Creating a rope wrapped text effect

Start by creating a rectangle using rectangular shape tool.

Press Ctrl+T. Right click the layer and select warp. Adjust nodes to get the shape as shown.
Double click the layer to open layer style window. Apply layer style with the settings shown.

Duplicate the layer. Press Ctrl+T. Right click the layer and select flip horizontal.
Similarly create more duplicates and place below each other.

Select and merge all the layers. Select burn tool from the main toolbar with the settings shown.

Apply the brush on the image as shown in the image below.
Create a new layer. Select brush tool with the 1 pixel brush settings. Apply the brush around the rope as shown.
Similarly create a horizontal shape and complete the alphabet "T".
Similarly create rest of the text using same technique.
Select and merge all the layers. Duplicate the layer and change the layer mode to multiply.

 

Move the layer a few pixels bottom left.
Press Ctrl+U to open hue/saturation window. Apply settings as shown.