“Company Analysis Report of Canara Bank”

CHAPTER – 1
INTRODUCTION
1.1 OVER VIEW OF THE COMPANY:
Canara Bank is an Indian public sector bank based in Bangalore, India. Established in 1906
at Mangalore by Ammembal Subba Rao Pai. The bank was nationalized in 1969. Canara Bank
also has offices in London, Dubai and New York.

Canara Bank

Company type Public

Traded as BSE: 532483
NSE: CANBK
Industry • Banking
• Financial services
Founded 1906; 118 years ago
Founder Ammembal Subba Rao Pai
Headquarters Bengaluru, India
Number of 9,518 Branches | 13,423+
locations ATMs (2023)
Key people • Vijay Srirangan
(Non-Exe Chairman)

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• K Satyanarayana Raju
(MD & CEO)
Products • Retail banking
• Corporate banking
• Investment banking
• Mortgage loans
• Private banking
• Wealth management
• Asset management
• Investment
management
• Risk management
• Mutual funds
• Exchange-traded
funds
• Index funds
• Credit cards
• Insurance
Revenue ₹139,165
crore (US$17 billion) (2024)
Operating ₹29,711
income crore (US$3.6 billion) (2024)
Net income ₹14,782
crore (US$1.8 billion) (2024)
Total assets ₹1,535,018
crore (US$180 billion) (2024)
Owner Government of
India (62.93%)
Number of 82,519 (Jul 2024)
employees
Capital ratio 13.36%
Website canarabank.com

1.2 INCEPTION OF THE COMPANY:

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent
Fund in Mangalore, India, on 1 July 1906.

Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. This had
been founded in September 1944 and at the time of its acquisition on 20 May 1961 had three
branches. The second bank that Canara Bank acquired was Seasia Midland Bank (Alleppey),

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which had been established on 26 July 1930 and had seven branches at the time of its
takeover.

In 1958, the Reserve Bank of India had ordered Canara Bank to acquire G. Raghumathmul
Bank, in Hyderabad. This bank had been established in 1870, and had converted to a limited
company in 1925. At the time of the acquisition G. Raghumathmul Bank had five
branches. The merger took effect in 1961. Later in 1961, Canara Bank acquired Trivandrum
Permanent Bank. This had been founded on 7 February 1899 and had 14 branches at the time
of the merger.

Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam
Bank, Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin,
and Pandyan Bank, Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21
February 1923 and at the time of its acquisition it had 14 branches. Arnad Bank had been
established on 23 December 1942 and at the time of its acquisition had only one branch.
Cochin Commercial Bank had been established on 3 January 1936, and at the time of its
acquisition had 13 branches.

The Government of India nationalised Canara Bank, along with 13 other major commercial
banks in India, on 19 July 1969. Karkala Pulkeri Janardhan Prabhu (KPJ Prabhu) served as
chairman of the bank post nationalisation. In 1976, Canara Bank inaugurated its 1000th
branch. In 1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue.

In 1996, Canara Bank became the first Indian Bank to get ISO certification for "Total Branch
Banking" for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting
for ISO certification of branches.

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Syndicate Bank
would be merged with Canara Bank. The proposed merger would create the fourth largest
public sector bank in the country with total business of ₹15.20 lakh crore (US$180 billion)
and 10,324 branches. The Board of Directors of Canara Bank approved the merger on 13
September. The Union Cabinet approved the merger on 4 March 2020. The merger was
completed on 1 April 2020 with Syndicate Bank shareholders receiving 158 equity shares in
the former for every 1,000 shares they hold.

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1.3 NATURE OF BUSINESS CARRIED:

Banking refers to the system of financial institutions, such as banks and credit unions, that
provide various financial services to individuals, businesses, and governments. Banking
services mainly include accepting deposits, lending money, facilitating transactions, and
offering various financial products like savings accounts, loans, and credit cards.

Banking plays a crucial role in the economy by facilitating the flow of money and enabling
economic activities.

Functions of Banks

Banks in India offer a wide range of banking services, such as savings and checking
accounts, loans (personal, business, and mortgages), credit cards, investment services, and
electronic banking options like online and mobile banking.

Some of the major functions of banks are mentioned below:

• Accepting Deposits: Banks provide a safe place for individuals and businesses to
deposit their money, which can be withdrawn when needed.

• Providing Loans: Banks lend money to individuals and businesses for various
purposes, such as home mortgages, business expansion, or personal loans.

• Payments and Settlements: Banks enable transactions through various payment

methods, like checks, debit/credit cards, and electronic transfers.

• Currency Exchange: Many banks offer foreign exchange services, allowing

customers to buy, sell, or exchange foreign currencies.

• Safekeeping of Valuables: Some banks offer safe deposit boxes for customers to
securely store valuable items and documents.

• Investment Services: Banks also provide investment products like mutual funds,
stocks, and bonds, helping customers grow their wealth.

• Internet Banking Services: Banks offer online and mobile banking services, making
it convenient for customers to access their accounts, pay bills, and transfer funds.

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

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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.

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 thirteen subsidiaries/sponsored institutions in India
and abroad. As at September 2024, Canara Bank services over 11.53 crore customers through
a network of 9,658 branches and 12,191 ATMs/Recycler spread across all Indian states and
Union Territories.

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 Banks 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

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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 this century is going to be
equally rewarding and eventful not only in service of the nation but also in helping the Bank
emerge as the “Best Bank to Bank with” by pursuing industry benchmarks in profitability,
operational efficiency, asset quality, risk management and digital innovation.

Subsidiary companies

• Canfin Homes Limited (CFHL)- A network of 110 branches and 28 satellite offices
throughout India

• Canbank Factors Limited

• Canbank Venture Capital Fund Limited

• Canbank Computer Services Limited

• Canara Bank Securities Limited

• Canara Robeco Asset Management Company Limited

• Canbank Financial Services Limited

• Canara HSBC Life Insurance

Regional rural banks

Canara Bank sponsors four regional rural banks (RRB):

• Andhra Pragathi Grameena Bank

• Kerala Gramin Bank – Its headquarters are at Malappuram and it operates in all
districts in Kerala. It was established in 1976 as a Scheduled Commercial Bank.

• Karnataka Gramin Bank has its headquarters at Bellary, Karnataka, and has 1119
branches spread over eleven districts.

• Karnataka Vikas Grameena Bank was constituted on 12 September 2005 after

amalgamation of four Regional Rural Banks (RRBs) – Malaprabha Grameena Bank,

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Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Banks –
following the recommendations of the Narasimhan Committee.

1.4 MISSION:
To provide State-of-the-Art Banking solutions, leveraging technology, aiding Ease of Doing
business and enhancing value for all stakeholders through inclusive growth.

1.5 VISION:

To emerge as the Best Bank to Bank with by pursuing industry benchmarks in profitability,
operational efficiency, asset quality, risk management and digital innovation.

1.6 VALUES:
Founding Principles

• To 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.

1.7 GOALS AND OBJECTIVES:

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.

Strengthening consumer financial awareness. Developing innovative financial solutions that

improve quality of life and promote socio- economic development.

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Aims relate to the overall intent, strategic direction and purpose of your event i.e. the primary
motivations. Objectives are essentially aims broken down into specific targets, to facilitate
event delivery and evaluation.

Banking services mainly include accepting deposits, lending money, facilitating transactions,
and offering various financial products like savings accounts, loans, and credit cards.
Banking plays a crucial role in the economy by facilitating the flow of money and enabling
economic activities.

1.8 QUALITY POLICY:

Canara aims to provide best in class life insurance products to its customers by assuring them
of the value the solutions provide with a resolve to honor commitment on each element of the
promise made. The commitment embedded in our guiding principles is driven by:

• Quality mind-set nurtured with the objective of providing customized products and
services in line with our strategic direction

• Quality Management framework of the company & customer needs.

• Maintaining a high standard of governance & ethics in conduct of business thus

complying with all statutory & regulatory requirements.

• Listening to Voice of Customer to continually improve processes by putting in place

solutions driven by technology.

• Commitment towards continual improvement of Quality Management System

1.9 GLOBAL / NATIONAL / REGIONAL:

Canara Bank established its international division in 1976. In 1983, Canara Bank opened its
first overseas office, a branch in London. Two years later, Canara Bank established a
subsidiary in Hong Kong, Indo Hong Kong International Finance. In 2008–2009, Canara
Bank opened its third foreign operation, this one a branch in Shanghai. Later Canara Bank
established a branch each in Leicester and Bahrain, and converted its Hong Kong subsidiary
into a branch. Since 1983, Canara Bank has been responsible for the management of Eastern
Exchange Co. WLL, Doha, Qatar, which Abdul Rahman M.M. Al Muftah established in
1979.

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Foreign Branches

1. UNITED KINGDOM

LONDON BRANCH, PO BOX NO. 174, GROUNDFLOOR

10, CHISWELSTREET, LONDON - EC 1Y 4UQ

EMAIL - LONDON@CANARABANK.COM

URL:HTTPS://WWW.CANBANKLONDON.COM

CHIEF EXECUTIVE: MR. PRAVEEN KUMAR SINGH

ALTERNATE CHIEF EXECUTIVE: MR. KRISHNENDU DUTTA

2. UNITED STATES OF AMERICA

NEW YORK BRANCH, SUITE NO – 1170, 11THFLOOR

805,3RDAVENUE, NEWYORK NY 10022, U.S.A.

PH - 0016467600495, FAX: 001 6466697325

EMAIL - CBNYC@CANARABANK.COM

CHIEF EXECUTIVE: MRS. JAYA RAJAPPAN

ALTERNATE CHIEF EXECUTIVE: MR. PARTHIBARAJ LEO VIJAYAKUMAR

3. UNITED ARAB EMIRATES

DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC) BRANCH, NO. N 504,

LEVEL5, PO BOX NO. 507037, EMIRATES FINANCIAL TOWERS DUBAI
INTERNATIONAL FINANCIAL CENTRE, DUBAI, UAE

EMAIL - DIFCDUBAI@CANARABANK.COM

SENIOR EXECUTIVE OFFICER: MR. VINAY KRISHNA PRASAD

ALTERNATE SENIOR EXECUTIVE OFFICER: MR. AMIT KUMAR

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4. SHARJAH REPRESENTATIVE OFFICE:

FLAT NO. 504, 5THFLOOR, LIBERTY REAL ESTATEBLDG., AL MINA ROAD, AL

SOUR AREA PO BOX 95400, SHARJAH, UAE

EMAIL - CANARASH@EIM.AE

CHIEF REPRESENTATIVE: MR. SHYAM KUMAR SARAN

5. TANZANIA

CANARA BANK (TANZANIA) LTD. (CBTL), PLOT NO.16/1, ELIA COMPLEX

ZANAKIBIBITITI STREET CORNER P BNO. 491, DAR ESSALAAM, TANZANIA

EMAIL - MDCBTL@CANARABANK.CO.TZ

MANAGING DIRECTOR: MR. RAJSHEKHAR SOMASHETTY

DEPUTY CHIEF EXECUTIVE OFFICER: MR. RAMAN KUMAR

1.10 OWNERSHIP PATTERN:

Company type Public

Owner Government of India (62.93%)

Number of employees 82,519 (Jul 2024)

Capital ratio 13.36%

Website canarabank.com

CANARA BANK is one of the largest public sector bank owned by Government of India.
Canara Bank is a body Corporate and a premier Public Sector Bank established in the Year
1906 by Shri. Ammembal Subba Rao Pai and nationalized under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970.

Canara Bank and Syndicate Bank are combined. Canara Bank will become India's fourth-
largest public sector bank after this merger.

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1.11 COMPETITORS INFORMATION:

State Bank of India

Bank of Baroda

HDFC Bank

ICICI Bank

Bank Of India

Punjab National Bank

Axis Bank

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Kotak Mahindra Bank

Union Bank of India

Bank of Maharashtra

Central Bank of India

1.12 INFRASTRUCTURAL FACILITIES:

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1.13 ACHIEVEMENTS AND AWARDS:

2024-25

• Canara Bank was conferred with the prestigious Rajbhasha Kirti Puraskar in region
‘C’ for the bank's quarterly in-house magazine 'Canara Jyoti' by Hon’ble Union
Minister of Home Affairs & Cooperation Shri Amit Shah during the 4th All India
Official Language Conference held on 14th September 2024, during Hindi Diwas
celebrations.

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• Canara Bank has received the third prize in Region 'C' for excellent official language
implementation in the 2-day seminar organized by the Department of Financial
Services, Ministry of Finance, Government of India on 22.08.2024 and 23.08.2024.

• Canara Bank has been awarded for ‘Excellent Practices and Adoption of ESG
Initiatives’ at the 2nd ICC Emerging Asia Banking Conclave 2024, organized by the
Indian Chamber of Commerce (ICC) on 23rd August 2024.

• Canara Bank was awarded First Prize under category of Best Lenders (both Public &
Private sector) for outstanding achievement under PM SVANidhi 2023-24.

• Canara Bank has been felicitated with the prestigious " 2nd Rank" in Public Sector
Banks under PM SVANidhi 'PRAISE” Awards 2023-24" in Karnataka State.

• Canara Bank has received Finnoviti Award for 'CANARA Digital Rupee' application
on 19th June 2024.

2023-24

• Canara Bank has been conferred with Best Data Quality Index (DQI) award for
achieving Best Data Quality among PSBs for the FY 23-24 by the Credit Information
Company M/s TransUnion CIBIL. Mr Chakkaravarthy P, GM & CDAO received
award on behalf of the Bank in the IBA Annual Conference held at Mumbai on 19-
03-2024.

• Canara Bank was conferred with the "Data Excellence" award for the FY 2023-24 by
the Credit Information Company M/s CRIF.

• Canara Institute of Bank Management has been awarded National BFSI Awards for
Leadership & Business Excellence under the categories of “Best Training &
Development Practices in Banking Sector” and “Best Use of Technology in Training -
Banking Sector”.

• CIBM Manipal Campus has been certified Green Campus by Indian Green Building
Council, a part of the Confederation of Indian Industry.

• Canara Bank has received accolades at the Diversity, Equity, Inclusion (DEI)
Excellency awards during International Inclusion Alliance Conference 2024 at New
Delhi on 15.02.2024

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• Canara Bank In-House Magazine “Shreyas” and Hindi Magazine “Canara Jyoti” won
awards under the Best In-House Magazine category in the Global Brand Excellence
Awards conducted by World Brand Congress on 14th February 2024.

• Canara Bank has been conferred with IT Banking technology awards under the Larger
PSBs & PVBs Banks category for “Best Fintech & DPI adoption-Runner Up”, “Best
Financial Inclusion-Runner Up”, “Best Digital Engagement- Special mention” for FY
2022-23 by IBA.

• Canara Bank has received “Best Cyber Security implementation award” at an event
Organized by EnQube on 25th January 2024.

• Central Vigilance Commission has ranked Canara Bank as No 1 among the comity of
Public Sector Banks, in the area of “Best Practices in Vigilance Administration.

• Canara Bank has received Inclusive Finance India award 2023 under Priority sector
lending by Bank (Public sector) presented by Access Development services and
HSBC India.

• The Indian Green Building Council felicitated Canara Bank as IGBC Founding
member during Green Building Congress from 23rd - 25th Nov 2023 at Chennai.

• Canara Bank has been adjudged outstanding Performer in Large Public Sector Banks
category under Pradhan Mantri Formalization of Micro Food Processing Enterprises
(PMFME) Scheme.

• Bank has received accolades from NPCI for making live "Dual Auth Transaction for
AePS".

• Canara Bank is honoured with the prestigious Emerging Asia Banking Awards in
multiple categories, organized by Indian Chamber of Commerce in Goa on 8th July
2023;

• Winner in Best Performance on growth category

• Runner up in Best Bank in India category

• Second Runner up in Best Performance on Profitability

• Second Runner up in Best Performance on Asset Quality

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• Second Runner up in Best Performance in Risk Management

• Canara Bank has received the APY Annual award for achieving the set targets under
APY during FY 2022-23 at "APY Annual Felicitation Programme" at New Delhi on
7th June 2023.

• Canara Bank has been conferred with “Industry Best Data Quality Index” award for
achieving Consecutive improvement in Data Quality for FY 2022-23 by M/s.
TransUnion CIBIL in the Conference held at Mumbai by IBA on 16-May-2023.

• Canara Bank has received “Rajbhasha Sopan Sammaan” from Bhartiya Bhasha &
Sanskriti Kendra for outstanding performance in the field of Official Language for the
year 2021-22 on 27th April 2023.

• Canara Bank has received Finnoviti Award for 'ai1 Merchant App' in April 2023.

2022-23

• Canara Bank was adjudged winner under Best Technology Talent and has received
special prizes under the categories of Best Technology Bank, Best Digital
Engagement and Best Financial Inclusion during the 18th IBA Technology
Conference, Expo and Awards in Dec 2022.

• Canara Bank has received the prestigious the “Banker’s Bank of the Year Award
2022” for the India segment at the Global Banking Summit, held in London, on 1st
December 2022.

• Canara Bank has been ranked 1st under the Digital Payment performance as on
31.03.2022 (i.e. FY 2021-22) by Ministry of Electronics & Information Technology
(MeitY), as per balanced scorecard released during October 2022.

• Canara Bank is awarded 3rd Rank under the prestigious EASE Reforms Index Award
2022 (EASE 4.0 Awards) in an event organized by IBA in Mumbai. The Bank is
awarded 1st prize under the theme Institutionalizing Prudent Banking.

• The Learning and Development vertical of Canara Bank has been awarded the
‘Golden Globe Tigers Awards’ for Excellence & Leadership Training and
Development and Best training initiative for Banking Sector.

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• Canara Bank received 2nd prize for overall performance under Animal Husbandry
Infrastructure Development Fund (AHIDF) Department of Animal Husbandry and
Dairying, Ministry of Fisheries, Animal Husbandry & Dairying, Government of India.

• Canara Bank received 2nd prize for Campaign period Target Achievers and 3rd prize
for valuable contribution by Banks during Agri Infra Fund Award Ceremony.

1.14 STRATEGIC PERSPECTIVE PLAN:

Canara Bank is expanding its branches to address deposit mobilization challenges, with 150
new branches launched in FY23-24 and another 250 planned for FY25. CEO K
Satyanarayana Raju emphasized investments in AI, ML, and cyber security.

Canara Bank is expanding its branches to address deposit mobilization challenges, with 150
new branches launched in FY23-24 and another 250 planned for FY25. CEO K
Satyanarayana Raju emphasized investments in AI, ML, and cyber security. The bank plans
partial stake divestment in its subsidiaries, aiming for listing by FY25-26.

Canara Bank chief executive and managing director K Satyanarayana Raju on Saturday said
here that the bank is concentrating on expanding its business by launching
new branches as deposit mobilisation has become a challenge in India nowadays. The chief
executive noted that the bank launched 150 branches in fiscal 2023 ' 24 and is in the process
of opening another 250 in FY25.

"Because deposit mobilisation has become a big challenge for bankers nowadays in India, we
have started now expanding the branches regularly," Raju told PTI on the sidelines of
inaugurating a regional office in West Godavari district headquarters Bhimavaram.

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He said during the merger of Syndicate Bank with Canara Bank in 2020, as many as 1,300
branches of eithers lenders were shut down. In the Telugu states of Andhra Pradesh and
Telangana, the chief executive officer said 22 new branches will be opened in the current
fiscal. Out of the bank's total business of Rs 23 lakh crore, he said the Telugu states with
2,000 touch points of branches, ATMs and cash recyclers account for Rs 2.2 lakh crore worth
business. Further, Raju said Canara Bank is one of the strongest public sector banks, which is
not seeing signs of stake dilution from the government at this moment. According to Raju,
the government's stake in the Bengaluru-headquartered bank has come down to 63 per cent.

However, the CEO said the bank will divest stake in its subsidiaries Canara Robeco Mutual
Fund and Canara HSBC Life Insurance Company to list them in Q4, FY25 and in fiscal
2025-26 respectively. "We are also thinking of disinvestment and listing of two of our
popular subsidiaries - Canara HSBC Life Insurance Company and Canara Robeco Mutual
Fund. That also will give us a capital cushion," said Raju. The stake divestment in the
subsidiaries will be partial, he said, adding that promoters have to sell 25 per cent stake to be
eligible for listing. Exuding confidence in the bank's performance, Raju said the lender gave a
double-digit growth guidance, minimum 10 percent growth.

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