose other than specifically agreed to in the credit sanction, disallowing drawings for non compliance of terms and conditions of sanctions, or its classification of the facility into non-performing asset. Further, the Bank does not have any obligation to meet further requirements of the borrower on account of growth in business without proper review and overall view of credit limits and its utilisation. In the case of Lending under consortium arrangement, the participating member Banks shall evolve procedures to complete appraisal of proposals in the time bound manner to the extent feasible, and communicate their decisions within a reasonable time.

3.DISBURSEMENT OF LOANS INCLUDING CHANGES IN TERMS AND CONDITIONS

The Bank will ensure timely disbursement of loan sanctioned in conformity with the terms and conditions governing such sanction. The Bank will give notice of any change in the terms and conditions including interest rates and charges are effected only prospectively.

4. POST DISBURSEMENT SUPERVISION

Post disbursement supervision by the Bank particularly in respect of loans up to Rs.2.00 lakhs will be constructive with a view to taking care of any "lenderrelated" genuine difficulty that the borrower may face The Bank will give notice of a reasonable period to the borrower if the Bank decides to recall/ accelerate payment or performance under the agreement or seeking additional securities The bank will release all securities on receiving payment of loan subject to any legitimate right or lien for any other claims by the bank may have against borrowers.If such right of set off is to be exercised, borrowers shall be given notice about the

47

same with full particulars about the remaining claims and the documents under which the bank is entitled to retain the securities till the relevant claim is settled/paid.

Cheque Collection Policy :

Immediate Credit of Local / outstation cheques : Bank will accord immediate credit in respect of outstation cheques up to a specified limit ( presently up to Rs.15000/=) subject to certain conditions as advised by RBI from time to time. Time frame for collection of local /outstation instruments : At present , for collection of outstation cheques in the four metropolitan centers having MICR cheque clearing system , in respect of state capitals & centers with more than 100 bank offices , is 7 days under the National clearing Scheme , and in the case of local cheques , is 2nd or 3 rd working day depending on the distance of the branch from the clearing house. Interest payment for delayed collection : Bank will pay interest for delayed credit of outstation cheques as per RBI rules and regulations. Interest will be paid at the rate as applicable for appropriate tenor of fixed deposit for the period of delay beyond 10 / 14 days in collection of outstation instruments. Further , Bank will pay penal interest at the rate of 2 % above the fixed deposit rate applicable for abnormal delay ( i.e. delay of more than 90 days beyond the normal collection period) caused by the branch in collection of outstation instruments. In respect of cheques lost in transit or in the clearing process or at the paying bank`s branch, the bank should immediately bring the same to the notice of the account holder so that account holder can inform the drawer to record stop payment and can also take

48

care that other cheques issued by him are not dishonoured due to non-credit of the amount of the lost cheques / instruments. The onus of such loss lies with the collecting banker and not the account holder. The banks should reimburse the account holder related expenses for obtaining duplicate instruments and also interest for reasonable delays occurred in obtaining the same. If the cheque / instrument has been lost at the paying bank`s branch, the collecting banker should have a right to recover the amount reimbursed to the customer for the loss of the cheque / instrument from the paying banker

II. TO RESOLVE ANY DISPUTES ARISING IN THIS REGARD:

Respective Regional Heads are empowered to dispose off disputes in regard to sanction of loans and advances coming under the powers of Branch Heads. In regard to sanctions coming under the powers of Regional Heads, deciding authority shall be respective Deputy General Managers. In regard to sanctions coming under the powers of Deputy General Managers, General Manager shall be the deciding authority In respect of sanctions coming under the power of General Managers, Chief General Managers, EC / Board, Chairman shall be the deciding authority.

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FAIR PRACTICE CODE FOR COLLECTION OF DUES AND REPOSSISSION OF SECURITY Preamble:
Fair Practice Code for collection of Dues and Repossession of Security (CDRS code), is a non-statutory code adopted for implementation by the Bank with immediate effect on voluntary basis

Applicability :
This code will be applicable with immediate effect on the declaration to the Public at large by putting up a notice on the notice board at all the offices of the Bank and also hosting it in Banks website

Objective :
1) Adoption of fair practices which are legal, ethical and just especially with regard to collection of dues and repossession of security. 2) Fostering customer confidence and long-term relationship

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Guidelines on Dues Collection Policy:

1. Bank will always maintain dignity and respect to its customers. 2. Bank will not follow unduly coercive methods in collection of dues. 3. Courtesy, fair-treatment and persuasion will be the guiding principle in collection of dues.

Guidelines on Security Repossession Policy:

1. Assets Hypothecated/Mortgaged to the bank may be repossessed only with an aim at recovery of banks dues in the event of default and is not aimed at whimsical deprivation of the assets.
2.

The policy guidelines recognizes fairness and transparency in repossession, valuation and realization of security.

General Guidelines :
Members of the staff or any person authorized to represent our bank in collection of dues and /or security repossession will follow the following guidelines: 1. Customer would be contacted ordinarily at the place of his choice and in the absence of any specified place at the place of his residence in the case of retail customers and in the place of business or residence as the case may be in the case of other customers 2. Identity and authority to represent would be made known to the customer at the first instance 3. 4. Customer privacy would be respected Interaction with the customer would be in acceptable business language

5. Customer calling time would be between 0700 hrs and 1900 hrs, unless the special circumstances of the borrowers business or occupation demands otherwise 6. Customer requests to avoid calls at a particular time or at a particular place would be honoured unless and until it is found that such requests are not genuine and in the intention of avoiding the calls.

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7.

Gist of the discussions with date and place would be documented.

8. Customer would be provided with all the information regarding dues and necessary notice would be given for enabling discharge of dues 9. Reasonable notice would be given to resolve disputes or differences in a mutually acceptable and in an ordinary manner, if any as regards dues 10. During visits to customers place for dues collection, decency and decorum would be maintained 11. Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls/visits to collect due

12.

Demeanor that would suggest criminal intimidation or threat of violence would be scrupulously avoided

Grievance Redressal :
1. Complaints for redressal may be made to any of our Branches / Regional office or directly to the Head Office 2. All such letters shall be addressed to the Chief Manager, Vigilance Department, Karnataka Bank Limited, Head Office, Mangalore 02. 3. Complaints can be handed over to the Branch / Regional Office for onward delivery to the Vigilance Department. 4. All complaints will be duly acknowledged by the receiving Branches / ROs.

5. Receiver of the complaint shall immediately forward the same to the Chief Manager, Vigilance Department, with his/her remarks/comments/clarifications. 6. The Vigilance Department will keep a record of all such complaints received and will follow it up until disposed as per the extant guidelines in place. 7. Responses to your complaint whether positive or negative or requiring more time for redressal would be given within a maximum period of 4 weeks from the date of

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complaint unless the nature of the complaint is such that it requires verification of voluminous facts and figures

FAIR PRACTICE CODE FOR DEBIT CARD OPERATIONS:About this code

This is a voluntary Code. The purpose of this Code is to have a benchmark service standard in our dealings while issuing and dealing in Debit Cards and will guide our staff in dealing with our customers. The code is expected to help the Debit Card holder customers in knowing their rights and also measures they should take to protect their interests. We propose to place this code on our web site and make copies available to our customers on demand. 1.2 Though a voluntary document, adoption of this Code is expected to promote customer confidence in our Debit Card product/s and bring about better understanding between the Bank and its Customers and thereby encourage achievement of higher operating/service standards to benefit our customers.of brevity and clarity, in this Code: a) "Debit Card" shall mean and denote the Debit Card Issued by the Karnataka Bank Ltd either independently or in association with any othe. like Visa International etc. b) "We" "us" "our" "Bank" shall mean and denote the Karnataka Bank Ltd;

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c) "You" shall mean and denote the Customer/s of the Karnataka Bank Ltd. who hold or have applied for Karnataka Banks Debit Card d) "Code" means and shall denote "The Fair Practice Code for Debit Card Operations" - being these covenants; e) "Tariff" / "Charges" / "Fee/s" / "Interest" or "Commission" shall mean and denote only those Tariff/Charges/Fee/s/Interest or Commission prescribed by the Karnataka Bank ltd. and it will be independent of and will not include the Tariff/Charges/Fee/s whatsoever that may be charged or levied by other Acquirer Host for using their site/network and which charges will be passed on to our customers in addition to our charges. All such charges will be levied and debited to the account of the Debit Card Holder Customers account. 1.4 1.5 The standards of the Code shall be governed by the four key commitments detailed in section 2 written hereunder. Unless stated otherwise, all parts of this Code apply to all the Debit card products and services, whether we provide them across the counter, over the phone, on the internet or by any other method. Commitments outlined in this Code are applicable under normal operating environment. In the event of force majeure, (i.e. under circumstances beyond our control) we may not be able to fulfill the commitments detailed under this Code.

1.6

Key commitments:We promise to: 2.1 Act fairly and reasonably in all our dealings with you by:

meeting the commitments and standards in this Code, for the products and services we offer, and in the procedures and practices our staff/ agents follow

making sure our products and services meet relevant laws and regulations ensuring that our dealings with you will rest on principles of integrity and transparency

Not engaging in any unlawful or unethical consumer practice. 2.2 Help you to understand how our Debit card products and services work by giving you the following information in a simple language:

what are the benefits to you how you can avail of the benefits

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 what are their financial implications whom you can contact for addressing your queries and how 2.3 Deal quickly and effectively with your queries and complaints by:

offering channels for you to route your queries listening to you patiently accepting our mistakes, if any correcting mistakes / implementing changes to address your queries communicating our response to you promptly telling you how to take your compliant forward if you are not satisfied with the response 2.4 Publicize this code, by making it available for public access on our website and make copies available for you on request

3. Information (To help you to choose products and services, which meet your needs 3.1
Before you become a Debit card customer, we will:

give you information explaining the key features of our Debit card products including applicable fees and charges advise you what information / documentation we need from you to enable us to issue Debit card to you. We will also, advise you what documentation we need from you with respect to your identity, address, employment etc., and any other document that may be stipulated by statutory authorities (e.g. PAN details), in order to comply with legal and regulatory requirements. While you apply for Debit card, we will explain the relevant terms and conditions such as fees and charges, renewal and termination procedures and any other information that you may require with regards to the Debit Card/s and its operations. 3.2 We will advise you of the turn around time that may be required by us to respond to you while you are availing/applying for a service.

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3.3 We will make available to you a service guide/brochure/booklet giving detailed terms and conditions, fees and charges applicable and other relevant information with respect to the usage of your Debit card along with your first Debit card. 3.4 We will advise you our contact details such as contact telephone numbers, postal address, website, e-mail address to enable you to contact us whenever you need to. 3.5 If you do not recognize a transaction which appears on your Bank account statement on account of usage of Debit card, we will try to provide you more details on such transaction, if you ask us. However, we may need you to give us confirmation or evidence that you have not authorized such a transaction. 3.6 We will inform you, through our service guide/brochure/booklet of the losses on your account that you may be liable if your card is lost / misused.

4. Tariff (Fees/Charges etc.): You may ascertain our charges/fee etc. by:
Referring to the service guide / booklet / Branch Notice Board Calling up on customer service numbers Visiting our website; or Asking our designated staff

4.2 When you become our Debit Card holder customer, and if you apply for and if you are sanctioned with our "K-power" overdrawing facility, we will provide you information on the "K-Power" facility and the maximum extent to which you may overdraw your account, how and when you have to repay or regularize such over drawings and the interest rates applicable on your over drawings and we will charge the same interest for over drawings in your account. 4.3 If you ask us, we will also explain how we apply interest to you account

Changes in our tariff

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4.4 When we change/revise our tariff on our Debit card products, we will update the information on our telephone help-line / website. 4.5 As regards the charges/fees etc. of any of acquirer host for using their network, we expect you to independently enquire and ascertain, from time to time, the Charges/Fee/s etc. whatsoever that may be charged or levied by other Acquirer Host on your using their network. However, we also will try to update you on such charges.

Marketing Ethics Field Personnel

Debit Cards are normally issued by us through our staff working at respective Branches. However, in case we engage any sales/marketing representatives such representatives will identify themselves when they approach you for selling our card products. In the event of receipt of any compliant from you that our representative/s has/have engaged in any improper conduct, we shall take appropriate steps to redress your compliant.

Telemarketing
If our staff / agents contact you over phone for selling any of our Debit card products or with any cross sell offer, the caller will identify himself / herself and advise you that he / she is calling on our behalf. Please note that such phone calls, if any, will be restricted to provide you products information or to convey you more about ourselves and we request you not to divulge or converse on any confidential information related to your account and Debit Card.

Issuance of Debit Card / PIN

6.1 Our Debit Cards are delivered to you personally by our Officials at the branch where you have submitted your application for the Debit Card. Officials from our branch which maintains your account and where you have submitted application for Debit Card may also visit your place at the address provided by you and deliver the Debit Card to you. 6.2 Debit Cards are issued in deactivated (not ready to use) mode and after issuing the Debit Card to you the card needs to be activated in the system which will be done within a reasonable time. You can start using the Debit Card only after the Card is activated. 6.3 We expect you to read the `User Manual and strictly follow all the safety measures required to be followed by you as regards safety of the Debit Card and security aspect regarding its operation

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Account Operations Debit card statements

7.1 All your purchases and cash withdrawals using the Debit Card will be debited to your account instantly and your Bank account statement/pass book will contain all your transactions using the Debit Card. However, on some very rare occasions due to certain exceptional delayed responses owing to switch or connectivity related problems, debits representing your transactions using the Debit Card may not occur instantly but with some delay. We advise you to obtain your Bank account statements/pass books at regular intervals and peruse the same. As and when we launch Internet Banking facility, you may also avail of the same and you may access your account online and, inter alia, check details of your purchases / cash drawings using the Debit card. 7.2 We will let you know / notify changes in schedule of fees and charges and terms and conditions through our web site and/or displaying it on the Notice Boards at our Branches. Normally, changes (other than interest rates and those which are a result of regulatory requirements) will be made with prospective effect giving notice of at least 15 days.

Protecting your Debit Card/account 7.3 We will advise you what you can do to protect your Debit card from misuse. This information is normally available in the `User Manual. 7.4 In the event your Debit card has been lost or stolen, we will, on your duly notifying us, take immediate steps and try to deactivate the card to prevent it from being misused, subject to operating regulations and laws in force.

Processing activities at our end

7.5 We may allow processing of Debit cards related activities including operations and cross selling to third party agencies that we consider appropriate for these purposes.

Confidentiality of Account Details

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8.1 We will treat all your personal information as private and confidential. We will not reveal transaction details of your accounts to any third party, including other entities, if any, in our group, except in the following four exceptional circumstances; if we have to give the information by law if there is a duty towards the public to reveal the information if our interests require us to give the information (for example, to prevent fraud) but we will not use this as a reason for giving information about you or your accounts (including your name and address) to anyone else, including any other companies, if any, in our group, for marketing purposes.

if you ask us to reveal the information, or if we have your permission to provide such information to our group / associate / entities or companies when we have tieup arrangements for providing other financial service products.

Redressal of your complaints internally

We have our `Customer Care Centre at Bangalore with a toll free telephone line. You will seek redressal of your grievances, if any, first from our Customer Care Center. If you are not happy about the outcome, you are requested to post your suggestion/complaint to our Deputy General Manager, P&D, Head Office, Mahaveera Circle, Mangalore - 575002

Banking Ombudsman Services

If you do not get a satisfactory response from us within 60 days of lodging a compliant, and you wish to pursue other avenues for redressal of your grievances, you may approach Banking Ombudsman appointed by Reserve Bank of India under Banking Ombudsman Scheme 2002.

Termination of Debit Card 59

11.1 You may terminate your Debit card by giving notice to us and by following the procedure laid down by us in our service guide / member booklet after clearing outstanding dues, if any. 11.2 We may terminate your Debit card, if in our opinion, you are in breach of the Cardholder Agreement

Feedback and Suggestions

Please help us to serve you better by providing feedback on our services. Your suggestions will help us to improve our services

SWOT ANALYSIS
STRENGTH
ITS MAJOR STRENGTH IS ITS LOYAL CUSTOMERS. IT HAS AROUND 22MILLION POS AND AROUND 9,45,000 ATMS (OWN AND ON SHARING BASIS) AND 420 BRANCHES. IT ENJOYS GOOD REPUTATION AND HAS BUILD GOODWILL AROUND THE STATE AND NOW IT IS MAKING ITS PRESENCE IN NATIONAL SCENARIO. TIMINGS OF THE IS VERY CONVENIENT TO THECUSTOMERS FOR AVAILING THEIR SERVICES. THE MANAGEMENT HAS EFFECTIVE MAN POWER IN THE BRANCH THE BRANCH IS FULLY COMPUTERISED, WHICH HELPS IT TO PROVIDE QUICK SERVICES AND NO DELAY IN TRANSACTIONS. THE LOCATION OF THE BRANCH IS SO CONVENIENT AND IT IS IN THE CENTER OF THE CITY.

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 THE ATM IS LOCATED JUST OPPOSITE TO THE BRANCH WHICH ENABLES 24 HOUR SERVICE TO CUSTOMER FOR WITHDRAWALS. OTHER THAN BANKING SERVICES IT ALSO PROVIDES VARIOUS SERVICES LIKE ONLINE RAILWAY/AIRLINES TICKET BOOKINGS,CYBER KID BANKING,MBB A/C FACILITY ETC/ THE PROCEDURES FOR PERFORMING ANY TRANSACTION I THE BANK IS VERY CONVENIENT THE BRANCH IS FOLLOWING RBIS GUIDELINES FOR MAINTANENCE AND DISPLAY OF RECORDS

WEAKNESS
LACK OF BASIC INFRASTRUCTURE IMPROPER TRAINING FACILITY TO EMPLOYEES FOR HANDLING THE COMPUTRES, WHICH CREATES DELAY IN TRANSACTIONS. ATMs ARE NOT SETUP AT ALL PLACES. BRANCHES ARE FEWER IN NUMBER COMPARED TO NATIONAL BANKS

OPPORTUNITIES: BASIC INFRASTRUCTURE CAN BE IMPROVED AND CUSTOMERS CAN BE EASILY ATTRACTED

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 PROPER TRAINING CAN BE GIVEN TO THE EMPLOYEES WHICH HELPS IN QUICKER TRANSACTION HAS TO OPEN MORE AND MORE BRANCHES AT METROPOLITIAN AND OTHER CAPITALS AND MAJOR TOWNS AT VARIOUS PLACES

THREATS: FROM VARIOUS INTERNATIONAL BANKS SUCH AS HDFC,HSBC, ABN AMRO AND NATIONAL BANKS FROM FOREIGN BANKS PROVIDING ONLINE TRANSACTIONS LOOSING POTENTIAL CUSTOMERS BECAUSE OF COMPETITIVE INTEREST RATES BY OTHER BANKS

SUGGESTIONS/RECOMMENDATIONS
KARNATAKA BANK HAS AROUND 415 BRANCHES AND 125 OWN ATMs. ON SHARING BASIS WITH VARIOUS BANKS IT HAS AROUND 901 ATMs. HOWEVER BASED ON ANALYSIS FOLLOWING SUGGESTIONS CAN BE CONSIDERED. THE ROLE TO EACH EMPLOYEE SHOULD BE SPECIFIED SO THAT HE CAN PERFORM IT BETTER. THE TRAINING TO THE EMPLOYEES SOULD BE GIVEN ON REGULAR BASIS. ALL BRANCHES HAS TO BE COMPUTERISED SO TRANSACTIONS CAN BE QUICK.

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BIBILOGRAPHY

WEBSITE:WWW.KARNATAKABANKLTD.COM WWW.KTKBNKLTD.COM WWW.YAHOO.COM WWW.WESTERNUNION.COM WWW.GOOGLE.COM WWW.NSEINDIA.COM WWW.BSEINDIA.COM

BOOKS:-

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BANKS BEST PRACTICE CODE BANKS BROUCHERS KARNATAKA BANKS ANNUAL REPORT

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