Description
This is a document highlights Karnataka banks retail banking by studying Retail Banking products Non Resident Deposits, Cash Certificates, Loan products , services, mobile Banking, ATM Services
Karnataka Bank: Retail Banking products and financial performance as on March 2009
Banking and Financial Services
Karnataka Bank Limited, a leading 'A' Class Scheduled Commercial 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., Chitradurga Bank Ltd. and Bank of Karnataka. With over 85 years experience at the forefront of providing professional banking services and quality customer service, the bank now has a national presence with a network of 449 branches spread across 20 states and 2 Union Territories. Managed by a dedicated & professional management team, the bank has over 4,900 employees, 71,822 shareholders and over 3.7 million customers. Retail Banking products: The following are the retail banking products offered by Karnataka Bank. 1. Deposit products namely : ? Savings and Current Account Deposits ? ? Demand Deposits Term Deposits. "Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period. At present term deposits are accepted under the following schemes a. Fixed Deposit: A high interest deposit scheme for specified periods ranging from 15 days to 10 years with interest payments made monthly, quarterly, half-yearly or yearly as required by the depositor. b. Abhyudaya Cash Certificate: A growth oriented scheme with maximum returns. Money invested multiplies after the specified period. The minimum period of deposit is 6 months and the maximum period is 120 months. This is a reinvestment plan and has a maturity value based on interest compounded on quarterly basis. c. Soulabhya Deposit: A flexible 'twin gain' Deposit Scheme that allows withdrawal of deposits in units of Rs.1,000/- each in case of need, without affecting the interest payable on the remaining units. Minimum amount of deposit is Rs.5,000/and in multiples of Rs.1,000/- thereto. d. Cumulative Deposit: A monthly deposit scheme whereby a fixed amount is to be contributed monthly for a minimum period of 6 months and a maximum of 10 years. This is an ideal scheme to save a fixed amount for future plans such as education, buying a home etc. The maturity value of the investment is calculated based on the interest cummulated over the period of investment.
e. Platinum Lakhpathi: A recurring deposit scheme wherein a fixed monthly amount deposited over a period of 45 months to 120 months in multiples of 15 months, becomes over a lakh of rupees at the end of it. ? Non Resident Deposits: Bank offers vide range of deposit schemes for Non Resident Indians which includes Non Resident Rupee account [NR(E)RA], Foreign Currency Non- Resident Account (FCNR), Non-Resident Ordinary Account (NRO), Resident Foreign Currency (Domestic) Account (RFCD).Opening and maintaining of Bank Accounts of Non- Resident Indian is guided by the Foreign Exchange Management Act-1999 (FEMA) and interest on terms deposits are revised based on LIBOR rates from time to time. Cash Certificates Insurance Linked Savings Bank Deposits: Free accident insurance coverage with the customer’s savings account. By maintaining a stipulated minimum balance in SB account, the customers become entitled to free accident insurance coverage of upto Rs.2 lakh and Rs.10,000/- towards re-imbursement of hospitalisation expenses arising out of accidents. Resident Foreign Currency Accounts: Foreign currency in USD, GBP and Euros may be deposited. This account can be opened as a current account only. The account carries no interest with it and there is no minimum amount for opening the account. Foreign exchange acquired in the form of currency notes, travellers cheques, gifts, honorarium received outside India, gifts received from relatives and earnings through the export!of goods and services, can be credited to this account. Senior Citizens Deposit Schemes
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2. Loan products namely : ? Education Loans Vidyanidhi Education Loan Scheme: This educational loan covers expenses for tuition fees, books, study material, hostel boarding and air travel. ? Home Loans: Apna Ghar Home Loans: (The maximum quantum of loan is Rs.50 lakh per borrower.) ? Car Finance Schemes : Finance the purchase of a new car upto 85% of the invoice value excluding vehicle tax and insurance. Car Finance Scheme also finances the purchase of second hand cars.
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Easy Ride:KBL loan scheme Versatile loan for 2 wheelers. Available for individuals, professionals and companies. Personal Loans: Scheme for Salaried Persons: This scheme for permanent employees of reputed companies or institutions is for the purchase of consumer durables, religious ceremonies, educational or medical expenses, home repairs and obsequies.
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Agriculture Finance Krishi Card: A Credit Card for Agriculturists. Innovative credit card extending finance for various activities under agriculture. The Krishi Card covers crop loans, crop Insurance, agri-inputs like fertilizers etc. and personal accident Insurance.
3. Other services viz: ? Life Insurance: The bank has diversified into the marketing of life insurance products of MetLife India Insurance Co. Ltd., an affiliate of MetLife, the 140 year old, largest life insurance company in the USA. General Insurance: Karnataka bank has forayed into General Insurance business by promoting a Joint Venture company called Universal Sompo General Insurance Co. Ltd. and entered into a Corporate Agency arrangement for distribution of their General Insurance products through its branches. Customers can now get their assets insured against fire, burglary and a host of other eventualities. Customers can also cover against the contingencies of accidental death, hospitalization etc. Mutual Fund Products: In its pursuit of accomplishing the goal of becoming One Stop Financial Supermarket Karnataka bank has been foraying into newer areas of banking products and services to meet the increasing needs of its customers. As a further step towards this, the bank has entered into a Distribution Agreement with the following AMCs for distribution of their mutual fund products. 1. M/s. Franklin Templeton Asset Management India (P) Ltd. 2. M/s. Tata Asset Management Ltd. 3. M/s. ICICI Prudential Asset Management Company Ltd. Through this tie up, the bank provides an opportunity to its customers to diversify their investment portfolios, depending on their requirements and risk appetite ? Debit Card
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Mobile Banking Karnataka Bank - Mobile Banking facilities can be divided into two broad categories: Alert Facility: Karnataka Bank Mobile Banking Alerts facility keeps the customers informed about the significant transactions in their Accounts. It keeps them updated wherever they go. Request facility: Karnataka Bank Mobile Banking Requests facility enables its customers to query for their account balance. Mobile Banking Alerts - Karnataka Bank-Mobile Alerts provides you the following alerts: ? Transaction Alert – The customer receives an alert when the account is credited/debited. ? Cheque Bounce Alert – The customer receives an alert if the cheque he deposited in his A/c is not honoured. ? Cheque Paid Alert - The customer receives an alert when any Cheque is paid from his A/c. ? Clearing Cheque Deposited, Regularized - The customer receives an alert when Cheque deposited in clearing ,regularized. ? Maturing Term Deposit Accounts - The customer receives an alert, before the maturity of his Term Deposit A/c. ? Matured Term Deposit Accounts - The customer receives an alert, when Term Deposit A/c is matured. ? Standing instructions to Operative Accounts - The customer receives an alert, when any Standing Instruction is executed in his A/c.
? ATM Services In a major step towards ushering in convenience-Banking for the Customers, Karnataka Bank has entered into ATM sharing arrangement with IDRBT-NFS, established by Reserve Bank Of India and CashTree ATM network. The NFS network with IDRBT has 37 Member Banks and covers around 40,296 ATMs while CashTree network has 13 member Banks and covers around 5,859 ATMs. All Debit & MoneyplantTM International Visa Debit Card/MoneyplantTM ATM card holding customers of Karnataka Bank can avail the facility of withdrawal through Banks' MoneyPlantTM ATMs and shared network ATMs. Customers can avail Cash Withdrawal and Balance Inquiry facility in the ATMs. ATM cards can also be packed with KPower. (K-Power: Instant Personal Loan through ATMs- ATM cards with special facility to withdraw cash from any Moneyplant ATMs, and from Corporation Bank
ATMs, even if there is no balance in the customer’s account. The customer can withdraw upto Rs.25,000/- as a personal loan.) ? Internet Banking: Karnataka bank’s internet banking facilities are termed as MoneyClick. The Moneyclick Retail offers different online services to its retail/individual customers, like balance enquiry, requests for Chequebooks, recording stop-payment instructions, balance transfer instructions, account opening and other forms of traditional banking services. This also offers utility bill payment services to its valued customers for payment of BSNL Mobile, Electricity, Water bills etc. NRI Services: Karnataka bank offers the following modes of remittances for funds from abroad ? ? ? ? ? ? Cable/TT Remittance Draft/Cheque drawn on foreign centre or payable on local banks. Foreign Currency/Traveller's cheque tendered by the NRI during temporary visit to India. Demand Draft issued by Exchange house in Gulf countries.
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Demat Services Money Transfer Services
Financial performance as on March 2009: The following are the major financial highlights in the present year 2008-09 2009 Net Profit Operating profit Gross income Capital Adequacy ratio (in %) (under Basel 1) Earnings per share (basic) % NPA Proposed dividend 266.7 crores 480.21 2270.55 13.54 2008 241.74 crores 390.6 1797.9 12.17 % change 10.33 22.94% 26.28% 1.37 % points
21.96
19.92
10.24%
0.98 60%
0.98 50% 10% points
The total business turnover of the bank touched Rs. 32143.34 crores, an increase of 15.38% over the preceding year. The net Interest income rose from Rs.458.75 crore to Rs. 473.57 crores. The dividend payout ratio stands higher at 27.35% as compared to 25.1% during the year 2007-08. The bank has successfully maintained its capital adequacy ratio well above the minimum of 9% stipulated by the RBI. Sementwise reporting: The bank has four business segments viz: Treasury, Corporate/Wholesale banking, Retail banking and other banking operations. The detailed segmentwise revenues and income earned are as follows: Segment Treasury operations Corporate/Wholesale banking Retail banking Other banking operations Revenues (in Rs. crores) 753.51 629.08 850.46 37.5 Net result (in Rs. crores) 34.15 21.72 331.72 31.96
References: www.wikipedia.org
www.karnatakabank.com
doc_941031639.docx
This is a document highlights Karnataka banks retail banking by studying Retail Banking products Non Resident Deposits, Cash Certificates, Loan products , services, mobile Banking, ATM Services
Karnataka Bank: Retail Banking products and financial performance as on March 2009
Banking and Financial Services
Karnataka Bank Limited, a leading 'A' Class Scheduled Commercial 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., Chitradurga Bank Ltd. and Bank of Karnataka. With over 85 years experience at the forefront of providing professional banking services and quality customer service, the bank now has a national presence with a network of 449 branches spread across 20 states and 2 Union Territories. Managed by a dedicated & professional management team, the bank has over 4,900 employees, 71,822 shareholders and over 3.7 million customers. Retail Banking products: The following are the retail banking products offered by Karnataka Bank. 1. Deposit products namely : ? Savings and Current Account Deposits ? ? Demand Deposits Term Deposits. "Term deposit" means a deposit received by the Bank for a fixed period withdrawable only after the expiry of the fixed period. At present term deposits are accepted under the following schemes a. Fixed Deposit: A high interest deposit scheme for specified periods ranging from 15 days to 10 years with interest payments made monthly, quarterly, half-yearly or yearly as required by the depositor. b. Abhyudaya Cash Certificate: A growth oriented scheme with maximum returns. Money invested multiplies after the specified period. The minimum period of deposit is 6 months and the maximum period is 120 months. This is a reinvestment plan and has a maturity value based on interest compounded on quarterly basis. c. Soulabhya Deposit: A flexible 'twin gain' Deposit Scheme that allows withdrawal of deposits in units of Rs.1,000/- each in case of need, without affecting the interest payable on the remaining units. Minimum amount of deposit is Rs.5,000/and in multiples of Rs.1,000/- thereto. d. Cumulative Deposit: A monthly deposit scheme whereby a fixed amount is to be contributed monthly for a minimum period of 6 months and a maximum of 10 years. This is an ideal scheme to save a fixed amount for future plans such as education, buying a home etc. The maturity value of the investment is calculated based on the interest cummulated over the period of investment.
e. Platinum Lakhpathi: A recurring deposit scheme wherein a fixed monthly amount deposited over a period of 45 months to 120 months in multiples of 15 months, becomes over a lakh of rupees at the end of it. ? Non Resident Deposits: Bank offers vide range of deposit schemes for Non Resident Indians which includes Non Resident Rupee account [NR(E)RA], Foreign Currency Non- Resident Account (FCNR), Non-Resident Ordinary Account (NRO), Resident Foreign Currency (Domestic) Account (RFCD).Opening and maintaining of Bank Accounts of Non- Resident Indian is guided by the Foreign Exchange Management Act-1999 (FEMA) and interest on terms deposits are revised based on LIBOR rates from time to time. Cash Certificates Insurance Linked Savings Bank Deposits: Free accident insurance coverage with the customer’s savings account. By maintaining a stipulated minimum balance in SB account, the customers become entitled to free accident insurance coverage of upto Rs.2 lakh and Rs.10,000/- towards re-imbursement of hospitalisation expenses arising out of accidents. Resident Foreign Currency Accounts: Foreign currency in USD, GBP and Euros may be deposited. This account can be opened as a current account only. The account carries no interest with it and there is no minimum amount for opening the account. Foreign exchange acquired in the form of currency notes, travellers cheques, gifts, honorarium received outside India, gifts received from relatives and earnings through the export!of goods and services, can be credited to this account. Senior Citizens Deposit Schemes
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2. Loan products namely : ? Education Loans Vidyanidhi Education Loan Scheme: This educational loan covers expenses for tuition fees, books, study material, hostel boarding and air travel. ? Home Loans: Apna Ghar Home Loans: (The maximum quantum of loan is Rs.50 lakh per borrower.) ? Car Finance Schemes : Finance the purchase of a new car upto 85% of the invoice value excluding vehicle tax and insurance. Car Finance Scheme also finances the purchase of second hand cars.
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Easy Ride:KBL loan scheme Versatile loan for 2 wheelers. Available for individuals, professionals and companies. Personal Loans: Scheme for Salaried Persons: This scheme for permanent employees of reputed companies or institutions is for the purchase of consumer durables, religious ceremonies, educational or medical expenses, home repairs and obsequies.
?
Agriculture Finance Krishi Card: A Credit Card for Agriculturists. Innovative credit card extending finance for various activities under agriculture. The Krishi Card covers crop loans, crop Insurance, agri-inputs like fertilizers etc. and personal accident Insurance.
3. Other services viz: ? Life Insurance: The bank has diversified into the marketing of life insurance products of MetLife India Insurance Co. Ltd., an affiliate of MetLife, the 140 year old, largest life insurance company in the USA. General Insurance: Karnataka bank has forayed into General Insurance business by promoting a Joint Venture company called Universal Sompo General Insurance Co. Ltd. and entered into a Corporate Agency arrangement for distribution of their General Insurance products through its branches. Customers can now get their assets insured against fire, burglary and a host of other eventualities. Customers can also cover against the contingencies of accidental death, hospitalization etc. Mutual Fund Products: In its pursuit of accomplishing the goal of becoming One Stop Financial Supermarket Karnataka bank has been foraying into newer areas of banking products and services to meet the increasing needs of its customers. As a further step towards this, the bank has entered into a Distribution Agreement with the following AMCs for distribution of their mutual fund products. 1. M/s. Franklin Templeton Asset Management India (P) Ltd. 2. M/s. Tata Asset Management Ltd. 3. M/s. ICICI Prudential Asset Management Company Ltd. Through this tie up, the bank provides an opportunity to its customers to diversify their investment portfolios, depending on their requirements and risk appetite ? Debit Card
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?
?
Mobile Banking Karnataka Bank - Mobile Banking facilities can be divided into two broad categories: Alert Facility: Karnataka Bank Mobile Banking Alerts facility keeps the customers informed about the significant transactions in their Accounts. It keeps them updated wherever they go. Request facility: Karnataka Bank Mobile Banking Requests facility enables its customers to query for their account balance. Mobile Banking Alerts - Karnataka Bank-Mobile Alerts provides you the following alerts: ? Transaction Alert – The customer receives an alert when the account is credited/debited. ? Cheque Bounce Alert – The customer receives an alert if the cheque he deposited in his A/c is not honoured. ? Cheque Paid Alert - The customer receives an alert when any Cheque is paid from his A/c. ? Clearing Cheque Deposited, Regularized - The customer receives an alert when Cheque deposited in clearing ,regularized. ? Maturing Term Deposit Accounts - The customer receives an alert, before the maturity of his Term Deposit A/c. ? Matured Term Deposit Accounts - The customer receives an alert, when Term Deposit A/c is matured. ? Standing instructions to Operative Accounts - The customer receives an alert, when any Standing Instruction is executed in his A/c.
? ATM Services In a major step towards ushering in convenience-Banking for the Customers, Karnataka Bank has entered into ATM sharing arrangement with IDRBT-NFS, established by Reserve Bank Of India and CashTree ATM network. The NFS network with IDRBT has 37 Member Banks and covers around 40,296 ATMs while CashTree network has 13 member Banks and covers around 5,859 ATMs. All Debit & MoneyplantTM International Visa Debit Card/MoneyplantTM ATM card holding customers of Karnataka Bank can avail the facility of withdrawal through Banks' MoneyPlantTM ATMs and shared network ATMs. Customers can avail Cash Withdrawal and Balance Inquiry facility in the ATMs. ATM cards can also be packed with KPower. (K-Power: Instant Personal Loan through ATMs- ATM cards with special facility to withdraw cash from any Moneyplant ATMs, and from Corporation Bank
ATMs, even if there is no balance in the customer’s account. The customer can withdraw upto Rs.25,000/- as a personal loan.) ? Internet Banking: Karnataka bank’s internet banking facilities are termed as MoneyClick. The Moneyclick Retail offers different online services to its retail/individual customers, like balance enquiry, requests for Chequebooks, recording stop-payment instructions, balance transfer instructions, account opening and other forms of traditional banking services. This also offers utility bill payment services to its valued customers for payment of BSNL Mobile, Electricity, Water bills etc. NRI Services: Karnataka bank offers the following modes of remittances for funds from abroad ? ? ? ? ? ? Cable/TT Remittance Draft/Cheque drawn on foreign centre or payable on local banks. Foreign Currency/Traveller's cheque tendered by the NRI during temporary visit to India. Demand Draft issued by Exchange house in Gulf countries.
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Demat Services Money Transfer Services
Financial performance as on March 2009: The following are the major financial highlights in the present year 2008-09 2009 Net Profit Operating profit Gross income Capital Adequacy ratio (in %) (under Basel 1) Earnings per share (basic) % NPA Proposed dividend 266.7 crores 480.21 2270.55 13.54 2008 241.74 crores 390.6 1797.9 12.17 % change 10.33 22.94% 26.28% 1.37 % points
21.96
19.92
10.24%
0.98 60%
0.98 50% 10% points
The total business turnover of the bank touched Rs. 32143.34 crores, an increase of 15.38% over the preceding year. The net Interest income rose from Rs.458.75 crore to Rs. 473.57 crores. The dividend payout ratio stands higher at 27.35% as compared to 25.1% during the year 2007-08. The bank has successfully maintained its capital adequacy ratio well above the minimum of 9% stipulated by the RBI. Sementwise reporting: The bank has four business segments viz: Treasury, Corporate/Wholesale banking, Retail banking and other banking operations. The detailed segmentwise revenues and income earned are as follows: Segment Treasury operations Corporate/Wholesale banking Retail banking Other banking operations Revenues (in Rs. crores) 753.51 629.08 850.46 37.5 Net result (in Rs. crores) 34.15 21.72 331.72 31.96
References: www.wikipedia.org
www.karnatakabank.com
doc_941031639.docx