CANARA BANK

PROFILE OF THE BANK

BACK GROUND AND INCEPTION OF THE COMPANY

Canara Bank was founded in 1906 by Sri, Ammembal Subba Rao Pai. The bank was
initially named as Canara Bank Hindu Permanent Fund. It blossomed in to a limited company
in 1910 and was renamed as Canara Bank Ltd, in 1969 the bank was nationalised and
thereafter came to be known as Canara Bank.

Today Canara Bank is one of the premier Banks in the country with a network of
2,578 branches spread all over the country. The Bank has many distinctions to its name. It
was the first Bank to be conferred FICCI award for contribution to rural development Canara
Bank was the first among Banks to launch networked ATMs and obtain ISO certification.

Canara Bank has covered a niche for itself in providing IT based services with 100%
computerization of the branches .The Bank provides a wide array of services, such as
Networked ATMs Anywhere banking, Tele Banking, remote access terminals, internet and
mobile Banking, debit card etc. For the year 2004-05 Canara Bank clocked the highest net
profit (Rs1110 crore) among nationalized Banks, with significant improvement in capital
adequacy ratio (12.78%) and asset quality (net NPA ration of 1.88%).My sore Canara Bank
Regional Office (CBROM) was upgraded from Regional Office on April1998. The functions
of Circle Office have been laid down by the Bank. However, on account of changing times, a
review of these functions has been made, rather than replicating existing ones. Sections at
Regional Offices will look for policy support from Head Office. All operational and
administrative work relation to their functions shall be handled by the respective sections
within the policy parameters set out by Head Office. Mysore Canara Bank Regional Office
has a network of 111 level Branches scattered over 4 districts. Which Mysore, Mandy, C.H
nagar, Hassan. In addition to these 5 currencies chest are functioning in all four districts
catered to the cash requirements of these branches.
NATURE OF THE BUSINESS CARRIED:

Canara Bank groups principal activities are to provide a full range of Banking and
other financial services through 2,578 Branch Offices in India and Abroad. The service
includes accepting deposits, commercial and institutional credit, treasury, investment, risk
management and other related financial services. It operates through two segments. Banking
operations consist of corporate Banking. Retail Banking, personal and commercial Banking,
Cash management services, Deposits and other allied services. Treasury operations consist of
dealing in SLR and Non-SLR securities and Money Market operation.

VISION, MISSION AND QUALITY POLICY

"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.

CORPORATE VISION:

To emerge as a world class Bank with best Practices in realms of asset portfolio,
Customer orientation, product innovation, Profitability and enhanced value to stake
holders.

CORPORATE MISSION:

Augmenting low cost Deposits

Threat on Retail lending
Toning up Asset Quality
Assent on cost control
Product innovation and marketing
Customer Centric focus
Leveraging IT for comprehensive MIS
Maximising stake Holders Value.
CORPORATE OBJECTIVES:

Efficiency
Profitability and Productivity
Organisational Effectiveness.
Customer Centric
Hi-tech Banking

DEPOSIT SCHEMES:

SAVING DEPOSIT

Saving deposit is available to all individuals, non trading organisations, permitted

institutions, etc. Minimum balance can be fixed as per requirements.

CURRENT DEPOSITS

It is a perfect account to do business operations. It is available to traders,

businessmen, and corporate bodies etc. who operate the account frequently. Bank given all
facilities like, pass book, pass sheet, standing instructions, cheque collection.

FIXED DEPOSIT

It is a safe way to solid returns method. Minimum deposit should be Rs. 1000/- and
Maximum no ceiling. Period deposit is given minimum 15 days and maximum 120 months,
7-14 days period for deposit of 5 lakh and above. Interest should be pay monthly, quarterly,
half-yearly or annual intervals at depositors choice.

KAMADHENU DEPOSIT

It is high returns deposit scheme interest will be compounded every quarter. Fixed
deposit should be deposit minimum of Rs. 1000 and maximum-no ceiling.

CANBANK AUTO RENEWAL DEPOSIT (Card)

 Canara Bank is giving high returns in shorter terms through CANBANK AUTO
RENEWAL DEPOSIT scheme. It is an auto renewal system, card has built-in features for
automatic renewal of these deposits, with or without interest accrued.

CANFLEXI DEPOSIT

It is a combination of Savings Account and Fixed Deposit, CANFLEXI enables

customers to earn maximum interest.

ASHRAYA DEPOSIT

This scheme is available to all individuals. Who have completed the age of 60 years
and above, in single or joint names.

RECURRING DEPOSIT

It is monthly deposit minimum to Bank Rs. 50/- per month. Interest will be
compounded every quarter.

CANSARAL SAVINGS ACCOUNT

This Savings Account scheme is available to every common man. Its initial deposits
Rs. 25/- Account can be maintained even with zero balance. Here Bank has not restriction on
number of credits, and Bank will give free ATM-cum-Debit Card facility.

CAN-TAX SAVER DEPOSIT

It is a safe way to solid returns. A term deposit scheme under the Fixed Deposit and
Kamadhenu streams of the Bank. The benefit of Deduction is get from income upto Rs. 1
lakh under sec.80C of the INCOME TAX Act1961, for individuals only.

CANRELAX

Deposit under the scheme can be opened by individuals. Minimum deposit amount
Rs.1,00,000/- and in the multiples of Rs.10,000/- thereafter. Rate of interest will be given of
interest 0.50% over the rate applicable
 PRODUCT/SERVICE PROFILE

CANARA BANK RETAIL PRODUCTS:

1. CANARA BUDGET PERSONAL LOAN

Can budget personal loan is to fulfil only personal needs of salaried employees. This
loan facility is available to any Central/State Government Employees, Lecturers/professors of
colleges/universities/research institution.

2. HOME IMPROVEMENT LOAN

Home Improvement loan is available to who already own homes. Loan will be giving
to house hold furniture items, air conditioners, wardrobes, kitchen cabins etc. Loan is
available along with a housing loan or even independently.

3. CANARA MOBILE VEHICLE LOAN

Can Mobile vehicle loan is available to purchase any vehicle. It may be new vehicle
or a used vehicle. Repayment period is given to four wheelers up to 84 months and two
wheelers upto 60 months.

4. CANARA TECH

CANTECH loan facility is available only to IT/BT professionals loans upto 6 months
gross salary with a maximum of Rs. 2 lakh. Higher quantum considered selectively.
Repayment period is given up to 56 months.

5. CANARA TRAVEL

CANTRAVEL loan scheme is available to travel in India or abroad.

6. CANARA RENT

CANRENT loan is available to who are owners of the property to meet their business
and personal needs.
7. CANARA MAHILA

This is an exclusive loan scheme for women who are working and non working persons are
able to get loan and fulfil their personal financial needs.

8. DOCTORS CHOICE

Doctors choice loan scheme is to fulfil the Doctor working capital and term loan
requirements. Loan is available only to qualified registered medical practitioners.

9. CANARA JEWEL PERSONAL LOAN

CPL is to fulfil the expenses of marriage and jewellery expenses.

10. HOUSING LOAN

Loan is available to purchase of ready built house or flat construction of house or flat
purchase of site and construction there on, repairs and renovation and take over of the
liability from other Banks.

11. CANARA SITE

CANSITE loan is available to who are individuals aged upto 55 years of age at the
time availing the loan. Those people must have above 1 lakh annual income or more eligible.

12. CANARA MORTGAGE

This loan scheme is available to against security of mortgage of property

(building). Only able to get Professionals, businessmen, salaried persons/individuals for
meeting genuine needs.

13. TEACHERS LOAN

This loan scheme is to meet the genuine personal needs of teaching or non teaching
staff of schools or colleges.

14. CANARA PENSION

This loan scheme is available to pensioners for drawing their pension through Canara
Bank branches. Loans are for meeting medical expenses and other genuine personals needs.
15. CANARA TRADE

This Loan scheme is available to Traders, Whole sale and Retail business, Business
Enterprises, Commission Agents, Service sector, Professionals and self employed persons. It
is fulfil the working capital of business.

16. CANCASH

CANCASH will get when we need it without selling our blue chip portfolios, to meet
the investments/domestic/personal needs (not to be utilized for speculative purposes)
quantum upto Rs. 5 lakhs.

17.SWARNA LOAN

SWARNA LOAN is available to any individuals against Gold Jewellery to meet the
medical expenses and other unforeseen commitments/ contingencies etc.

18.EDUCATIONAL LOAN (VIDYASAGAR)

Educational loan is available to who are needy and meritorious students for pursuing
higher education in India and Abroad, and fulfil for payment of fees to school/college and for
purchase of books, hostel fees, examination fees etc.

NRI SERVICES:

1. BANK ACCOUNTS AND DEPOSITS

a) NRE Accounts: This is term deposit scheme. Here customers are able to get
saving, current and term deposits scheme in Indian rupees.

b) FCNR (B) (Principal/Interest Repatriable): This is term deposit scheme

available to foreign currencies only. Interest shall be paid in the currency of deposit.

2. REMITTANCE FACILITIES

Canara Bank has rupee drawing arrangements with 20 exchange Companys and 18
Banks for remitting funds by NRIs working in the Middle East to India.
3. OTHER FACILITIES TO NRIs

NRIs are permitted to avail all types of retail rupee loan, international Credit Card
facility with the Bank, housing loan, financial services etc.

OTHER SERVICES:

1. DEPOSITORY SERVICES

This is the best way of holding Securities in electronic form. Purchase and sale of
securities can be through the account with very reasonable charges.

2. SAFE DEPOSIT LOCKERS

Lockers are 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.

3. SAFE CUSTODY SERVICES

This subsidiary service is rendered by the Bank to most valued customers.

4. ELECTRONIC FUND TRANSFERS

Canara Bank has National Electronic Fund Transfer system at minimum charges.

5. INSURANCE

Canara Bank has Life and Non life Insurance products also.

6. SAVINGS SURAKSHA

Group insurance has been availed to who are deposit account holders of Saving Bank
Accounts and Term deposit accounts.

7. CAN-MEDICLAIM

An exclusive Mediclaim cum Personal Accident policy scheme is available to Bank

Account holders.

8. CREDIT CARDS (CANCARD)

 CANCARD is affiliated to VISA International and Master Card. Bank has been
distributed Domestic and International and Master Cards through cash withdrawal facility at
ATMs. Free accident Insurance, baggage insurance, purchase protections are availed to credit
card holders.

9. ATM CUM DEBIT CARD

Card holder customers are provided the convenience of accessing their accounts from
several locations like all ATMs Point of Sale Member Establishments (POS MEs) having
logo and avoids the risk of carrying cash, as Debit card is a combination of an ATM card as
well as a charge card.

10. MUTUAL FUND PRODUCTS

Canara Bank is the corporate agents for selling the Mutual fund products of Canbank
Mutual Fund and HDFC Mutual Fund.

11. INTERNET BANKING UNDER CBS

Canara Bank has been giving services to customer through Online Banking in real-
time basis. It is catered to both Retail and Corporate Customers. Online give more facilities
like Online transfer of funds to own accounts or from third party accounts, Opening of Term
deposits, Loan account repayments, Initiation of standing instructions, Online stop payment
instructions etc.

12. ANYWHERE BANKING

Once customer have an account with any of Canara Bank designated branches
customer can operate it from any other designated branches, with AWB customers have a
host of facilities to make banking with banker pleasure.

13. ON-LINE TAX ACCOUNTING SYSTEM (OLTAS)

Total 423 Canara Bank authorised branches across the country are handling Direct
Tax collections i.e., Corporate tax, Income Tax Wealth Tax, Fringe Benefit tax etc.

14. CANBANK e-TAX: e-PAYMENT OF INDIRECT TAXES

This facility is available to the customers of Core Banking Solution (CBS) branches,
who are registered with Canara Banks Internet and Mobile Banking.
15. SPECIAL SERVICES

These services are aimed at caring for the personal needs of the customer and
enhancing customer satisfaction. Courtesy and impartially, secrecy, safety and security are
available from Canara Bank.

16. TAX ASSISTANCE SERVICES

Bank gives Taxation services to both customers and non customers.

17. ESTATE AND WILLS SERVICES

Canara Bank is giving wills services through appointing some executors.

18. TRUSTEE SERVICES-PRIVATE AND CHARITABLE

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

19. ATTORNESHIP

Accounts, Opening of Term deposits, Loan account repayments, Initiation of standing

instructions, online stop payment instructions etc.

20. ANYWHERE BANKING

Once customer have an account with any of Canara Bank designated branches
customer can operate it from any other designated branches, with AWB customers have a
host of facilities to make banking with banker pleasure.

21. ATTORNESHIP

Canara Bank power of attorney service is a specialized service to help both their non-
resident and resident customers, who find it difficult to operate/monitor their
accounts/investments personally. After the Bank obtains power of attorney from the customer
in their favour, bank executes customers instructions regarding customers investments
promptly and carefully.
 NEW PRODUCTS AND SERVICES

Canara Bank has been introduced several deposit products during Financial Year
2007. Can Tax saver, a term deposit scheme, was introduced under the Kamadhenu and
fixed deposit mode with tax benefit under Section 80C. CanChamp- an exclusive SB deposit
product was launched for aspiring children upto the age of 12 years for inculcating the habit
pf savings, as well as making them eligible for education loans. A term deposit scheme,
namely, Canara Centenary Deposit was also introduced during the year, offering attractive
rate of interest for the depositors. During the year, the bank also launched a SB-Gold deposit
scheme, targeting the HNI clients.

In the sphere of new loan products, the Bank introduced Kisan Tatkal for enabling
farmers to meet emergent requirements and Kissan Mitra scheme for funding tenant
farmers. Gramin vikas Vahini, a vehicle for inclusive growth in rural areas was also
introduced during the year, to promote SME sector, the Bank launched SME Gold Card and
a Term Loan Scheme for reimbursement of their capital expenditure.

AREA OF OPERATION-GLOBAL/ NATIONAL/ REGIONAL

Mysore Canara Bank Regional Office was upgraded from Regional Office in April
1998. The functions of Regional Office have been laid down by the Bank. However, on
account of changing times, a review of these functions has been made, rather than replicating
existing ones. Sections at Circle Offices will look for policy support from Head Office.

Regional Wise Spread: According to CBROM Regional Office Mysore has 53

branches.

District-wise Spread: According to CBROM Mysore has 30 Branches, Kodagu has 23

Branches, Chikmaglure has 24 Branches and Shivmoga has 34 Branches.

OWNERSHIP PATTERN

The Canara Bank is Mainly Public company minority of the shares which were held
by the general public, the remaining portion which will invests in the hands of Government of
India. Canara Bank shares are listed at Bangalore, Mumbai and National stock exchanges.
Ownership pattern is shown below;
Distribution of Share Holding

Category wise (31-03-2007)

Category # No. of shareholding % of Shareholding

Government of India 300000000 73.17
Banks and Financial Institution 3473116 0.85
Mutual Funds 7047429 1.72
Bodies corporate 3228833 0.79
NRIs/OCBs 138402 0.03
Resident Individuals/HUF/Trust 25539091 6.23
Foreign Institutional investors 70573129 17.21
TOTAL 410000000 100

(# Nominal Value of each share is Rs. 10/-)

COMPETITORS INFORMATION

There are many competitors in Mysore District viz., Nationalised Banks are State
Bank of India, Allahabad Bank, Bank of India, Punjab National Bank, Vijaya Bank,
Corporation Bank and Syndicate Bank. Private Banks are ICICI Bank, HDFC Bank, UTI
Bank, ING Vysya Bank. Co-operative Banks are HDCC Bank and KSCARD Bank. These
are all Banks offered similar product.

According to Mysore Lead Bank observation District wise performance of different

Bank as bellow.

Mysore District as a whole, Deposits have increased to Rs.1796.42 crore from

Rs.1512.17 crore as on 31-03-2006 growth of 18.80%.

State Bank of Mysore is leading under deposits with Rs.400.94 crore which is
followed by Canara Bank with Rs. 302.94 crore.

Market share of Deposits of State Bank of Mysore is 22.32% followed by Canara

Bank 16.86%, Karnataka Bank, 13.97%, Corporation Bank 9.64% and Vijaya Bank 7.45%.
Share of these five Banks under total deposits is 70.23%. Majority of the Banks have shown
negative growth.

ACHIEVEMENT/AWARDS

CBROM has achieved many targets apart from their strategic plan.

Regional has achieved Aggregate Deposits Target with comfortable

margin.

Regional has achieved Total Business Target.

Regional has achieved twin Term Deposit Target.
NR Deposit Target Achieved.
SSI Credit Target Achieved.
March2007 Target under SRTO, RT, SBE, EDUCATION LOAN, ADVANCES TP
SC/ST achieved.
Export Credit & FBT Target for Mar2007 achieved.
Target achieved under Non Interest Income.
Target achieved under internet Collected, Total Income, Interest Paid, Establishment
Expenditure, Total Expenditure and Profit before HO Interest.
Productivity per employee is improved to Rs. 2.27 crs, as against Rs. 1.94 crs at Mar
06(YOY).

Performance Highlights March 2007

Achieved aggregate deposit target with comfortable margin.

Achieved total business target by adding Rs.470 Crores over March2006.
Low cost deposits sustained-19.90%.
Achieved Twin term Deposit Target by marketing a growth of 19.80%.
NR deposit Target achieved.
Average Deposit and Average Advances grew by 13.90% and 17.50% respectively.
Growth in Aggregate Advances by 19.90%.
Growth under priority Credit improved 22.10%.
 Growth under Agriculture Credit improved by 28.95% by contributing a major share
of 62.30% to Gross Credit.
Humbled SSI Target.
SME Credit registered a growth of 28.40%.
Achieved Retail Lending Disbursement and outstanding Target under OPL portfolio.

WORK FLOW MODEL

The primary activities are accepting deposits and lending loans and advances.
Accepting deposits by way of savings, Current account, fixed Deposit and Recurring
Deposits. The collected money will be safeguarded according to regulation of the RBI.

Besides these Canara Bank must concentrate on stationary control. The stationary
includes application Cheque Books, challans and some other stationery. It must maintain a
sound control on these to balance the activities and services.

The Circle will report to Head Office in respect of both functional and administrative
matters. The Circle shall handle credit proposals upto the delegated powers and also handle
other general administration and staff matters (including disciplinary matters) as the existing
Circles are doing now. The branches have been provided with adequate operational flexibility
and credit sanctioning powers by the policies/guidelines spelt out by Head Office.

The circle is fixes with targets by the Head Office in all business parameters.And in
term the circle has fixed the target to the branches under its administrative purview. The
performance will be reviewed periodically at various forums.Circle office before distributing
target to the branches. They should consider the size of the branches.

The service units like accounts section and currency chests attached to their base
branches and would continue to function under the same circle as the base branch circle will
report of both functional and administrative matters. Circle shall handle credit proposal up to
the delegated powers and also handle other general administration and staff matter (including
disciplinary matters). With this the bank will be broadly moving into a three-tier system of
administration of operation.
 FUTURE GROWTH AND PROSPECTUS

The Mysore Canara Bank circle has good scope for lending to agriculture sector and
improves Micro Finance. The District under the circle has large number of self help group
and they will avail substantial credit. Then out of 4 districts 3 districts are having substantial
cultivation.

The coffee price is firming up and improving with this Circle can increase exposure to coffee.
Mysore city has a special economic zone. Few big industries have already set up their units.
Here more units are likely to come up within few years. As the infrastructure is improving
and this will help to circle increasing Business substantially.