Canara Bank

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 town 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 2006, 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 Branch
Articulation of Good Banking Banks Citizen Charter
Commissioning of Exclusive Mahila Banking Branch
Launching of Exclusive Subsidiary for IT Consultancy
Issuing credit card for farmers
Providing 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 2014, the Bank has further expanded its
domestic presence, with 4750 branches spread across all geographical segments. Keeping
customer convenience at the forefront, the Bank provides a wide array of alternative
delivery channels that include over 6312 ATMs, covering 3572 centres.Several IT
initiatives were undertaken during the year. The Bank set up 102 hi-tech E-lounges in
select branches with facilities like ATM, Cash Deposit Kiosk with voice guided system,
Cheque Deposit Kiosk, Self Printing Passbook Kiosk, Internet Banking Terminal, Online
Trading Terminal and Corporate Website Access. Canara e-Infobook an electronic
passbook and banking related information facility was introduced on mobile platforms -
Android, Windows8 & iOS. The Bank also launched Canara Bank RuPay Debit Card,
Canara Club Card Debit, Canara Secured Credit Card, Canara Elite Debit Card and
EMV Chip Cards under debit and credit cards. Online Savings Bank and PPF account
opening were introduced during the year. The Bank made several value additions under
internet banking and mobile banking services.

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 "Preferred Bank" by
pursuing global benchmarks in profitability, operational efficiency, asset quality, risk
management and expanding the global reach.

History
Late Sri Ammembal Subbarao Pai

Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Shri
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.
Founding Principles
1. To remove Superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the community
but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. 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 work culture and remarkable
adaptability to changing banking environment have enabled Canara Bank to be a
frontline banking institution of global standards.



Significant Milestones
1st July
1906
Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000
shares of 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 Banks credit card) launched
1984 Merger of Laksmi Commercial Bank Limited with Canara Bank
1985 Takeover of Lakshmi Commercial Bank Limited Commissioning of Indo Hong
Kong International Finance Limited (now a full fledged branch)
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
2003-04 Launched Internet 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.
2006-07 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.
2007-08 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.
2008-09 The Bank crossed the coveted 3 lakh crore in aggregate business. The Banks 3rd
foreign branch at Shanghai commissioned.
2009-10 The Banks aggregate business crossed 4 lakh crore mark.
Net profit of the Bank crossed 3000 crore. The Banks branch network crossed the
3000 mark.
2010-11 The Banks aggregate business crossed 5 lakh crore mark. Net profit of the Bank
crossed 4000 crore. 100% coverage under Core Banking Solution. The Banks 4th
foreign branch at Leicester and a Representative office at Sharjah, UAE, opened.
The Bank raised 1993 crore under QIP. Govt. holding reduced to 67.72% post QIP.
2011-12 Total number of branches reached 3600. The Banks 5th foreign branch at Manama,
Bahrain opened.
2012-13 Highest Dividend of 130% paid for the year
2013-14 1027 branches and 2786 ATMs opened during the year. Global business crossed
the`7 lakh crore milestone

Vision & Mission
Vision
To emerge as a Preferred Bank by pursuing global benchmarks in profitability,
operational efficiency, asset quality, risk management and expanding the global reach.

Mission
To provide quality banking services with good customer care, create value for all
stakeholders and continue as a responsive corporate social citizen.


AWARDS AND ACHIEVEMENTS DURING 2013-14
In recognition of the varied initiatives, the Bank was conferred with the following
awards
Global CSR Excellence and Leadership Awards 2014 from CSR World Congress.
Best Home Loan Provider Award from Outlook Money for 2013.
Finger Print based Biometric Authorization for CBS declared as winner for
secure IT 2014 award.
The Banks Desktop Management System project awarded amongst Indias Best -
2013 in 33rd SKOCH Summit.
NFS Operational Excellence Award 2013 - Special Jury Award 2013 by NPCI in
recognition of Bank's excellent performance in Key Parameters in respect of
ATMs and switch connected to NFS ATM Network.
Vigilance Excellence Award instituted by M/s Institute of Public Enterprises,
Hyderabad, in commemoration of celebrating the Golden Jubilee Year of the
Institute, with a view to promote excellence in the field of Vigilance in all the
Central as well as State level Public Sector Enterprises, Nationalized Banks and
other Financial Institutions.
Corporate Collateral Awards under various categories by Public Relations
Council of India.
Golden Peacock Award for excellence in Corporate Social Responsibility for the
year 2013.
Greentech Award for excellence in Corporate Social Responsibility for the year
2013.
Skoch Renaissance Award 2013, with a Medal and Citation for being India's Best-
2013.
Jury Award for New Initiatives under MSME instituted by Chamber of Indian
MSME under Banking Excellence Awards 2013.
Best Bank Award for implementation of Rural Self Employment Training
Institutes for the second consecutive year by the Ministry of Rural Development,
Govt. of India. Award under Category l & Category II for its two of its exclusive
RSETIs at Hassan (Karnataka) and Tiruppur (TN) as best performing RSETIs. 5
of the 27 RUDSETIs co-sponsored by the Bank awarded as best performing
RUDSETIs
Top Performer in New Demat Accounts Opened in banking sector by National
Securities Depository Ltd., (NSDL) for the year 2013.
CANARA BANK BAGS Golden Peacock Global Award for Corporate Social
Responsibility for the year 2013
Golden Peacock Award for Excellence in Corporate Governance 2013.
C&MD was conferred Mahatma Gandhi Pravasi Gold Samman Award during the
Global Achievers Conclave organized by NRI Welfare Society of India at House
of Lords, London.
FIPS Excellence Award 2013 under DBT Category for the project- "Direct
Benefit Transfer LPG (DBTL) 100% implementation in Waynad District".
SKOCH AWARD under Corporate Social Responsibility.
Unity International Foundation conferred "Outstanding Banker of the Decade"
Award
GreenTech Life Time Award for Excellence in Banking.
Asia Pacific HRM Congress 2013 instituted by Institute of Public Enterprises
conferred "CEO of the Year" and "CEO with HR Orientation.
Hindi Rajbhasha Samrakshak Ratna Award in Dasham Hindi Mahakumbh Evam
Saahitya Conference organized by Parivartan Jan Kalyaan Samiti, New Delhi.
The Bank has been conferred with the Skoch Corporate Social Responsibility
Award 2013, Indias Best 2013 & Skoch Award 2013, Indias Best 2013 for
ICT enabling Desktop Management System
Best Bank of the Year Award, instituted by The Bangalore Management
Association (BMA)
Best Financial Institution, Category - Gold in the Export Excellence Awards
2013 by the Federation of Karnataka Chamber of Commerce, Bangalore.
Awarded Institute of Directors Fellowship on the eve of Golden Peacock Awards.
Awarded Certificate of Excellence for exemplary CSR Initiative for the project
Strengthening Traditional Art and Culture under eIndia Awards 2013.
Canara Bank bagged the Best Bank Award for Implementing RSETIs in the
Country for the second consecutive year.
BUSINESS PROFILE
Corporate Banking:
Full service offering to large and mid sized corporations across India including
project and corporate finance, working capital, short-term credit, cash
management and treasury products.
SME Banking:
Comprises mainly of priority sector lending to small-scale industries.
Over 445,950 customers serviced through 42 specialized branches and 15
centralized processing centers.
Priority sector loans were INR259bn and non-priority sector loans were INR69bn
as of Sep 2013.
Retail Banking:
Includes housing, vehicle, personal and education loans, self employed and
corporate employee loans, deposits, credit and debit cards, and services to non-
resident Indians.
Housing loans witnessed y-o-y growth at 41.8% and constitute 44.8% of retail
loan book.
Other Businesses:
Agricultural lending and consultancy services, international banking,
bancassurance, sale of mutual fund products, depositary participant services,
merchant banking and executor, trustee and taxation related services.

CANARA BANK: KEY STRENGTHS
1. Reputation as a customer centric bank
2. Delivering balance sheet growth without compromising margins
3. Thrust on asset quality
4. Pan-India presence with focus on developed regions of India
5. Emphasis on cost control and productivity
6. Benefitting from significant investment in technology
7. Diversified sources of income through increased initiatives
8. Insulated investment profile with consistent yields
9. Sound capital position and high government ownership
10. Profitable since inception with meaningful returns to stakeholders

MARKETING STRATEGIES IN BANKS.
To formulate an effective marketing strategy the bankers should know the
following aspects.
The total potential presently available and its present share in the total market for
deposits, advances and other services.
Core customer segments i.e. which customers provide highest profit and business
potential, so that they always get the desired attention.
Core products and services, i.e. which services or products best match the
requirements of customers in general and core customers in particular and provide
high business and profit potential, so that action is taken to improve such products
further to make them more acceptable.
What products are supplementary products and keep the core products and
services, as high business and profit potentials.
Core competitors, i.e. which competitors are posing major threat in serving the
core customer segments and which core products and services are they offering to
the clients, so that if possible, bank can explore the possibility of offering similar
products or services.
Core appeal i.e. which advantage should be offered and communicated to
customers in general to differentiate ones own organization in terms of pricing,
servicing, conveniences etc.
Potential products to suit the changing environment, so that they meet the change
in customers needs over a time period.
Potential customers who could be brought to banks fold
Potential competitors who may erode banks market share, so that we may take
action to change our strategies in time, to remain the market leader.
Which other products are needed to be introduced to maintain or enhance the
exiting business, so that the customer does not feel the necessity of shifting his
patronage elsewhere.
How strong is the information system in the bank and what needs to be done to
create a prompt and accurate information system which forms core of any
marketing exercise.
Customers like all human beings, like to deal with people who care. Hence
attitudinal changes particularly in the staff at counter, is needed to understand that
our existence is due to customer and customers is really an important visitor on
our premises.
Other following types of small actions particularly in a branch advising customers
maintaining high balances in their accounts, counseling equity minded customers
for investment, interacting with customers to known their difficulties and
personally attending the needy customers, creating image of the branch by offering
some services, creating social and economical awareness among the people, giving
surprise to customers by calling all customers present in the banking hall over a
cup of tea on some special occasion, say on the foundation day or bankers day or
customers day.

Major Highlights- FY14
Net profit for Q4FY14 at 611 crore up by 49.4% over previous quarter (Q3FY14)
net profit level of 409 crore.
Gross NPA Ratio down to 2.49% from 2.57% as at March 2013 and from 2.79% at
Dec13.
Net NPA ratio down to 1.98% from 2.18% as at March 2013 and from 2.39% at
Dec13.
Record Cash Recovery at 5494 crore compared to 4006 crore last year.
Recovery from technically written off accounts at 1247 crore (16.8% of
outstanding amount).
Upgradation at 2853 crore compared to 852 crore last year.
Provision Coverage ratio increased to 60.11% from 57.39% at Dec13.
Increase in CASA ratio (domestic) to 25.9% from 25.1% last year. Savings
deposits increased to 85536 crore, with a y-o-y growth of 20.2%.
Robust growth in retail business- MSME (35%), MSE (38%), Retail Lending
(45%), Housing Loans (50%), Vehicle Loans (62%) and other personal loans
(58%).
Mandatory norms complied under Priority Credit, Agriculture, MSE (Accounts
and Amount), Minority Communities and Weaker Section.
Core fee income (excluding treasury trading profit) up by 792 crore to 3269 crore
(32% y.o.y) from 2477 crore last year.
Total Business up by 1.24 lakh crore (20.7% y.o.y) to 7.22 lakh crore.
Total Deposits up by 18.2% y-o-y to 4.21 lakh crore.
Advances (net) up by 24.3% y-o-y to 3.01 lakh crore.
Record addition of 1027 branches, taking the total to 4755
Record addition of 2786 ATMs, taking number to 6312.
100% onsite ATMs for all 3728 branches opened upto March 2013.
Record increase in E-transactions to 44% from 27% last year.
Total income for the full year increased by 16.8% y.o.y to 43480 crore.
Income from loans/advances increased by 16.7% to 28457 crore.
Net Int. Income for the FY14 at 8944 crore increased by 13.5% y.o.y and 39.6%
Q.o.Q.
Operating Profit for the full year at 6796 crore, recorded an increase of 15.4%
y.o.y and 38.3% Q.o.Q.
Total provision increased to 4358 crore in FY14 compared to 3018 crore in FY13
with a growth of 44.4%.
Net profit for the full year 2438 crore.
The Board has recommended a dividend of 110% for the full year, including an
interim dividend of 65% declared in January 2014.
Thrust on Asset Quality/NPA reduction, Recovery, CASA, Retail Business & Fee
Income.
Profits and Profitability Q4 FY14
Operating profit for the quarter at 1882 crore was higher by 10.9% over Q4FY13
( 1698 crore).
Total provision made for the quarter was at 1271 crore compared to 972 crore
provision made in Q4FY13. The provision for NPAs during the quarter was 802
crore as against 346 crore in Q4FY13.
Net profit for Q4FY14 at 611 crore was higher compared to 409 crore for
Q3FY14.
Return on Assets for the quarter stood at 0.54%.
Book Value rose to 520.04 compared to 490.56 as at March 2013.




FY14: Income, Expenditure & Profit
Operating Profit for FY14 increased by 15.4% to 6796 crore compared to 5890
crore last year.
Total provision made for the FY14 was at 4358 crore compared to 3018 crore
provision made last year. The provision for NPAs for FY14 was at 2135 crore
against 1861 crore in FY13.
Due to increased total provisioning, Net profit for the full year stood at 2438
crore.
Total income for the full year increased by 16.8% to 43480 crore compared to
37231 crore in FY13.
Income from loans/advances increased by 16.7% to 28457 crore compared to
24380 crore in FY13.
The Bank's non-interest income (including treasury trading profit) for the whole
year increased by 24.7% to 3933 crore compared to 3153 crore in FY13.
Total expenses for FY14 increased to 36684 crore compared to 31341 crore in
FY13.
Operating expenses was at 6081 crore compared to 5142 crore in FY13.
Net Interest Income at 8944 crore increased by 13.5% compared to 7879 crore in
FY13.










Goals: March 2015
Aims to reach an aggregate business figure of 8.5 lakh crore, with a deposit
growth of 16-17% and advances growth of 19-20% as at March 2015.
Plans to take the number of branches from 4755 to 6000 and number of ATMs
from 6312 to 10,000 by Mar2015.
Opening a branch at Johannesburg (South Africa) in May14 and plans to open
New York (USA) branch by June14 and 8 other international centres by March
2015, such as, DIFC (Dubai), Qatar Financial Centre (Qatar), Frankfurt
(Germany), Sao Paulo (Brazil), Dar-es-Salaam (Tanzania), Tokyo (Japan), Abuja
(Nigeria) and Jeddah (Saudi Arabia).
The Bank has identified 11 other centres, such as, Kingsbury, East Ham &
Birmingham (U.K), Mexico City (Mexico), Istanbul (Turkey), Jakarta (Indonesia)
Kigili (Rwanda), Singapore, Auckland (New Zealand), Sydney (Australia),
Ontario (Canada) for opening in the medium term.
Thrust on CASA, NPA and Recovery, Fee Income, CreditPriority, SME and
Retail to continue.
Technology and business process reengineering initiatives.
Project Shikhar aimed at rejuvenating the Bank by focusing on several themes
like energizing branches and customer service, increasing sales from branches,
growing a robust asset base and revamping the operating model is in progress.
Global Management Consulting firm viz., M/s Boston Consulting Group (India)
Private Limited (BCG) is assisting the Bank in this transformation journey.
M/s KPMG Advisory Services Ltd appointed for comprehensive assessment and
to draw roadmap for the Banks Subsidiaries/ Associates.
Aiming at Gross NPA ratio approx. 2% and Net NPA ratio approx. 1 -1.25%.
To improve NIM to 2.50%.