Karnataka Gramin Bank Report 2

“KARNATAKA GRAMIN BANK”
CHAPTER – 1
INTRUDUCTION ABOUT ORGANIZATION AND INDUSTRY
CHAPTER – 1
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INTRODUCTION ABOUT THE ORGANISATION AND INDUSTRY
1.1Introduction:
KARNATAKA GRAMINA BANK
Karnataka Gramin Bank, headquartered in Ballari under the sponsorship of Canara Bank, was
established on April 1, 2019. Pragathi Krishna Gramin Bank, also sponsored by Canara Bank
with its headquarters in Ballari, and Kaveri Gramin Bank, sponsored by State Bank of India with
its headquarters in Mysuru, are affiliated banks.
The description of the nature of business is a structured method outlining the type of business
and its activities. It serves as a synthesis of the business's focus, emphasizing the problems it
addresses and everything it undertakes to achieve its goals.
The bank offers free SMS alerts for all transactions, requiring customers to provide a mobile
phone number for activation. Additionally, the bank has a reward program in collaboration with a
loyalty rewards program, providing points for purchases above Rs 100. Each reward point is
valued at Rs 0.25. A dedicated website, www.karnatakagraminbank.com, facilitates the
registration, viewing, and redemption of accumulated reward points under the 'Maxgetmore'
Program.
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The bank ensures zero lost card liability. In the event of a lost or mutilated credit card, it is
replaced free of cost, provided the cardholder reports the loss to the bank in writing. The
cardholder is responsible for charges incurred on the card before reporting its loss.
1.2 Industry Profile:
A bank, a financial institution offering various services, serves as a business providing

fundamental banking services like deposit acceptance and loan disbursement. Non-banking
institutions also offer some banking services. The Indian banking system, a vital component of
the financial services sector, must adapt to technological advancements and other influences.
The organized banking industry operates within the financial system, offering services such as
lending, deposit collection, and various customer services. Banks have evolved to provide a
range of alternatives, including credit, lending, and payment services. Despite changes and
collaborations in the finance sector, banks continue their primary role of receiving deposits and
disbursing funds.
Banking is an integral part of daily life, touching various aspects of work, business, home,
school, and travel. The banking system has evolved from simple transactions to complex global
commerce. Banks, acting as intermediaries, facilitate smooth transactions, track money, make
payments, and collect profits.
Former Bank of England director Josiah Stamp commented on the financial system's
transformative nature, emphasizing the manufacturing of money. The banking sector has
undergone innovation and diversification, expanding into industries like mutual funds, leasing,
factoring, credit cards, and merchant banking.
The well-developed banking system comprises various classes of banks, including the RBI as the
system's fountainhead, public sector banks, private sector banks (old and new generation),
foreign banks, and regional banks and co-operative banks.
Significance of Logo:
The logo signifies prosperity with leaves representing agriculture and a clear environment.
Diverging leaves symbolize the bank's expanding base and growing support for agriculture. The
circle formed represents wholeness and inclusive growth. Blue color represents trust, loyalty,
integrity, and responsibility, while yellow signifies optimism, success, confidence, youthfulness,
and fresh energy.
Motto:
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"Vishwasada Pratheeka" - Symbol for
Logo of Karnataka Gramin Bank
Objectives:
 Provide banking facilities to underprivileged individuals.

 Eradicate exploitation by money lenders.
 Generate small enterprise opportunities for the unemployed.
 Inculcate a comprehensible and operable organizational format for disadvantaged
individuals, offering social, political, and economic strength through mutual support.
 Reverse the traditional cycle of 'low income, low savings, low investment, low
income' to establish an expanding system of 'low income, credit, increased income,
more credit, heightened investment, and further income.'
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Chapter: 2
ORGANIZATION PROFILE
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Chapter – 2
Organization Profile
21. Background:
1. Regional Rural Banks (RRBs) in India were established by the Government of India under the
RRBs Act of 1976, enacted by the Indian Parliament.
2. The primary objective of RRBs is to contribute to the development of the rural economy by
fulfilling basic banking needs for the advancement of agriculture, trade, commerce, industry, and
other productive activities in rural areas. These banks focus on providing credit and other
facilities, particularly to small and marginal farmers, agricultural laborers, artisans, and small
entrepreneurs.
3. RRBs have evolved to become an integral part of the Indian banking system, akin to other
public sector banks, established by the Government of India and scheduled and notified by the
Reserve Bank of India (RBI).
4. The ownership structure of RRBs involves the Government of India (GOI), the Sponsor Bank,
and the respective State Government, with shares distributed at 50%, 35%, and 15%,
respectively.
5. To enhance the operational viability and efficiency of RRBs, the Government of India initiated
a process of structural consolidation by amalgamating RRBs. The amalgamated RRBs were
expected to enhance customer service, improve infrastructure, expand their area of operation,
leverage improved technology, and strengthen their combined workforce.
6. Karnataka Gramin Bank, headquartered in Ballari under the sponsorship of Canara Bank,
came into existence on April 1, 2019, through the amalgamation of two RRBs: Pragathi Krishna
Gramin Bank (sponsored by Canara Bank) and Kaveri Gramin Bank (sponsored by State Bank of
India).
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2.2 Nature of Business:

 The nature of business is a structured method describing the type of business and its
activities, highlighting the specific problems it solves, and encompassing all aspects that
contribute to reaching its goals.
 The bank provides free SMS alerts for all transactions, requiring customers to provide a
mobile phone number for activation.
 A reward program is in place, offering points for purchases of Rs 100 and above. The bank
has tie-ups with a loyalty rewards program, allowing customers to register and redeem points
through a dedicated website.
 The bank offers zero lost card liability, replacing lost or mutilated credit cards free of charge
for transactions exceeding Rs 2000, provided the loss is reported promptly.
 Accident insurance is provided to cardholders, covering both the cardholder and spouse
against the risk of death due to accidents, with the coverage being utilized to offset
outstanding balances on the credit card.
 The bank provides card protection in case of loss, restricting liability to Rs 1000 from the
time of reporting the loss to the bank.
2.3 Vision and Mission, Quality Policy:

Vision:
"Our vision is to be a progressive, prosperous, and well-governed bank."
Mission:
"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."
Quality Policies:
 Customer compensation policy
 Customer grievances redressal policy
 Customer rights policy
 Deposit policy
 KYC policy
 DIGI ka GB privacy policy and terms & conditions.
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2.4 WORK FLOW MODEL
KARNATAKA RESERVE BANK

GRAMIN OF INDIA
BANK
Savings and
Deposit
money
DEPOSIT OR SAVINGS LOAN ACCOUNT

ACCOUNT HOLDERS
2.5 Products and Services:
a. Products:
1. Current Account
2. Savings Account
3. Bank Safe Locker
4. Nithya Nidhi - New Deposit
5. Deferred Payment
6. Tax-Savings Escrow
7. Farmland Deposit
8. Consumer Loan Deposit
9. Rate of Interest System
10. Fees for Commission and Services
b. Services:
Bank Loans:
1. Salary Loans
2. Udyam Loans
3. Vehicle Loan (Four-Wheeler Loan)
4. Vyapar Loan
5. Housing Loan
6. Mortgage Loan
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7. Special Gold Loan

8. Education Loan
9. Value Secures Loans
2.6 OWNERSHIP PATTERN
Name of director Destination

• Sri. Shreenath H joshi Chairman, Karnataka gramine
bank
• Sri. A. muralikrishna General manager
• Smt.k.a sindhu General manager pc wing
• Sri. Sandeep dharkar Deputy general manager
• Shri Santosh Trivedi Assistant general manager
• Sri. Mohammed ikramulia shariff, IAS Deputy secretary
2.7 AWARDS AND AACHIEVEMENTS
• NPA cash recovery category-3 ON 6-07-2017

• First price for advances disbursement category-3 on 6-07-2017
• First price for outstanding growth over on march 2017
• Half year ending September 2017 first price for reduction of NPA maintaining nil NPA
category-3
2.8 Future Growth and Prospects:
• Extend banking services to underprivileged individuals.

• Eliminate exploitation by money lenders.
• Create opportunities for unemployed individuals to establish small enterprises.
• Incorporate disadvantaged people into an organizational structure that they can
comprehend, utilize, and derive social, political, and financial strength through mutual
cooperation.
• Transform the persistent cycle of poverty into a progressive system, evolving from "low
income, credit, increased income, more credit, heightened investment, and further
income."
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CHAPTER - 3
MCKINSEY’S 7S FRAMEWORK
Chapter – 3
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McKinsey’s framework
3.1 Introduction to McKinsey’s framework
The McKinsey 7-S Model provides a framework for organizational transformation based on
organizational design. This model focuses on seven crucial elements—structure, strategy,
system, shared values, skills, style, and staff—to illustrate how leaders can effectively manage
change within an organization.
The model emphasizes the interconnectedness of these elements, highlighting that any change
in one factor creates a cascading effect, necessitating adjustments to maintain effective balance.
The central emphasis on shared values underscores the significant impact of a strong change
culture on all other factors that drive organizational transformation.
Furthermore, the McKinsey 7-S Framework categorizes these elements into two main groups:
hard and soft elements. Hard elements are easily identifiable and influenced by leadership and
management, while soft elements are intangible and influenced by the organization's culture.
1. STRUCTURE
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Meaning: Structure defines how an organization is organized, how activities are divided, and the
reporting relationships. It outlines the components of the administration and their interactions.
A. Inter-Departmental Coordination:
Grameen Bank employs a sophisticated structure to facilitate communication between managers
and staff at all levels. This structured communication system ensures efficient information flow,
preventing any compromise of organizational tasks due to lack or miscommunication.
Departmental collaboration is well-planned, and cross-departmental teams are formed for
projects requiring diverse skills.
B. Internal Team Dynamics [Department Specific]:
Grameen Bank encourages group collaboration and teamwork. While individual tasks are
assigned when needed, employees are expected to work well as a team, aligning with the
organization's values and strategy to achieve larger goals.
2. System:
Meaning: System involves the formal and informal procedures that generate organizational
vitality year by year. This includes capital planning, budgeting, performance measurement,
resource allocations, and management information systems.
A. Organizational Systems in Place:
Grameen Bank has established specific mechanisms for efficient management of business
activities. These departmental systems cover areas such as financial management, strategic
leadership, public relations, sales, operations, marketing, and supply chain management.
B. Monitoring and Evaluating Controls:
The bank employs controls to assess the performance of each defined system and ensure goal
achievement. Formal performance reviews are conducted regularly, enabling managers to
identify performance gaps and provide suggestions for improvement.
3. Style:
Meaning: Grameen Bank operates as a public area banking and monetary management
organization.
A. Management/Leadership Style:
A participative leadership approach is utilized at Grameen Bank, involving workers in
managerial decisions and decision-making processes. This style enhances organizational
participation and ownership among staff and stakeholders.
B. Effectiveness of Leadership Style:
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The participative leadership style contributes significantly to realizing the organization's strategic
goals. Employees feel valued for their ideas, viewpoints, and contributions, and leaders can
promptly address current and potential issues within the organization.
4. Staff:
Meaning: Staff refers to hiring, positioning, and overseeing personnel within the organization.
This is where the provided text ends. If you have more sections or information, you'd like
rephrased, please provide it.
executives 86
Officers under MMG 914
Officer under JMG 1996
Officer assistant
1737
(multipurpose)
Office attendant 278
5. SKLLS
Meaning: Skill refers to the characteristic competencies of staff or the entire group,
representing the core capabilities of the workforce. It identifies the specific areas in which an
employee excels.
A. Employee Skills:
Grameen Bank is staffed with exceptionally skilled employees selected based on qualifications
and merit. The bank prioritizes the recruitment and development of top professionals to foster
growth and progress.
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B. Employee Skills vs. Task Requirements:
Employees at Grameen Bank are recruited and trained according to their skill levels, aligning
with the established duties and job positions. The organization ensures that all employment
requirements are met, and employees possess the necessary skills and knowledge to perform
their duties in accordance with the company's values, culture, operational goals, and business
plan.
6. Shared Value:
Meaning: Shared value encompasses the norms and rules followed within an organization that
establish a social standard in society. These values include the mission, vision, objectives of the
organization, and the behavior and ethical values of the workers. While not explicitly
documented, these values are understood by the employees.
The values of the organization include:
1. Honesty
2. Trust
3. Customer satisfaction
4. Commitments
5. Respect for individuals
7. Strategy:
Meaning: Strategy involves planning to increase profits by attracting customers. It is a tool

used by every bank to achieve success in the market.
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A. Market Cooperation with Partners:
Grameen Bank seeks collaborators to achieve its goals through cooperation. The objective is to
associate with businesses that can help attract new clients, fostering partnerships to benefit both
parties.
B. Tap into New Markets:
Cooperative marketing assists Grameen Bank in building new relationships and exploring new
markets, such as targeting young individuals opening bank accounts or addressing the demand
for loans for homeowners. This approach is considered one of the most effective methods for
marketing banks.
3.2 PORTER’S 5 FORCE MODEL
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I. Threat of New Entrants:
Despite the regulatory and capital requirements for establishing a new bank, data from the FDIC
reveals that, on average, 215 new banks opened annually between 1977 and 2002. The perceived
threat of new entrants appears serious, but this is mitigated by the fact that, on average, about
253 banks leave the market each year due to mergers and failures. The primary barrier to entry
for new banks is trust, as customers tend to trust established, larger banks with their financial
information. The consolidation trend in the industry, where major banks aim to fulfill all
financial needs under one roof, further emphasizes the importance of trust as a significant barrier
for new entrants.
II. Power of Suppliers:
Capital is a crucial resource for banks, primarily derived from four main sources, with additional
sources contributing to a lesser extent. These include client remittance, mortgages and loans,
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institutional loans, and mortgage-backed securities. The power of suppliers, ranging between
medium and high, is heavily influenced by market dynamics.
III. Power of Buyers:
Despite individual consumers posing a limited threat to the banking industry, their power is
impacted by high switching costs. Switching banks can be inconvenient for those relying on one
bank for various financial needs. The internet has increased consumer power, reducing the cost
of account management and making it easier for clients to compare rates offered by different
banks.
IV. Availability of Substitutes:
The primary threats of substitution in the banking industry come from non-financial competitors
rather than rival banks. Non-banking businesses offer various services, including insurance,
mutual funds, and fixed-income securities. Alternative payment options and loans with relatively
high interest rates also pose a threat. Reputable vendors of "large ticket" items often provide
financing at lower interest rates than traditional banks.
V. Competitive Rivalry:
The banking industry is considered highly competitive, with nearly all potential customers
already using banking services. Banks compete to attract clients from rival institutions by
offering better benefits, higher rates, improved investment services, and more competitive
financing costs. Ongoing competition has led to lower Return on Assets (ROA), and further
consolidation in the industry is anticipated, with major banks often choosing mergers or
acquisitions over increased marketing investment.
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CHAPTER - 4
SWOT ANALYSIS
Chapter – 4
SWOT Analysis
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4.1 Introduction about SWOT Analysis
The SWOT analysis, developed at Stanford in the 1970s, is a widely-used strategic

planning method that considers an organization's Strengths, Weaknesses, Opportunities, and
Threats. It is a systematic approach to planning that helps organizations maximize strengths,
address weaknesses, seize opportunities, and mitigate threats. This analysis assists management
in understanding both internal and external factors influencing the organization's success,
allowing for effective planning and management.
Before embarking on a project, it is crucial to assess the current state. Conducting a SWOT
analysis enables startups to analyze internal and external factors such as opportunities,
possibilities, flaws, and risks to steer in the right direction.
1. Strengths:
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Meaning: Strengths are internal factors that give an organization a competitive edge. For
Karnataka Gramin Bank:
 Extensive Rural Presence: The bank's strong network in rural areas supports financial
inclusion and serves the agricultural community.
 Government Support: As a regional rural bank, it benefits from government policies and
initiatives promoting rural development and agriculture.
 Diverse Product Portfolio: The bank offers a wide range of financial products and
services, meeting the diverse needs of its customer base.
 Experienced Workforce: Karnataka Gramin Bank has a skilled and experienced
workforce contributing to effective customer service and operational efficiency.
2. Weaknesses:
Meaning: Weaknesses are internal factors that negatively impact an organization's success. For
 Limited Urban Presence: Serving urban customers may pose challenges due to the
bank's predominantly rural focus.
 Technological Lag: Potential weaknesses in technological infrastructure might hinder
the bank's ability to keep pace with modern banking trends.
 Dependency on Agro-based Economy: Relying on the agricultural sector makes the
bank susceptible to economic fluctuations and climatic conditions.
 Competition from Larger Banks: Intense competition from larger, technologically
advanced banks in the financial sector is a potential weakness.
3. Opportunities:
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Meaning: Opportunities are favorable external factors providing a competitive advantage. For
 Digital Transformation: Embracing digital technologies can enhance customer

experience and streamline operations.
 Collaboration with Fintech: Partnerships with fintech companies can offer innovative
solutions and expand the range of services.
 Economic Growth in Karnataka: Overall economic growth in the state presents
opportunities for increased lending and financial services.
 Government Schemes: Participation in government schemes for rural development can
open avenues to serve the target market effectively.
4. Threats:
Meaning: Threats are external factors that could negatively impact an organization. For
 Economic Downturn: Economic uncertainties can impact customer financial stability,

leading to higher loan default rates.
 Regulatory Changes: Changes in banking regulations or government policies may pose
challenges in compliance and operational adjustments.
 Cybersecurity Risks: Increasing reliance on digital channels exposes the bank to
cybersecurity threats compromising sensitive information.
 Intense Competition: The competitive nature of the banking industry, especially from
larger banks, may pose challenges for market share and customer retention.
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CHAPTER – 5
ANALYSIS OF FINANCIAL STATEMENTS
Chapter – 5
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Analysis of Financial statement
5.1. Introduction:
Analyzing a company's financial data is crucial for making decisions that contribute to future
financial success. Financial statements, encompassing an income statement, balance sheet,
statement of cash flows, notes to accounts, and, if applicable, a statement of changes in equity,
serve as key sources for this analysis. Financial statement analysis is a methodical process used
to evaluate a company's risks, performance, financial health, and future prospects.
Tools of Financial Analysis:

Several tools and techniques facilitate financial analysis. These include:
1. Comparative Statement:
Comparative statements offer a side-by-side comparison of financial data over different
periods, revealing trends and changes.
2. Common Size Statement:

Common size statements express each line item as a percentage of a base item, providing a
standardized view of financial information.
3. Trend Analysis:
Trend analysis involves examining financial data over multiple periods to identify patterns and
trends, aiding in forecasting and decision-making.
4. Ratio Analysis:
Ratio analysis involves establishing quantitative relations between two numbers, commonly
used by external analysts to compare the financial performance of two companies. It helps
manage assets and liabilities, with the goal of understanding areas requiring attention.
5. Cash Flow Statement:

The cash flow statement outlines the inflows and outflows of cash over a specific period,
providing insights into a company's liquidity and financial flexibility.
1.2 Balance sheet of Karnataka Gramin Bank
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particulars 2020 2021 2022 2023

Liability
Capital 1176382 1176382 1176382 1176382
Reserves 19392869 19533320 20007996 20083591
Deposit 284353932 310683549 317879104 339051505
Borrowings 367036781 49538813 50764639 55000999
Other liability and provision 12133301 10511639 10283745 14257408
TOTAL 353760112 391443703 400111866 429569885
ASSETS
Cash & balance with RBI 9592882 11996131 13492136 18465309
Balance with banks & money 47650720 23749314 19303644 22883256
at call & short notice
Investments 81153585 123023310 130802267 119277712
Advances 205581543 223653506 226440774 257312729
Fixed assets 842152 837198 957870 1030382
Other assets 8939230 8184244 9115175 10600497
TOTAL 353760112 391443703 400111866 429569885
Contingent liability 1656363 1769322 2231796 2731580

Bills for collection 231963 354766 384651 318184
1.3 Profit and loss account for 4 years of Karnataka Gramin Bank
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Particulars 2020 2021 2022 2023

Income:
Interest earned 28737147 29801349 31032842 32472848
Other income 3595866 4981548 5570713 4767783
TOTAL 32333013 34782897 366603555 37240631
Expenditure
Interest expended 16981802 16997453 16354622 17295963

Operating expenses 8041387 10553365 11655068 11867460
TOTAL 25023189 27550818 28009690 29163423
Provisions & contingencies 6050668 6763976 8512765 8148262
TOTAL expenditure 0 34314793 36522455 37311685
Net profit before tax 1259156 468103 81100 (71054)
Add: deferred tax 765 0 544225 15920
Less: tax areas paid 0 0 37636 148391
Less: provision for income 1073816 3276652 113013 0
tax for the year
Net profit/loss after 186105 140451 474676 75595
Amount withdrawn from 0 0 0 0
IFR
Profit after tax available 186105 140451 474676 75595
for appropriation
Appropriations:
Statutory reserve 37221 28090 94935 15119
Capital reserve 0 0 0 14436
Reserve for long term 140000 80000 100000 30000
finance
Investment fluctuation 0 0 100000 0
reserve
General reserve 0 28090 94935 15119
Balance of profit carried 8884 4271 84806 921
over to balance sheet
TOTAL 186105 140451 474676 75595
Ratio Analysis
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Ratio analysis is a statistical technique employed to examine a company's balance sheet and
income statement, providing insights into its liquidity, productivity, and profitability. This
method is foundational in conducting fundamental equities research.
Ratios are presented as either decimal values, such as 0.10, or equivalent percentage values, for
instance, 10%. The representation may vary; for example, earning yield is typically expressed as
a percentage, while ratios like the price-to-earnings (P/E) ratio, often exceeding 1, are usually
presented as decimal numbers. The latter category of ratios is also referred to as multiples.
1) Current ratio:
If a corporation has enough resources to meet its short-term obligations, it can do so by using a
liquidity ratio called the current ratio. Following is a comparison of a company's current assets
and liabilities.
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= CURRENT ASSETS / CURRENT LIABILITY
Table: 5.5 Current ratio

year Current assets Current liability Current ratio
2020 272603527 651390713 0.41
2021 268420393 360222362 0.74
2022 269309599 368643374 0.73
2023 75038345 101306608 0.74
Graph: 1
Current ratio
Current ratio
0.8 0.74 0.73 0.74
0.7
0.6
0.5 0.41
0.4
0.3
0.2
0.1
0
2020 2021 2022 2023
Interpretation:
In 2020, current assets were modest, but in 2023 and 2021, they increased by 0.23 times the
amount of current liabilities. That ratio was greater at the end of 2021 and 2023 than it was at
the end of 2020, showing a slight improvement in the present ratio.
The current ratio of around is quite positive for a company. It suggests that the business has
enough cash on hand to pay off its debt, but that not all of it is invested in current assets and
could be used to purchase new assets. A business that is having trouble paying off its debt may
have a low current ratio. It might be necessary to come up with more cash or postpone paying
creditors. However, a ratio of under
2) Quick ratio:
The quick ratio, commonly referred to as the acid-test ratio, assesses a company's capacity to
promptly settle or retire its current liabilities using its readily available cash or fast assets.
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It is defined as the ratio of current liabilities to liquid or easily transferrable assets. Supposedly
current, quick assets can be quickly converted to cash at a price close to their worth.
= QA/CL
Table :5.6 Quick ratio
Year Quick assets Current liability Quick ratio

2020 340382864 353760112 0.96
2021 377440713 391443703 0.96
2022 384468108 400111866 0.80
2023 104978662 109889999 0.95
Graph: 2
Quick ratio
1
0.96 0.96
0.95
0.95
0.9
0.85
0.8
0.8
0.75
0.7
2020 2021 2022 2023
Quick ratio
Interpretation:
The firm maintains the right ratio, so even though the company's liquid position changes from
year to year, it is still good. The maximum liquid ratio (0.96) and lowest liquid ratio (0.22)
were in the years 2020–21 and 2022, respectively (0.81
3) Total asset turnover ratio
By comparing the company's net sales to its total assets, the asset turnover ratio assesses a
company's capacity to generate revenue from its assets. It is determined by dividing net
revenues by the typical company's total assets. In other words, it seeks to ascertain the volume
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of sales generated by each rupee of average assets by analyzing sales as a percentage of

average assets.
= NS/TA
Table: 5.7 Asset turnover ratio
year Net sales Total asset TATR

2020 413876449 353760112 1.1
2021 412520876 391443703 1.0
2022 468103418 400111866 1.1
2023 440394867 429569885 1.0
Graph: 3
TATR
1.12
1.1 1.1
1.1
1.08
1.06
1.04
1.02
1 1
1
0.98
0.96
0.94
2020 2021 2022 2023
TATR
Interpretation:
The company's asset turnover ratio is subpar. The company must turn its assets over more
often. The Karnataka Gramin Bank had the highest stock turnover ratio in the year 2020 &
2022 is 1.1, while the lowest stock turnover ratio of the sector was recorded in the years 2021
& 2023 is 1.If the asset turnover ratio is more then and equal to 1, it is good for the business,
and if it is greater than 1, that is always excellent for the business.
4) Return on assets ratio
A financial ratio known as return on assets (ROA) measures a company's success in relation to
its total assets. Investors, analysts, and corporate management can use ROA to judge how
effectively a company uses its resources to turn a profit. The metric is typically expressed as a
percentage using the net income and average assets of a corporation. A company that manages
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its balance sheet more effectively and efficiently to generate profits will have a higher ROA,
whereas one with a lower ROA will need to make improvements.
A measure of a company's profitability in relation to its total assets is called return on assets.
Management, analysts, and investors can use ROA to assess how effectively a company uses
its resources to make a profit.
= NP/ TA
Table: 5.8 return on assets ratio
year Net profits Total assets Return on assets

ratio
2020 186105 353760112 0.0005
2021 140451 391443703 0.0003
2022 474676 400111866 0.0011
2023 75595 429569885 0.0001
Graph: 4
Return on assets ratio

0.0012 0.0011
0.001
0.0008
0.0006 0.0005
0.0004 0.0003
0.0002 0.0001
0
2020 2021 2022 2023
Return on assets ratio
Interpretation:
The higher the return on assets ratio, the better the company is performing since higher ratio imply
that the company is generating less revenue but here at the year 2022 the ratio will be 0.0011 and
in the year 2020 was 0.0005 and 2021was 0.0003,2023 was 0.0001 ratio is varying year by year.
5) Net profit ratio

The net profit ratio, sometimes referred to as the net profit margin ratio, measures the amount
of revenue received by the business in relation to its earnings. In other words, the net profit
margin ratio demonstrates the relationship between a company's net profit after taxes and net
sales.
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Its percentage expression reflects the fact that it is a profitability ratio. When used in
conjunction with a working capital analysis, the net profit ratio is regarded as a credible
predictor of a company's overall success.
(Net Profit / Net Sales) x 100 = Net Profit Ratio.
Table: 5.9 Net profit ratio
year Net profit Net sales Net profit ratio

2020 186105 413876449 0.044
2021 140451 412520876 0.034
2022 474676 468103418 0.101
2023 75595 440394867 0.017
Graph: 5
Net profit ratio

0.12
0.101
0.1
0.08
0.06
0.044
0.04 0.034
0.017
0.02
0
2020 2021 2022 2023
Net profit ratio
Interpretation:
The company asset turnover ratio is not good. The company should improve the net profit ratio
the highest net profit ratio of Karnataka Gramin bank is recorded in the year 2022which was
0.101 and lowest stock turnover ratio of industry is recorded in the year 2023 which was 0.017.
6) Debt-to-equity ratio
The debt-to-equity ratio, also known as the debt-equity ratio, is a financial metric used to
assess a company's utilization of financial leverage. This ratio takes into account both the
equity held by shareholders and the company's obligations, providing insights into the
31 | P a g e
company's capital structure.Expressed as a ratio, the debt-to-equity ratio is calculated by

dividing the company's total liabilities by its shareholders' equity.
Debt-to-equity ratio = total liabilities / total shareholder’s equity

Table: 5.10 debt-to-equity ratio
year Total liabilities Total shareholder’s Debt-to-equity

equity ratio
2020 353760112 19578974 18.06
2021 391443704 19673771 19.89
2022 400111866 18894321 21.17
2023 429569885 63377839 6.77
Graph: 6
Debt-to-equity ratio
25
21.17
19.89
20 18.06
15
10
6.77
5
0
2020 2021 2022 2023
Debt-to-equity ratio
Interpretation:
The company's debt-to-equity ratio was 21.17 in 2023, the highest year on record, and 6.77 in
2019, the lowest year on record. The debt-to-equity ratio varies from year to year. A business
should raise its equity.
7) Return on capital employed ratio

The financial indicator known as "return on capital employed," or ROCE, is used to evaluate a
company's capacity to produce profits by utilizing its capital structure. In other words, ROCE
is a measurement of how effectively and efficiently a business is able to turn each dollar of
capital into net operating profit.
Since it examines the profitability compared to both equity and debt, ROCE is praised as one
of the better measures of a company's return. Additionally, it is used to contrast businesses with
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comparable sizes and operations in the same sector. Please keep in mind that businesses with
significant cash reserves incorporate that cash as part of the capital used in the computation.
Table: 5.11 ratio of return on capital employed
year EBIT Capital employed Return on capital

employed ratio
2020 323330.13 23442.87 13.79
2021 347828.97 33475.66 10.39
2022 366603.55 19390.35 18.95
2023 372406.31 32195.26 11.56
Graph:7
Return on capital employed ratio

20
18
16
14
12
10
8
6
4
2
0
2020 2021 2022 2023
Return on capital employed ratio
Interpretation:
The company asset turnover ratio is not good. The company should improve the return on equity
ratio the highest return on capital employed ratio of Karnataka Gramin bank is recorded in the
year 2022 which was 18.95 and lowest return on capital employed ratio of industry is recorded in
the year 2021 which was 10.39.
8) Return on equity ratio
The rate of return on investment for holders of common stock in a firm is precisely calculated
using the return on equity ratio. A company's ability to generate returns on the investments
made by its owners is measured by its return on equity.
The rate of return on investment for holders of common stock in a firm is precisely calculated
using the return on equity ratio. A company's ability to generate returns on the investments
made by its owners is measured by its return on equity.
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Profit after Tax (PAT) / Shareholders' Fund * 100 equals the return on equity ratio.
Table: 5.12 return on equity ratio
Year Profit after tax Shareholders ’fund Return on equity

(PAT) ratio
2020 186105 15575.03 11.94
2021 140451 11829.21 11.87
2022 474676 9931.20 47.79
2023 75595.0 18785.72 4.02
Graph:8
Return on equity ratio

60
50 47.79
40
30
20
11.94 11.87
10 4.02
0
2020 2021 2022 2023
Return on equity ratio
Interpretation:
The year 2022 saw the company's return on equity ratio reach a peak of 47.79, while the year
2023 saw the company's return on equity ratio fall to 4.02. The debt-to-equity ratio varies from
year to year. A business should raise its equity.
34 | P a g e
9) Earnings yield ratio:
The earnings yield is derived by dividing the share's current market price by the earnings per
share for the most recent 12-month period. The earnings yield, which is the inverse of the P/E
ratio, shows how much an organization's earnings are allocated to each share of its stock.
Earnings yield is used by investors to spot assets that seem to be undervalued or overvalued,
and by many investment managers to determine the best asset allocations. Earnings yield =
EPS / stock price
Table: 5.13 earnings yield ratio
year EPS Stock price Earnings yield ratio

2020 100.00 1203.74 0.08
2021 95.00 653.2 0.14
2022 78.00 1483.39 0.05
2023 46.00 400.66 0.12
Graph:9
Earnings yield ratio

0.16
0.14
0.14
0.12
0.12
0.1
0.08
0.08
0.06 0.05
0.04
0.02
0
2020 2021 2022 2023
Earnings yield ratio
Interpretation:
The highest earning yield ratio of the company is recorded in the year 2021 which was 0.14
and lowest earning yield ratio of the company is recorded in the year 2022 which was 0.05 The
debt equity ratio is fluctuating year by year. A company should increase the firm's equity
35 | P a g e
10) Proprietary ratio
A proprietary ratio can be used to determine whether a company's capital structure is stable as
well as to show that a company builds its assets through the issuance of a significant number of
equity shares as opposed to borrowing money from external sources.
In the event of liquidation, it also specifies how much will be paid to stockholders.
Proprietary ratio = proprietors fund / total assets
Table: 5.14 proprietary ratio
year Proprietors fund Total assets Proprietary ratio

2020 1878572 353760112 0.005
2021 1557503 391443703 0.003
2022 1182921 400111866 0.002
2023 9931230 429569885 0.023
Graph: 10
Proprietary ratio
0.025 0.023
0.02
0.015
0.01
0.005
0.005 0.003
0.002
0
2020 2021 2022 2023
Proprietary ratio
Interpretation:
The proprietary ratio for the company is poor. The business has to raise its return on equity ratio.
The year 2023 saw the highest return on proprietary ratio of Karnataka Gramin Bank, which was
0.023, and the lowest return on proprietary ratio of the industry, which was 0.002.
36 | P a g e
CHAPTER – 6
LEARNNING EXPERIENCE
37 | P a g e
CHAPTER - 6
6.1 LEARNING EXPERIENCE
Learning is a continuous process, providing us with knowledge about various topics. During the
preparation of this organizational study report, my focus was on understanding the intricate
workflow model implemented in banks. This involved a deep dive into comprehending how the
organizational structure is crafted within the specific industry and the significance of the
departmental structure.
One key revelation pertained to the notable contrast between the financial statements discussed
in the classroom and those encountered in actual companies. The practical application of
financial statements in a corporate environment differs significantly from the theoretical
concepts taught in academic settings. Real-life company situations are diverse, ranging widely
and presenting unique challenges from one scenario to another.
It became evident that the organizational structure and workflow models are not one-size-fits-all;
they vary based on industry, company size, and specific organizational goals. Understanding the
intricacies of these structures is crucial for effective decision-making and operational efficiency
within a company
My project guide played a pivotal role in providing me with a comprehensive overview of
organizational studies. The insights shared during this guidance were instrumental in bridging
the gap between theoretical knowledge and its practical application in the dynamic corporate
landscape.
In addition to grasping the theoretical foundations, I gained hands-on experience in analyzing

and interpreting financial statements. The financial reports of a company unfold a dynamic
narrative of its fiscal health, operational efficiency, and strategic direction. This firsthand
exposure has equipped me with a practical understanding of financial analysis, enabling me to
discern the nuances of corporate finance beyond the classroom setting.
As I delved into the organization study, I also recognized the importance of adaptability and
agility in navigating real-life corporate scenarios. The ability to apply theoretical knowledge to
diverse and evolving situations is a skill that evolves through practical exposure and continuous
learning.
38 | P a g e
BIBLIOGRAPHY
• http://www.researchgate.net/
• www.geeksforgeeks.org
• http://www.uniassignment.com/
• http://www.coursehero.com/
• http://www.investopedia.com/
• http://www.fabshopnet.com/
• http://www.mcvicar.ca/
39 | P a g e

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“KARNATAKA GRAMIN BANK”

INTRODUCTION ABOUT THE ORGANISATION AND INDUSTRY

KARNATAKA GRAMINA BANK

1.2 Industry Profile:

A bank, a financial institution offering various services, serves as a business providing

"Vishwasada Pratheeka" - Symbol for

Logo of Karnataka Gramin Bank

 Provide banking facilities to underprivileged individuals.

2.2 Nature of Business:

2.3 Vision and Mission, Quality Policy:

2.4 WORK FLOW MODEL

KARNATAKA RESERVE BANK

DEPOSIT OR SAVINGS LOAN ACCOUNT

2.5 Products and Services:

7. Special Gold Loan

2.6 OWNERSHIP PATTERN

Name of director Destination

• Smt.k.a sindhu General manager pc wing

• Sri. Sandeep dharkar Deputy general manager

• Shri Santosh Trivedi Assistant general manager

• Sri. Mohammed ikramulia shariff, IAS Deputy secretary

2.7 AWARDS AND AACHIEVEMENTS

• NPA cash recovery category-3 ON 6-07-2017

2.8 Future Growth and Prospects:

• Extend banking services to underprivileged individuals.

3.1 Introduction to McKinsey’s framework

Officers under MMG 914

Officer under JMG 1996

Office attendant 278

B. Employee Skills vs. Task Requirements:

The values of the organization include:

5. Respect for individuals

Meaning: Strategy involves planning to increase profits by attracting customers. It is a tool

A. Market Cooperation with Partners:

B. Tap into New Markets:

3.2 PORTER’S 5 FORCE MODEL

I. Threat of New Entrants:

II. Power of Suppliers:

III. Power of Buyers:

IV. Availability of Substitutes:

4.1 Introduction about SWOT Analysis

The SWOT analysis, developed at Stanford in the 1970s, is a widely-used strategic

 Digital Transformation: Embracing digital technologies can enhance customer

 Economic Downturn: Economic uncertainties can impact customer financial stability,

ANALYSIS OF FINANCIAL STATEMENTS

Analysis of Financial statement

Tools of Financial Analysis:

2. Common Size Statement:

5. Cash Flow Statement:

1.2 Balance sheet of Karnataka Gramin Bank

particulars 2020 2021 2022 2023

Contingent liability 1656363 1769322 2231796 2731580

Particulars 2020 2021 2022 2023

Interest expended 16981802 16997453 16354622 17295963

= CURRENT ASSETS / CURRENT LIABILITY

Table: 5.5 Current ratio

Table :5.6 Quick ratio

Year Quick assets Current liability Quick ratio

3) Total asset turnover ratio

of sales generated by each rupee of average assets by analyzing sales as a percentage of