Step 1: Open the Document
Open a document of any size you desire and type some text on it. It
is better to use some broad fonts like what I have used so that the end
result looks good.
Step 2: Applying layer styles
Now click on the add layer style icon available at the bottom of the
layers palette and apply the following layer styles.
Now select bevel and emboss layer style. In that Select Texture and
choose rock patterns and choose any pattern from that.
Therefore your stone textured text has been created. In order to make
it more decorative you can continue with the following optional steps.
Step 3: Creating the border
Now create a new layer and ctrl+click inside the thumbnail of the
text layer and now the text selected. With the text selected go to
Select -> Modify -> Expand and type 3 pixels.
Step 4: Decorating the new layer
Now fill that selection with any color and apply the following layer
Now you should have something like this.
Step 5: Deleting of central portion
Now ctrl+click in the text layer with the new layer still selected
and delete the selected portion and you will get something like this.
Step 6: Applying layer styles
Now apply bevel and emboss layer style to the new layer with its
default values and you must find something similar to this.