61367032 org-study-canara-bank

ORGANISATION STUDY

Executive summery

ECONOMIC ENVIRONMENT

India was one of the first countries to recover from the global crisis on account of its strong domestic demand and healthy financial sector. Growth in GDP averaged 6.7% in the first three quarters of FY11 and it is expected that the strong growth momentum will continue in the fourth quarter as well. As per the advance estimates released by the Central Statistical Organization (CSO), the Indian economy is expected to grow by 7.2% in 2010-2011 vis-à-vis a 6.7% growth in the previous fiscal. Agriculture sector is estimated to contract by 0.2% and services to record a moderate growth.

India’s industrial production (IIP) registered an impressive 10.4% growth for the financial year 2010-2011 as against a growth of 2.8% a year ago. The continued strong growth in manufacturing, which accounts for nearly 80% of India’s industrial production, indicates the resilience of domestic demand.

During 2010-2011, the primary concern among the policy makers was inflation. Monthly wholesale price inflation rose significantly to 9.9% in March 2010, primarily due to rising prices of primary articles, especially food items as against an increase of 1.2% a year ago.

India's exports, which had been contracting upto October 2010, have finally turned positive in November 2010 and the uptrend has been continuing for the fifth consecutive month. As per the provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), during April-March 2010-2011 merchandise exports of India aggregated to US $177 billion, recording a negative growth of 4.7%. Cumulative value of imports during April-March 2010-2011 amounted to US$279 billion, registering a decline of 8.2%. The trade deficit for April-March 2010-2011 was estimated at US $ 102 billion, lower than the deficit of US $ 118 billion during April-March 2010-11.

Economic Environment in Karnataka

Karnataka is one of the fastest growing States in India. Widely acclaimed for its internationally reputed Information and Bio-technology companies, the State is home to varied industrial activities, leading research and development institutions and a pool of skilled manpower. As per the Economic Survey of Karnataka 2010-2011, the real growth in Gross State Domestic Product (GSDP) is anticipated to be around 5.5% during 2010-2011. Canara Bank, owing its origin to the State, is continuing its leadership position in the State. The Bank has been playing a leading role in extending financial services to large number of people through its over 600 branches spread across the State. The State contributes over 16% of total domestic business of the Bank as at March 2010. The total business of the Bank in the State stood at Rs.

RAGHAVENDRA.C.K, M.B.A, SECOND YEAR, REG NO. 10MB0725HRIHE COLLEGE, HASSAN

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63412 crore comprising Rs. 35732 crore under deposits and Rs. 27680 crore under advances as at March 2010. I. CANARA BANK IN 2010-2011

FINANCIAL PERFORMANCE

For Canara Bank, 2010-2011 was a year of reckoning and crossing of milestones. It was a year of robust performance on the business front coupled with unprecedented gains in profits and profitability. Continued buoyancy in core business operations and costs containment helped the Bank to sustain and enhance the top line earnings while maintaining a stronger bottom-line.

Net profit reached an all time high of Rs. 3021 crore, signifying a strong 45.8% growth y-o-y and substantially higher than Rs. 2072 crore recorded during the preceding year. Operating profit recorded a 27.7% growth to reach a level of Rs. 5061 crore.

Return on average assets (RoAA) for the year stood at 1.30%, well above the international benchmark of 1%. Cost to Income ratio declined by 288 basis points to 40.73%. Profit per employee, moved up to Rs.7.36 lakh compared to Rs.4.97 lakh in the previous financial year.

Enhancing Shareholder Value: In conformity with its commitment to enhance value for shareholders, the Bank showed steady improvement in Earnings Per Share (EPS) and Book Value. While Book Value increased to Rs.305.83 as at March 2010 as compared to Rs.244.87 for the previous financial, EPS rose to Rs.73.69 for the year ended March 2010 compared to Rs.50.55 a year ago. A dividend of 100%, amounting to Rs.410 crore, was recommended by the Board of Directors of the Bank for 2010-2011.

INCOME AND EXPENDITURE ANALYSIS The Bank’s interest income recorded a y-o-y growth of 9.5% to reach Rs.18752 crore compared to Rs.17119 crore recorded during the previous financial year. Non-interest income increased to Rs. 2858 crore, recording a robust growth of 23.7%.

Capital and Reserves

Networth of the Bank, as at March 2010, stood at Rs.12949 crore compared to Rs.10040 crore as at March 2010. With the paid-up capital at Rs.410 crore, reserves


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and surplus increased to Rs.14262 crore. To augment the capital resources, the Bank raised Rs. 600 crore through the Innovative Perpetual Tier I Bonds during the year. (Amt. in Rs. Crore)

Capital to Risk Weighted Assets Ratio (CRAR) of the Bank under Basle II stood at 13.43%, well above the 9% regulatory benchmark. Significantly, the Bank has attained a Tier I capital ratio of 8.54%. The medium term objective of the Bank is to maintain the CRAR ratio above 12%. With the still undiluted 73.17% Government of India shareholding, the Bank has large headroom available under both Tier I and Tier II options to raise capital and support business growth momentum.

BUSINESS GROWTH

DepositsTotal Deposits of the Bank registered a growth of 25.6% to reach Rs. 2,34,651 crore as at March 2010. In accordance with the strategic focus, the Bank's core deposits recorded a growth of 32.3%, supported by 19.3% growth in savings deposits.

Unrelenting focus on augmenting of low cost resources yielded good results. While savings deposits during FY09 grew by Rs.6544 crore, in FY10, aided by the Bank’s mega savings bank deposit campaign, it surged by Rs.8064 crore. The share of CASA deposits (current and savings bank deposits) in domestic deposits stood at 29.85%. With a CASA per branch at Rs. 22.4 crore, the Bank continues to be one of the best among the peers. Pursuing a strategy of broad basing deposit clientele, all the branches together added nearly 2.35 million deposit accounts, taking the total tally under deposit accounts to 32.85 million.

ADVANCES (NET)

The Bank's advances (net) witnessed a robust 22.5% growth in 2010-2011 to reach Rs. 1,69,335 crore. In quantum terms, credit increased by over Rs.31000 crore. The Bank stepped up credit to all productive segments of the economy like agriculture,


Composition of Capital March 2010Basle II

March 2011Basle II

Risk Weighted Assets 125111 150623Tier I Capital 10023 12870CRAR (%)(Tier I) 8.01 8.54Tier II Capital 7623 7362CRAR (%)(Tier II) 6.09 4.89Total Capital 17646 20232CRAR (%) 14.10 13.43

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Micro, Small and Medium Enterprises (MSMEs), exposure to corporate and infrastructure segments. The number of borrowal accounts, as at March 2010, rose to 4.49 million.

Total Business of the Bank grew by 24.3% to reach Rs. 4,03,986 crore as at March 2010 as against Rs. 3,25,112 crore during the preceding year. Productivity, as measured by business per employee, increased to Rs.9.83 crore from Rs.7.80 crore a year ago, continuing to be one of the best among the peers. With several enterprise-wide initiatives and measures, the Bank added 2.54 million clientele during the year.

RETAIL LENDING OPERATIONS Retail lending operations of the Bank regained the growth momentum during the year. While disbursals under the retail lending stood at Rs. 8653 crore, the outstanding advances rose to Rs. 23902 crore, accounting for about 15% of the domestic credit.

(Amt. in Rs. Crore)

The Bank took several measures during the year to expand retail credit, including special packages for housing and auto loans. Under Canara Mobile loan, the Bank sanctioned 24,000 accounts, amounting to Rs. 803 crore. To facilitate speedy disposal of proposals and credit flow, a total of 25 Centralized Processing Units (CPU)/ Retail Assets Hubs (RAH) for housing and other retail loans were functioning at major centres across the country.

TREASURY AND INTERNATIONAL OPERATIONS


Retail Lending March 2010

March 2011

Growth (%)

Retail Lending 19798 23902 20.7

Housing (Direct) 7896 10116 28.1

Retail Trade 4451 5383 20.9

Other Personal (Including Education Loan)

7451 8403 12.8

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Aggregate investments of the Bank, as at March 2010, moved up to Rs.69,677 crore. Portfolio modified duration (years) increased from 4.08 to 4.97 as at March 2010 due to redemption of short dated securities and T-Bills and fresh investments made in long dated securities. The modified duration of the Available for Sale (AFS) portfolio increased to 1.93 as at March 2010 from 1.87 a year ago on account of investments made in dated securities and reduction of investments in treasury bills. The trading profit during the year was higher at Rs.872 crore as against Rs.675 crore in the previous year. The yield on investments stood at 7.52% as at March 2010.

Foreign Business Turnover of the Bank, as at 31st March 2010, aggregated to Rs. 1,27,614 crore, comprising Rs.45,777 crore under exports, Rs.37,235 crore under imports and Rs.44,602 crore under remittances. Outstanding export credit of the Bank was at Rs.8966 crore.

Across the borders, the Bank’s presence covered three branches at London, Hong Kong and Shanghai as at March 2010. On April 12, 2010 the Bank opened its fourth overseas branch at Leicester (UK), taking the number of foreign branches to 4. Besides, a joint venture bank, namely, Commercial Bank of India LLC in association with State Bank of India is also operational in Moscow.

Business performance of overseas branches as on 31.03.2011.Overseas Branch Deposits Advances Gross

ProfitNet Profit

London (GBP Mn) 992.69 771.08 8.88 0.30Hong Kong (USD Mn) 61.85 363.25 5.50 2.48Shanghai In first year of operation

NATIONAL PRIORITIES

Priority Sector Advances

As one of the leading players in the domestic banking industry, the Bank continues to accord importance to varied goals under national priorities. The remarkable performance during 2010-2011 has further reinforced the Bank’s commitment to the large and growing productive segments of the economy, including agriculture, small enterprises, education, micro-credit, weaker sections, SC/STs and minorities.

The Bank has achieved stipulated mandatory targets under Total Priority, Total Agriculture and Weaker Sections Advances with comfortable margin.

Financial Inclusion


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Actively supporting the national agenda of 100% financial inclusion, the Bank has been playing an important role of enhancing financial inclusion across the country. The Bank has come out with a scheme by bringing all financial inclusion products under one umbrella called "Canara Nayee Disha" for financial deepening under the second phase. Notably, the Bank achieved Total Financial Inclusion in all the 26 Lead Districts spread over five States, namely, Karnataka, Kerala, Tamil Nadu, Bihar and Uttar Pradesh. Lead Bank Scheme

Canara Bank has lead bank responsibilities in 26 districts in the country, viz., eight in Karnataka, seven in Tamil Nadu, five in Kerala, five in Uttar Pradesh and one in Bihar. The Bank also works as the Convenor of the State Level Bankers’ Committee (SLBC) in the State of Kerala.

CORPORATE SOCIAL RESPONSIBILITY

Following the century old tradition and founding principles, the Bank has set fine examples in fulfilling varied Corporate Social Responsibility (CSR) activities. The Bank has been taking numerous initiatives over the years to promote rural development and has set up many self-employment training institutes to counter poverty and unemployment among rural youth. To provide basic amenities in the rural areas, the Bank is encouraging setting up of rural clinics, drinking water facilities and engaging rural volunteers for betterment of communities.

ORGANISATION AND SUPPORT SERVICESBRANCH NETWORK

The year was significant for the Bank in expanding domestic operations across the country. Befitting its 104th year of existence, the Bank on its Founder’s Day i.e., 19th November, 2010, opened 104 branches across the country, inaugurated by Hon’ble Finance Minister Shri Pranab Mukherjee. The Bank opened 314 branches during the year, taking the total tally under the branch network to 3046 branches.

Composition of domestic branch network


Category

No. of Branches31.03.2010 31.03.2010

Metropolitan 629 727Urban 674 744Semi-urban 691 793Rural 735 779Total Branches 2729 3043

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The Bank has 118 specialized branches catering to the specific financial needs of different clientele categories.

INFOTECH PROGRESS

The Bank took several initiatives in the InfoTech front during the year. As at the end of March 2010, number of branches covered under Core Banking Solution (CBS) expanded to 1809, besides 29 Extension Counters, 92 Currency Chests and 80 Service Units.

As at March 2010, the Bank had 2017 ATMs spread across 728 centres, including 745 offsite ATMs and 180 ATMs in railway stations. It has also set up 150 e-kiosks for booking railway tickets. Debit card base of the Bank further increased to about 50 lakhs as at March 2010.

MANPOWER PROFILE


Categories of Specialized Branches 31.03.20101. SMEs 372. Overseas 173. Agri-Finance 104. Micro Finance Branches 95. Savings 76. NRIs 77. Asset Recovery Management 78. Prime Corporate 79. Industrial Finance 510. Stock Exchange 311. Capital Market 312. Mahila Banking 313. Consumer Finance 114. Housing Finance 115. Branch for Physically Challenged 1TOTAL 118

Infotech Progress 31.03.2010 31.03.2011Core Banking Branches 1053 1809Any Where Banking Branches 2062 2091Internet and Mobile Banking Branches 1362 1959NEFT and RTGS 2729 3037

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As at March 31, 2010, the Bank had 43,380 employees on its rolls.

Reservation Policy in respect of SCs and STs

As at March 2010, the number of Scheduled Castes and Scheduled Tribes together constituted 25.83% of total staff strength of the Bank. The composition of SC/ST employees in the Bank as at March 2010 was as under:

Cadre Scheduled Castes Scheduled TribesOfficers 3072 1131Clerks 2911 867Sub-staff + PTEs 2773 449Total 8756 2447

TRAINING / HUMAN RESOURCE DEVELOPMENT (HRD)

Human resources form the basic lifeline for a service-oriented industry like banking. The HR policies of the Bank have been reinvented and refocused time and again to suit to the changing banking scenario. HR interventions like SPANDAN for bringing attitudinal change among front line staff, PRATIBHA for grooming in-house talents in varied specialized areas and executive grooming through reputed institutes and other significant HR tools like Quality Circles, Study Circles, Staff Meetings and Brain Storming Sessions have been implemented for effective team building and collective excellence.

Customer Orientation

The Bank’s endeavour has always been to respond to customers by taking conscious initiatives and showing proactive response to changing customer expectations. The Bank offers a personalized range of specialized and diversified products and quality service to customers. The Bank made arrangements for providing copies of the ‘Code


March 2010

March2011

Total No. of Employees 44090 43380Officers 17551 17338Clerks 16500 16285Sub-Staff* 10039 9757

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of Bank’s Commitment to Customers’ to customers at branches. An informative booklet containing all the relevant information on 'Frequently Asked Questions by Customers' was made available at all branches towards better Customer Service. The Policy guidelines relating to Collection of Cheques/Instruments, Grievance Redressal Mechanism and Compensation Policy were placed on the Bank’s website for use of the customers. As a part of Customer Relationship Management initiatives, a Call Centre was setup during March 2009. The call centre caters to the customers in 6 languages viz., English, Hindi, Kannada, Tamil, Telugu and Malayalam. The number of calls received by the Call Centre during the year was more than 7.5 lakh.

Systems and Procedures

Risk Based Internal Audit (RBIA) was conducted in all the 2078 branches/ units programmed for on-site RBIA during the year. Information Security Audit was conducted along with RBIA. Concurrent / Continuous Audit was conducted in 763 branches/service units, of which 250 branches and 35 units were subjected to concurrent/continuous audit by internal auditors and 461 branches and 17 service units were subjected to concurrent audit by external auditors covering 55.01% of deposits and 87.5% of advances (as per the Business position as at 31.3.2010). 357 branches were subjected to income/revenue audit, which included branches identified for income audit on quarterly basis in addition to 763 branches which are under concurrent/continuous audit on monthly basis.

Security Arrangements

The security environment in the Bank remained, by and large, normal during 2010-2011. There were 52 incidents of crime during the year involving a loss of Rs. 12.61 lakh. There was one major fire incident during the year and loss approximated to Rs. 21 lakh. The security arrangements have been reinforced by installation of CCTV in all Currency Chests and identified branches. Modern fire safety devises have been introduced at select Offices. Fire safety drills have been introduced and practiced at regular intervals in order to minimize damage to property and prevent injury and loss of life.

Ambience Improvement

All the new branches opened in prime localities and branches shifted to new premises during the year were provided with suitable interior to meet the present day requirements of the customers. Besides, the Bank is providing better interiors to augment the requirements of computer environment and also proposes to enhance the ambience at all branches.

Promotion of Sports


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Canara Bank has always been encouraging and supporting sports and contributed generously to sporting activities all over the country, sponsoring tournaments and providing scholarships to talented sportspersons. The Bank has also shown a keen and abiding interest in recruiting sportspersons and today has on its rolls 42 sports persons in six disciplines viz., Cricket, Hockey, Women’s Athletics, Badminton, Ball Badminton and Table Tennis.

FINANCIAL SUPERMARKET

Subsidiaries, Sponsored Entities and Joint Ventures

Canara Bank, with an objective of offering ‘One Stop Banking Mart’ for the customers, forayed into diversified business activities by opening subsidiaries during late 1980s. Today, the Bank functions as a ‘Financial Supermarket’ with as many as nine subsidiaries/ sponsored entities/ joint ventures in diversified areas. The Bank has taken significant steps towards strengthening fundamentals of these entities so as to emerge as a strong 'Financial Supermarket' in India. All the subsidiaries/ sponsored entities/ joint ventures of the Bank recorded satisfactory performance during the reporting year.

1. Commercial Bank of India LLC (CBIL)2. Canbank Venture Capital Fund Limited (CVCFL) 3. Can Fin Homes Limited (CFHL)4. Canbank Factors Limited (CFL)

5. Canbank Computer Services Limited (CCSL)

6. Canara Bank Securities Limited (CBSL) 7. Canbank Financial Services Limited (Canfina)8. Canara Robeco Asset Management Company Limited (CRAMC)

9. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

10. Regional Rural Banks (RRBs).

INTRODUCTION

Methodology:

Data Collection is a Step in the preparation of project report. The information is collected in following manner.

Primary sources:

Data is collected by the interacting with bank managers and officers.


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Secondary sources:

The data is collected for report by various records maintained and standing orders of the banks which help as lot for preparing this report. A lot of data were also collected by referring to magazines and news paper, annual reports of bank.

Objectives:

To study the loans and advances of the bank To study the evaluation and performance of the bank To study the financial statement

To study the source of finance of the bank

To study the history of the bank

To understand functioning of bank

Limitations

Sample size is limited due to the limited period allotted for the survey. Non availabity of adequate and essential information due to complex nature of

the study.

Inability of the bank personnel to provide adequate information due to their pre-occupation with their work.

Survey is costly and tedious.


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INDUSTRY PROFILE

BANK

A bank is a business center that deals in financial services. A bank is a place where your money is safe-locked and a secure place to dispose off your earnings. Banking service in general includes receiving deposit money, lending money and processing transactions. The history of origination of bank goes back a long way. Since then, banks have influenced the economy of countries. India has a number of both government undertaken banks as well as private ones.

Meaning of Banking: A bank is an institution which deals in money and credit. Thus, bank is an intermediary which handles other people’s money both for their advantage and to its own profit. But bank is not merely a trader in money but also an important manufacturer of money. In other words, a bank is a factory of credit.

Definition of Banking:According to Section 5(1) (b), “Banking means accepting for the purpose of lending or investing, of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, draft, and order or otherwise”.

Definition of Banking Company:Section 5(1) (c), defines banking company as, “Any company which transacts the business of banking in India”.

Features of Banking:The following are the basic characteristics of Banking:

Dealing in Money : The banks accept deposits from the public and advancing them as loans to the needy people. The deposits may be different types –current, fixed, savings, etc. accounts. The deposits are accepted on various terms and conditions.

Deposits must be withdraw able : The deposits made by the public can be withdraw able by cheques, draft or otherwise, i.e., bank issue and pay cheques. The deposits are usually withdrawable on demand.

Dealing with credit : The bank are the institutions that can create credit i.e., creation of additional money for lending. Thus, “creation of credit” is the unique feature of banking.


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Banking in India

Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). These banks have over 67,000 branches spread across the country.

Stages of development of Banks in India

Early historyDuring the warsPost independence Nationalization LiberalizationCurrent scenario

Early history

At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time which functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative ventures, most of the banks


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opened in India during that period could not survive and failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.

At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras - which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was renamed the State Bank of India. There were also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in different segments of the economy. The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Lord Curzon had observed then in the context of Indian banking: "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."

Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, and a number of them set up around that time continued to survive and prosper even now like Bank of India and Corporation Bank, Indian Bank, Bank of Baroda Canaradicate Bank and Canara Bank.

During the Wars

The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for the Indian banking. The years of the First World War were turbulent, and it took toll of many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed during the years 1913 to 1918 as indicated in the following table:


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Years No. of Banks that failed

Authorized capital (Rs. In lakh)

Paid up capital (Rs. In lakh)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

Post-independence

The partition of India in 1947 had adversely impacted the economies of Punjab and West Bengal, and banking activities had remained paralyzed for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a license from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19th July, 1969.

Nationalization


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The nationalization of 14 major banks with deposits of Rs. 50 crores or more in July 1969 was a “historic” and momentous event in the history of India. Small industrial and business units are continuously and consistently ignored and starved of funds, even though the Government policy was to encourage small, tiny and cottage and village industries. Agricultural credit was never seriously considered by banks. Public funds were used to support anti –social and illegal activities against the interest of the general public. It was for these reasons that the Government took over 14 top commercial banks in July 1969. In 1980 again the Government took over another 6 commercial banks –altogether there are 20 nationalized banks. These are in addition to the State Bank of India and its associate banks –commonly called the State Bank of India Group –which was taken over in 1955.

Branch Expansion:Initially, the banks were conservative and opened branches mainly in metropolitan cities and other major cities. Branch expansion gained momentum after the nationalization of major commercial banks and the introduction of the Lead Bank Scheme. Table No. 01 shows the progress of branch expansion of commercial banks:

Branch expansion of all commercial banks:

Table No. 01.

As on June 30

Total No. of Branches

Rural Branches

Rural Branches as % of the total.

Population per bank office

196919912003

8,26060,65066,640

1,86032,75032,270

225448

63,80014,15015,000

Deposit Mobilization:Planned economic development, deficit financing and increase in currency issue have led to increase in bank deposits. At the same time, banks have contributed greatly to the development of banking habit among people through sustained publicity, extensive branch banking and relatively prompt service to the deposit mobilization, due partly to the expansion of a network of bank branches and partly to the incentives given to savers. The trend of increase in deposits and credit of scheduled banks is given in Table No. 02.

Table No. 02.Year No. of reporting

BanksBank deposits (Rs. Crores).

Bank credit(Rs. Crores).


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1950 -511970 -711990 -912000 -20012003 -2004

43073271297288

8205,9101,92,5409,62,62015,01,930

5804,6901,16,3005,11,4308,35,380

Since, 1950 -51 deposit mobilizations and supply of credit by banks were growing at a rapid rate particularly after bank nationalization in 1969.

Growth of deposits in India of all scheduled commercial banks was as follows:1951 -1971 (20 years) -700% or 7 times.1971 -1991 (20 years) -3,260% or 32.6 times.1991 -2004 (12 years) -780% or 7.8 times.

Liberalization

In the early 1990s the then Narasimha Rao government embarked on a policy of liberalization and gave licenses to a small number of private banks, which came to be known as New Generation tech-savvy banks, which included banks such as UTI Bank (the first of such new generation banks to be set up), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, kick started the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 49% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4% Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more.

Current scenario

Currently (2011), overall, banking in India is considered as fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets


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and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector, the demand for banking services-especially retail banking, mortgages and investment services are expected to be strong. M&as, takeovers, asset sales and much more action (as it is unraveling in China) will happen on this front in India.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

As far as the present scenario is concerned the banking industry in India is in a transition phase. The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India.

Indus land Bank was the first private bank to be set up in India. IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks. Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc.

ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank etc are some foreign banks operating in India


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Diagram: Shows the Banking Structure in India:

Indian Banking Structure:

The banking system in India can be broadly divided into three categories, viz. the central bank of the country known as the Reserve Bank of India (RBI), the commercial banks and the co –operative banks. The Reserve Bank of India is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks


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Reserve Bank of India (RBI)

Scheduled Commercial Banks

Scheduled Co –operative Banks

PrivateSector Banks

Public Sector Banks

Foreign Banks in India

Regional Rural Banks in India

ScheduledUrbanCooperativeBanks

Scheduled StateCooperativeBanks

Nationalized Banks

SBI & ItsAssociates

Old PrivateBanks

NewPrivateBanks

ORGANISATION STUDY

and hence is known as the “Reserve Bank”. Below figure shows the structure of Indian banking.

Scheduled and Non –Scheduled Banks:Under the Reserve Bank of India Act, 1934, banks were classified as scheduled banks and non –scheduled banks. The scheduled banks are those which are entered in the Second Schedule of RBI Act, 1934. Such banks are those which have a paid –up capital and reserves of an aggregate value of not less than Rs. 5 lakhs and which satisfy RBI that their affairs are carried out in the interests of their depositors. All commercial banks –Indian and foreign, regional rural banks and State co –operative banks –are scheduled banks. Non –Scheduled banks are those which have not been include in the Second Schedule of RBI Act, 1934. At present, there are only three non –scheduled banks in the country. Scheduled banks are divided into Commercial Banks and Co –operative Banks. Commercial banks are based on profit, while co –operative banks are based on co –operative principle.

Commercial banks have been in existence for many decades. They mobilize savings in urban areas and make them available to large and small industrial and trading units mainly for working capital requirements. After 1969 commercial banks are broadly classified into nationalized or public sector banks and private sector banks. The State Bank of India and its Associates banks along with another 20 banks are the public sector banks. The private sector banks include a small number of Indian scheduled banks which have not been nationalized and branches of foreign banks operating in India –commonly known as foreign exchange banks.The Regional Rural Banks (RRB’s) came into existence since the middle of 1970s with the specific objective of providing credit and deposit facilities particularly to the small a marginal farmers, agricultural laborers and artisans and small entrepreneurs. The Regional Rural Banks have the responsibility to develop agriculture, trade, commerce and industry in the rural areas. The RRB’s are essentially commercial banks but their area of operation is limited to a district.


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COMPANY PROFILE

Brief History

Late Sri Ammembal Subbarao Pai

Our Beloved FounderFounded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Sri. Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalization.

"A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people" - A. Subba Rao Pai. - A. Subba Rao Pai.Founding PrinciplesTo remove Superstition and ignorance.To spread education among all to sub-serve the first principle.To inculcate the habit of thrift and savings.To transform the financial institution not only as the financial heart of the community but the social heart as well.To assist the needy.To work with sense of service and dedication.To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.Sound founding principles, enlightened leadership, unique


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work culture and remarkable adaptability to changing banking environment have enabled Canara Bank to be a frontline banking institution of global standards.

A Brief Profile of the Bank

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred years of its existence. Growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. Eighties was characterized by business diversification for the Bank. In June 2011, the Bank completed a century of operation in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks. With an unbroken record of profits since its inception, Canara Bank has several firsts to its credit. These include:Launching of Inter-City ATM Network Obtaining ISO Certification for a BranchArticulation of ‘Good Banking’ – Bank’s Citizen Charter Commissioning of Exclusive Mahila Banking BranchLaunching of Exclusive Subsidiary for IT ConsultancyIssuing credit card for farmersProviding Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and abroad. As at March 2011, the Bank has further expanded its domestic presence, with 3253 branches spread across all geographical segments. Keeping customer convenience at the forefront, the Bank provides a wide array of alternative delivery channels that include 2216 ATMs, covering 846 centres. With 100% CBs, the Bank offers technology banking, such


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as, Internet Banking and Funds Transfer through NEFT and RTGS across all branches. The Bank has further enhanced its basket of new tech-products for customer convenience like Canara Gift Cards, Canara Campus Card, Canara Platinum Card, Bills Desk for utility bills payment, Cash withdrawal at Point of Sale (PoS) machines at Merchant Establishments, VISA money transfer and the ASBA (Application Supported by Blocked Amount) facility during FY11.

Not just in commercial banking, the Bank has also carved a distinctive mark, in various corporate social responsibilities, namely, serving national priorities, promoting rural development, enhancing rural self-employment through several training institutes and spearheading financial inclusion objective. Promoting an inclusive growth strategy, which has been formed as the basic plank of national policy agenda today, is in fact deeply rooted in the Bank's founding principles. "A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people". These insightful words of our founder continue to resonate even today in serving the society with a purpose. The growth story of Canara Bank in its first century was due, among others, to the continued patronage of its valued customers, stakeholders, committed staff and uncanny leadership ability demonstrated by its leaders at the helm of affairs. We strongly believe that the next century is going to be equally rewarding and eventful not only in service of the nation but also in helping the Bank emerge as a "Global Bank with Best Practices". This justifiable belief is founded on strong fundamentals, customer centricity, enlightened leadership and a family like work culture.Canara Bank is one of the most prominent commercial banks of India. The bank was established in the year 1906 at Mangalore, Karnataka by a well known personality Mr. Ammembal Subba Rao Pai. Initially, it was founded with the name Canara Bank Hindu Permanent Fund, but later on the name was changed to Canara Bank Limited.


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Mr. Ammembal Subba Rao Pai had envisioned the bank to not only offer financial services but also fulfill social causes such as removal of superstitions and ignorance, promotion of habit of saving, providing assistance to the people in need and develop a sense of humanity among the people.

Key AttributesApart from setting other benchmarks in the field of providing comprehensive banking services to the consumers, Canara Bank has a number of achievements to its credit, which include being the first bank in India to have launched Inter-City ATM network, being the first bank to have been awarded ISO Certification for one of its branches, providing credit card for farmers for the first time in India along with offering Agricultural Consultancy Services.

Vital DetailsCanara Bank has established a strong presence in the country, with 2710 branches across the nation as of September 2011. The bank boasts of having the maximum number of ATM installations among all the nationalized banks summing up to more than 2000 of them at 698 centres. Also, 1351 branches of the bank provide Internet and Mobile Banking (IMB) services, while ‘Anywhere Banking’ services are being provided at 2027 of its branches. All the branches of Canara Bank are enabled with Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) transaction facilities, insuring smooth and swift money transfer from any corner of the nation to another corner.

Products and ServicesCanara Bank offers a host of banking and value added services to its customers, which include Personal Banking Services, Corporate Banking Services, NRI Banking Services and Priority & SME Credit Services.


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Significant Milestones

Year1st July 1906

Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000 shares of Rs. 50/- each, with 4 employees.

1910

Canara Hindu Permanent Fund renamed as Canara Bank Limited

1969

14 major banks in the country, including Canara Bank, nationalized on July 19

1976

1000th branch inaugurated

1983

Overseas branch at London inaugurated Cancard (the Bank’s credit card) launched

1984

Merger with the Laksmi Commercial Bank Limited

1985

Commissioning of Indo Hong Kong International Finance Limited

1987

Canbank Mutual Fund & Canfin Homes launched

1989

Canbank Venture Capital Fund started

1989-90

Canbank Factors Limited, the factoring subsidiary launched

1992-93

Became the first Bank to articulate and adopt the directive principles of “Good Banking”.

1995-96

Became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore

2001-02

Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering exclusively to the financial requirements of women clientele.

2002-03

Maiden IPO of the Bank


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2003-04

Launched Internet & Mobile Banking Services

2004-05

100% Branch computerization

2005-06

Entered 100th Year in Banking Service Launched Core Banking Solution in select branches Number One Position in Aggregate Business among Nationalized Banks

2011-07

Retained Number One Position in Aggregate Business among Nationalized Banks. Signed MoUs for Commissioning Two JVs in Insurance and Asset Management with international majors viz., HSBC (Asia Pacific) Holding and Robeco Groep N.V respectively

2011-08

Launching of New Brand Identity Incorporation of Insurance and Asset Management JVs Launching of 'Online Trading' portal Launching of a ‘Call Centre’ Switchover to Basel II New Capital Adequacy Framework

2011-09

The Bank crossed the coveted Rs. 3 lakh crore in aggregate business The Bank’s 3rd foreign branch at Shanghai commissioned

2011-10

The Bank’s aggregate business crossed Rs. 4 lakh crore mark.Net profit of the Bank crossed Rs. 3000 crore.The Bank’s branch network crossed the 3000 mark.

2010-11

The Bank’s aggregate business crossed Rs.5 lakh crore mark. Net profit of the Bank crossed Rs. 4000 crore. 100% coverage under Core Banking Solution The Bank’s 4th foreign branch at Leicester and a Representative office at Sharjah, UAE, openedThe Bank raised Rs. 1993 crore under QIP. Govt.


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holding reduced to 67.72% post QIP.

As at March 2011, the total business of the Bank stood at Rs. 5,06,440 crore.

Vision and MissionVisionTo emerge as a ‘Best Practices Bank’ by pursuing global benchmarks in profitability, operational efficiency, asset quality, risk management and expanding the global reach.

MissionTo provide quality banking services with enhanced customer orientation, higher value creation for stakeholders and to continue as a responsive corporate social citizen by effectively blending commercial pursuits with social banking.

Awards and achievements

The Bank has been conferred with the Second Best Bank Award under National Awards for Excellence in lending to Micro Enterprises for the year 2009-10, by the Ministry of MSME and Outstanding Performer at National level for implementation of Interest Subsidy Eligibility Scheme (ISEC) of KVIC in the country for 2009-10.

The Bank was conferred 4 awards by the Public Relations Council of India (PRCI), in the following categories

Silver Award for Corporate Film ( TV Commercial ) – English

Bronze Award for House Journal/Magazine – Languages

Bronze Award for Table Calendar

Bronze Award for Corporate Advertisement – Single - English

BOARD OF DIRECTORS


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Sl. No.

Directors

1 Mr S RamanChairman & Managing Director

2 Smt. ARCHANA S. BHARGAVA

Executive Director

3 Dr. THOMAS MATHEWDirector representing Government of India

4 Shri G PadmanabhanDirector representing Reserve Bank of India

5 Shri. DEVENDER DASS RUSTAGI

Workmen Employee Director

6 Shri. G.V. MANIMARAN Officer Employee Director

7 Shri. KHALID LUQMAN BILGRAMI

Part -time Non-Official Director

8Shri. S. Shabbeer Pasha

Part-time Non-Official Director

9 Shri. Pankaj Gopalji ThackerPart-time Non-Official Director

10 SRI. P. V. MAIYA Director Representing Shareholders

11 SRI. SUNIL GUPTAShareholder Director


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SHAREHOLDER INFORMATION

LISTING:Canara Bank Shares are listed at Mumbai and National Stock exchanges.

ADDRESS OF COMPANY SECRETARY:The Company Secretary,Secretarial Department,Chairman & Managing Director's Secretariat,Head Office,112, J.C.Road,Bangalore - 560 002.

Phone : 080- 2210 0250 Fax 080- 22248831 E.Mail : [email protected]

(Exclusive E-Mail ID designated for investors' grievances / complaints pursuant to Clause 47(f) of the Listing Agreement with the Stock Exchanges)

In terms of Clause 47 (a) of the Listing Agreement, Shri B Nagesh Babu, Company Secretary is the Compliance Officer of the Bank.

SHARE TRANSFER AGENTS :

The Bank has appointed M/s. Karvy Computershare Private Limited, Plot No. 17 to 24, Vittal Rao Nagar, Madhapur, Hyderabad -


29

mailto:[email protected]

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500 081 as its share transfer agent to whom communications regarding change of address, change in Bank Mandate, transfer of shares , Mandate for ECS etc. should be addressed.

Phone No.: 040 - 44655000, Fax: 040-23420814Email: [email protected]

SHARE TRANSFER SYSTEMInterms of SEBI guidelines, the Registrar and Transfer agent of the Bank is extending the facility of simultaneous transfer -cum dematerialization of shares to the investors. On transfer of shares in the name of the transferee, they are being apprised to submit letters to their depository participants for dematerialization of shares. On receipt of Demat request forms, the shares are dematerialized and confirmation through electronic mode is sent. If the demat request number is not received within a period of 30 days, the duly transferred share certificate is dispatched to the transferee.PAN requirement for transfer of shares in Physical Form :As per the guidelines of the Securities and Exchange Board of India (SEBI), for securities market transactions and off-market / private transactions involving transfer of shares in physical form, it shall be mandatory for the transferee/s to furnish copy of PAN Card to the Registrars and Transfer Agents (RTA) for registration of such transfer of shares.

Further, it shall be mandatory to furnish a copy of PAN in the following cases: -

1. Deletion of name of the deceased shareholder(s), where the shares are held in the name of two or more shareholders.2. Transmission of shares to the legal heir(s),


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where deceased shareholder was the sole holder of shares.3. Transposition of shares - when there is a change in the order of names in which physical shares are held jointly in the names of two or more shareholders.

DETAILS REGARDING DEPOSITORIES:

Names of Depositories for Dematerialization:1. National Securities Depository Ltd (NSDL)2. Central Depository Services (India) Ltd (CDSL)The Bank has entered into an agreement with National Securities Depository Ltd and Central Depository Services (India) Ltd as an issuer company for Dematerialization of Bank shares. In accordance with the directions of the Securities and Exchange Board of India, trading in Canara Bank Shares by all categories of Investors will only be permitted in dematerialized form.MEANS OF COMMUNICATION:

CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITEDCANBANK FINANCIAL SERVICES LIMITED

CANARA BANK SECURITIES LIMITED

CANBANK COMPUTER SERVICES LIMITED

CAN FIN HOMES LIMITED


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SUBSIDIARIES

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CANBANK FACTORS LIMITED

CANBANK VENTURE CAPITAL FUND LIMITED

BRANCHES AND OFFICES ABROAD

Canara Bank established its International Division in 1976, to supervise the functioning of its various foreign departments, to give required thrust to foreign exchange business, particularly exports and to meet the requirements of NRIs.

Though small in size, the Bank's presence abroad has brought in considerable foreign business, particularly NRI deposits.

The Bank has its presence abroad, as under:

CANARA BANK, LONDON BRANCH P O BOX NO. 174, GROUND FLOOR, NO. 10 CHISWELL STREET,LONDON EC 1Y 4UQPH: 0044 207 628 1145 / 0044 207 628 4103FAX: 0044 207 374 2468 / 0044 207 256 6620E-MAIL :[email protected]

CANARA BANK, LEICESTER BRANCH, 188, BELGRAVE ROAD,LEICESTER LE4 5AU - THE UNITED KINGDOMPH: 0044 116 2663799FAX: 0044 116 2666736E-MAIL :[email protected]

CANARA BANK HONG KONG BRANCHNo. 904, AON CHINA BUILDING29, QUEENS ROADCENTRAL, HONG KONGPH: 00852 2529 1398 / 00852 2529 6225FAX: 00852 2529 1921E-MAIL : [email protected]


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CANARA BANK SHANGHAI BRANCH 2601, BANK OF SHANGHAI MANSION,168, MIDDLE YINCHENG ROAD,LUJIAZUI, PUDONG,SHANGHAI 200 120, PRCPH: 008621 52080806 / 008621 68596017E-MAIL :[email protected]

CANARA BANK SHARJAH REPRESENTATIVE OFFICE, UAE , Flat No. 504, 5th FLOOR, AL MEENA ROAD, AL SOOR AREA,SHARJAH, UAEPh: 009716 575 6521Fax: 009716 575 6523 E-MAIL :[email protected]

COMMERCIAL BANK OF INDIA LLC (A JOINT VENTURE WITH STATE BANK OF INDIA)109147 MOSCOWUL MARXISTSKAYA 16PH 007495 230 6032, 230 6335E-MAIL :[email protected]

AL RAZOUKI INTERNATION EXCHANGE CO(secondment agreement and DD drawing facility on Canara Bank branches)HEAD OFFICESHOP NO 1 & 2 KHYBER BUILDINGOPP. RAFFA POLICE STATIONNEAR BUR DUBAI TAIX STANDRAFFA DUBAI UAE


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Types of services given by canara bank

NRI BANKING

NRI CONSULTANCY

Attorney ship ServicesThis is a specialized service to help our non-resident customers and others who find it difficult to operate their accounts personally.

We obtain power of attorney from the customer in our favor and execute his instructions promptly and meticulously. It gives the customer great confidence that his money is safe. SERVICES The following services are a few examples of our attorney ship services Making investments in shares/debentures in Indian Companies by direct subscription/ through market operation. Sale of shares/debentures of Indian companies through market operation.Making other investments like fixed deposits/NSC/Units of UTI/Govt. securities/ bonds of Public sector undertakings etc., (The above services are offered on Non discretionary basis and specific instructions are to be given for each transaction). Opening of demat account with the depository participant and handling their demat accounts. Making payment of Insurance premiums/subscription to Associations etc. Collection of income on investments/ realization of investments/ safe custody of securities. Obtaining RBI permission for purchase/sale of shares. Follow-up for purchase/sale of shares. Collection of income like rents and other receipts/effecting remittances as per instructions / Computation of income and filing of Income tax returns. Payment of LIC premium, telephone bills etc.


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NRI BANKING

ORGANISATION STUDY

This is a specialized service to help our non-resident customers and others who find it difficult to operate their accounts personally.

We obtain power of attorney from the customer in our favor and execute his instructions promptly and meticulously. It gives the customer great confidence that his money is safe.ServicesThe following services are a few examples of our attorney ship servicesMaking investments in shares/debentures in Indian Companies by direct subscription/ through market operation. Sale of shares/debentures of Indian companies through market operation. Making other investments like fixed deposits/NSC/Units of UTI/Govt. securities/ bonds of Public sector undertakings etc., (The above services are offered on Non discretionary basis and specific instructions are to be given for each transaction). Opening of demat account with the depository participant and handling their demat accounts. Making payment of Insurance premiums/subscription to Associations etc. Collection of income on investments/ realization of investments/ safe custody of securities. Obtaining RBI permission for purchase/sale of shares. Follow-up for purchase/sale of shares. Collection of income like rents and other receipts/effecting remittances as per instructions / Computation of income and filing of Income tax returns. Payment of LIC premium, telephone bills etc.

NRI LOANS & ADVANCES

Housing Loan Home Improvement Loan

Canara Cash (Shares) Canara Mobile (Vehicle)

Canara Rent Canara Mortgage

Canara Site Loan


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Safe Custody Safe Deposit Lockers

Nomination Facility Investments

Attorney ship Services NRI Service Centers

Facilities for returning Indians

Obtain Your PAN Card

NRI REMITTANCE FACILITIES

CANBANK REMITMONEY SCHEME

BANK-WESTERN UNION REMITTANCES SCHEME

SWIFT


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NRI OTHER SERVICES

ORGANISATION STUDY

Lock Box Service

Rupee Drawing Arrangement

I. PRIORITY CREDITAgriculture And Rural Credit Schemes Education Loan And Other Priority Sector Loans Government Sponsored Schemes Lead Bank Activities Lending to minority communities Financial Inclusion And Micro-finance Initiatives Financial Inclusion Plan List of Villages taken up by the Bank for providing Banking Service under Financial Inclusion Plan

II. SME BUSINESS Click Here For Details Click here for applying for SME Loan online. MSME care centers of the bank SME SULABH Special Benefits for Women Entrepreneurs in Micro & Small Enterprises

III. SME MARKETING DESKSME Marketing Unit

IV. REGIONAL RURAL BANKSCanara Bank-Regional Rural Banks (RRBs)- Pragathi Gramin Bank Canara Bank-Regional Rural Banks (RRBs)-South Malabar Gramin Bank


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http://www.canarabank.com/English/Scripts/CanbankRRBSSMGBank.aspx

http://www.canarabank.com/English/Scripts/CanbankRRBSPGBank.aspx

http://www.canarabank.com/English/Scripts/prioritycredit.aspx

http://www.canarabank.com/English/Scripts/WomenEntrepreneurs.aspx

http://www.canarabank.com/English/Scripts/SmeSulabh.aspx

http://www.canarabank.com/upload/English/Content/PriorityCreditMSMECareCentresoftheBank29Dec08.doc

http://www.canarabank.com/English/Scripts/canSMELoan.aspx

http://www.canarabank.com/English/Scripts/PCSmeBusinessUnit.aspx

http://www.canarabank.com/Upload/English/Content/List-of-Villages-under-FI-Implementation-by-Canara-Bank_02may2011.pdf

http://www.canarabank.com/Upload/English/Content/List-of-Villages-under-FI-Implementation-by-Canara-Bank_02may2011.pdf

http://www.canarabank.com/Upload/English/Content/FinancialInclusionPlan_090910.pdf

http://www.canarabank.com/English/Scripts/FinancialInclusion.aspx

http://www.canarabank.com/English/Scripts/LendingMinority.aspx

http://www.canarabank.com/English/Scripts/LeadBankActivities.aspx

http://www.canarabank.com/English/Scripts/GovtSponsoredSchemes.aspx

http://www.canarabank.com/English/Scripts/OtherPrioritySectorLoans.aspx

http://www.canarabank.com/English/Scripts/AgriRuralCreditSchemes.aspx

ORGANISATION STUDY

Canara Bank-Regional Rural Banks (RRBs)- Shreyas Gramin Bank

V. AGRICULTURAL CONSULTANCY SERVICESIntroduction Range Of Services A Unique Division Specialists In High Tech Projects Resources Clientele Coverage Contact Us / Mode Of Availing Services

VI. AGRI-BUSINESS MARKETING DESKAgri-Business Marketing Unit

VII. RURAL DEVELOPMENT Canara Bank Centenary Rural Development Trust (CBCRDT) In Promotion Of Self Employment Rural Development Schemes Contact Details

VIII. CENTRE FOR ENTREPRENEURSHIP DEVELOPMENT FOR WOMENOverview Objectives Functions Of Ceds For Women Vikas Mahila Banking Branch Contact Details of CEDs For Women At Corporate Office & Circle Offices

IX. SOCIAL BANKING Social Banking Cell

PERSONAL BANKING

ANCILLARY SERVICES


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http://www.canarabank.com/English/Scripts/CEDSCorpOffice.aspx

http://www.canarabank.com/English/Scripts/MahilaBankingBranch.aspx

http://www.canarabank.com/English/Scripts/Vikas.aspx

http://www.canarabank.com/English/Scripts/FunctionsOfCEDSForWomen.aspx

http://www.canarabank.com/English/Scripts/Objectives.aspx

http://www.canarabank.com/English/Scripts/Overview.aspx

http://www.canarabank.com/English/Scripts/RDSContact-Details.aspx

http://www.canarabank.com/English/Scripts/RuralDevelopmentSchemes.aspx

http://www.canarabank.com/English/Scripts/InPromotionOfSelfEmployment.aspx

http://www.canarabank.com/English/Scripts/CanbankRuralDevTrust.aspx


http://www.canarabank.com/English/Scripts/ACSModeOfAvailingServices.aspx

http://www.canarabank.com/English/Scripts/ACSClienteleCoverage.aspx

http://www.canarabank.com/English/Scripts/ACSResources.aspx

http://www.canarabank.com/English/Scripts/ACSHighTechProjects.aspx

http://www.canarabank.com/English/Scripts/ACSUniqueDivision.aspx

http://www.canarabank.com/English/Scripts/ACSRangeOfServices.aspx

http://www.canarabank.com/English/Scripts/ACSIntroduction.aspx

http://www.canarabank.com/English/Scripts/CanbankRRBSShGBank.aspx

ORGANISATION STUDY

RETAIL SALE OF GOLD COINS

SAFE DEPOSIT LOCKERS

Keep your valuables in our lockers and have peace of mind. Lockers available at select branches where Safe Deposit Vaults are installed. Bank lets on hire safe deposit lockers to individuals (Singly or jointly), Firms, Companies, Association or Clubs, Trustees on nominal rent.

SAFE CUSTODY SERVICES This subsidiary service is rendered by the Bank to most valued customers. Bank undertakes the responsibility of safe custody of articles entrusted by the customer under a contract and returns the same according to terms agreed upon.

NOMINATIONS This facility has been devised with an aim of minimizing the hardships caused to the family members on the death of the depositor/s. Nominations can be made in respect of all types of deposit accounts by the individual account holders in their own capacity singly or jointly.

7 DAY BANKING Now we are open on all days - Seven days a week. Facility available at select branches.

EXTENDED BANKING HOURS Now you can do your Banking operations for more time. We have extended our business hours by one hour more for your convenience. (At select computerized branches).

DD SHOPPE Get your demand drafts through our exclusive DD outlets. Our DD Shoppe issues demand drafts up to one hour before close of office hours. Facility available at select branches.

CONSULTANCY SERVICES


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http://www.canarabank.com/English/scripts/pbretailsaleofgoldcoins.aspx

ORGANISATION STUDY

INTRODUCTION:

Canara Bank has been in the forefront in extending various need based ancillary services to customers. One such specialized service is the Executor, Trustee, Taxation and Attorney ship services that the Bank has been offering for more than three decades now.

A later unique addition to our services to the Corporate Sector is the Debenture Trustee services and Security Trustee services.

These services are unique in nature and are not available at several other banks.These services are aimed at caring for the personal needs of the customer and enhancing customer satisfaction. For example, drawing up a Will and acting as executor of the Will for a customer, which is crucial to a person's wealth and assets, gives him a great relief and confidence.

Our other services referred above are also of great value.

ADVANTAGES :

The advantages of appointing the Bank as Executors and Trustees are as follows: Continuity of management: By appointing the bank as Executor/Trustee, the testator or the author of a Trust gets completely relieved of any anxiety of proper management and fulfillment of his wishes. Individuals do not manage administration; instead, the same is taken care by a full complement of officers. Efficient administration Long experience & Professional training Courtesy and impartiality, Secrecy, Safety and Security. Personal tax Assistance & Investment Counseling

Our services include preparation of income tax and wealth tax returns and filing the returns. These services are offered at nominal charges based on the work load involved in each case. The assistance is extended at present only to customers having income under the heads salary, house property, capital gain and income from other sources. This is very useful service to non-residents who have income in India, as their income is subject to tax deduction at source itself even if their total Indian


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ORGANISATION STUDY

income is less than maximum amount not chargeable to tax. In case of retired persons and other salaried persons also these services will be of immense use as they can rest by entrusting the work of filing income tax and wealth tax return to the institution which possesses the expertise to deal with such situation. Given the authority and details of sources, we ourselves will collect the income details from various sources and ensure proper filing of tax returns within stipulated time.

TAX ASSISTANCE SERVICES:

Come March! Everyone gets worried about filing his Tax returns! Our Bank offers Taxation services to both customers and non-customers. Our specialized and professionally competent officials advise on Tax planning and filing of returns. This unique service is offered by us presently at Bangalore only. We undertake compiling and filing of Income tax returns. Both NRI and resident customers filing returns at Bangalore can make use of these services. ESTATE & WILLS SERVICES:

Absence of your Will can result in your wife and children benefiting quite differently from your intentions.

Wisdom lies in making the right choice at right time. LET CANARA BANK IS YOUR CHOICE, EXECUTOR & TRUSTEE FOR YOUR WILL.

Make your Will today and relieve your dear ones of added troubles and anxieties.

A will is a document where an individual leaves instructions for disposal of his/her properties after his/her death.

CANARA BANK undertakes appointment in the following and similar capacities.Drafting of "Will" and witnessing execution of the same. Executor of Will: The Bank if appointed as executor under Will, to administer the estate property, carries out the same after the lifetime of testator/testatrix as per Will. Extending all possible assistance with its expertise, even in case when there are disputes, tries to safeguard the wishes of the testator/testatrix, wherever necessary. The Bank arranges for abstention of probate orders through the appropriate courts, whenever the same is warranted. When any Testamentary Trusts are created through the Will, the Bank acts as Trustee


41

ORGANISATION STUDY

and manages the trust of perpetual nature. Safe custody facility is also available for keeping "Will" where bank is not appointed as executor.

TRUSTEE SERVICES – PRIVATE AND CHARITABLE:

"Share your wealth with the poor and needy for getting salvation”.

Driven by this noble thought, many a customer would like to create a charitable trust for the benefit of poor and needy.

The bank acts as Trustees for public, charitable religious and other trusts. It also acts as trustees of a settlement, Trustees of a minor's legacy, custodian trustee of properties held under Trusts of any description like pension, provident and gratuity fund.

The Bank if appointed as Trustee, assists the settler/author in: Counseling and drafting of trust deeds. Safe keep of trust property and payment of income to beneficiary/is on due dates as per the instructions of the settlers. Managing Religious and Charitable Trust: Making payments of income accrued on Trust corpus, for religious and charitable purpose as per the desire of the settler. Private settlements where formation of trust is desired for a specific period for providing assistance and support to mentally retarded/physically handicapped persons or other similar objectives. We accept proposals for formation of trust having investment of Rs.1.00 lakh and above.

DEBENTURE TRUSTEESHIP:

We are SEBI registered Debenture Trustees. We accept debenture trusteeship of debentures / bonds issued under private placement.

We advise the Debenture / Bond Issuers (Public / Private company, Govt / Semi Government bodies) onabstention of rating appointment of arrangers guidance on structured payment mechanism clarification on legal / statutory matters in issue of debentures / bonds documentation process preparation of all kinds of related documents creation of charge, registration and compliance of legal and statutory requirements in this aspect

We are unique in this line and are equipped with


42

ORGANISATION STUDY

Exclusive software package for Debenture Trusteeship Well furnished and fully computerized office equipped with modern office appliances Team of well trained, informative, efficient, experienced and professional staff to handle the work

DEPOSITORY SERVICES

ONLINE TRADING

What is a Depository

Loans to fulfill your dream....... to own a home...sweet home. !Planning to own a home is one of life's most rewarding challenges. Plan building a home / buying a flat. Leave the financing to us. We have the right housing finance scheme for you...

Online Application for Home LoanPurpose:For construction / purchase / repairs / additions / renovations of residential house / flat including the purchase of land and construction thereon. For taking over of the Housing Loan liability with other recognized Housing Finance Companies, Housing Boards, Co-operative Banks, Co-operative Societies and Commercial Banks at our prevailing low rate of interest. Eligibility:Salaried individuals, individuals engaged in business / professionals and self-employed persons. NRIs are also eligible to avail loans without specific permission of RBI. Persons above the age of 55 years are also eligible subject to certain stipulations. Of RBI.

INSURANCE


43

Housing Loan

http://www.canarabank.com/English/Scripts/canhomeloan.aspx

http://www.canarabank.com/English/Scripts/OnlineTrading.aspx

ORGANISATION STUDY

a) "Participation by the Bank's customers shall be purely on a voluntary basis"b) "The contract of insurance is between the insurer and the insured And not between the Bank and the insured

i. General Insurance

ii. Life Insurance

MUTUAL FUNDS

We have tie up Canara Robeco and HDFC AMC for cross selling of their mutual fund products through our branches. Investment can be made in following schemes.CANARA ROBECO Mutual Fund Products

HDFC Mutual Fund Products

LOANS

Housing Loan Home Improvement Loan

Canara Cash (Shares)

Canara Mobile Canara Site Loan Canara Budget(For


44

ORGANISATION STUDY

(Vechicle) Employed/Business)

Canara Pension Teachers Loan Swarna Loan(Gold Loan)

Canara Rent Canara Mortgage Canara Guide

Canara Jeevan Doctors Choice For Online Education Loan

SAVINGS AND DEPOSITS

SAVINGS BANK ACCOUNT KAMADHENU DEPOSIT (Re-investment Plan)

SB GOLD SCHEME CANARA TAX SAVER SCHEME

CANARA CHAMP DEPOSIT SCHEME

RECURRING DEPOSITS

CANARA SARAL SAVINGS ACCOUNT

SPECIAL RECURRING DEPOSIT SCHEME

CURRENT ACCOUNT ASHRAYA DEPOSIT SCHEME (FOR SENIOR CITIZENS)

CANARA PREMIUM CURRENT ACCOUNT

CANARA AUTO RENEWAL DEPOSIT (CARD)

FIXED DEPOSIT CANARA SUPER SAVINGS SALARY ACCOUNT SCHEME


45

ORGANISATION STUDY

TECHNOLOGY PRODUCTS

ATM-cum-Debit CardFacilities Available

1. Transactions Through Our Bank Atms And Other Bank Atms2. Purchase Of Goods And Services At POS Merchant Establishments3. Mobile Top-up4. VISA Money Transfer5. E-ticketing

The following facilities are available at our ATMs. Customers can avail these services by following the menu driven options.Mobile Recharge Mobile Top ups Airline Ticket Booking VISA Money Transfer Deposit of Collection Cheques RTGS / NEFT - an Inter-bank funds transfer facility for customers Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer System (NEFT) are two efficient, secure, economical, reliable system of funds transfer from Bank to Bank. Now fund transfer can be made to more than 36000 Bank branches across India. These facilities are available in more than 1650 branches of Canara Bank (addresses and IFSC codes are available in our website under 'locator') as of now and Bank has planned to enable all its branches for RTGS /NEFT by 31.3.08

Brief details on Real Time Gross Settlement (RTGS) An electronic payment system in which payment instructions between banks are processed and settled individually on a real time basis Minimum amount of funds transfer under this facility is Rs.2, 00,000/- RTGS SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND NATIONAL HOLIDAYS Charges – refer to details under service charges in our website. Customer should furnish details of payees name, bank account number and type, receiver bank name , branch name and IFSC code of the receiver Bank branch (IFSC codes of all the bank branches are available in RBI website http://www.rbi.org.in/) Brief details on National Electronic Funds Transfer (NEFT):


46

http://www.rbi.org.in/

ORGANISATION STUDY

Another electronic payment system in which payment instructions between banks are settled at fixed intervals There is no minimum / maximum limit for transactions under NEFT. NEFT SYSTEM WORKS ON ALL DAYS EXCEPT ON SUNDAYS AND NATIONAL HOLIDAYS Charges – refer to details under service charges in our website. Customer should furnish details of payees name, bank account number and type, receiver bank name , branch name and IFSC code of the receiver Bank branch (IFSC codes of all the bank branches are available in RBI website

CREDIT CARD SERVICES

Canara Gift Card - List of Branches where Canara Gift Cards are soldContact Us Verified by Visa / Secure Code Most Important Terms and Conditions (Mitc) for Canara Credit Card

CANARA CARD is a GLOBAL CREDIT CARD from the house of Canara Bank, one of the leading Banks in India, with around 2700 Branches and 34 million loyal customer bases. In tune with our tradition of offering quality products with competitive features and best customer service, we are delighted to introduce you to the Canara Global credit Cards, offered to the privileged & elite people of the society. Canara Card is designed to meet your high-end life style with anything you might need to make your experience a sheer pleasure. No matter where you are across the world, luxury and comfort is always at hand.Our cards enjoy the privilege of worldwide acceptance and free insurance coverage. Canara Cards are backed by a wide network of CANARA BANK branches and 24 Card Service centers located at many important cities spread across the country. CANARA BANK is the principal member of VISA-WORLDWIDE and MASTERCARD INC.With its fantastic features and transparency in transactions, you will be delighted to know, why you chose the right card. Please read further to about Canara Global cards.


47

http://www.canarabank.com/Upload/English/Content/MITC080609TOWEBSITEUPLOAD_22June09.doc

http://www.canarabank.com/upload/english/Content/verifiedbyvisasecurecodematter_290709.doc

http://www.canarabank.com/English/scripts/CardContactUs.aspx

http://www.canarabank.com/upload/english/Content/giftcardissuing_branches_14mar11.doc

ORGANISATION STUDY

INTERNATIONAL BANKING SERVICES

FOREIGN EXCHANGE AND INTERNATIONAL BANKING SERVICES

Canara Bank entered Forex arena in 1953 with the opening of its first Foreign Exchange Department in Mumbai.

We finance exports at pre-shipment stage as well as post shipment stage, which can be availed either in foreign currency or Indian Rupees.

In addition we facilitate forfeiting. That is, discounting of deferred export receivables on 'without recourse basis' from an overseas forfeiting agency.

Canara Bank is pioneer in financing of LC based International Trade transactions in India.

The Bank not only finances at customers option in foreign currency at pre-shipment and post-shipment stages at LIBOR related rates but also finance the import leg in foreign currency where imported inputs are required for exports.

The Bank has the expertise in handling project exports of goods and services.

The Bank has an excellent worldwide correspondent relationship and has the capability to handle any export, import, remittance and related transactions anywhere in the world and in any currency.

Non fund based transactions like adding confirmations to LC, issuing inward and outward Bid bonds & guarantees, establishing LCs for import into India, arranging buyer's credit at attractive terms etc. are our forte.

Canara Bank has branches in London, Hong Kong and Shanghai, China. We have a joint venture with SBI at Moscow under the name Commercial Bank of India LLC.


48

Foreign Exchange & International Operations

Branches & Offices Abroad

Export Finance

http://www.canarabank.com/English/scripts/pblinternatexportfin.aspx

http://www.canarabank.com/English/scripts/pblinternatbranches.aspx

http://www.canarabank.com/English/scripts/pblInternatforign.aspx

http://www.canarabank.com/English/scripts/pblInternatforign.aspx

ORGANISATION STUDY

The Bank also manages 2 Exchange houses in the Gulf and has arrangement with 20 Exchange Houses and 17 Banks for drawing DDs from Gulf Countries on our select branches throughout India.

The Bank has an integrated Treasury with a forex dealing room located in Mumbai in India. Our London branch has a dealing room of its own. We are active in the Indian forex market as well as in Overseas forex market. We provide a whole range of services and products like purchase and sale of 7 world currencies, forward bookings and other forex hedging instruments like currency swaps.


49

ORGANISATION STUDY

CORPORATE BANKING


50

The speedier you are, it’s easier for you to address the challenges of globalization. Corporate Cash Management Services (CCMS), an innovative service offered by Canara Bank for speedy collection of cheques and other instruments, places corporates on a faster-track. In more ways than one-such as definite funds flow, better cash management and deployment of funds, better monitoring of funds flow, optimum allocation of funds and effective planning of investment functions. What is CCMS? An innovative service specifically tailored to meet the requirements of Corporate/Business houses/Partnership firms Speedy collection of outstation cheques and other instruments Pooling of funds at designated centers More importantly, providing funds to the Corporate as per their need Customized MIS reports What We Offer?

Under CCMS we offer the state of the art technology products SUPERFAST SERVICE - Local cheque collection services FASTRACK SERVICE - Upcountry cheque collection services BULK COLLECTION SERVICE - Bulk cheques collection services Under 'SUPERFAST SERVICE', agents or offices of Corporates can deposit the cheques to be cleared in the local clearing and funds will be pooled at any pooling branch designated by the Corporate. Under 'FASTRACK SERVICE', agents or offices of Corporates can deposit the cheques drawn on outstation centers and proceeds will be pooled at any pooling branch designated by Corporate. Under 'BULK COLLECTION SERVICE', agents or offices of Corporate can deposit their bulk (large number) instruments of small value to be cleared in the local clearing and funds will be pooled at any pooling branch designated by the Corporate. Benefits to the Corporate Funds available as per need on day zero, day one, day two, day three etc. Corporate can plan their cash flows

ORGANISATION STUDY

CORPORATE BANKING

Canara e-Tax

Direct Taxes (e-payment: pay direct taxes online)

Excise and Service Tax (e-payment: pay indirect taxes online)

Customs payment through internet

E-payment of Commercial Taxes-TamilNadu

E-payment of Sales Taxes-Maharashtra

E-payment of Commercial Taxes-Karnataka

Canara e-filing

E-filing of Income Tax Returns

Current Deposits Fixed Deposits

Kamadhenu Deposits Recurring Deposits

Canara Bank is also one of the leading Merchant Bankers in India, offering specialized services to Banks, PSUs, State owned Corporations, Local Statutory bodies and Corporate sector.

We are SEBI registered Category I Merchant Banker to render Issue Management (Public / Rights / Private Placement Issues), Underwriting, Consultancy and


51

The speedier you are, it’s easier for you to address the challenges of globalization. Corporate Cash Management Services (CCMS), an innovative service offered by Canara Bank for speedy collection of cheques and other instruments, places corporates on a faster-track. In more ways than one-such as definite funds flow, better cash management and deployment of funds, better monitoring of funds flow, optimum allocation of funds and effective planning of investment functions. What is CCMS? An innovative service specifically tailored to meet the requirements of Corporate/Business houses/Partnership firms Speedy collection of outstation cheques and other instruments Pooling of funds at designated centers More importantly, providing funds to the Corporate as per their need Customized MIS reports What We Offer?

Under CCMS we offer the state of the art technology products SUPERFAST SERVICE - Local cheque collection services FASTRACK SERVICE - Upcountry cheque collection services BULK COLLECTION SERVICE - Bulk cheques collection services Under 'SUPERFAST SERVICE', agents or offices of Corporates can deposit the cheques to be cleared in the local clearing and funds will be pooled at any pooling branch designated by the Corporate. Under 'FASTRACK SERVICE', agents or offices of Corporates can deposit the cheques drawn on outstation centers and proceeds will be pooled at any pooling branch designated by Corporate. Under 'BULK COLLECTION SERVICE', agents or offices of Corporate can deposit their bulk (large number) instruments of small value to be cleared in the local clearing and funds will be pooled at any pooling branch designated by the Corporate. Benefits to the Corporate Funds available as per need on day zero, day one, day two, day three etc. Corporate can plan their cash flows

ACCOUNTS & DEPOSITS

http://www.canarabank.com/English/Scripts/E-filingofIncomeTaxReturns.aspx

http://www.canarabank.com/English/Scripts/EpayCTkarna.aspx

http://www.canarabank.com/English/Scripts/EpaySTmaha.aspx

http://www.canarabank.com/English/Scripts/EpayCTtn.aspx

http://www.canarabank.com/English/Scripts/CBCBCustomPayment.aspx

http://www.canarabank.com/English/Scripts/CBExcerciseAndServiceTax.aspx

http://www.canarabank.com/English/Scripts/CBDirectTaxes.aspx

ORGANISATION STUDY

Corporate Advisory Services etc.

We also hold SEBI registration Certificate to act as "Bankers to an Issue" with network of exclusive Capital Market Service Branches and over 100 designated CBS Branches to handle collecting / Refund / Paying Banker assignments.

We do undertake "project appraisals" with linkage to resource raising plans from Capital Market / Debt Markets and facilitate tie-ups with Banks / Financial Institutions and Potential Investors.

Our uniqueness is extending services under single window concept covering the following areas:

1. Merchant Banking 2. Commercial Banking 3. Investments 4. Bankers to Issue - Escrow Bankers 5. Underwriting 6. Loan Canaradication

As leading Merchant Bankers in India, we have associated with issues ranging from Rs.1 crore to Rs.1500 crores, involving various types of industries, banks, statutory Bodies etc. and have an edge in handling Private Placement issues – both retail & HNIs.

SPECTRUM OF SERVICES: 1. Equity Issue (Public/Rights) Management 2. Debt Issue Management 3. Private Placements4. Project Appraisals5. Monitoring Agency Assignments6. IPO Funding7. Security Trustee Services8. Agriculture Consultancy Services9. Corporate Advisory Services 10. Mergers and Acquisitions 11. Buy Back Assignments 12. Share Valuations 13. Canaradication 14. ESOS Certification

TECHNOLOGY


52

ORGANISATION STUDY

UPGRADATION FUND SCHEMES (TUF SCHEMES)

Our Bank has been appointed as "Nodal Agency" for implementation of the following Schemes. Technology Up gradation Fund Scheme (TUFS) of Ministry of Textiles.Credit Linked Capital Subsidy Scheme (CLCSS) for Technology purgation of SME's of Ministry of Micro Small Medium Entrepreneurs.(MOMSME)Plan Scheme of Technology Up gradation of Food Processing Industries of Ministry of Food Processing Industries. (MOFPI),Scheme for extending assistance to Sugar Undertakings 2011 of Ministry of consumer Affairs, Food & public distribution (SEFASU)

A new value added fee based service of the Bank for Corporate.Supported by a pool of experienced professionals with Engineering and Finance background. Strong underwriting capabilities of the Bank.The services shall be either on “Best Efforts” basis or on “Underwriting” basis.Direct participation in projects canaradicated. An end to end project finance solution provider. Reasonable fee structure. Benefits for Corporate: Complete menu of financing options. Borrowers can access from a diverse group of financial institutions for funding. Funds can be raised at competitive price. Flexibility in structuring & pricing. Options such as multi currency options, risk management techniques etc. Save the time and efforts of approaching / negotiating with individual banks for sanction.Comprehensive overview of Equity /Debt markets.

HUMAN RESOURCE

HRD INITIATIVES Human Resources Development envisages the growth of the individual in


53

CANARADICATION SERVICES

ORGANISATION STUDY

tandem with the organization and aims to achieve canarachronization in a bid to attain the goals set out. It also, inter-alia, aims at the upliftment of the individual by ensuring an enabling environment to develop capabilities and to optimize performance. The organization, on its part, would endeavor to tap individual talents and through various initiatives, ingrain in its human resources, a sense of job satisfaction that would, with time, percolates down the line.Our Bank has, over the years, taken a series of initiatives in ensuring the development of our human resources and a number of time – tested systems have been put in place to hone employee talent and equip them to take the vigor’s of office and take the measure of the competition. That we have been largely successful in our endeavor is a testimony to the efficacy of our well crafted systems:

1. Entry Interview2. Training System 3. Incentives for Self Development 4. Employee Suggestion Scheme 5. Staff Meeting 6. Study Circle 7. Brainstorming Sessions 8. Quality Circle 9. Exit Interview


54

ORGANISATION STUDY

WORK CULTUREWork culture where family concept is practiced among the employees.

i. Receptivity to new ideasii. Opportunities for experimentation

iii. Facilities which supports growthiv. Record cordial Industrial Relationsv. HRD Initiatives

Listing Details - Canara Bank


55

http://www.canarabank.com/English/Scripts/HRDInitiatives.aspx

ORGANISATION STUDY


Key Dates

Year Ending Month MarAGM Date (Month) JulBook Closure Date (Month) Jul

Listing InformationFace Value Of Equity Shares 10Market Lot Of Equity Shares 1BSE Code 532483NSE Code CANBKBSE Group A

Whether The Company Forms A Part Of The Following Indices -

Sensex NoNifty NoBSE-100 NoBSE-200 YesS&P CNX 500 YesCNX Midcap NoCNX FMCG No

Listing On

Listed On The Stock Exchange, Mumbai, National Stock Exchange of India Ltd.

56

ORGANISATION STUDY

FINANCIAL ANALYSIS OF CANARA BANK

Capital Structure (Canara Bank)

Period Instrument

Authorized Capital

Issued Capital

- P A I D U P -

From

To (Rs. cr) (Rs. cr) Shares (nos)

Face Value

Capital

2010 2011

Equity Share

3000 443 443000000

10 443

2009 2010

Equity Share

3000 410 410000000

10 410

2008 2009

Equity Share

1500 410 410000000

10 410

2007 2008

Equity Share

1500 410 410000000

10 410

2006 2007

Equity Share

1500 410 410000000

10 410

2005 200 Equity 1500 410 41000000 10 410


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ORGANISATION STUDY

6 Share 02004 200

5Equity Share

1500 410 410000000

10 410

2003 2004

Equity Share

1500 410 410000000

10 410

2002 2003

Equity Share

1500 410 410000000

10 410

Dividend DeclaredAnnouncement Date

Effective Date

Dividend Type

Dividend (%)

Remarks

05-05-11 06-07-11 Final 110.00 -28-04-10 14-06-10 Final 100.00 -29-04-09 08-07-09 Final 80.00 -28-04-08 10-06-08 Final 80.00 AGM03-05-07 26-06-07 Final 70.00 AGM24-04-06 14-06-06 Final 66.00 AGM

Profit & Loss account of Canara Bank

------------------- in Rs. Cr. -------------------Mar '07 Mar '08 Mar '09 Mar '10 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Interest Earned 11,364.56

14,200.74

17,119.05

18,751.96

23,064.01

Other Income 1,511.80 2,308.31 2,427.10 3,000.82 2,826.98Total Income 12,876.3

616,509.0

519,546.1

521,752.7

825,890.9

9

ExpenditureInterest expended

7,337.73 10,662.94

12,401.25

13,071.43

15,240.74

Employee Cost 1,609.29 1,661.28 1,877.15 2,193.70 2,954.84


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ORGANISATION STUDY

Selling and Admin Expenses

957.77 1,491.09 1,540.27 2,164.65 1,817.82

Depreciation 148.18 169.97 173.64 155.13 151.36Miscellaneous Expenses

1,402.58 958.76 1,481.42 1,146.44 1,700.34

Preoperative Exp Capitalised

0.00 0.00 0.00 0.00 0.00

Operating Expenses

3,023.26 3,666.30 3,965.24 4,903.79 5,420.49

Provisions & Contingencies

1,094.56 614.80 1,107.24 756.13 1,203.87

Total Expenses 11,455.55

14,944.04

17,473.73

18,731.35

21,865.10

Mar '07 Mar '08 Mar '09 Mar '10 Mar '11


Net Profit for the Year

1,420.81 1,565.01 2,072.42 3,021.43 4,025.89

Extraordionary Items

0.00 0.00 0.00 0.00 0.00

Profit brought forward

0.00 0.00 0.00 0.00 0.00

Total 1,420.81 1,565.01 2,072.42 3,021.43 4,025.89Preference Dividend

0.00 0.00 0.00 0.00 0.00

Equity Dividend 287.00 328.00 328.00 410.00 487.30Corporate Dividend Tax

48.78 56.00 55.75 70.00 80.00

Per share data (annualised)Earning Per Share (Rs)

34.65 38.17 50.55 73.69 90.88

Equity Dividend (%)

70.00 80.00 80.00 100.00 110.00

Book Value (Rs) 197.83 202.33 244.87 305.83 405.00AppropriationsTransfer to Statutory Reserves

362.21 802.00 1,508.64 1,676.35 1,765.29

Transfer to Other Reserves

722.82 379.01 180.03 865.08 1,693.30


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ORGANISATION STUDY

Proposed Dividend/Transfer to Govt

335.78 384.00 383.75 480.00 567.30

Balance c/f to Balance Sheet

0.00 0.00 0.00 0.00 0.00

Total 1,420.81 1,565.01 2,072.42 3,021.43 4,025.89

Balance Sheet of Canara Bank



Capital and Liabilities:Total Share Capital

410.00 410.00 410.00 410.00 443.00

Equity Share Capital

410.00 410.00 410.00 410.00 443.00

Share Application

0.00 0.00 0.00 0.00 0.00


60

ORGANISATION STUDY

MoneyPreference Share Capital

0.00 0.00 0.00 0.00 0.00

Reserves 7,701.11 7,885.63 9,629.61 12,129.11 17,498.46Revaluation Reserves

2,242.87 2,204.86 2,168.16 2,132.68 2,098.36

Net Worth 10,353.98 10,500.49 12,207.77 14,671.79 20,039.82Deposits 142,381.45 154,072.42 186,892.51 234,651.44 293,972.65Borrowings 1,574.35 2,517.23 7,056.61 8,440.56 14,261.65Total Debt 143,955.80 156,589.65 193,949.12 243,092.00 308,234.30Other Liabilities & Provisions

11,651.25 13,438.55 13,488.91 6,977.30 7,804.64

Total Liabilities

165,961.03 180,528.69 219,645.80 264,741.09 336,078.76



AssetsCash & Balances with RBI

9,095.19 13,364.79 10,036.79 15,719.46 22,014.79

Balance with Banks, Money at Call

7,278.74 4,513.25 6,622.99 3,933.75 8,693.32

Advances 98,505.69 107,238.04 138,219.40 169,334.63 212,467.17Investments 45,225.54 49,811.57 57,776.90 69,676.95 83,699.92Gross Block 4,056.39 4,254.33 4,440.07 4,480.37 4,686.15Accumulated Depreciation

1,195.04 1,337.46 1,510.61 1,620.99 1,841.74

Net Block 2,861.35 2,916.87 2,929.46 2,859.38 2,844.41Capital Work In Progress

0.00 0.00 0.00 0.00 0.00

Other Assets 2,994.53 2,684.17 4,060.26 3,216.92 6,359.15Total Assets 165,961.04 180,528.69 219,645.80 264,741.09 336,078.76

Contingent Liabilities

52,150.75 95,710.87 136,851.39 110,627.02 111,805.73

Bills for collection

15,660.41 25,299.63 25,757.73 21,206.47 29,041.74

Book Value (Rs)

197.83 202.33 244.87 305.83 405.00

Cash Flow of Canara Bank


61

ORGANISATION STUDY

------------------- in Rs. Cr. -------------------



Net Profit Before Tax

0.00 0.00 0.00 0.00 0.00

Net Cash From Operating Activities

1535.43 2632.60 -990.03 4677.03 8527.34

Net Cash (used in)/fromInvesting Activities

-191.07 -262.41 -222.10 -166.86 -73.22

Net Cash (used in)/from Financing Activities

2206.02 -866.08 -6.13 -1516.74 2600.79

Net (decrease)/increase In Cash and Cash Equivalents

3550.38 1504.11 -1218.26 2993.43 11054.91

Opening Cash & Cash Equivalents

12823.55 16373.93 17878.04 16659.78 19653.21

Closing Cash & Cash Equivalents

16373.93 17878.04 16659.78 19653.21 30708.12

CANARA BANKRATES AT A QUICK GLANCEDEPOSIT ACCOUNTS

NATURE RATE OF INTEREST (%)p.a.

MINIMUM BALANCE

ACCOUNT NORMAL

SENIOR CITIZEN

Rural Semi Urban

Urban

1. SAVINGS BANK A/C A. Domesticw.e.f. 03-05-2011

4.00% 4.00%

a. With cheque Rs.500/- Rs.500/- Rs1000/-


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ORGANISATION STUDY

Book facility b. Without cheque book facility

Rs.100/- Rs.100/- Rs.500/-

c. No Frills Account

Rs.25/- Rs.25/- Rs.25/-

d. SB Canchamp deposit Scheme: 4.00% p.a. CHARGES FOR NON-MAINTENANCE OF MINIMUM BALANCE: Rs. 20/- per monthB.Non Residenta. NRO (03-05-2011)

4.00% 4.00%

b. NRE (03-05-2011)

4.00% 4.00%

2. TERM DEPOSITSA. Domestic Rate of Interest (%) p.a.

w.e.f. 16.05.2011Term Deposits ( All Maturities) For Deposits Less than

Rs.1 croreFor DepositsRs.1 crore &above to less than Rs.10 crore #

General Public

Senior Citizen

7 days to 14 days ** 4.00 4.50 5.0015 days to 30 days 4.50 5.00 5.0031 days to 45 days 4.50 5.00 6.2546 days to 90 days 5.50 6.00 7.50 *91 days to 179 days 7.00 7.50 8.00 *180 days to 269 days 8.00 8.50 8.25 *270 days to less than 1 year 8.00 8.50 8.25 *1 year & above to 554 days 9.10 9.60 9.10 *555 days 9.25 9.75 9.10556 days & above to less than 2 years

9.10 9.60 9.10 *

2 years & above to 999 days 9.00 9.50 9.00 *1000 days 9.00 9.50 9.001001 days & above to less than 3 years

9.00 9.50 9.00 *

3 years & above to 1199 days 8.50 9.00 8.501200 days 9.00 9.50 9.001201 days & above to less than 5 years

8.50 9.00 8.50

5 years & above to less than 8 years

8.75 9.25 8.75

8 years & above to 10 years

9.00 9.50 8.75


63

ORGANISATION STUDY

B. Non-Resident Accounts Rate of Interest (%) per annuma. NRO (All Maturities) same as applicable to Domestic Term Depositb. NRE All Maturities) Rate of Interest (%) per annum w.e.f. 01-07-20111 year & above but < 2 years 2 years & above but < 3 years 3 years only 2.48 2.44 2.84 Annualised Yield2.50 2.49 2.95

FCNR ( B )w.e.f.01/07/2011(Interest rate percent per annum)CURRENCY OF DEPOSITS

PERIOD OF DEPOSIT 1 year & above but less than 2 years

2 years & above but less than 3 years

3 years and above but less than 4 years

4 years and above but less than 5 years

5 Years

USD 1.73 1.69 2.09 2.54 2.95GBP 2.58 2.43 2.80 3.15 3.47EUR 3.14 3.17 3.38 3.60 3.79CAD 2.85 2.71 2.98 - -AUD 6.49 6.01 6.13 - -

RFC DEPOSITS

[Interest rate percent per annum]PERIOD OF DEPOSIT CURRENCY OF DEPOSITS

USD GBP EUR CAD AUDSAVINGS BANK (July 2011) NIL NIL NIL NIL 3.001 week & above but less than 1 month NIL 0.15 0.46 0.60 4.051 month & above but less than 3 months NIL 0.42 0.97 0.67 4.533 months & above but less than 6 months 0.10 0.68 1.19 0.82 4.886 months & above but less than 1 year 0.23 0.77 1.31 1.09 5.081 year & above but less than 2 years 1.73 2.58 3.14 2.85 6.492 years & above but less than 3 years 1.69 2.43 3.17 2.71 6.013 years only 2.09 2.80 3.38 2.98 6.13

Benchmark Prime Lending Rate (BPLR) of the Bank – 14.50% from01.07.2011RATE OF INTEREST

Effective from 01.07.2011


64

ORGANISATION STUDY

1. Loans for Traders & Businessmen- Upto Rs. 2 lacs 15.00% p.a.- Above Rs. 2 lacs 16.25% p.a.2. IPO Financing 15.50% p.a.3. Loans to individuals (Clean OD/ DPN other thanTeachers' loan) 18.00% p.a.4. Loans to individuals (secured) against approvedSecurities 17.50% p.a.5. Loans against Debt Oriented Mutual Funds 15.50% p.a.

RATE OF INTEREST LINKED TO BASE RATE

1 RETAIL LENDING SCHEMES ROI p.a.

1.1 CANARA MOBILE BR+3.00%1.2 CANARA PENSION BR+3.25%1.3 HOME IMP. LOAN BR+4.00%1.4 SWARNA LOAN BR+3.25%1.5 CANARA TRADE BR+3.50%1.6 TRADERS’ LOAN-

Upto Rs.2.00 lacs BR+4.00%

Above Rs.2.00 lacs BR+5.25% 1.7 CANARA JEEVAN BR+1.25%1.8 CANARA BUDGET, TEACHERS LOAN,

CANARA SITE, CANARA CASH BR+6.00%1.9 CANARA SOLAR/Loans to purchase solar

water heaters 12.50%(fixed)1.10 ALL OTHER PERSONAL LOANS BR+5.00%

Ratio analysis

Ratio analysis is the mostly widely used method for the analysis of financial statement. A financial ratio is a ratio of selected values on a enterprise's financial statements. There are many standard ratios used to evaluate the overall financial condition of a corporation or other organization. Financial ratios are used by managers within a firm, by current and potential stockholders (owners) of a firm, and by a firm's creditors. Security analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios.


65

http://en.wikipedia.org/wiki/Financial_market

http://en.wikipedia.org/wiki/Financial_market

http://en.wikipedia.org/wiki/Financial_analyst

http://en.wikipedia.org/wiki/Creditor

http://en.wikipedia.org/wiki/Stockholder

http://en.wikipedia.org/wiki/Financial_statement

http://en.wikipedia.org/wiki/Financial_statement

ORGANISATION STUDY

Values used in calculating financial ratios are taken from the balance sheet, income statement, cash flow statement and (rarely) statement of retained earnings. These comprise the firm's "accounting statements" or financial statements.

The important ratios are as under,

Return on Assets Earnings Per Share

Profit Margin ratio

Interest Expended Ratio.

Key Financial Ratios of Canara Bank

Mar '07

Mar '08

Mar '09

Mar '10

Mar '11

Investment Valuation RatiosFace Value 10.00 10.00 10.00 10.00 10.00Dividend Per Share 7.00 8.00 8.00 10.00 11.00Operating Profit Per Share (Rs)

33.15 33.29 47.02 73.99 89.40

Net Operating Profit Per Share (Rs)

282.24

378.64

441.97

508.62

552.37

Free Reserves Per Share (Rs)

105.56

103.94

108.33

129.43

202.26

Bonus in Equity Capital

-- -- -- -- --

Profitability RatiosInterest Spread 3.57 3.47 3.47 3.32 3.47Adjusted Cash Margin(%)

12.81 10.65 11.80 14.46 16.23

Net Profit Margin 11.60 9.61 10.89 13.77 15.65Return on Long Term Fund(%)

111.05

151.48

149.13

134.69

112.95

Return on Net Worth(%)

18.78 18.86 20.64 24.09 22.43

Adjusted Return on Net Worth(%)

17.51 18.85 20.63 24.07 22.43


66

http://en.wikipedia.org/wiki/Statement_of_retained_earnings

http://en.wikipedia.org/wiki/Cash_flow_statement

http://en.wikipedia.org/wiki/Income_statement

http://en.wikipedia.org/wiki/Balance_sheet

ORGANISATION STUDY

Return on Assets Excluding Revaluations

197.83

202.33

244.87

305.83

405.00

Return on Assets Including Revaluations

252.54

256.11

297.75

357.85

452.37

Management Efficiency RatiosInterest Income / Total Funds

7.81 9.08 9.16 8.69 8.20

Net Interest Income / Total Funds

2.86 2.84 2.89 3.24 3.09

Non Interest Income / Total Funds

0.45 0.44 0.46 0.45 0.42

Interest Expended / Total Funds

4.95 6.23 6.27 5.45 5.11

Operating Expense / Total Funds

1.94 2.04 1.92 1.98 1.77

Profit Before Provisions / Total Funds

1.27 1.14 1.34 1.65 1.70

Net Profit / Total Funds

0.96 0.92 1.05 1.26 1.35

Loans Turnover 0.13 0.15 0.15 0.14 0.13Total Income / Capital Employed(%)

8.26 9.52 9.61 9.14 8.62

Interest Expended / Capital Employed(%)

4.95 6.23 6.27 5.45 5.11

Total Assets Turnover Ratios

0.08 0.09 0.09 0.09 0.08

Asset Turnover Ratio 2.85 3.65 4.08 4.65 5.22

Profit And Loss Account RatiosInterest Expended / Interest Earned

64.57 75.09 72.44 69.71 66.08

Other Income / Total Income

5.46 4.61 4.74 4.93 4.87

Operating Expense / Total Income

23.49 21.48 19.93 21.65 20.48

Selling Distribution 0.33 0.29 0.13 0.09 0.09


67

ORGANISATION STUDY

Cost Composition

Balance Sheet RatiosCapital Adequacy Ratio

13.50 13.25 14.10 13.43 15.38

Advances / Loans Funds(%)

75.55 71.36 78.86 77.49 77.07

Debt Coverage RatiosCredit Deposit Ratio 68.65 69.40 71.99 72.96 72.23Investment Deposit Ratio

31.71 32.06 31.55 30.24 29.01

Cash Deposit Ratio 6.56 7.58 6.86 6.11 7.14Total Debt to Owners Fund

17.55 18.57 18.62 18.71 16.39

Financial Charges Coverage Ratio

1.28 1.20 1.23 1.31 0.34

Financial Charges Coverage Ratio Post Tax

1.21 1.16 1.18 1.24 1.27

Leverage RatiosCurrent Ratio 0.02 0.02 0.02 0.01 0.02Quick Ratio 9.49 9.17 11.29 26.98 30.86Cash Flow Indicator RatiosDividend Payout Ratio Net Profit

23.63 24.53 18.51 15.88 14.09

Dividend Payout Ratio Cash Profit

21.40 22.13 17.08 15.11 13.58

Earning Retention Ratio

76.36 75.45 81.48 84.10 85.91

Cash Earning Retention Ratio

78.60 77.86 82.91 84.88 86.42

AdjustedCash Flow Times

90.78 88.86 83.24 73.93 70.38

Mar '07

Mar '08

Mar '09

Mar '10

Mar '11

Earnings Per Share 34.65 38.17 50.55 73.69 90.88


68

ORGANISATION STUDY

Book Value 197.83

202.33

244.87

305.83

405.00

Competitiors

Last Price

Market Cap.

(Rs. cr.)

Net InterestIncome

Net Profit

Total Assets

SBI 2,482.00

157,606.75

81,394.36 8,264.52

1,223,736.20

PNB 1,153.90

36,556.95 26,986.48 4,433.50

378,325.25

Bank of Baroda 882.65 34,671.37 21,885.92 4,241.68

358,397.18

Canara Bank 526.90 23,341.67 23,064.02 4,025.89

336,078.76

Bank of India 410.55 22,466.12 21,751.72 2,488.71

351,172.55

Union Bank 299.10 19,002.72 16,452.62 2,081.95

235,984.44

IDBI Bank 135.25 13,316.91 18,600.82 1,650.32

233,572.01

Oriental Bank 345.05 10,067.22 12,087.82 1,502.87

161,343.38

Allahabad Bank 205.60 9,790.99 11,014.69 1,423.11

151,286.36

Indian Bank 227.30 9,768.67 9,361.03 1,714.07

121,718.31

PROGRESS AT A GLANCE

(Amt. in Rs. Crore) 2007-08 2008-09 2009-10Number of Branches 2678 2733 3046Paid-up Capital 410 410 410Reserves 10091 11798 14262Aggregate Deposits 154072 186893 234651Growth (%) 8.21 21.30 25.55Non-Resident Deposits 12874 14043 13567Foreign Business Turnover 136757 142301 127614Advances (Net) 107238 138219 169335


69

ORGANISATION STUDY

Growth (%) 8.86 28.89 22.51Retail Advances 17665 19798 23902Growth (%) 1.03 12.07 20.73Priority Sector Advances 43203 48763 59310Growth (%) 14.16 12.87 21.63Agriculture 17996 20144 25051Growth (%) 15.95 11.94 24.36Agriculture(Disbursal) 11443 14704 18130Micro, Small and Medium Enterprises 18600 23823 31074Growth (%) 30.57 28.08 30.44Advances under DRI Scheme 40 48 50Advances to SC/ST Clients 2055 2863 3905Self Help Group (Nos.) 210441 275100 320000Export Credit 9162 8967 8966Clientele (In Million) 32.35 34.80 37.34Total Number of Staff 45260 44090 43380Total Income 16414 19430 21610Total Expenditure 13454 15467 16549Operating Profit 2959 3964 5061Net Profit 1565 2072 3021


70

ORGANISATION STUDY

MCKINSEY’S 7S FRAMEWORK

Introduction:

The Seven –S model was developed by McKinsey’s is an important part of the organization. The two persons who developed this model were Tom Peters and Robert Waterman, who were consultants at the McKinsey’s. They had published their 7S models in their respective articles named, “The Art of Japanese Management (1981)” and “In Search of Excellence (1982)”.McKinsey’s & Co’s 7S framework provides a useful framework for analyzing the strategic attributes of an organization. The model starts on the premises that each and every organization is not just a structure as it consists of seven important elements. Strategy, Structure and Systems can be considered as “Hardware” of success while Style, Staff, Skills and Shared Values are considered as the “Software”. Companies, in which these soft elements are present, are usually more successful at the implantation of the strategy. The McKensy’s framework is shown in the figure.Soft Ss:The four Ss across the button of the model are less tangible, more cultural in nature and were termed as Soft Ss by McKinsey.1). Skills: The capabilities and competencies that exist within the company are termed as skills.2). Shared Values: The values and beliefs of the company. Ultimately they guide employees towards “Valued Behavior”.3). Staff: The company’s people resources and how they are developed, trained and motivated.4). Style: The leadership approach of top management and the company’s overall operating approach.Hard Ss:The three Ss across the top of the model are described as “Hard Ss”. The 3Ss across the top of the model are described as “Hard Ss”.5). Strategy: The direction and scope of the company over the long term is known as strategy.6). Structure: The basic organization of the company, its departments reporting lines, areas of expertise and responsibility (and how they inter –relate).7). Systems: These are formal and informal procedures that govern everyday activity, covering everything from management information systems, through the systems at the point of contact with the customer (retail systems, call center systems, online systems, etc.).


71

ORGANISATION STUDY

Diagram Showing pictorial diagram of McKinsey’s 7’S Model;

7S Model of Canara Bank

(1). Structure:The bank has a well organized three tier structure with a sound foundation of 2113 business outlets and a well defined reporting architecture as the body to support. The corporate governance which is the breath sustaining the momentum is through a very talented board of directors including government appointed directors employee and office representative directors guided by RBI, Ministry of Finance, Government of India which forms the superstructure. Below figure shows the details structure of the Canara Bank.

ORGANISATIONAL STRUCTURE

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

EXECUTIVE DIRECTOR


72

ORGANISATION STUDY

GENERAL MANAGERSPortfolios 1. Corporate Credit Division – I (CCD-I) 9. Priority Sector Credit Dept 2. Corporate Credit Division – II (CCD-II) 10. Premises & Maintenance Dept 3. Retail Banking Department 11. Central Accounts & Legal Dept 4. Planning & Development Dept 12. Personnel Department 5. Recoveries Dept & General Admn Unit 13. Inspection Department 6. Dept. of Information Technology 14. Vigilance Department 7. Risk Management & Monitoring Dept. 8. Treasury & International Banking Division

Regional Offices - 35

Branches – 2125


73

Board of Directors

Chairman & Managing Director

Assistant General Manager

Executive Director Scale VIII

General Manager

Assistant Manager

Deputy General Manager

Divisional Manager

Manager

Senior Manager

ORGANISATION STUDY And having 21 General Manager heading different departments in the organization

ORGANISATION STUDY 2). Skills:

The blend of management skills with employee orientation and employee skills with organizational loyalty is unique to Canara Bank. Having introduced successfully the Core Banking Solution (CBS) with an entire in house team of I.T. and Non –I.T. officers itself is a proof and track record for the skills of the prudent banker with the focus of migration of another 1500 branches to the CBS is a big leap in this direction.Training policies and programmes are suitably designed, modified and updated on a continuous basis to upgrade the knowledge levels and skills of its Executives, Officers, and Workmen on par with the best in the industry. While several new programmes are introduced in tune with the Corporate Goals, the existing programmes are made more interactive and learner –friendly. Risk Management and Basel II are the focal areas of their training programmes to ensure Bank’s readiness to move over to the new Basel II regime and extra care is taken to sensitize the workforce to these issues.The bank has taken its first step in e –learning initiative with the uploading of reading materials on Export Finance, Agricultural Lending and Financing SSI on its Intranet.During the year, emphasis was given to train executives / officers in the areas of Risk Management, Risk Based Supervision, Basel II, Agricultural Lending, Credit Management, Corporate & Retail Credit, Recovery Management, Marketing & Relationship Banking, Foreign Exchange business and CBS.

(3). Style:

The conduct of the operations as well as administration at each operational unit having effective internal control has a vivid style by itself. Every branch manager has his own style of functioning individually but collectively is a canara team member, which is the brand equity of the bank. The style of the bank in business or in administration has a unique niche in the industry, poised to excel among the peers.

ORGANISATION STUDY

Decision making style (powers of disposal):

(4). Strategy:

Being one of the leading public sector banks with a culture of well managed private sector professional institution, the strategy of the bank is to be a premier among the peers and to excel in all the parameters are it business or social responsibilities. To be the faithful and friendly financial partner to their beloved clients. The strategy also includes concern for the middle class and the moderate income group of the society for financial inclusions. Evolving a product called “Canara Samanya”, with zero balance in rural and semi –urban areas and ensuring 100% coverage at all lead districts the goal under the financial inclusion which is being met. Thus, all the products and services are targeted towards the above focus including the core banking and internet banking etc. which are introduced at a very nominal minimum balance and no hidden charges.

Strategies for 2011-12 Corporate theme for the year-“Acquire Accounts Aggressively, Add Core Deposits Continuously” Year also marked as-Year of NPA resolution

(5). System:

The systems and procedures of the bank are a time tested one on sound and scientific foundation. The systems and procedures are well defined and are available with all the

Chief Manager

Desk Manager(Scale II/ III)


Chief Manager

Asst. General Manager


CM or AGM

DGM


CM or AGM

DGM

GM

ORGANISATION STUDY hierarchy as no need to know basis. The recently developed best practice codes and the best behavioral practices are the guiding factors of the systems prevailing. The well structured process manuals are available for all the functional areas, be it business or administration or inspection and audit.

(6). Staff:

The staff composition is so mixed and having experience and loyalty to the institution as the core credentials reflecting the customer’s loyalty and ethics. The bank has ventured into a recruitment drive at all levels to ensure the mix of experience and youth at appropriate level and also to ensure the age profiles of the cadres match with technological advancement. An ongoing annual promotional process to ensure blending of experience and expertise to be brought to the fore. A balanced team of executives guide the operations.The bank had a total staff strength of 28000 as on 31 -03 -2011.where as the strength of Udupi is 85. And per employee productivity on that date is 4.98crores. The SC /ST Employees constituted 26.23% of the total staff strength.The HR Policy has been geared to meet the corporate objective of accelerated and profitable growth. This includes Campus and Direct Recruitments for replenishing skilled Man Power in Agricultural Finance, IT, Accounts and Financial Management, International Business, Credit, Marketing, Risk Management etc. The Promotion Policy has also been fine tuned to reward Outstanding Performance and also to facilitate Succession Planning. (7). Shared Values:

The core of above 6Ss is the ground rules of shared values. It is like the invisible software which works on the above 6S as the hardware and makes the institution work to the desired level of output.

Vision, Mission and Quality Policy:

Vision (2011 -2012):

“Consolidating position as a Premier Public Sector Bank with Increased Global Outreach”.“Emerging as a Strong, Vibrant Responsive Competitive Bank”.“Embracing state of art technology harnessing human potential and effectively participating in the process of Nation Building”.Serving its constituents and stakeholders as a “Faithful and Friendly Financial Partner”.

ORGANISATION STUDY

Mission of Canara Bank:

The Mission articulated for each of the functional area of the Bank is highlighted below:

Resources: To achieve global deposits of Rs.50 thousand crore by 2011 and around Rs.59 thousand crore by 2010 with emphasis on low cost resources slated to constitute at least 45% of the total resources by planned strategic initiatives including branch expansion, aggressive marketing and active involvement of each and every employee of the Bank.

Advances: To build a qualitative asset base of around Rs.35 thousand crore by 2011 and Rs.41 thousand crore by 2011 to augment the income portfolio of the Bank.

Business: To achieve global business of nearly Rs.85 thousand crore by March 2011 and attain Rs.100 thousand crore by 2011.

Profitability: To make every branch a profit centre to earn a net profit of Rs. One thousand crore by 2011and guarantee best possible returns to the stakeholders value.

Management of Assets: To focus on improving the quality of asset portfolio by avoiding slippage of assets to NPA and to strive to upgrade the existing non-performing assets to performing assets.

Human Resources & Organization structure : To mould and strengthen the organizational structure to meet the future Business requirements and challenges. To redefine and redevelop peoples’ management techniques so as to unleash human potential, drive growth and nurture leadership of high quality corporate governance.

Customer Relationship Management: To fine-tune our marketing strategies to meet the ever-growing market demands, to ensure that our products and services adapt to the changing needs and expectations of the customer, to provide the customer the ideal banking ambience, to reorient our publicity so as to provide increasing visibility to our Brand, to get our branches / offices ISO 9001-2000 compliant.

Risk Management: To become Basel II compliant under all facets of Risk Management and transform the Bank into total risk enabled enterprises, which addresses the concerns of every stakeholder by 2011.

Information Technology: To bring minimum of 80% of the Bank’s business under Centralized Core Banking network by 2011 spanning minimum of 700 branches across the country, supplemented by additional delivery channels

ORGANISATION STUDY

with 750 ATMs and 750 fully automated branches, backed by a comprehensive fail safe Business Continuity Plan.

Forex and Treasury: To profitably manage the forex and investment assets of the Bank to achieve a dealing room turnover of Rs. 565 thousand crore by March 2011 and a net profit of nearly Rs.100 crore.

Para Banking: To achieve insurance premium collection of nearly Rs.200 crore with a commission income of Rs.35 crore, a credit card base of 2 lakh that brings in earnings of a minimum of Rs.15 crore and a debit card base of 15 lakh fetching a net revenue of Rs.20 crore.

Inspection: To migrate progressively from the present transaction oriented inspection system to a risk based audit exercise enhancing the effectiveness of risk management, control and governance processes.

SWOT ANALYSIS

ORGANISATION STUDY

SWOT Analysis refers to the strength and weakness of the company and opportunities and threats in the environment. The investor should carry out a SWOT analysis for the chosen industry. Take for instance, increase in demand for the industry’s product becomes its strength, presence of numerous players in the market, i.e. competition becomes the threat to a particular industry. The progress in the research and development in that particular industry is an opportunity and entry of multinationals in the industry becomes the threat to that industry.

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision.

The required first step in SWOT analysis is the definition of the desired end state or objective. The definition of objective must be explicit and approved by all participants in the process. This first step must be performed carefully because failure to identify correctly the end state aimed for leads to wasted resources and possibly failure of the enterprise.Once the objective has been identified, SWOTs are discovered and listed. SWOTs are defined precisely as follows:Strengths: Are attributes of the organization that are helpful to the achievement of the objective.Weaknesses: Are attributes of the organization that are harmful to the achievement of the objective.Opportunities: Are external conditions that are helpful to the achievement of the objective.Threats: Are external conditions that are harmful to the achievement of the objective

Strength of Canara Bank:

The Bank has a good image in the eyes of the general public. Canara bank provides financial assistance to various sectors like Agriculture, SSI, SME etc.

As a part of its innovative strategies in product development process, bank has constantly reviewed and redefined many of its products to meet the ever –changing needs and expectations of the customers. Like Canara-Samanya, Canara-Vidhyarthi

The security arrangements in the bank are carried out satisfactorily. To achieve quantitative improvements in key areas of security, the Annual Security Action Plan had been effectively implemented.

The bank has an effective and transparent system of Corporate Governance driven by a highly professional Board which strives to adopt the best business practices

ORGANISATION STUDY

that can enable the Institution to retain the competitive edge through innovation and world class standards of delivery of contemporary services and products.

In this context, the bank has placed systems in place for risk assessment and management and provisions for continuous monitoring. The bank has been proactive in conforming to the requirements of the Regulatory Authorities.

It is well equipped to meet the challenges of 21st century, in the areas of IT, Knowledge and competition.

It has launched Centralized Banking Solution (CBS) which covers 75% of the total business.

Weakness of Canara Bank:

The bank has implemented Core Banking Solution (CBS) by networking 1529 branches spread across over 2120 Branches covering over 75% of the Bank’s business, which need to cover all the branches so as to cover 100% of the bank’s business.IT Policy and Strategy implementation by the bank has not been covered to all the branches. Some of the facilities provided by the Canara Bank like ATM, Credit Card, Debit Card are with in a particular geographic area, which need to be expanded. The bank has only a single branch at London; more number of branches must be developed, not only in India but also abroad.The large portion of their existing employees in the edge of retirement, this may create a problem in the future.

Opportunity for Canara Bank:

The Central Banking Solution (CBS) has to be implemented in every branch, so as to improve its business activity. More opportunity is there for the bank if it implements all its branches totally with computerized and the business may spread across the world if it diversifies some of the branches in various countries. The bank continues to identify new areas and activities that require attention, as well as the risk management skills, processes, and practices that need to be developed and strengthened.The bank is planning to adopt best international practices in Credit Risk Management and Basel II implementation by outsourcing end to end solution viz., on –line appraisal system, risk assessment, risk inputs estimates, capital computation and RAROC framework. The Bank is also in process of engaging reputed consultant to design and implement Operational Risk Management Framework.

ORGANISATION STUDY Threats for Canara Bank:

In this technological and fast growing world the greatest threat for the bank is to compete with other public sector banks, private banks and also foreign banks. Canara bank has to prove that it’s unique in providing various products and services to its customers. This is possible by continuous improvement and adopting technological advancements.Government policies may go strict. More and more government policies make the company follow the rules which ultimately affect the company revenues.

Intense competition in the market. Market share redistribution. Market place is becoming smarter.

STRENGTHS- Leadership in Karnataka state- Diversified loan book- Comfortable capital and reserve levels-

WEAKNESSES- Declining asset quality to impact margins- Low international exposure

OPPORTUNITIES- Foray into high growth areas likely to broaden fee income sources- Government support to boost capital strength- Government initiatives likely to spur demand in financial transactions-

THREATS- Weak monsoon likely to impact rural credit off-take- Declining exports likely to subdue trade financing demand in India- Intensifying competition likely to check growth opportunities

Conclusion:It is not simply enough to identify the strengths, weaknesses, opportunities, and threats of a company. In applying the SWOT analysis it is necessary to minimize or avoid both weaknesses and threats. Weaknesses should be looked at in order to convert them into strengths. Likewise, threats should be converted into opportunities. Lastly, strengths and opportunities should be matched to optimize the potential of a firm. Applying SWOT in this fashion can obtain leverage for a company.

ORGANISATION STUDY LEARNING EXPERIENCE

Learning Experience Gained

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.Various banks like Public Sector Bank, Private Sector Bank, Financial institution etc. are making sincere efforts to meet the expectations of the customer by providing better products and services. Canara bank is one among the Top Tenth bank in public sector. The study has highlighted that the bank is mainly focusing on customers’ satisfaction through various schemes..The study reveals that the Canara Bank continues to identify new areas and activities that require attention, for example the very recent schemes like Pigmy plus, canara vidyarthi, canarasamanya are best examples. The risk management skills, process, and practices that need to be developed and strengthened. The bank is planning to adopt best international practices in Credit Risk Management and Base II implementation by outsourcing end to end solution viz., on –line appraisal system, risk management, risk inputs estimates, capital computation and RAROC framework. The bank is also in process of engaging reputed consultant to design and implement Operational Risk Management Framework. Apart from these the bank is also aiming to:1. Highly focused on human resources initiative. An employee is given ample

opportunities to learn and grow.2. Bank has to give importance to:

National Priorities: Some of the National priorities given by the bank in the areas like: Priority Sector

Credit, Agriculture and Allied Activities, Rural Extension Education Programmes, Relief Measures for farmers, Housing Sector, Harnessing Solar Energy etc.

Social Development: Canara Rural Development Trust, Rural Development and Self Employment

Training Institute, CanaraVidya, Implementation of Official Language (Hindi) etc. are its some of the concern towards social development.

SME Sector: The bank is aiming for a minimum of 20% year –on –year growth in the

outstanding credit to SME, with a view to doubling the credit to SME’s by 2011 -12.

ORGANISATION STUDY

The bank is also providing composite loans up to Rs. 100 lacs to tiny sector. The bank has the novel, exclusive schemes for providing hassle free credit to

SME’s like, Canara Laghu Udyami Credit Card wherein finance up to Rs.10 lacs can be made to small entrepreneurs and CanaraUdyog, wherein, SME’s can be financed up to Rs. 50 lacs.

3. The security arrangements in the Bank are carried out satisfactorily. To achieve quantitative improvements in key areas of security, the Annual Security Action Plan had been effectively implemented.

Apart from these issues the bank has to concentrate on various aspects like:Provide employment opportunities, provide better services, and focus on SME, Agriculture sector because they constitute a major part for the development of GDP of any nation; better training has to be given to the employees so that they can cope up with the latest technology which the bank is adopting now a days (CBS).

In the present era, many banks make their best effort to attract number of customer towards them, which resulted in aggressive competition in banking industry. So, Canara Bank must cope up with the latest technology so as to provide better services for the customers, they must make an effort to study well the mindset of the customer and provide new products and services. As all the banks are trying to attract more industry.

ORGANISATION STUDY

FINDINGS

The bank is performing its operation successively by distributing its branch

network throughout the nation

The banks profit is showing an upward trend from the last several years

The administration of the head office of the bank is very systematic.

The percentage of recovery of loan is satisfactory.

Bank is sanctioning all types of loan amount more than what it is advancing.

Bank has several special developmental schemes.

The rate of interest for industrial loan is higher than for agriculture loan.

Bank is charging high rate recovery fees.

Bank is performing its operation throughout the nation. It has become possible for

the rural people of the nation to get very good banking facilities.

SUGGESTION AND RECOMMENDATION In the light of the study conducted at the Canara bank and the specific issue of

credit that was examined during study period following suggestion are made for consideration by bank management. Bank should simplify the procedure for granting loan For the efficient and effective working of the bank, bank should computerize all

the department Bank should increase the amount of loan. Since bank earns sufficient profit it can consider reduction of interest rate to loan Insurance facilities should be extended for all Bank should grant more loan Bank should adopt more scientific method of calculation of repaying capacity and

scale of finance Bank should arrange to link credit with marketing Bank should conduct seminar and symposium for people who taken loan Bank should fulfill the requirement of customers Bank should arrange to sanction loans for every one Bank should simplify the procedure for recovery of loans Bank should reduce recovery fees

ORGANISATION STUDY CONCLUSION

Canara Bank Over the years has been various political, social and economic transitions. Today, Indian banking is under reform process. Foreign Banks are entering into market and private banks are gaining momentum. This stage is crucial for a nationalized Bank like CanaraBank. Its future depends on how it can face threats and cash on opportunities. Thinking globally considering local aspects is the need of this hour. Canara Bank must use its vast banking experience to gain a strong hold in the Indian banking system and build a globally respected brand.

CanaraBank has a bright future as it gives greater thrust towards technological up gradation of its operations besides this, the bank has also installed ATM’s at most of its branches.

Realizing and evolving the diverse needs of customers the Bank has diversified too, entering several new areas such as credit card merchant banking, hire purchase and leasing and electronic remittance service etc.

CanaraBank is one among the few banks in the country to take up principal membership of VISA International and MasterCard International.

Thus the activities of Bank are improving day by day. Today, CanaraBank is a vibrant institution. It has spread its branch network in all 28 states and 4 union territories of the country and also abroad.In this study, Credit appraisal and Monitoring to loan of the CANARA bank is undertaken. Along with this, a study of different section of the bank has also been undertaken. Developments of agriculture, upliftment of weaker section, rural development, and extension of banking services are some of the important aims of the CANARA bank. This can be achieved only if bank operates with highest efficiency and satisfactory service. To generate income in rural and urban area co-operative credit can contribute tremendously. In this direction the CANARA bank has undertaken several measures to achieve goal, they opening the branches in rural area, linking credit with marketing increasing savings and deposits, granting loans to all sector.

The bank with its various branch network is working with highest efficiency to ensure optimum utilization of funds with available infrastructure. It has introduced innovative schemes in all areas to achieve development. Bank operates mostly with its own resources without depending on any bank. This is the inherent strength of the bank. The recovery percentage in CANARA Bank is highest. On the whole bank is capable in providing economic growth with social justice.

ORGANISATION STUDY

BIBLIOGRAPHY

www.finance.indiamart.com/investment_in_india/banking_in_india.html

http://canarabank.in

IBA bulletins.

Brochures, Hand Books, Circulars, Magazines, Annual reports provided by

CanaraBank

Book titled “Canara Bank A Peoples Bank” by M. V. Kamath.

Money control.com

www.google.in

Math homework helphttps://www.homeworkping.com/A Depository is an organization which holds investors' securities in electronic form. The depository also provides services related to various transactions in such securities. A depository interfaces with its investors through Depository Participants. Depository Participants maintain investors' accounts (demat accounts) which are similar to Savings Bank/Current accounts with a Bank. Purchase and sale of securities can be done through demat account. Presently there are two depositories in India viz., NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Ltd). Our Bank is a Depository Participant of NSDL. Why Demat AccountAdvantages of opening demat account: Shares are held in electronic formNo need to safe keep share certificates;No need to remember record dates of various companiesImmediate transfer of securitiesNo stamp duty on transfer of securitiesRisk of bad delivery, fake securities eliminatedReduced paper work for transfer of securitiesReduced transaction costNomination facility available

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ORGANISATION STUDY Automatic noting of change of address (updating changed address in the demat account will have the effect of updating changed address with all companies, the shares of which is held / will be held in electronic form). Easy transmission of securities. It is sufficient to submit one set of claim papers to DP for transmission of all securities lying in demats account of the deceased. Automatic credit of Dividend / bonus shares

INVESTMENT IN VARIOUS MUTUAL FUNDS MAY ALSO BE HELD IN DEMAT ACCOUNTS

SMS alerts will be sent by NSDL upon occurrence of the following events, where mobile telephone numbers furnished by clients is captured by DP in the DPM system and SMS flag is ticked:All Debits and credits (transfers); Credits for IPO, sub-division and bonusFailed instructions; Overdue instructionsChange of mobile number; Change of addressCredit / debit of Mutual Fund Units NSDL has launched ACE (Alerts to Clients through Email) for sending e-mails whenever change of address is noted in DPM system.IDeAS (Internet based Demat Account Statement) FACILITY FOR VIEWING AND DOWNLOADING BY DP CLIENTS. Advantages of Opening Demat Account with Canara Bank Multi locational services across the country Competitive charges Customer friendly serviceIDeAS (Internet based Demat Account Statement) facility available for viewing and downloading transaction statements from internet. Online trading facility (OLT) is offered in association with our own broking subsidiary viz., M/s Canara Bank Securities Limited. A wide range of online services like trading in securities, subscription to IPOs, investment in Mutual Funds, trading in Future & Options segment, trading in currency derivatives is offered to our OLT clients. For details customers may be advised to log in to canmoney.in or canarabank.com.

1. Services available: 2. Account opening3. Dematerialization 4. Transfer of securities5. Pledge services6. Freezing and un-freezing the depository account7. Nomination facility