A Study on Customers` Perception Towards Campco Chocolates

A Study on Customers’ Perception Towards
Campco Chocolates, Puttur
Amrutha K.V. , Ms. Reshma Pai A.
VTU: Department of MBA, Vivekananda College of Engineering and Technology, Nehru Nagar, Puttur, India
Email: kvamrutha12@gmail.com
Abstract
The topic at this point to study and analyze is “Customers’ perception towards Campco Chocolates,
Puttur” refers to the perception the customers to the Chocolates that are launched by the
Company. Whether the needs and wants of the customers are satisfied by the company or not?
This is studied in this study. The perception of the customers is considered according to their
needs to alter modifications, additional features to the products that are offered by the company.
Keywords
Perception; Customers; Satisfaction; Buying Behavior; Awareness
1. Introduction
diums chosen by the customers, etc. Valuable suggestion
can be collected from the customers. Modifications can be
made based upon the customers grievances. This study
will help the company to make necessary changes and to
make the program even more effective.
Customer perception towards a particular brand plays a
major role in buying behavior of customers. Hence, it is
necessary to study the customer perception for the growth
of the brand. It is very important to understand what the
customers think about the product, their opinions, how
they compare the product with the competitors, etc. The
company wants to find out whether customers have a
good perception towards the company. Hence, the topic
“a study of customers’ perception towards Campco
chocolates, Puttur” states its relevance.
4. Methodology
The first step in a marketing research process is to define
the problem chosen for investigation, this step is a very
significant one, since it is said “problem well defined the
next step that is the research design becomes easier”. The
research design is the basic framework, which provides
guidelines for the rest of the research process. It is a map
or a blue print according to which the research is to be
conducted. The research design specifies the method for
data collection and data analysis.
2. Objectives of the study




To evaluate the customer opinion on Campco
chocolate
To analyze the extent to which perception of
customers influence company‟s performance
To evaluate the brand awareness of Campco
chocolates
To evaluate customer preferences about
Campco chocolates
4.1. Research design
A research design is a framework or blueprint for conducting the marketing research project. It details the
procedures necessary for obtaining the information
needed to structure and/or solve marketing research
problems. Here descriptive research design method is
followed and questionnaires are used to collect information.
3. Scope of the study
Through this study the company will come to know how
customers have positioned Campco chocolates in their
mind and what they feel about the chocolates, level of
brand awareness about the chocolates, promotional meJNANASANGAMA 2015
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AMRUTHA K V
4.2. Sources of data
items gives the feeling of familiarity particularly in low
involvement

products for instance soaps and other day to
day usage items, media and advertisement are effectual
tools for awareness.

Nandagopal and Chinnaiyan (2003) bring to
a close that the mode of purchase of product also
effecting buying pattern and hence perception of
consumer.

Kumar et al. (1987) examine those factors
which cause buying decisions making of huge number of
respondents for different food products. Country, origin,
and brand of the product impact well and for the most
part.

Sabesson (1992) declared that brand of
processed food is preferred by its quality, taste of the
product and price of product. These are the chief factor
which affects the criterion for food brand selection.

Rees (1992) study he explains those factors
which persuade consumer selection of food and flavor
includes food texture, appearance, taste and quality but
use of microwave and reduction in conventional cooking
are the factors which effect consumer practice of
product.

Vanniarajan and Kubendran (2005) express
that consumer perception and usage of several products
can be altered due to change in food eating routine. If
income and urbanization increases in the middle of
consumers then the percentage of income spend on
consumption increases. The urban consumer frequently
like branded products in the vein of compared to rural
consumers.
 Primary data
To collect the primary data a questionnaire pertaining to
the survey was adopted. This helped in direct interaction
with the consumers. The questionnaire consisted mostly
of close-ended question. The entire questionnaire were
preparedand edited keeping in line with objective of
study.
 Secondary data
Secondary data was collected to know the company profile, its consistency in performance and achievements.
This data was collected from company records to meet
the obligations of the research study.
 Tools of data collection
Data was collected from the customers through a structured questionnaire.
 Tools for data analysis
Percentage calculations were used for the analysis and
the analyzed data were presented using pie charts and
bar diagrams.
 Research plan
I have gone for sample study because of the limitation of
time and huge population
4.3. Sampling plan
 Sampling unit: Customers of Campco chocolate
 Sampling size: Total sample size is 100
 Sampling procedure:
The primary data was taken from the customer of
Campco chocolates in and around Puttur city. Here mixture of both convenient sampling and judgmental sampling method is used.
6. Limitations


5. Literature review

Perception is basically an organism which gives description of an individual‟s perceived image which he expect
from any product or service. Observation can be changed
or influenced by many factors.

Brown et al. (2000) reported that the need for
educating young generation specially those who are in
their youth are noticeably rising, given their habitual
food eating habits and behavior, children who are in their
teenage choose food with respect to food nutritious as
well as three factors plays very essential role, home
environment, school and social gatherings.

Aaker (2000) review that brand awareness
plays a very important role in consumer perception
mainly when their buying pattern is not defined. Branded

Busy schedule of workers and various holidays
during the study period are the constraints
Detailed study could not be carried out because of
time limit
The study is confined to Puttur area only
The sample size is only 100 convenience sampling is
used
7. Industry Profile and Company Profile
7.1. Industry Profile
During the last five years growth in chocolate in India has
covered among 10% and 20%, with average growth being
at the range of 14-15%. Limited to urban areas played in
the segment have attempted to accelerate growth by adding new consumers to the chocolate market. Even though
the country with a culture of consuming and exchanging
sweets, repacked branded sweets are yet not popular.
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Perception is the process by which an individual select,
organizes, and interprets information inputs to produce a
significant pictures of the world.
Perception depends not merely on the physical stimuli‟s
relation to the surrounding and field and on state within
the individuals.
The consumption pattern and purchase habits style to
favor local, freshly made products. The capability of
chocolate companies to enter this market could provide
unprecedented with may be tempering of income pyramid
and introduction of small price packs.
7.2. Company Profile
“CAMPCO” is the tiny name of the Central Areca nut and
Cocoa Marketing and Processing Co-operative Limited.
CAMPCO was registered on 11th July in the year 1973,
under section 7 of Karnataka Co-operative Societies Act
of 1959. The major activity of CAMPCO is procuring and
marketing of Areca nut and as well manufactures chocolates. CAMPCO was set up with lively support of Karnataka and Kerala Government. The growers who were
getting a realistic price faced a sudden marketing crisis
during the year 1970-71 when the price of the areca nut
began to decrease. The condition worsened during 1972
and the price of areca nut cut down to such an extent that
the growers could get only half of the price. But the cost
of living was increasing as the cost of input was steadily
augmented. This created accurately a panic among the
growers. There was no planned marketing arrangement
for areca nut.
Later on the Karnataka Government constituted an expert
committee, which recommended to the State Government
to organize a Central agency also in the public or the
co-operative sector. With the help of Government of
Karnataka and Kerala, the “Central Areca nut Marketing
and Processing Co-operative Limited” popularly recognized as “CAMPCO” on 11th July 1973 under section 7
of the Karnataka Co-operative Societies Act 1959.
Varanasi Subraya Bhat (87), the chief promoter of and the
brain behind the beginning of the Central Areca nut and
Cocoa Marketing and Processing Cooperative, a joint
venture between the states of Karnataka and Kerala,
passed away following prolonged illness at his residence
at Adyanadka in Bantwal taluk on Friday, December 27.
9. Data analysis and interpretation
8. Theoretical background of the study

Data analysis and interpretation are central steps in the
research process involves breaking down presented complex factor into straightforward parts and putting the part
together in new arrangement for the purpose interpretation. Hence the objective of investigation is to summaries
the data in such a manner that they provide answer to the
questions that the research interprets.
Interpretation is the research for broader means of research findings from side to side interpretation the meaning and implementation becomes apparent. Analysis it‟s
not complete technique interpretation and interpretation
cannot proceed without investigation systematically so as
to appear and findings through interpretation these are
two methods to analyze collected data one method
through graphical figure representation and the other
through table.
10. Summary of findings, suggestion and
conclusion
10.1. Findings





Consumer of today is a lot further educated and demanding. Their quality, expectations have been prominent by
the prices of higher manufacturers and retailers who provide a variety of products in each kind. In the appearance
of their huge choices, customers drift down to the offerings that best meet up their individual needs and expectations making customers play very essential role in today‟s
marketing circumstances. A motivated person is prepared
to act. How a motivated person in reality acts is influenced by his or her perception of the condition.
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


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Majority of the customers do not consider health
implications before buying chocolates.
Customers prefer to watch advertisements through
television.
Most of the customers are aware about the Campco
chocolates.
Most of the customers came to know about Campco
chocolates through friends and relatives.
Customers give more preference to taste than price,
quality and color.
Customers do not follow any specific pattern or
definite intervals for buying chocolates. They buy
chocolates whenever they feel like having one.
Cream is the most popular brand under Campco.
Majority of the customers say that Campco
chocolates come to their mind when they hear the
word chocolates.
Customers are willing to recommend Campco
chocolates to others.
Majority of the customers recognize the brand logo
of the company.
AMRUTHA K V
 Campco has built a good distribution network in Puttur.
I would like to express my gratitude to all MBA Faculty
members, my parents and friends for being constant
source of support and encouragement.
10.2. Suggestions







Company should give more emphasis on brand
awareness programs.
More investments should be done for television
advertisements.
Should concentrates more on improving tastes of the
product, quality and brand image.
Cream, treat and éclairs brand of the company should
be produced more as they are the popular brands of
Campco.
Since customers do not follow any specific pattern or
time interval for buying chocolates, company can
introduce loyalty programmers or special offers to
increase the frequency of purchase of the chocolates.
Company has to do aggressive promotion and should
try to improve the aspects of other brands of the
company in order to make those popular.
Company can appoint a popular celebrity as its brand
ambassador to increase the brand value of the
company and also improve the visual attractiveness
of the chocolate advertisements.
References
BOOKS:
[1] Leon Schiffman & Lesslie Kanuk, Consumer Behaviour,
Prentice Hall, 9/e, 2007.
[2] Del I.Hawkins, & Others, Consumer Behaviour: Building
Marketing Strategy, TMH, 11/e.
[3] Philip Kotler & Gary Armstron, Principles of
Marketing, dorling Kindersley, 12/e
[4] Consumer Behaviour- Satish K. Batra & S H Kazmi,
Excell Books, 2/e
[5] Aswathappa K.F. „„Perception”, Himalaya publishing
house, 2008(Revised 2011)
[6] Syeda Quratulain Kazmi, Consumer Perception and
Buying Decisions, International Journal of Advancement
in Research & Expertise, Volume 1, Issue 6,
November-2012, ISSN 2278-7763.
[7] Neringa Ivanauskiene, Organizations and markets in
emerging economies, vol. 3,
no. 1(5), 2012, ISSN
2029-4581
10.3. Conclusion
Customer perception towards the brand is very important
to the company, as customers are the king and no products can taste success without customers. The study was
conducted in and around Puttur and from the study it was
found out that majority of the customers are happy with
the brand, they can recognize the brand logo, they recommend the Campco chocolates to others, they are familiar with variety of brands produced by Campco company.
Hence, it can be concluded that customers‟ perception
towards Campco is good. Campco can emerge as a major
player in the Puttur region.
Acknowledgements
First of all, I express my utmost gratitude to my Project
Guide, Ms. Reshma Pai A. Faculty, MBA Programme,
who has enthusiastically imparted relevant information,
support in carrying out this report.
I express my humble thanks to Mr. Raveesh M., AGM,
Marketing, Campco Chocolate Factory, Puttur(D.K.),
for his valuable guidance and support in undertaking the
study and preparing this report.
I am thankful to our beloved Director of MBA Programme, Prof. Vivek Ranjan Bhandary who has enthusiastically imparted relevant information, support in carrying out this report.
I express my profound and sincere gratitude to
Dr. Linganagouda Kulkarni, Principal VCET, Puttur,
for his support in carrying out this project.
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A Study on Effectiveness of Supply Chain
Management at Mavinkere Estate
Deepak K. , Jeevitha B V.
VTU: Department of MBA, Vivekananda College of Engineering and Technology, Nehru Nagar, Puttur, India
Email:deepaq@gmail.com
Abstract
SCM is management of material and information flow in a supply chain to provide the highest
degree of customer satisfaction at the lowest possible cost. SCM requires commitment of supply
chain partners to work closely to coordinate order generation, order taking and order fulfillment
Today, the practice of supply chain management is becoming extremely important to achieve and
maintain competitiveness. Many firms are just now beginning to realize the advantages of supply
chain integration. This paper aims to analyse effectiveness of SCM and relate the findings to the
degree of effectivesness required to yield positive attitude toward SCM
Keywords
Supply Chain; Production; Yield; Competitors; Hecter
1. Introduction
defined as the design and planning, execution, control,
and monitoring of supply chain activities with the objective of creating net value, building competitive infrastructure, leveraging global logistics, synchronize supply
with demand and measuring
performance globally.
The internship program provides an occasion for the
student to minimize the gap between theoretical and practical knowledge and will help in practical life, I did the
internship program in a Tea manufacturing company
which will help me in future professional career. I got
this great opportunity to perform my internship program
at Mavinkere Estate ,Kalasa; It was a three months practical orientation programme which is originated at the
premises of Mavinkere Estate. kalasa
2. Company Information
The company was established during the year 1959, by
Kotecha and Company ,they were originally from Gujarat, who went to Uganda, East Africa during 1912.Till
1972 when General Idi Amin expelled Asian from
Uganda. Kotecha and family were doing the business of
edible oil manufacturing and refining ,cotton ginning and
export as well as various other activities in east Africa,
also owned a large Sisal(Jute) plantation in Tanzania(
till late 1970s)
Extension of Mavinkere tea estate is around 80 hectors,
altitude of estate is about 800 MSL annual rain fall is
around 250centi meters, and S-W monsoon showers.
I have selected ” Effectiveness of supply chain management in Mavinkere Estate ,Kalasa as my Internship topic.
I have worked in the office and fields of the estate.
Supply chain management (SCM) is "the systemic
strategic coordination of the habitual (traditional) business
functions and the tactics across these business functions
within a particular company and across businesses within
the supply chain, for the purposes of getting better in the
long-term performance of the individual companies and
the supply chain as a whole. It has also been
In Mavikere estate they grow tea bushes ,harvest green
leaf and manufacture CTC black tea in our own tea
manufacturing factory, Tea manufactured is divided into
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5-6 grades to meet the buyers demands they sell bulk tea
through agents .who are certified by Tea Board ,State and
Central Tax Departments.
6. Limitation of the study

Time period to be the main limitation.
3. Objectives of study

The study is based only on data provided by the
executives.

Availability of limited data and information.

Analysis contains only regarding some aspect, we
cannot analyze on all aspect.
 To enhance flexibility in supply chain
 To look for sources of revenue and cost
 To grater labour efficiency, equipment and space
efficiency
7. Figures and Charts
 To understand the chain of activities
7.1
Analysis of Customers reaction towards the
product
Customers reaction towards the product
 To gather practical knowledge about operations .to
apply academic knowledge in the realistic way.
 Understand the systems and actions necessary to track
monitor and manage these risks. To observe the
working environment
4. Methodology of the study
Methods followed to perform a job or conducting activities to complete a task is called methodology. Both qualitative and quantitative methods were applied for preparing this report. The information were analyzed and presented by Microsoft excel and shows percentage, graphical representation and different types of charts. Best effort
was given to analyze the numerical findings.
60
50
40
30
20
10
0
Source of data of this report can be bifurcate into two
categories
Primary data

Two months practical participation in internship.

Face-to-face discussion with the respective officers
and staffs.

Applicable file study provided by the officers concerned.
Frequencies
Percentages
Very good
16
32
Good
24
48
Average
10
20
Bad
0
0
Total
50
100
Customers reaction towords the
product
5. Data collection

Attributes
Customers
reaction
towords the
product In
Percentge
Analysis:
In reference to the above table, 48% of the staff members
of mavinkere estate responded that customers reaction is
good towards the product, But 32-20% of the people at
mavinkere responded between very good and average.
Secondary data
Relevant book, research papers, Newspapers and Journals.
6
DEEPAK K
 Majority of the people have opined that competitor’s
product do not affect the growth of Mavinkere estate.
7.2 Analysis of Efficiency of Supply chain management
at mavinkere esatate
 More than average rate of the customers rate Mavinkere tea products as good compared to other products
in the market
Table showing Efficiency of Supply chain management
Attributes
In Frequency
In Percentage
Very good
16
32
Good
26
52
Average
8
16
Bad
0
0
 The loyalty check reveals that, only few customers are
loyal to mavinkere products ,but most of the customers
are aware about mavinkere products.
 Most of the suppliers responded that mavinkere estate
is conscious about both price and quality of the product.
 Majority of the suppliers are going to replace the defective raw materials than reimbursements of money.
9. Suggestions
Quality product and hygiene is an important part of tea
industry, Mavinkere estate is been able to maintain this
very successfully for a long proud of time. Even then it is
very much necessary to give the best to the consumers to
retain the satisfaction level. For better service company
should supply products according to the buyers/consumers requirements, some of the suggestions that
were derived from the survey are :

Arrangements and layout of the machinery
should be improved

The tools and materials should be available as
and when required

The staff and the customer service advisors in
the company should respond to the customers very
quickly and politely, staff courtesy is very much importance

The waiting area should be maintained clean ,
the rest room should be kept in excellent condition ,so the
customer feel comfortable

The required tea should be delivered to the
Dealer/ Consumers at the time permitted , there should
not be any delay which will lead to the dissatisfaction of
the customer to some extent.

In case of any delay in the delivery it should be
informed to the customers in advance

Treat dealer/ consumer like special customer

and give little extra help that may be needed it
is certainly appreciated

Give the customer individual attention, don’t
allow the customer get an impression that you are doing
them a favour.
 Explain the billing details on the total amount of it
very efficiently to the customer at the time of delivery
Analysis :
According to the table, about 52% of respondents feels
that there is very good efficiency in Supply Chain
Management and 32% of the respondents believe it is
good and 16% of the respondents opined that efficiency is
average.
8. Findings
 More than average rate of people are supporting by
saying that Raw materials arrive on time when the
company is at the need of it.
 Majority of the people at Mavinkere estate are giving
good ratings to the supply chain strategy adopted by
the company.
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DEEPAK K
Metz, 1997
10. Literature review
“Integrated Supply Chain Management is a
process-oriented, combined approach to procuring, producing and delivering products and services to customers”
Bhattacharya et al., 1996
“Supply chain deliver higher customer satisfaction with
reduced lead time and cost”
11. Acknowledgements
Bowersox, 1997
I acknowledge to all, whose guidance and encouragement
served as a platform for success. I am thankful to my
internal guide Mrs. Jeevitha B.V. Lecturer Department of
Business Administration ,External guide Mr. K. Ramesh,
Manager, Mavinkere Estate, Principal Dr. Linganagouda
Kulkarni and HOD of MBA Prof. Vivek.Bhandary for
valuable guidance ,supervision and encouragement ,which
I received from her throughout my Internship program.
“Supply Chain Management link cross-enterprise business operations to achieve a shared vision of market opportunity”
Bowersox and Closs, 1996
“Supply chain management is grounded on the belief that
efficiency can be improved by sharing information and by
joint planning..... an overall supply chain integrated management of all logistical operations from original supplier
procurement to final consumer acceptance."
12. Conclusion
“Supply Chain Management include the flow of goods
from supplier through manufacturing and distribution
chains to the end user”
The study was done to find out how the SUPPLY CHAIN
MANAGEMENT functions effectively at Mavinkere
Estate and to what extent it is effective plus its scope for
the future.The supply chain management process works
through the implication of a strategic plan that ensures the
desired end product leaving a customer with maximum
satisfaction levels at the lowest possible cost. I hope that
the results from this thesis may inspire and strengthen the
supply chain management developments in Mavinkere
Estate. For the development phase, new projects may
draw lessons from this work, as for the operations phase
even ongoing projects could have potential for supply
chain improvements.
Cooper, Lambert and Pagh, 1997
13. References
Cavinato, 1991
“Supply chains ....are inter firm linkages to attain joint
cost savings, product enhancements, and competitive
services”
Christopher, 1994
"The integration of all key business processes is what we
are calling supply chain management"
BOOKS:
[1] Sunil chopra and Peter Meindl, , Supply Chain
Management-Strategy ,Planning And Operations, ,
Pearson Publications , 3rd Edition ,2007.
[2] Janat shah, Supply Chain Management, Pearson
publications 2008 edition.
[3] David simichi –levi et al,Designing and managing
the supply chain management A Balanced Approch
b,Cengage Learning ,1/e
Jones and Riley, 1985
Supply Chain Management deals with the complete flow
of materials from suppliers to end –users”
Klaus, 1998
“Supply Chain Management (consequently) is defined as
the active design and permanent mobilization of the total
channel within an industry with the goal to maintain and
to increase the success of the companies involved.”
ARTICLES:
1.
2.
8
Y. Narahari and S.Biswas. Supply Chain Management: Models and Decision Making
Ram Ganeshan and Terry P. Harrison. An Introduction to Supply Chain Management
A Study on Non-Performance Assets and Debt
Recovery with Reference to Lakshmi Vilas
Bank, Puttur
Deepthi K. , Rakesh M
VTU: Department of MBA, Vivekananda College of Engineering and Technology, Nehru Nagar, Puttur, India
Email:deepthiadyanthya@gmail.com
Abstract
The study is significant for several reasons. First and foremost, it explains Non-Performing Assets, which
contributed to transformational changes in banking since liberalization, i.e., 1991. Banking regulators
and financial pundits focused their attention to curb the menace of Non-Performing Assets, but it still
remains disturbing banking progress worldwide. Even though Non-Performing Assets ratios indicate significant improvements in Non-Performing Assets management, it may not clearly indicate the clear picture on Non-Performing Assets trends. This study is useful since it provide an understanding on whether
Indian banking could manage its Non-Performing Assets during post-millennium period. We extend our
study to include Non-Performing Assets from bank-group wise that provide understanding on management of Non-Performing Assets by different bank groups.
Keywords
Non-performing assets, Debt recovery measures.
1. Introduction
the two Narasimhan Committee Reports in this contemporary period have been neutralized by the ill effects of
this surging threat. Despite various correctional steps
administered to solve and end this problem, concrete
results are eluding. It is a sweeping and all pervasive
virus confronted universally on banking and financial
institutions. The severity of the problem is however
acutely suffered by Nationalized Banks, followed by the
SBI group, and the all India Financial Institutions.
Granting of credit for economic activities is the major
duty of banking. Apart from raise resources through
fresh deposits, borrowings and recycling of funds received back from borrowers constitute a major part of
funding credit dispensation activity. Lending is generally
encouraged because it has the effect of funds being
transferred from the system to productive purposes,
which results into economic growth. However lending
also carries a risk called credit risk, which arises from the
failure of borrower. Non-recovery of loans along with
interest forms a major hurdle in the process of credit
cycle. Thus, these loan losses affect the bank’s profitability on a large scale. Though complete elimination of
such losses is not possible, but banks can always aim to
keep the losses at a low level.
Non-performing Asset (NPA) has emerged since over a
decade as an alarming threat to the banking industry in
our country sending distressing signals on the sustainability and endurability of the affected banks. The positive
results of the chain of measures affected under banking
reforms by the Government of India and RBI in terms of
NPA generate a vicious effect on banking survival and
growth, and if not managed properly leads to banking
failures. Many researches including Chijoriga, MM
(2000) showed the relationship bank failures and higher
NPA worldwide.
2. Objectives of the study

To analyze the NPA and its relation with
operating profit of the bank.

To study the general reasons for assets
becoming NPAs.

To point out the amount of NPA in Lakshmi
Vilas bank.
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DEEPTHI K

To understand the various criteria to recover
the advances from the bank.
its intermediation role in a well-organized manner. The
thrust of these reforms was to promote a diversified,
well-organized and competitive financial system, with
the ultimate aim of improving the allocative effectiveness of resources through operational flexibility, improved financial feasibility and institutional strengthening. MY.Reddy, further states in his another article
“Global Financial Turbulence and the Financial Sector in
India A Practitioner’s Perspective” as under
The prudential norms connecting to income recognition,
asset categorization and provisioning, introduced during
1992-93, are being incessantly monitor and refined to
bring them on par with international best practices. In
keeping with this, several measures were initiated in
2005-06. The requirements for standard assets were revised increasingly in stages in November 2005, May
2006 and January 2007, in view of the sustained high
credit growth in the real-estate sector, personal loans,
credit card receivables, and loans and advances qualify
as capital market disclosure and a higher default rate
with regard to personal loans and credit receivables,
which emerge as a matter of concern.
3. Scope of the study

Scope of the study here was restricted to the
organization only.

The scope is limited to draw conclusions from
analysis and interpretation of the primary and secondary
data.

The study covers finding out the strategy
required to reduce NPAs.

The data is based on the primary, secondary
data collected from web sources and journals.
4. Methodology of the study
Primary Data
The primary data have been collected through personal
communication with bank manager and employees.
Secondary Data
The secondary data has been collected from annual report of the bank. The information is also collected from
textbooks and web sources.
Meenakshi Rajeev, H P Mahesh (2010) studied banking
sector reform and NPAs in Indian commercial banks to
look at the trends of NPAs in India from various dimension and to explain how immediate recognition and self
monitor has been able to reduce it to a great extent. The
study analyzed the different phase of NPAs like NPA in
India relative to other countries, NPAs of Indian banks
as per the different sector and recovery of NPAs through
a variety of channels. It was found that NPAs in the
causal factor for crisis in the economy and root cause of
the recent global financial crisis. It was observed that
NPAs in Priority sector is still higher than that of non
priority division due to socio economic aim of bank.
5. Limitations of the study
As the study undertaken to fulfill the academic requirement it is bound to have certain limitations, most prominent among them are The study is based only on NPA section of the
bank.
 Time factor is other limitation in this study,
because the bank officials didn’t have proper time
to meet and solve queries.
6. Literature Review
Review of literature is important part of study or research. It enables to understand different aspects of study
or the problems to be investigated. On this background a
brief review of literature on Non Performing Asset is
given below.
The concept of Nonperforming assets was introduced
following introduction of income Recognition and Classification, in the year 1993. Y.V Reddy, in his article
“Reforming India’s Financial sector changing dimensions and emerging issues” has described the background
for financial sector reforms as under
“India embarked on a strategy of economic reforms in
the wake of a balance of payments crisis in 1991; a central plank of these was reforms in the financial sector
and, with banks being the mainstay of financial intermediation, the banking segment. At the same time,
reform was also undertaken in various segments of financial markets to enable the banking sector to perform
7. Figures and Tables
Gross NPA ratio= (Gross NPAs/Gross Advances)*100
Gross NPAs are the sum total of all loan assets that are
classified as NPAs as per RBI Guidelines as on Balance
Sheet date. Gross NPA is advance which is considered
Irrecoverable, for bank has made provisions, and which
is still held in banks' books of account. Gross NPA reflects the quality of the loans made by Banks. It consists
of all the nonstandard assets like as sub-standard, doubtful, and loss assets.
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DEEPTHI K
NET NPA RATIO
Table showing Gross NPA
GROSS NPA RATIO
2009-10
5.18
2010-11
1.95
2011-12
3.02
2012-13
3.93
2013-14
4.24
Rs. in crores
YEAR
5
4
3
2
1
0
Year
Rs. in crores
GROSS NPA RATIO
6
5
4
3
2
1
0
Interpretation
According to International norms the net NPA should not
be more than 1%. In Lakshmi Vilas Bank the Net NPA is
not less than 1%. So it is not a good sign. In 2010-11 net
NPA was less than 1%. There after it was found a huge
hike every year and that will affect the banks profit
earning.
GROSS NPA
RATIO
TOTAL NPA OF LVB TREND ANALYSIS USING
METHOD OF LEAST SQUARE
The following Table discloses the total NPA of LVB
from the period of 2009-10 to 2013-14 with trend analysis by using method of Least Square.
Year
Interpretation
According to international norms, the Gross NPA should
be less than 3%. Lakshmi Vilas bank has met the
benchmark in terms of Gross NPA ratio. The bank’s
gross NPA was low only in 2010-11 and all other years it
crossed 3% mark. So increases in NPA add affected to
the profit of the bank.Net NPA Ratio
Net NPAs are those type of NPAs in which the bank has
deducted the provision regarding NPAs. Net NPA shows
the actual burden of banks. Since in India, bank balance
sheets contain a huge amount of NPAs and the process of
recovery and write off of loans is very time consuming,
the provisions the banks have to make against the NPAs
according to the Central bank guidelines are quite significant.
Net NPA Ratio= (Gross NPAs –Provision)/(Net Advances-Provision)
YEAR
Table showing Net NPA
YEAR
2009-10
2010-11
2011-12
2012-13
2013-14
NET
4.11
0.90
1.74
2.43
3.44
NET NPA
RATIO
NPA RATIO
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TREND
2009-10
NPA
(RS. IN CRORES)
325.18
2010-11
157.79
284.95
2011-12
307.73
359.41
2012-13
459.90
433.88
2013-14
546.46
508.35
210.48
DEEPTHI K

Deposits of the customer in the year 2009-10
is 9075.38 crores and its increased year by year and for
the year 2013-14 it is amounted 18572.88 crores which
is more than double. It shows that is growing and
expanding rapidly.

Provisions indicate the safety measures
adopted by the bank. When the provision is high then
automatically profit will come down and vice versa.

The provision in the year 2012-13 is
Rs.159.57 crores and it is increased in the year 2013-14
i.e. 249.34, which have direct impact on the decreased
profit for the same year. This is due to increased NPA.

It is found that Substandard Assets of LVB has
been in an increasing trend for the period of five years
from 2009-10 to 2013-14 with a represent NPA of
210.63 crores and a standard deviation of 93.25 crores.

It is found that the substandard asset stood at
167.93 during 2009-10 as significantly decreased during
the year 2010- 11. Thereafter the substandard asset is
ever growing up to the 329.05 crores of the learning
periods.
Rs. in crores
TOTAL NPA
600
500
400
300
200
100
0
NPA (RS. IN
CRORES)
TREND
year
Interpretation
 Table depicts that Total NPA of LVB has been in an
increasing trend for the period of five years from
2009-10 to 2013-14 with a mean NPA of Rs. 359.41
crores and a standard deviation of 149.65 crores. The
overall Total NPA level during the study period from
2009-10 which stood at 325.18 crores increased year
by year (expect 2010-11) and stood at Rs. 546.46
crores in 2013-14.
9. Conclusion
The overall NPA position in the banking industry is in
deceasing trend; however the position of NPA in Total
Advances of LVB is increasing all through the time of
study. So it is concluded that the bank should concentrate
more and more on recovery of advances which is an imperative need of the bank. The bank should concentrate
more on selecting right borrowers, pre-sanction appraisal, post sanction follow up, and then only they may
have an appeaseable reduction on NPA position.
8. Findings
The various findings of the above study are listed below

According to international norms, the Gross
NPA should be less than 3%. Lakshmi Vilas Bank has
not met the benchmark in terms of Gross NPA ratio.

During the year 2010-11 the Gross NPA is
very less comparing to 5 years data (1.95). And from the
year 2011-12 to 2013-14 it is showing a hike, in the year
2013-14 it crossed the 3% limit (4.24) which is not a
good sign.

According to international norms the net NPA
should not be more than 1%. In Lakshmi Vilas Bank the
Net NPA stands at 0.90% in the year 2010-11 and 3.44%
in the year 2013-14 which is not good indication as far as
the profitability of the bank is concerned.

As the Net advances are increasing since 2009
till date, there has been an increase in Net NPAs as well.
There was a drastic increase in Net NPA in the year
2012-13 and 2013-14 which was Rs.283.80 crores and
Rs.443.39 crores respectively.
10. References
Books referred:
[1] M Y Khan and P K Jain, financial management, Tata
McGraw-Hill Publishing Company Limited, New Delhi.
4th Edition 2005.
[2] Shekar and Shekar Banking Theory and Practices,
Vikas Publishing House, New Delhi.
Websites:
[1] www.rbi.org.com
[2]http://www.slideshare.net/BabasabPatil/non-perfomin
g-assets-uti-bank-project-report-mba-finance
[3] www.Lakshmi Vilas Bank.com
[4] www.arcadiastock.com
Journals:
[1] Annual report of Lakshmi Vilas Bank
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A Study on Performance Evaluation of Selected
Equity Linked Saving Schemes (ELSS)
Harshitha B. , Mr. Ashley D’Souza
VTU: Department of MBA, Vivekananda College of Engineering and Technology, Puttur, India
Email: harshi27393@gmail.com
Abstract
In this study, an attempt has been made to evaluate the performance evaluation of Top 5 Equity Linked
Savings Schemes of tax saving mutual funds in India. Performance has been analysed on the basis of average monthly return compared to Indian stock market bench mark s&p cnx nifty. For this purpose,
risk-adjusted performance measures suggested by Sharpe, Treynor and Jenson have been used. Last five
years net asset value of tax saving schemes from 2010-14 has been employed and the fund choosen for
study are Reliance Tax Saver Fund, HDFC Tax Saver, ICICI Prudential Tax Saver, Franklin India Tax
Shield, Birla SL Tax Relief 96. It is found that Reliance Tax Saver & HDFC Tax Saver fund performed
well during the entire study period. All the schemes follow the same pattern in its return and moves along
with the stock market index s&p cnx nifty.
Keywords
Performance measures, Equity Linked Savings Scheme, Risk Adjusted Return.
1. Introduction
ing mutual funds for the past five years from 2010 to
2014. The study utilizes the benchmark index s&p cnx
nifty to compare mutual fund performance. The rest of
the study is organized as summarizing the related literature on mutual fund performance, presenting data and
methodology, results of the tax saving mutual funds performance
analyses and final section discusses the conclusion of
this paper.
Majority tax assessee likes to save their money without
paying tax. To escape from paying tax they have to invest required amount in to tax shielded avenue. Along
with tax exemption they expect return out of it. Tax
Saving Mutual Fund is one of the avenues which provide
market related return with tax exemption. Investors can
avail tax exemption of Rs.1,00,000 by investing into tax
saving mutual funds. Mutual fund industry is emerged in
1964 in India and developed enormously. It is a general
idea that through diversified portfolio mutual funds could
give returns with low risk than the market risk and the
volatility of the mutual fund market is less than the stock
market. An investor, who is invested into stock market
need to monitor the market on regular basis, Whereas,
those who invested into mutual fund no need to watch
the market movement for reducing the loss. The fund
manager of every Asset Management Company takes
care of the investors’ money. They diversify the investors’ money into various sectors like oil, bank, automobile, information technology, agriculture, etc., the return
from this diversified portfolio distributed to all the investor. This study evaluates the performance of tax sav-
2. Objective of the study



To find out the performance of selected ELSS
schemes in terms of risk & return.
To evaluate the performance of various schemes
under ELSS
To examine the relative performance among
ELSS by applying Sharpe ratio, Treynor ratio,
& Jensen‟ s Alpha measure.

To know the present performance of the
Mutual Fund Industry in India.
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HARSHITHA B
2. Scope of the study
Sharpe (1966) explains in a modern portfolio theory
context that the expected return on an efficient portfolio
and its associated risk (unsystematic risk) are linearly
related. By incorporating different concepts he developed
a Sharpe index. He provides two potential explanations
for the result that the cross – sectional variation is either
random or due to high fund expenses or the difference is
due to management skills
This study is limited to five Equity Selected Linked
Saving Schemes as applicable to saving of income tax.
Schemes picked based on the reputation of the ELSS,
only last 5 years data used to evaluate the performance.
Only ELSS growth option NAV used for the study.
3. Methodology of the study
Primary Data
The primary data refers to the data collected from direct
questioning. The information for the study was collected
through interaction with concerned Branch heads & other
employees of the company.
.
Mishra, ET AL., (2002) measured mutual fund performance using lower partial moment. In this analysis by
evaluating portfolio performance based on lower partial
moment are developed.
Secondary Data
This type of data refers to the gathering of information
from the sources that have “readymade data” already in
possession. This data has already been collected & complied.
Information has gathered from the company brochures,
periodicals, websites, Annual reports & other books.
After gathering the data from the sources, the data be
analyzed, tabulated, interpreted & at last conclusions
were made regarding the entire project.
6. Equations
The most commonly used composite measures are
Treynor, Sharpe & Jensen measures.
1. Risk-Return Analysis
Portfolio Return= Ending NAV- Beginning NAV/
Beginning NAV
Portfolio Return= P1-P0/P0
Where P1= Ending NAV, P0=Initial NAV
4. Limitations of the study
Market Return=NIFTY 1- NIFTY O/ NIFTY O
As the study undertaken to fulfill the academic requirement it is bound to have certain limitations, most prominent among them are Limited time was the major limitation.
 The study is limited to only ELSS growth
Schemes available under the mutual funds.
 Some of the relevant data regarding Mutual
Fund schemes unavailable.
2. Sharpe’s Performance Index
.
5. Literature Review
Prof.Kapesh P Prajapathi had conducted a study on
“Comparative study on performance evaluation of Indian
companies”. During this paper the performance evaluation of Indian mutual funds is carried out through relative
performance index, risk-return analysis, Trynor‟ s ratio,
Sharpe‟ s ratio, Jenson‟ s measure. The data used is
daily closing NAV‟ s. The source of data is website of
Association of Mutual Funds in India (AMFI). The results of performance measures suggest that most
of the mutual funds have given positive return during
2007 to 11.
3. Treynor’s Performance Index
Treynor’s Index= Average Portfolio Return-Risk
free Rate of Return /Market risk of Portfolio
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HARSHITHA B
Table showing the comparison of Jenson’s
Alpha.
Jenson’s Alpha
4. Jensen’s Alpha
Year
Reliance
Tax
Saver
HDFC
Tax
Saver
ICICI
Prudential
Tax Saver
Franklin
India Tax
Shield
Birla
SL Tax
Benefit
2010
9.288
8.723
-0.069
1.939
1.342
2011
-1.959
-1.816
0.135
-1.014
-2.257
2012
2.419
1.562
1.188
1.798
1.756
2013
0.0505
0.265
0.079
0.469
0.312
2014
6.473
3.667
2.129
0.0793
3.93
Alpha
Y= a + bx
Where a= Alpha
b= Beta
x= Dependent Variable
y= Independent Variable 43
5. Beta
In finance, the beta (β) of an investment is a measure of
the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market
portfolio of all investable assets has a beta of exactly 1.
A beta below 1 can indicate either an investment with
lower volatility than the
Market or a volatile investment whose price movements
are not highly correlated with the market.
From the above table it is clear that during the year 2010
& 2014, the Reliance tax saver has the highest Alpha
compared to other ELSS schemes. It shows the higher
the portfolio returns in terms of its alpha
compared to other schemes during last 5 years. Positive
value for Jensen's alpha means a fund manager has outperformed the market with his or her stock picking skills.
Therefore, it shows us that fund manager is performing
well in getting the better returns for customers for taking
risk.
7. Data analysis and interpretation
Chart showing the NIFTY Index returns against
ELSS.
10
Table Showing the Comparison of Beta Values
of ELSS.
Reliance Tax
Saver
8
6
4
2
0
-2
HDFC Tax
Saver
ICICI
Prudential
Tax Saver
Franklin
India Tax
Shield
Birla SL Tax
Relief
Beta of The Portfolio
Year
Reliance HDFC
Tax
Tax
Saver
Saver
ICICI
Prudential
Tax Saver
2010
2011
2012
2013
2014
0.0287
0.1952
0.505
0.0398
0.0168
1.6536
0.2999
0.2225
0.5739
0.4052
1.6065
0.2596
0.6519
0.0967
0.0899
Franklin
India
Tax
Shield
0.3907
0.3244
0.6093
0.0377
0.0793
Birla
SL Tax
Relief
0.4133
0.3287
0.7904
0.2108
0.2853
The market portfolio of Beta is exactly one. In the year,
2010 Reliance & HDFC tax saver fund had a high beta
value compared to others. From year, 2010-2014 all
schemes beta values decreased that shows the fund
managers are not aggressive and taking higher risk in
investments. Overall ICICI looks less risky & its beta
values are very low.
-4
The above table shows in the year 2014, Reliance tax
saver has performed well against the nifty index and other ELSS has not performed well with the market return.
So we can tell that Reliance has performed well with
market.
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HARSHITHA B
8. Findings







10. Conclusion
Among the selected ELSS Schemes Reliance
Tax Saver has highest Beta values and ICICI
Prudential Tax Saver has the lowest Beta
values.
The AUM of the HDFC Tax Saver stood at
4,794 cr during the year 2014 which is highest
compared to other ELSS.
In the year 2014, apart from ICICI Prudential
Tax Saver rest all ELSS have outperformed the
Nifty Returns.
Reliance Tax Saver Alpha values are better
when compared to other ELSS from last 5
years.
Investing in ELSS helps investors save tax &
grow money.
The AUM of Asset Management Companies
had continuously grown in last 5 years i.e., a
record of 100% growth.
Reliance tax saver has performed well in terms
of returns, risk premium, Sharpe’s ratio &
Treynor’s ratio during the last 5 years period,
compared to other tax saver funds.
From the study, Reliance Tax Saver & HDFC Tax Saver
performed well better than the Franklin Tax Shield,
ICICI Prudential Tax Saver & Birla Sun Life Tax Saver.
Reliance Tax Saver has done a good job & got a more &
more returns compared to other companies funds. The
performance evaluation measures like beta, Sharpe’s,
Treynor’s; Jenson’s etc. indicates the performance of
various mutual fund schemes. At the same time, they are
consistent in giving returns to the investors.
Therefore, Reliance Tax Saver has the highest value,
which indicates that the customers who have invested in
this fund had gained more returns. The study shows that
the Reliance Tax Saver & HDFC Tax Saver growth
schemes are the best option for the consumers to invest,
in order to get more returns.
11. References
Articles:
1) Sukhwinder Kaur Dhanda*, DR.G.S.Batra**, DR Bimal Anjum***, “Performance Evaluation of Selected
Open Ended Mutual Fund in India”, International Journal
of Marketing, Financing, Services and Management Research, ISSN 2277 3622 Volume No.1, January 2012.
9. Acknowledgement
I express my profound & sincere gratitude to Dr. Linganagouda Kulkarni, Principal VCET, Puttur, and to
our beloved Director of MBA Programme, Prof. Vivek
Bhandary, Head, Department of MBA who has enthusiastically imparted relevant information, support in carrying out this project.
I am thankful to my internal Project Guide, Mr. Ashley
D’Souza, Assistant Prof. Department of Business Administration, who has enthusiastically imparted relevant
information, support in carrying out this report. I express
my humble thanks to my external guide Mr. Jayaraj.K,
Branch Manager of Bajaj Capital Pvt. Ltd. Mangaluru I
would like to express my gratitude to all MBA Faculty
members, my parents & friends for being constant source
of support and encouragement
Books Referred:
1) Prasanna Chandra- Investment Analysis & Portfolio
Management, 3/e, TMH, 2010
2) Punithavathy Pandian- Security Analysis & Portfolio
Management, 2/e, Vikas, 2005.
3) Fisher & Jordon- Security Analysis & Portfolio Management, 6/e, person, 2011
Webliography:
1. www.investing-in-mutual-funds.com
2. www.sebi.com
3. www.Personaifn.com
JNANASANGAMA 2015
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A Study on Loans and Advances of Karnataka
Bank Ltd.
Rashmi B, Mr.Ashley D’Souza,
VTU: Department of MBA, Vivekananda College of Engineering and Technology, Nehru Nagar, Puttur, India
Email:Rashmi.nbalthila@gmail.com
Abstract
The Present study is made an attempt to know the loans and advances of Karnataka Bank Ltd. In
the present study we have made an attempt to know the lending policy and recovery policy of
loans and advances, also an attempt has been made to study the different loans provided by the
Karnataka Bank Ltd. To achieve the said objectives data is gathered from primary and secondary
sources. From the present study it is found that there is great improvement in performance of the
Bank year by year in lending and recovering loans and financial soundness of the bank is also
commendable.
Keywords
NPA; Cash credit; Credit facility; Net profit;
1. Introduction
banker he can collect interest on the entire amount of
loan sanctioned.
A Loan is a financial arrangement under which an advance is granted by a bank to borrower on a separate
called the loan account. When a loan is sanctioned to a
borrower, the entire amount of a loan is credited to the
account of the borrower and is paid to the borrower at
once, in one lump sum, either in cash or by transfer to
the credit of his account just as the disbursement of the
loan is made in lump sum, the repayment of the loan also
is, generally made in one lump sum. A loan is generally
granted for a short period of one year or more than one
year, say, 2 years, 3 years, 5 years, and 10 years etc. such
a loan is called term loan. If the loan is given for a period
ranging from one year to 5 years or 7 years, it is called a
medium term loan, and if it is given for still longer period, it is called a long term loan. A loan is granted either
against collateral securities or against the personal security of the borrower. In the case of loan, interest a
charged on the whole amount of loan sanctioned irrespective of the amount actually withdrawn by the borrower at quarterly or half yearly intervals. But the rate of
interest charged on a loan is slightly lower than that
charged on an overdraft and a cash credit. Generally a
An advance on the other hand, is a „credit facility‟
granted by the bank. Banks grant advances largely for
short-term purposes, such as purchase of goods traded in
and meeting other short-term trading liabilities.
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 91 years experience at the forefront of providing professional banking services and quality customer service, has now a national presence with a network of 635 branches spread across 21 states and 2 Union Territories. Managed by a dedicated & professional
management team, Bank has over 7,185 employees,
JNANASANGAMA 2015
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RASHMI B
1,21,000 shareholders and more than 7 million customers. Today, this Bank has emerged as a leading financial
service institution in India.
6. Review of Literature
Narasimhan Committee (1991) emphasized on capital
adequacy & liquidity, Padamanabhan Committee(1995)
suggested CAMEL rating (in the form of ratios) to evaluate financial & operational efficiency, Tara pore
Committee(1997) talked about non-performing assets &
asset quality, Kannan Committee(1998) opined about
lending methods, Kapoor Committee(1998) recommended for credit delivery system & credit guarantee &
verma Committee (1999) recommended seven parameters(ratios) to judge financial performance & several
other committees constituted by Reserve Bank of India
to bring reforms in the banking sector by emphasizing on
the improvement in the financial health of the banks.
Experts suggested various tools & techniques for effective analysis & interpretation of the financial & operational aspects of the financial institutions specifically
banks. These have focus on the analysis of financial viability & credit worthiness of money lending institutions
with a view to predict corporate failure & incipient incidence of bankruptcy among these institutions
2. Objectives of the study




To analyze the growth of lending in Karnataka
bank Ltd
To know the different types of loans and advances of the Bank.
To analyze the pattern of loans and advances of
the Bank.
To know the credit risk management system
implemented by the Bank.
3. Scope of the study
The study confined to Karnataka Bank Ltd and to ascertain the position of loans and advances of the bank. The
study is based on the loans and advances details collected
for a period of 5 years. The field of loans and advances
comprises of various types of loans sanctioned by Karnataka Bank Ltd.
Mavaluri, Bopanna & Nagarjuna (2006) suggested that
performance of banking in terms of profitability, productivity, asset quality & financial management has become
important to stable the economy. They found that public
sector banks have been more efficient than other banks
operating in India.
4. Methodology of the study
An analytical study on loans and advances of Karnataka
bank Ltd; is undertaken with the objective of studying
the growth of the bank‟s lending and analyze the financial performance and to make suggestions on findings.
Bhaskaran & Josh (2000) concluded that the recovery
performance of credit institutions continuous to unsatisfactory which contributes to the growth of NPA even
after the introduction of prudential regulations. They
suggested legislative & policy prescriptions to make
banking institutions more efficient, productive & profitable organisation.
Primary data
The required information for the study was collected
through discussions and consultations with the officials
of the bank.
Secondary data
Pal and Malik (2007) investigated the differences in the
financial characteristics of 74 (public, private & foreign)
banks in India based on factors, such as profitability,
liquidity, risk & efficiency. It is suggested that foreign
banks were better performance, as compared to other two
categories of banks, in general & in terms of utilization
of resources in particular.
The data relating to loans and advances of Karnataka
Bank Ltd collected from the annual reports of the banks
data have also been collected from the Journals, reference books publications of various institutions like RBI,
Government of India and various websites.
5. Limitations of the study
Dutta & Basak (2008) suggested that banks should improve their recovery performance, adopt new system of
computerized monitoring of loans, implement proper
prudential norms and organize regular workshops to sustain in the competitive banking environment.
The data collected includes details published through
magazines, journals and websites which may be incorrect.
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Table Showing Karnataka Bank Ltd Net NPA to Net
Advances (%)
Net NPA to Net AdYear
vances (%)
2010
1.31
2011
1.62
2012
2.11
2013
1.51
2014
1.91
7. Data analysis and interpretation
In crores
Chart Showing total Loans and Advances
30000
25000
20000
15000
10000
5000
0
The Banks Net NPA to Net Advances (%) for last 5
years has steadily increased, except in the year 2013.
Ratio reduced from 2.11% to 1.51%, because of better
recovery. But it has increased by 1.91% in the year 2014
compared to previous year, which really not a good sign
for the bank.
Year
The total advances of bank grew from Rs.25207.68
crores as on 31st March 2013 to Rs.28345.48 crores as on
31st March 2014. As compared to the year 2009-10, total
advances provided by the bank grew from Rs.14435.69
crores to Rs.28345.48 crores. It is helping the bank in
increasing its profits.
8. Findings

The Karnataka Bank Limited provides various
types of Loans and Advances like personal loan,
housing loan, car loan, educational loan etc.

All the above stated loans come with certain attractive interest rates, service charges and margin. Karnataka Bank Ltd Provides loan after the
individual satisfies all requirements like, his
eligibility and appropriate purpose etc., certain
papers like proof of identity, proof of income;
proof of residence, bank statement should be for
granting the loan.

The Banks Gross NPA for last 5 years has steadily increased from 24.02% to 30.85%. Except
in the year 2012 and 2013. Where it reduced
from 27.75% to -2.49% and again reduced to
-6.70%, because of better recovery. But NPA
has increased by 30.85% in the year 2013-14
compared to previous year, which really not a
good sign for the bank.

The amount outstanding of agriculture and allied activities has been increased from year to
year. In the year 2010 amount outstanding of
agriculture and allied activities of the bank are
61.99%. In the year 2010 to 2011 it has increased to 26.21%, in the year 2011 to 2012 it is
increased to 34.95%, 2012 to 2013 it is increased to 40.05% and in the year 2013 to 2014
it is increased to 7.89%.
Table Showing Net NPA of the Bank
Year
Net
crores)
NPA(In
2009-10
188.61
62.45
2010-11
280.34
48.63
2011-12
435.2
55.24
2012-13
377.75
-13.20
2013-14
538.04
42.43
Percentage (%)
The Banks Net NPA for last 5 years has steadily increased. Except in the year 2012-13. Where it reduced
from 55.24% to -13.20%, because of better recovery. But
NPA has increased by 42.43% in the year 2013-14 compared to previous year, which really not a good sign for
the bank.
JNANASANGAMA 2015
A National Level Student Conference
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RASHMI B

10. Acknowledgements
The amount outstanding of small enterprises has
been increased from year to year.

The amount outstanding of education loan has
been increasing from year to year. In the year
2010 education loan of the bank is 24.98%. In
the year 2010 to 2011 educational loan of the
Bank is increased with 17.44% in the year 2011
to 2012 it is increased to 16.78%, 2012 to 2013
it is increased to 10.07% and in the year 2013 to
2014 it is increased to 7.45%.

The amount outstanding of housing loan has
been increasing from year to year. In the year
2012 to 2013 it is increased to 20.42% and in
the year 2013 to 2014 it is increased to 13.82%.

The amount outstanding in export credit has
been fluctuating year on year.

There has been a steady increase in total advances in proportion to total deposits from
0.6083 to 0.6985. It can also be inferred that
there has been steady increase in the amount of
deposits collected by the bank over the period
of 5 years.
Gratitude is certainly to be placed on record at the right
time with the perspective. It is my blessed privilege to
thank Dr. Linganagouda Kulkarni, Principal, Prof. Vivek
Ranjan Bhandary, HOD of MBA Department, VCET,
Puttur for motivating me to conduct a study in an esteemed organization.I would like to extend my sincere
thanks to Mr. Gokuldas Pai, DGM, Karnataka Bank Ltd,
Regional Office Bangalore for encouraging and supporting me at every stage.
Finally, I express my special thanks to my Parents,
Well wishers and Friends for their support and encouragement.
11. References
Books Referred
1. Shekar&Shekar- Banking Theory and practice, Vikas, 20/e, 2011
2. Khan M.Y - Financial Service, McGraw Hill, 6/e,
2011
3. Pandey I.M, Financial Management, Vikas publication house, 8th edition
4. Clifford Gomez - Banking and Finance: Theory and
Practice – PHI, 1/e, 2011
5. Karnataka Bank Ltd Annual Reports (From 2008-09
to 2013-14)
9. Conclusion
Articles
Harish Kumar Single (2008) “financial performance of
banks in India”, “The ICFAI journal of management vol
7 issue 1”.
Karnataka Bank Ltd., which is one of the oldest banks in
south India, has a strong base and foot hold in banking
industry. From this study it is evident that Karnataka
Bank Ltd is performing well in the loans and advances.
The loan process is carried out effectively. The net profit
has grown over the years. The public are satisfied and
happy with the loans and are also willing to borrow from
the bank. Due to lagging in proper realizable security
from the borrowers, banks are facing difficulty to recover
its loans and advances.
Dr.Dhiraj Jain,MS Nasreen Shekh,” A comparative study
of loans performance, NPA and net profit in selected
Indian private Banks, international journal of marketing,
financial services and management Research, vol.1
1issue 9, sept 2012, page no 43,57.
Dr.K.Sudhakara Rao “A comparative analysis of loans
and advances in selected urban co-operative banks” National monthly referred journal of research in commerce
and management Vol.No.2 issue No.10 2012, page
no.11-20.
After lending the amount, the attitude of the lender and
borrower are changing due to some circumstances. The
borrowers are turning towards wilful defaulters due to
some problem in procedure of debt realization. Bank has
continuous monitoring and follow up deficiency. Bank is
lagging in continuous check, inspections, guiding to the
borrowers as these are right of the banks. At the time
bank can ask for the required information as they needed
for the performance evaluation of the project. From the
banker‟s side the main faults are not having proper security or adequate security in some cases.
Srinivas K T “A study on loan management with special
reference to the belgaum industrial co-operative bank
limited, Sai Om Journal of commerce & management”,
vol.1, Issue 2, Feb 2014, page no.8.
Webliography
http://www.ktkbank.com/ktk/Loans.jsp
http://www.moneycontrol.com
http://www.referenceforbusiness.com
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A National Level Student Conference
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