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Canara Bank.

BSE: 532483 Sector: Financials
NSE: CANBK ISIN Code: INE476A01014
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OPEN 147.00
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VOLUME 1494468
52-Week high 174.40
52-Week low 75.80
Mkt Cap.(Rs cr) 24,487
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Canara Bank. (CANBK) - Director Report

Company director report

The Board of Directors have pleasure in presenting the 47th Annual Report together withthe Balance Sheet as on 31st March 2016 and Profit & Loss Account for the financialyear ended March 31 2016.


I. Economic Environment

India has emerged as the fastest growing economy in the world during the year amidstweak growth in several major economies. As per the provisional estimates released by theCentral Statistical Organization (CSO) India’s Gross Domestic Product (GDP) improvedto 7.6% growth in 2015-16 compared to 7.2% in 2014-15. Agriculture and allied activitiesrecorded a growth of 1.2% compared to a decline of 0.2% last year. Mining & quarryinggrew by 7.4% compared to 10.8% last year. Manufacturing sector grew higher by 9.3%compared to 5.5% in the previous year. Construction grew by 3.9% against 4.4% last year.Electricity gas water and other utility services grew by 6.6% compared to 8.0% lastyear. In the services segments trade hotels transport and communication and servicesrelated to broadcasting grew by 9% (9.8% last year) financial insurance real estate andprofessional services grew by 10.3% (10.6%) and public administration defence and otherservices grew by 6.6% (10.7%).

The inflation rate remained volatile during the year. The retail inflation measured byConsumer Price Index (CPI) peaked to 5.69% in the month of January 2016 whichsubsequently moderated to 4.83% in March 2016. Wholesale Price Index (WPI) remained in thenegative territory throughout the year.

External sector growth declined during 2015-16 mainly on account of slowdown in globaltrade decline in commodity prices and weak global demand. As per the provisional datareleased by the Directorate General of Commercial Intelligence and Statistics(DGCI&S) during 2015-16 merchandise exports of India declined by 15.8% to US $261billion compared to US $310 billion in 2014-15. Imports declined by 15.2% to US $380billion compared to US $448 billion last year mainly owing to lower oil and non-oilimports during the year. On account of the above trade deficit narrowed to US $118billion in 2015-16 compared to US $138 billion in 2014-15. Current Account Deficit (CAD)reduced to 1.1% of GDP in 2015-16 compared to 1.3% last year.

Economic conditions have improved during the year with the numerous measuresundertaken by both the Central Government and Reserve Bank of India (RBI). Businesssentiments have improved drawing attention and confidence of both domestic and overseasinvestors on India’s sustainable growth story. Foreign Direct Investments (FDI)inflows have significantly increased to US $45.19 billion in 2015-16 compared to US $33.66billion last year. Government of India announced a comprehensive revamp plan under thename of ‘Indradhanush’ during the year for revitalizing and de-stressing publicsector banks including recapitalization support.

Economic Environment in Karnataka

As per the Economic Survey of Karnataka 2015-16 the Gross State Domestic Product(GSDP) grew by 6.2% compared to 7.8% registered in 2014-15 due to decline in growth rateof agriculture sector. Karnataka contributes 7% to the national GDP.

Canara Bank owing its origin to the State is continuing its key position in theState. The Bank has been playing a leading role in the State through its 964 branches and2138 ATMs spread across the State. The State contributes more than 18% to total domesticbusiness of the Bank. The total business of the Bank in the State stood at Rs. 137528crore comprising Rs. 80266 crore under deposits and Rs. 57262 crore under advances as atMarch 2016 with a Credit to Deposit (C-D) ratio of 71.34%.


Growth in key monetary aggregates and money supply in 2015-16 reflected the changingliquidity conditions arising from domestic and global financial environment. The monetarypolicy stance during the year was primarily to contain inflation and manage liquidity.Broad money (M3) growth which was 12.0% at the beginning of the financial year moderatedto 10.3% by end-March 2016.

During the year Scheduled Commercial Banks’ (SCBs) aggregate deposits grew by9.9% and gross credit grew by 11.3% as on March 18 2016 compared to last year’sgrowth of 11.4% in deposits and 9.5% in gross credit. The C-D ratio improved to 77.76% asat March 18 2016 compared to 76.46% last year.

In its bi-monthly monetary policy statements issued during 2015-16 the RBI reduced thepolicy rates as under.

• Repo rate and Reverse Repo rate reduced by 75 basis points (bps) to 6.75% and5.75% respectively.

• Marginal Standing Facility (MSF) Rate and Bank Rate was aligned 100 bps abovethe repo rate at 7.75%.

• Cash Reserve Ratio (CRR) was kept unchanged at 4% of Net Demand and TimeLiabilities (NDTL) during the year.

• Statutory Liquidity Ratio (SLR) was kept unchanged at 21.50% during the year.

Changes in Repo Rate and MSF Rate during the year

Effective Since Repo Rate (%) Reverse Repo rate (%) Cash Reserve Ratio (CRR) (%) of NDTL Statu- tory liquidity ratio (SLR) (%) MSF Rate (%)
April 04 2015 7.50 6.50 4.00 21.50 8.50
June 02 2015 7.25 6.25 4.00 21.50 8.25
August 04 2015 7.25 6.25 4.00 21.50 8.25
September 29 2015 6.75 5.75 4.00 21.50 7.75
December 01 2015 6.75 5.75 4.00 21.50 7.75
February 02 2016 6.75 5.75 4.00 21.50 7.75

RBI made the following major policy announcements/ supervisory review during the year.

• In a bid to address concerns over growing bad loans RBI initiated acomprehensive Asset Quality Review (AQR) in banks.

• In order to enable faster resolution of stress in an MSME account RBI advisedevery bank to form Committees for Stressed MSME with revised rules for revival andrehabilitation of MSMEs having loan limits up to Rs. 25 crore.

• Permitted treatment of certain balance sheet items among others likerevaluation reserves at a discount of 55% and foreign currency translation reserves at adiscount of 25% and deferred tax assets as CET 1 capital.

• To improve the transmission of policy rates into the lending rates of banks RBIreleased the guidelines for implementing the Marginal Cost of Fund Based Lending Rates(MCLR) w.e.f April 1 2016.

• Scheduled implementation of Net Stable Funding Ratio (NSFR) under Basel IIIFramework on Liquidity Standards for banks from January 1 2018.

• More flexibility in maintenance of Liquidity Coverage Ratio (LCR) was permittedunder Basel III by modifying certain norms.

• Issued new directives to banks on implementation of International FinancialReporting Standards-converged Indian Accounting Standards (Ind AS). Banks have been askedto submit pro forma Ind AS financial statements to the RBI from the half year endedSeptember 30 2016 onwards.

• With an aim to promote ease of doing business the RBI on February 2 2016 cameout with updated regulations under Foreign Exchange Management Act (FEMA) 1999.

• Regulatory Relaxations for ‘Start Ups’ issued to facilitateGovernment’s initiatives to promote ease of doing business

• On 19th August 2015 RBI granted in-principle approval for 11 Payments Banksand on 16 September 2015 granted in-principle approval for 10 small finance banks.

• Relaxed norms for sale of bad loans to Asset Reconstruction Companies (ARCs) bybanks.

• Advised banks to conduct "Thorough Internal Audit" and place thereport before Audit Committee of the Board of the respective banks and forward the summaryof findings to RBI.


Global growth is projected at 3.2% in 2016 compared to 3.1% in 2015 reflecting agradual recovery in the pace of growth for advanced economies uneven pace of growth inthe emerging market economies (EMEs) and slowing Chinese economy. The InternationalMonetary Fund (IMF) in its latest World Economic Outlook April 2016 projected globalgrowth at 3.5 in 2017 reflecting a pickup in advanced economies and EMEs. The U.S.A iscarrying the growth momentum in 2016 mainly on account of increased consumer spendingtrade activity falling unemployment rate and improved investors’ sentiment.

India is expected to maintain its growth momentum in 2016-17 after showing pick uplast year. The RBI in its Bi-monthly Monetary Policy Statement projected the growth ofthe economy at 7.6%. Growth is expected to be boosted by the ongoing measures being takenby Government and RBI easing interest rate and inflation scenario projected normalmonsoon improving industrial production and investments improving capital flows andfinancial market conditions. Downside risks to growth may emerge from spike in commodityprices including international crude oil prices.

The performance of the banking sector in 2016-17 would largely depend on the overallgrowth of the economy. Major challenges however before the banks during the year wouldbe to address issues of asset quality and recovery mobilizing capital financialinclusion and resource mobilization to fund credit growth.


Canara Bank performed better during the year in sync with its major corporate thrustareas viz. Retail Deposits including CASA and expanding Retail Assets includingAgriculture MSMEs Housing and other retail segments.


Operating profit of the Bank increased to Rs. 7147 crore compared to Rs. 6950 crorelast year.

Due to sharp increase in provisions & contingencies on account of bad loans theBank reported a net loss of Rs. 2813 crore in 2015-16 compared to net profit of Rs. 2703crore last year.

Key Financial Ratios (%) March 2015 March 2016
Cost of Funds 6.84 6.31
Yield on Funds 8.78 8.11
Cost of Deposits 7.38 6.94
Yield on Advances 10.75 9.71
Yield on Investments 8.00 7.92
Interest Spread 1.94 1.80
Net-Interest Margin (NIM) 2.25 2.19
Return on Avg. Assets (RoAA) 0.55 (0.52)
Return on Equity 11.06 (10.69)
Business per Employee 14.35 14.45
Book Value (Rs.) 552.54 477.19
Earnings per Share (Rs.) 58.59 (53.61)

AWF - Average Working Funds

Income and Expenditure Analysis

The Bank’s interest income increased to Rs. 44022 crore compared to Rs. 43750crore last year comprising interest from loans and advances at Rs. 31377 crore andinterest from investments at Rs. 11408 crore.

In line with the thrust areas for the Bank non-interest income increased to Rs. 4875crore compared to Rs. 4550 crore in 2014-15. Excluding treasury trading profitnon-interest income rose by 14.20% to Rs. 3885 crore compared to Rs. 3402 crore last year.Major segments of the non-interest income like service charges & other miscellaneousincome grew by 40.97% to Rs. 1545 crore compared to Rs. 1096 crore last year recoveryfrom written off accounts grew by 59.58% to Rs. 608 crore and income from card activityincreased by 45.80% to Rs. 328 crore. The share of non-interest income in total incomeincreased to 9.96% from 9.42% last year.

During the year major emphasis was accorded on containing cost both interest andnon-interest expenses. The Bank’s interest expenses increase was marginal at 0.51% toreach Rs. 34259 crore vis-a-vis an increase of 11.38% last year. The operating expensesincrease was curtailed to 3.14% to Rs. 7492 crore compared to an increase of 19.45% in theprevious year. Major heads of controllable other operating expenditure were identified andmonitored for reducing the cost across the Bank.

Due to conscious efforts to reduce interest cost on deposits cost of deposits wasreduced by 44 bps to 6.94% compared to 7.38% as at March 2015. In line with the industrytrends and downward revision in the base rate the yield on advances declined to 9.71% asat March 2016 compared to 10.75% as at March 2015. Interest spread the difference betweencost of funds and yield on funds stood at 1.80%.

The net interest income the difference between interest earned and interest paid bythe Bank increased to Rs. 9763 crore resulting in Net Interest Margin (NIM) to stay at2.19% as at March 31 2016 compared to 2.16% in the December 2015 and 2.25% as at March2015.

Capital and Reserves

Networth of the Bank stood at Rs. 25911 crore as at March 2016. While total paid-upcapital of the Bank was Rs. 542.99 crore reserves and surplus stood at Rs. 31060 crore.

(Amt. Rs. Crore)
March 2015 March 2016
Composition of Capital Basel III Basel III
Risk Weighted Assets 342248 333869
CET I 25222 27308
CET I (%) 7.37 8.18
AT I 2238 2064
AT I (%) 0.65 0.62
Tier I Capital 27459 29372
CRAR (%)(Tier I) 8.02% 8.80%
Tier II Capital 8678 7633
CRAR (%)(Tier II) 2.54 2.28
Total Capital 36137 37005
CRAR (%) 10.56 11.08

Capital Adequacy Ratio as at March 2016 stood at 11.08% against regulatory requirementof 9.625% including Capital Conservation Buffer. Within the capital adequacy ratio CET 1ratio stood at 8.18% against requirement of 5.5% and Tier I capital ratio was at 8.80%against the requirement of 7%. Adequate headroom is available under both Tier-I andTier-II options for the Bank to raise capital in order to support business growthmomentum.

During the year the Bank also raised Rs. 1520 crore equity capital by way ofpreferential allotment of 4 crore shares to LIC of India in April 2015. Government ofIndia infused Rs. 947 crore equity capital in the Bank by way of preferential allotment of2.78 crore equity shares in September 2015. Further the Bank raised Rs. 2400 crore BASELIII compliant Tier II Bonds in December 2015 and January 2016 in two tranches. In totalthe Bank raised Rs. 4867 crore capital in 2015-16. The Government of India’sshareholding in the Bank stood at 66.30% as at March 2016.



Total Deposits increased to Rs. 479792 crore as at March 2016 compared to Rs. 473840crore a year ago.

Keeping the thrust on mobilizing more retail term deposits the Bank’s retail termdeposits excluding Certificate of Deposits share in domestic term deposits increased to56.5% from 48.5% a year ago.

Current and Savings Bank (CASA) deposits of the Bank increased by 8.82% y-o-y to Rs.123542 crore as at March 2016. The Bank’s CASA deposits to domestic deposits improvedto 27.38% as at March 2016 from 25.47% last year. Savings deposits grew by 10.70% to Rs.103715 crore as at March 2016. To increase CASA deposits the Bank launched nationwidecampaigns and introduced new products/services like Canara Galaxy a combo productlaunched comprising SB Demat OLT Internet & Mobile Banking Insurance cardservices and Online Savings Bank account opening facility. During the financial year theBank added about 56 lakhs CASA accounts.

Pursuing a strategy of expanding deposit clientele the Bank added 59 lakhs depositaccounts during the year taking the total number of deposit accounts to 6.44 crore.

Advances (net)

The Bank expanded its asset base to a well diversified segments of the economy likeAgriculture and Micro Small and Medium Enterprises (MSMEs) Retail including HousingEducation Vehicle and other productive segments. Advances (Net) of the Bank stood at Rs.324715 crore as at March 2016.

As at March 2016 the number of borrowal clientele accounts increased to 81 lakhs from72 lakhs last year.

Total business of the Bank increased to Rs. 804506 crore as at March 2016 compared toRs. 803876 crore last year.

Productivity as measured by business per employee increased to Rs. 14.45 crore fromRs. 14.35 crore a year ago.

During the year the Bank’s total clientele accounts increased by 68 lakhs to 7.25crore from 6.57 crore last year.

Retail Lending Operations

In line with the thrust areas set for the year the Bank’s retail lendingoperations recorded robust y-o-y growth.

(Amt. Rs. Crore)

As at March Growth
Retail Segments 2015 2016 Quantum (%)
Housing 22352 30975 8623 38.58
Vehicle Loan 3770 4307 537 14.24
Other Personal 10540 12049 1509 14.32
Education Loan 5636 6738 1102 19.55
Total Retail Loans 42298 54069 11771 27.83

Outstanding retail loans portfolio grew by 27.83% y-o-y to Rs. 54069 crore as at March2016. The disbursals under various retail lending schemes amounted to Rs. 24279 crore. Theoutstanding housing loan portfolio rose to Rs. 30975 crore with a y-o-y growth of 38.58%and accounted for 57% of the total retail lending portfolio. The Bank’s vehicle loansand other personal loans increased by 14.24% and 14.32% y-o-y respectively.

Education Loans

Over the years the Bank has assisted lakhs of promising students to pursue highereducation in India and abroad. The Bank’s education loan portfolio increased to Rs.6738 crore. The Bank has financed around 2.9 lakh students as at March 2016.

The Bank is designated as the nodal bank for administering subsidy under the CentralSector Scheme for Interest Subsidy on education loans. During the year 2015-16 the Banklaunched

Online Instant in-Principle Sanction for Housing Loan and Car Loan Pradhan MantriAwaas Yojana and Housing cum Solar Loan.

The Bank has also launched "Vidya Turant’ an online instant loan sanctionfacility to students and ‘Vidya Sahay’ – a bridge loan scheme for makingdown payment for Common Entrance Test (CET) counseling authorities at the time ofselection and counseling.

Several initiatives were undertaken by the Bank to expand retail credit. These includenew retail loan products viz. Housing Loans to High Net worth Individuals NonResidentIndians (NRIs) and Agriculturists. Nationwide launching of Campaigns conduct of Exposoffering competitive interest rates tie-ups with reputed Builders Car Dealers andmonitoring the performance and regular interaction with branches boosted Bank’sretail loan portfolio.

Five new Retail Asset Hubs were opened and three Central Processing Units (CPUs) wereupgraded as Retail Asset Hubs (RAHs) during the year taking total number of RAHs to 66across major centres in the country. The Bank also undertook several tech-basedinitiatives like missed call facility for retail lending Schemes informing due datesand amount of EMIs for housing loans and introduction of web-based lead generation system.


Aggregate investments (net) of the Bank as at March 2016 were of the order of Rs.142309 crore. Portfolio modified duration has increased to 4.71 as at March 2016 from 4.37as at March 2015. Modified duration of the Available for Sale (AFS) portfolio hasincreased to 4.45 as at March 2016 from 3.58 as at March 2015. The above increase ismainly on account of allotment of Special State Loans under UDAY Scheme to the tune of Rs.8581 crore. The yield on investments was 7.92% as at March 31 2016 compared to 8.00% asat March 31 2015 even though RBI Policy rate was reduced by 125 bps since January 2015.The trading profit under domestic treasury operations stood at Rs. 990 crore during theyear.

The Bank continues to be an active player in the Government Securities market as aPrimary Dealer. During the year the aggregate amount of underwriting bids submitted wasRs. 56554 crore out of which the underwriting commitment accepted by RBI was Rs. 23950crore. With regard to Treasury Bills under PD business as against the minimum successratio of 40% to be achieved in each half year the Bank has achieved 65.63% for the firsthalf year ended September 2015 and 43.14% for the second half year ended March 2016.

Foreign business turnover of the Bank for 2015-16 aggregated to Rs. 201860 crorecomprising Rs. 98767 crore under exports Rs. 54047 crore under imports and Rs. 49046crore under remittances. Exchange profit during the year stood at Rs. 669 crore.


The Bank’s overseas operations as at 31st March 2016 covered 8 countries whichinclude branches in London and Leicester (U.K) Hong Kong Shanghai (China) Manama(Bahrain) Dubai International Financial Centre (DIFC) (U.A.E) Johannesburg (SouthAfrica) and New York (U.S.A); a Representative Office at Sharjah (U.A.E) and a JointVenture Bank viz. Commercial Indo Bank LLC in Moscow (Russia) in association with StateBank of India.

The Bank has received approval from the Bank of Tanzania the Regulators of Tanzaniafor establishing a wholly owned banking subsidiary at Dar-es-Salaam in Tanzania. Thesubsidiary has been incorporated in Tanzania on 2nd November 2015 and has commenced thecommercial operations from 9th May 2016.

Total business of the Bank from the overseas branches aggregated to Rs. 50868 crore forthe financial year ending March 2016. Overseas business constituted 6.32% of theBank’s total business.

During the year the Bank opened a branch at Dubai International Financial Centre(DIFC) Dubai on 28th January 2016. The Bank has approval from the RBI for expansion inanother 5 international centres such as Frankfurt (Germany) Sao Paulo (Brazil) Tokyo(Japan) Jeddah (Saudi Arabia) and Jakarta (Indonesia).

The Bank has sought RBI’s approval for expansion in 7 more international centrescovering Mexico City (Mexico) Kigali (Rwanda) Singapore Auckland (New Zealand) Sydney(Australia) Ontario (Canada) and Durban (South Africa).

The Bank’s international operations are well supported by a wide network of 385Correspondent Banks spread across 78 countries and the Bank’s overseas branches andoffices. Rupee Drawing Arrangement has been made with 36 Exchange Houses and 25 overseasbanks for channelizing the remittances of Non-Resident Indians (NRIs). The Bank has beenmanaging two Exchange Houses viz. Al Razouki International Exchange Company Dubai andEastern Exchange Est. Qatar under Secondment and Management Agreement respectively.

‘Remit Money’ a web-based speed remittance product has been extended to 35Exchange Houses and to the Bank’s 4 overseas branches viz. London LeicesterShanghai and Hong Kong. To facilitate instant and hassle free remittances to thebeneficiaries of Canara Bank in India the ‘Flashremit’ an instant creditfacility in association with M/s. UAE Exchange Abu Dhabi UAE and ‘InstantRemitmoney’ an instant credit facility with M/s. Al Razouki International ExchangeCompany Dubai M/s. Eastern Exchange Est. Qatar and M/s. Al Ansari Exchange LLC UAEcontinued during the year.


The Bank’s Merchant Banking Division handled Private Placement Capital Gain BondIssues of National Highways Authority of India (NHAI) and Rural ElectrificationCorporation Ltd (REC) as Arrangers. The amount mobilized in respect of Capital Gain BondsIssue of NHAI and REC during the year was Rs. 92.80 crore.

The Bank acted as Collecting Banker for the Private Placement Capital Gain Bond Issuesof REC & NHAI involving an amount of Rs. 1048.38 crore. 93 Public and Debt Issueshandled under Application Supported by Blocked Amount (ASBA) and the amount blocked wasRs. 880.51 crore. Three specialized assignments of ‘Fair Valuation of Equity’were also handled by the Division during the year.

The Syndication Group handled projects involving project cost of Rs. 3230 crore duringthe year with a total debt size of Rs. 2093 crore. The Group generated a fee-based incomeof Rs. 3 crore from the syndication operations. The funds were arranged for projects invarious segments like infrastructure (Port & Railway) and renewable energy (solar).

The Bank has tie-up arrangements in both life and non-life insurance segments under its‘Bancassurance’ arm. The Bank earned a commission income of Rs. 26.20 crore fromits joint venture viz. Canara HSBC OBC Life Insurance Company Ltd. Under the Mutual Fundbusiness the Bank earned a commission of Rs. 10.07 crore from its joint venture viz.Canara Robeco Asset Management Company Ltd. A commission income of Rs. 17.16 crore wasearned under Non-Life (General) Insurance business from its tie-up arrangement with M/sUnited India Insurance Company Ltd (UIICL). The tie-up arrangement with M/s Apollo MunichHealth Insurance Co. Ltd for marketing their health insurance products resulted in acommission income of Rs. 10.67 crore. The Bank also has Corporate Agency Agreement withM/s Export Credit Guarantee Corporation of India for marketing export policies through itsbranches across India.

Under Card Business the Bank took several initiatives to expand credit and debit cardbase. The total debit card base of the Bank increased to 3.19 crore and credit card baseincreased to 2 lakh as at March 2016. Profit under card business during the year stood atRs. 55.42 crore.

The Bank offers its ‘Depository Services’ from 47 DP Service Centres spreadacross 34 locations in the country. Through these Centres the Bank is extending OnlineTrading Facility to DP clients from its own broking subsidiary M/s Canara Bank SecuritiesLimited Mumbai.

Executor Trustee and Taxation Services outfit of the Bank provides services likeDebenture/Security Trusteeship Will & Executorships Endowment Trusteeship PersonalTax Assistance and Power of Attorney services. During the year it generated a fee incomeof Rs. 1.13 crore and availed Central Value Added Taxes (CENVAT) credit of Rs. 91.33 croreagainst the service tax paid during the year. The Bank has appointed M/s KPMG asconsultant for implementation of Reporting System and ensuring compliance under ForeignAccount Tax Compliance Act (FATCA)/ Common Reporting Standard (CRS). As per Central Boardof Direct Taxes Government of India (CBDT) guidelines the first report was filed on10.09.2015.

The Bank handles various Government Business products comprising Direct and IndirectTax collections payment of pensions of Central Government and State Government Handlingof Postal Transactions and State Government Treasury Transactions Public Provident FundScheme and Senior Citizens’ Saving Scheme and issue of Inflation Indexed Bonds ofRBI. During the year the Bank implemented Sukanya Samriddhi Account Scheme Atal PensionYojana and Sovereign Gold Bonds Schemes of Government of India. These products contributedto improvement of CASA and also earned a fee income of Rs. 121 crore during the year.

The Bank provides several online payment services viz. E-payment of Sales Tax/Commercial Tax in Maharashtra Tamil Nadu Karnataka Andhra Pradesh Bihar Dadra &Nagar Haveli Odisha Punjab West Bengal and Delhi Virtual Treasury Package inMaharashtra E-payment of Taxes to Transport Department in Tamil Nadu Collection ofProperty Tax for the Corporation of Chennai in Tamil Nadu and Bengaluru in KarnatakaOnline opening of PPF Accounts and E- Stamping project in Jharkhand Uttar Pradesh TamilNadu and Karnataka.

The Bank has been authorized as the accredited banker for Ministry of Human ResourcesDevelopment (MHRD) Ministry of Culture Ministry of Youth Affairs & SportsArchealogical Survey of India and Unique Identification Authority of India (UIDAI) NewDelhi. The Bank extended the coverage under National Pension System for UnorganisedSectors under Swavalamban Scheme during 2015-16.

Agricultural Innovation Center (AIC) outfit of the Bank handled 72 assignments. These72 assignments consisted of 48 appraisals 5 viability studies 18 vetting and trainingsand 1 appraisal cum project formulation. The total outlay of the assignments worked out toa term loan component of Rs. 396 crore and non-interest income derived by the Bank in theform of processing fee was Rs. 2.05 crore.


With the continued stress in the asset quality at the industry level the Gross NPA ofthe Bank has increased to Rs. 31638 crore as at March 2016 compared to Rs. 13040 crore inthe last year. Accordingly the gross NPA ratio has increased to 9.40% from 3.89% as atMarch 2015. With a Net NPA of Rs. 20833 crore the net NPA ratio has gone up to 6.42% from2.65% a year ago.

Cash Recovery during 2015-16 aggregated to Rs. 4758 crore. Recovery from technicallywritten off accounts amounted to Rs. 617 crore accounting for 8.31% to outstandingamount including recovery from loss assets at Rs. 461 crore. During the year the Bankalso sold 7 NPA Accounts to Asset Reconstruction Companies (ARCs) for consideration of Rs.34 crore. During the year an amount of Rs. 1460 crore was upgraded.

During the year recovery amounting to Rs.816 crore was made under SARFAESI Act. TheBank conducted 13159 recovery meets which resulted in a recovery of Rs.546 crore. Duringthe year 47157 cases were referred to Lokadalat out of which 25132 cases were settledcovering an amount of Rs.264 crore. Besides the Bank took several initiatives to containslippages and speed up recovery from overdue loan accounts. These include identificationof stressed accounts for restructuring/ rephasing in time conduct of Canadalats at branchlevel and mega adalats at Circle level for one time settlements (OTS) Lokadalats atdistrict levels and regular follow-up of overdues in loan accounts through Call Centre andconducting e-auctions for sale of seized assets initiation of stringent recovery measuresagainst Wilful Defaulters. The Bank also formulated a special Scheme for settlement ofsmall NPAs (upto Rs.10 lakh) with a special focus on Education Loan/ Tractor Loan.

As at March 2016 the outstanding restructured assets portfolio (including restructuredNPA) of the Bank stood at Rs. 23227 crore accounting for 6.90% of gross advances.

Risk Management

BASEL III Capital Adequacy Framework and Future Strategies

An independent Risk Management Wing at the Head O ff i c e is functioning as a nodalcentre for overall implementation of various risk management initiatives across the Bank.Risk Management Sections are functioning at all the 47 Circle Offices of the Bank as anextended arm of the Risk Management Wing.

The Bank has in place risk management policies across geographies and across all risksencompassing the entire gamut of risk profile. These include policies on Credit RiskManagement Operational Risk Management Market Risk Management Asset LiabilityManagement and Group Risk Management.

The Bank has in place an Internal Capital Adequacy Assessment Process (ICAAP) underPillar 2 of Basel III norms. The ICAAP exercise covers the domestic and overseasoperations of the Bank the Subsidiaries Joint Ventures Sponsored Entities andAssociates. Linkages to Stress Test Scenarios are also documented in ICAAP. The ICAAPdocument is reviewed and approved by the Risk Management Committee of the Board and theBoard of Directors.

A Capital Planning Committee is in place. The Committee articulates macroeconomicscenarios vis--vis capital requirements of the Bank in tune with the businessstrategies. During the year the Bank has also formed a Board Level Sub-Committee forCapital Planning Process.

These Committees ensures maintenance of appropriate level of Capital to Risk WeightedAssets Ratio (CRAR) and evaluates various options for raising the capital.

Adoption of Advanced Approaches

In an endeavour to move towards Advanced Approaches under Basel III for computation ofcapital for Credit Market and Operational Risk the Bank has engaged the services of aConsultant for implementation of Enterprise-wide Integrated Risk Management solution foritself and the group entities so as to build requisite risk management framework.

As a pre-requisite for the implementation of Enterprise-wide Integrated Risk Managementarchitecture the Bank has procured a Risk Solution that would enable it to meetrequirements of Advanced Measurement Approaches.

The Bank has submitted Letters of Intent to RBI for adoption of Internal Rating Based(IRB) Approach for calculation of capital charge for Credit Risk Internal Models Approachfor calculation of capital charge for Market Risk and Advanced Measurement Approach forcalculation of capital charge for Operational Risk.

Preparedness for Basel III

ThefinalguidelinesonBaselIIICapitalRegulationsbecame effective from 1st April 2013. Asper RBI guidelines the transitional period for full implementation of Basel III CapitalRegulations is extended up to 31.03.2019. The banks in India need to maintain a minimumCommon Equity Tier 1 (CET1) capital of 5.50% Tier 1 capital of 7.00% Total Capital of 9%and Capital Conservation Buffer (CCB) of 2.50% at the end of March 2019. The banks alsohave to maintain a minimum Tier 1 Leverage Ratio of 4.5% during parallel run from 1stJanuary 2013 to 1st January 2017 as a credible supplementary measure to the risk basedcapital requirements.

The Bank endeavours to remain adequately capitalized and has drawn plans to meet thecapital requirements stipulated by the RBI in transitory phase. The Bank has adequateheadroom to raise capital from the market including recapitalization support from theGovernment of India. Moving ahead the Bank’s capital requirement shall be met byinjecting fresh equity capital retention of profit optimization of business leversproactive capital planning and management.

Credit Risk Management

The Bank has various risk management systems for managing Credit Risk withcomprehensive policies and procedures in place. The Credit Risk Management Policyarticulates among others the guidelines on:

• Lending norms for appraisal and decision making

• Defining Exposure Limits and thrust areas for financing

• Delegation of credit sanctioning powers to various authorities/Credit ApprovalCommittees based on internal risk rating of the borrowers

• Entry barriers based on risk rating

• Risk Based Pricing

• Loan Review Mechanism

An exclusive Credit Monitoring Policy has been put in place. The loan review mechanismarticulated in the Credit Monitoring Policy covers the entire gamut of review andmonitoring as an effective tool for evaluating the loan book continuously. It also intendsto bring out qualitative improvements in credit administration including Credit Audit/Pre-release Audit duly administered by the Credit Administration and Monitoring Wing.

Market Risk Management

The Market Risk framework of the Bank aims at restricting loss from all types of marketrisk loss events and also to establish limit structure and triggers for various marketrisk factors.

Exposure limits such as Stop Loss limits on Trading Book intraday and overnightlimit for various Currency Positions Dealer-wise limits Aggregate Gap limit limits onMoney Market Operations Modified Duration limits for investment portfolio and VaR limitsare fixed to act as risk mitigants/triggers. Mid Office of Risk Management Wing monitorsthese limits along with other triggers on a daily basis. A reporting framework has beenput in place for effective and timely monitoring of Market Risk limits and triggers.

Operational Risk Management

Operational Risk Management framework in the Bank is based on ethics organizationculture and strong operating procedures involving corporate values internal controlculture effective internal reporting and contingency planning.

The Bank has adopted polices for management of Operational Risk which covers variousaspects such as Operational Risk Management Structure Outsourcing Activities andBusiness Continuity Plan.

At present the Bank is in the process of migration to Advanced Approaches of Basel IIIframework from Basic Indicator Approach (BIA). The Bank has initiated process/activitiesfor implementation of Advanced Approaches and to put in place Incident Management KeyRisk Indicators (KRI) Risk Control & Self Assessment (RCSA) Scenario Analysis tocompute capital charge for Operational Risk.

Asset Liability Management

The ALM Policy of the Bank aims at maintaining an appropriate balance in thematurity/re-pricing profile of assets and liabilities so as to reduce liquidity risk andmanage interest rate risk. Within the policy framework the Board of the Bank has set upthe Asset Liability Management Committee (ALCO) which is entrusted with the role ofmanagement of assets and liabilities including the funding strategy and its compositionproduct pricing stress test and contingency action plan among others. A balanced ALMstructure helps to sustain the spreads profitability and long-term viability of the Bank.

The Bank has implemented the RBI guidelines with respect to Liquidity Coverage Ratio(LCR) with effect from 01.01.2015. As on 31.03.2016 LCR of the Bank is above thestipulated regulatory minimum of 70%.

Group Risk

The Bank has various Subsidiaries Joint Ventures and Sponsored Entities which areengaged in diversified activities. As the Bank has considerable stake in these GroupEntities it has adopted a Group Risk Management Policy to identify and manage risk inintra Group transactions and exposures to raise the standard of Corporate Governance byreducing /avoiding conflicts of interest between the Group Entities and also to ensure‘Arms Length Principle’ among Entities in regard to business parameters.


Priority Sector Advances

The Bank continues to accord importance to varied goals under national prioritiesincluding agriculture micro and small enterprises education housing micro-creditcredit to weaker sections and specified minority communities.

Priority Sector Advances of the Bank as at March 2016 reached Rs. 145558 crorerecording a y-o-y growth of 23.11% and achieved 49.29% to Adjusted Net Bank Credit (ANBC)against 40% mandated norm.

(Amt. Rs. Crore)

Priority Sector As at March Growth
Advances 2015 2016 Amount %
Total Priority Sector 118234 145558 27324 23.11
Agriculture 58868 67176 8308 14.11

With a focus on credit delivery to Agriculture the Bank’s advances underagriculture portfolio increased by 14.11% to Rs. 67176 crore covering over 59 lakhfarmers. Under agriculture lending the Bank achieved 22.75% to ANBC against 18% mandatednorm. During 2015-16 the Bank’s agriculture credit disbursal increased to Rs. 57018crore with a growth of 26.06% over the previous year.

The Bank undertook special campaigns for extending Crop Loans facility to all farmers.

During the year the Bank issued 7 lakh Kisan Credit Cards (KCCs) amounting to Rs.10393 crore. The credit outstanding under KCCs was at Rs. 12675 crore as at March 2016.6.36 lakhs Kisan RuPay Cards were issued against the eligible accounts of 6.69 lakhs withan achievement of 95%.

The Bank actively participated in various Government Sponsored Schemes such as PrimeMinister’s Employment Generation Programme (PMEGP) National Rural Livelihood Mission(NRLM) Swarnajayanthi Shahri Rozgar Yojana (SJSRY) Scheme for Liberation andRehabilitation of Scavengers (SLRS) and Differential Rate of Interest (DRI) Scheme.

As at March 2016 the outstanding advances under the following Government Schemesaggregated to Rs. 1016 crore involving around 2.39 lakh beneficiaries.

Performance under various Government Sponsored Schemes

(Amt. Rs. Crore)

MARCH 2016
Scheme Accounts Amount
Prime Minister Rojgar Yojana (PMRY) 9472 148
Swarna Jayanti Shahari Rozgar Yojana (SJSRY) 11630 90
Swarna Jayanti Gram Swarozgar Yojana (SGSY) 22528 148
Scheme for Liberation and Rehabilitation of Scavengers (SLRS) 259 1.24
Differential Rate of Interest (DRI) 181911 177
Prime Minister Employment Generation Programme (PMEGP) 12989 452
Total 238789 1016

Advances to DRI stood at Rs. 177 crore consisting of 1.82 lakh beneficiaries ofwhich advances by rural and semi-urban branches amounted to Rs. 138 crore.

In support of the underprivileged sections of the society the Bank’s advances toSCs/STs beneficiaries amounted to Rs. 6886 crore as at March 2016 covering 5.62 lakhborrowers. The advances to SCs/STs comprised 4.73% of total priority sector advances.

Advances to weaker sections grew by 12.55% to Rs. 43498 crore constituting 14.73% toANBC against mandated norm of 10%.

Various components of advances to Weaker Sections as at March 2016

(Amt. Rs. Crore)

Sectors Accounts Amount
Small & Marginal Farmers
Landless Labourers Tenant
Farmers and Share Croppers 3922913 38208
Artisans Village and Cottage
Industries 48083 862
SC/ST Beneficiaries 564536 6886
DRI Loans 181911 177
SGSY Beneficiaries 22528 148
SJSRY Beneficiaries 11630 90
SHGs/NGOs/MFIs 121808 2344
Advances to SLRS/SRMS (Scheme for Rehabilitation of Manual Scavengers) 259 1.24

As at March 2016 advances to specified minority communities aggregated to Rs. 25849crore accounting for 17.76% of the total priority sector advances against the stipulated15% norm.

National Rural Livelihood Mission (NRLM)

Under the Scheme ‘Aajeevika’ (National Rural Livelihood Mission) implementedby Ministry of Rural Development Women Self-Help Groups (WSHGs) credit linked after01.04.2013 would be provided credit facilities at 7% upto Rs. 3 lakh. Further promptrepaying WSHGs will get additional interest subvention at 3%. Presently the Scheme isbeing implemented in 150 Category-I Districts. Canara Bank was selected to act as thenodal bank for implementation of the Scheme and MoU was signed with Ministry of RuralDevelopment Government of India. An exclusive web portal was developed for submission ofclaims by member banks through online mode.

NRLM has replaced the existing SGSY Scheme with effect from 01.04.2013 and the Bank isselected as Nodal Bank for administration of the subsidy for the subject scheme.

The consolidated claims handled under NRLM for all member banks including Canara Bankare as under.

(Amt. Rs. Crore)
Year No of Accounts ( Actual) Amount of Subsidy claimed
2014-15 500829 304.30
2015-16 534718 305.89
Total 1035547 610.19

Micro Small & Medium Enterprises (MSME) Lending

Advances to MSMEs increased to Rs. 66689 crore as at March 2016 with a y-o-y growth of10.04%. Credit to M&SE segments rose to Rs. 50898 crore with a 9.92% growth. Thenumber of Micro Enterprises Accounts recorded a growth of 24.21% against the mandated normof 10%.

Under Pradhan Mantri Mudra Yojana (PMMY) the Bank disbursed Rs. 7701 crore covering7.90 lakhs accounts and achieved the set target. The disbursal under different Schemes ofthe Mudra Yojana was as under:

Progress Under Pradhan Mantri Mudra Yojana (PMMY)

Category As on 31.03.2016 (Amt. in Rs. Crore)
No of Accounts Sanction Amount Outstanding Amount
Shishu (< Rs. 50000) 546051 965 874
Kishor (Above Rs. 50000 - Rs. 5 lakh) 211849 4248 3564
Tarun (Above Rs. 5 lakh to Rs. 10 lakh) 32454 2488 2065
Total 790354 7701 6503

In the past one year the Bank has taken following initiatives to increase the flow ofcredit to MSME sector and also brought about continued awareness about the steps taken.

• 165 specialized SME branches are functioning throughout India and for fasterprocessing credit proposals 45 SME Sulabhs (Specialised SME Processing Centres) arefunctioning across the country.

• To extend financial assistance to micro and small enterprises without offeringany collateral security and with relaxed lending terms new segment specific schemes havebeen launched such as Doctors’ Choice (improved version) MSE SMART MSME CAP MSMEVahan MSE Vijeta and Canara Contractors’ Scheme Canara CARAVAN Flavour and MSMEExpo.

• To increase the Bank’s exposure to specific clusters and activities newarea/cluster specific schemes have been launched and continued such as RiceShellers’ Scheme Dal Mills Scheme and Cashew Processors Scheme.

• Mega Credit camps were conducted to create awareness and pool sources forincreased credit flow to MSME sector.

• Summits were arranged for start-up entrepreneurs inviting distinguished guestsfrom Government Departments and local industrial bodies/ organization for necessaryinputs and guidance for successful entrepreneurship.

• MSME Consultancy Services Cells were functioning in five major centres forproject report preparation appraisal and other consultancy services to MSMEentrepreneurs.

• Micro Enterprises Business Centres were established at Circle Offices forhandholding Micro Enterprises.

• In order to support the marketing efforts of the MSME entrepreneurs the Bankhas a website and also e-store to display their products.

• The Bank has an exclusive website for easy access andunderstanding of MSME initiatives.

• The online submission of MSME applications and tracking thereof by the customersis facilitated and used extensively by the MSME clientele.

• The Bank has introduced a Credit Scoring Model to evaluate the MSMEentrepreneurs who apply loan from the Bank for the first time.

• Entrepreneur Development Centre at Head Office have been catering to the needsof budding entrepreneurs by way of assimilation of information regarding the challengesand opportunities under MSME conducting of seminars training initiatives interactionwith the concerned organizations and propagation of the same through regular bulletins.

• An exclusive set up at Head Office has been looking into the aspects ofmonitoring slippage management and handholding in times of stress by way ofrehabilitation and restructuring of MSME units as per Government guidelines.

• The Bank has instituted awards for best performing MSME Entrepreneurs at Statelevel to promote and encourage entrepreneurship amongst the youth.

The Bank received an amount of Rs. 7.56 crore from the Ministry of Micro Small andMedium Enterprises Government of India during the year as a Nodal Agency for TechnologyUpgradation of MSMEs under Credit Linked Capital Subsidy Scheme (CLCSS) and fully utilizedthe amount during the year.

Empowering Women

Department of Women Empowerment at Head Office and Centre for EntrepreneurshipDevelopment for Women (CEDW) at 47 Circle Offices across the country are working towardseconomic empowerment of women. These CEDWs reach the potential entrepreneurs undertakecounseling support training needs finance adequately and provide marketing support.These centres have conducted a total of 362 training programmes during the yearbenefitting 30545 women which covered 171 General / Skill EDPs 90 Awareness Programmes49 Seminars / Career Guidance Programmes / Follow- up–Meets and 52 Canara UtsavMarketing Melas.

These centres have also assisted in the formation of Self Help Groups and CreditLinkages. An exclusive Rural Self Employment Training Institute has been set up atHarohalli Karnataka to provide EDP/ skill trainings to women in various vocationsenabling them to take up self employment ventures. Through this Institute 19874 womenhave been trained since inception out of which 1305 women have been trained during2015-16.Through 65 Training Institutes supported by the Bank 3.40 lakh women have beentrained in self employment ventures since inception of which 32731 have been trained in2015-16. Apart from 2 exclusive Mahila Banking Branches catering to the banking needs ofwomen the Bank has converted 14 branches into ‘All Women Employee Branches’across the country to give a focus to women clientele. 19 Micro finance branches aresupporting the financial needs of Micro & Small Women Entrepreneurs and SHG members.The Bank has assisted 27.46 lakhs women with credit outstanding to the tune of Rs. 42066crore as at March 2016 and achieved 14.25% to ANBC against the RBI’s requirement of5%.

Several concessions have been given to women including relaxation in eligibility normsand 0.5% interest concession on educational loans to girl students a special loan Scheme‘MSE Vijeta’ for granting loans up to Rs. 2 crore to women entrepreneurs underMicro & Small Enterprises. Canara Mahila Savings Scheme a special Savings Bankproduct was introduced with many concessions.

During the year 7 successful Women Entrepreneurs were given cash awards on theoccasion of International Women’s Day under "Canara Bank Best Woman EntrepreneurAwards 2014-15". Under the marketing support Bank has provided a unique custombuilt high tech solar powered mobile sales van "Canara Vahini" withcomputerized billing and card swiping facility to enable women entrepreneurs and SHGs toexhibit/ market their products at Bengaluru city free of cost. 4 more such mobile salesvans have been introduced recently at Aligarh (Uttar Pradesh) Coimbatore (Tamil Nadu)Shivamogga (Karnataka) and Thrissur (Kerala).

Lead Bank Responsibility

The Bank has been assigned additional lead bank responsibilities in 3 Metro Districtsof Delhi National Capital Territory. With this the Bank’s lead bank responsibilitiesincreased to 29 districts in the country viz. 8 in Karnataka 7 in Tamil Nadu 5 inKerala 5 in Uttar Pradesh 3 in Delhi and 1 in Bihar. The Bank is the Convenor of theState Level Bankers’ Committee (SLBC) in Kerala. The State of Kerala was first majorstate to announce completion of Survey under PMJDY and achieved saturation in terms ofopening BSBD accounts.

Financial Inclusion

A Holistic Approach to Financial Inclusion

With the basic objective of bringing the large unserved population under the bankingmainstream the Bank is striving towards a more inclusive growth by making financialproducts and services available to financially excluded and marginalized sections ofsociety in particular. As per the Government of India and the Reserve Bank of Indiadirections the Bank has been actively pursuing the agenda of Financial Inclusion (FI)with key interventions in four groups viz. expanding banking infrastructure offeringappropriate financial products making extensive and intensive use of technology andthrough advocacy and stakeholder participation.

The Bank has opened 42 Financial Inclusion (FI) Branches during the year in unbankedvillages taking the tally of FIbranches to 848 under branch model. The Bank has alsoengaged 2459 Business Correspondents Agents (BCAs) under Business Correspondents (BC)model. In addition 477 Ultra Small Branches (USBs) were also operational in the Bank.

Pradhan Mantri Jan Dhan Yojana (PMJDY)

The Ministry of Finance Government of India launched the Pradhan Mantri Jan DhanYojana (PMJDY) on 28th August 2014 which aimed at covering 7.50 crore unbanked householdsin the country with at least one bank account per household. Accounts opened under PMJDYare issued with Rupay Debit card accidental Insurance coverage to the extent of Rs. 1lakh life insurance cover of Rs. 30000/- (for accounts opened upto 31.01.2015) andoverdraft upto Rs. 5000/- after six months of satisfactory dealing.

The Bank was allotted 3962 Sub Service Area (SSAs) and 3371 Urban Wards forimplementation of PMJDY.

Highlights of performance under PMJDY

• Opened 74.31 lakh accounts under PMJDY and mobilized a CASA deposit of Rs. 1317crore.

• Covered all allotted 3962 SSAs and 3371 Wards by opening of 848 Brick &Mortar Branches and engaging 2459 Business Correspondent Agents

(Bank Mitras) at remaining locations.

• To provide the facility of payments through the Bank

Mitras handheld devices provided to them which are enabled for accepting RuPay Cards.

• Zero balance accounts were brought down from 36.83% to 14.95% as at March 2016.

• A Grievance Redressal Mechanism was put in place by providing a toll free No<1800 425 11 222> for PMJDY and the same has been published in national dailies.

• PMJDY overdraft facility upto Rs. 5000/- for all eligible account holders wasimplemented in the Bank. 2.51 lakh PMJDY account holders were provided with overdraftfacility amounting to Rs. 47.74 crore.

Social Security Schemes

Under various social security schemes launched by the Government of India during theyear the following enrolments have been made.

Scheme Enrolments As at March 2016
Pradhan Mantri Suraksha Bima Yojana (PMSBY) 46.15 lakhs
Pradhan Mantri Jeevan Bima Jyoti Yojana (PMJJBY) 20.04 lakhs
Atal Pension Yojana (APY) 0.67 lakhs

Under Sukanya Samriddhi Yojana the Bank has also mobilized 10768 accounts.

Apart from the above the Bank has also made significant progress in the FinancialInclusion related activities during the year as under.

Business canvassed in the FIBranches

The business of FIbranches reached a level of Rs. 12219 crore as at March 2016. TheCASA deposits of these branches stood at Rs. 2912 crore constituting 53% of total


Position of Basic Savings Bank Deposit (BSBD) Accounts

The Bank opened 17.13 lakh BSBD accounts during the year taking the tally of BSBDaccounts as at March

2016 to 1.55 crore with an outstanding deposits of

Rs. 3303 crore.

Formation and Credit Linkage of SHGs

Financing to Self Help Groups has played pivotal role for poverty alleviation andfinancial inclusion of rural poor. The Bank has formed 44027 SHGs and credit linked 46668SHGs to the extent of Rs. 932 crore during the current financial year. There were 1.22lakhs SHG accounts at the end of the year with an amount outstanding at Rs. 2344 crore.

Farmers Clubs

The Bank has a noble concept of forming farmers clubs who volunteered to disseminatethe principles of development through credit better repayment ethics and promotepeoples’ participation. During the current financial year Bank has formed 724farmers clubs.

Micro Finance Branches

The Bank has opened 18 Micro Finance branches in urban centres. These branchesmobilized a total business of Rs. 519 crore as at March 2016.

Canara Gramodaya Scheme

The village adoption scheme is being implemented in 63 villages and 3 slums pan Indiafor comprehensive development. Apart from developmental activities banking activitieslike opening of accounts and extension of credit facilities to all households were takenup. The Scheme also aims at providing health sanitation agricultural technology andinputs about livelihood activities involving various development agencies.

Financial Literacy Centres (FLCs)

Formed ‘Canara Financial Advisory Trust’ to take care of the affairs of theFinancial Literacy Centers (FLCs) of the Bank as well as by RRBs sponsored by the Bank.Pan India the Bank has 70 FLCs managed by the counsellors (retired bankers).

Financial Literacy Initiatives

• Financial Literacy Centers have educated 13 lakh persons during the year and 32Lakh persons since inception.

• An interview based programme on Financial Literacy programme on DBTL and Aadhaarseeding was telecast thrice through DD Trivandrum to educate the people on the need andimportance of DBTL and Aadhaar Seeding.

• Educated the people of West Bengal and Orissa on safe parking of their fundsthrough the paper advertisements.

• A Radio talk and interaction programme was aired through FM Radio giving all thebenefits and details of PMJDY and social security schemes.

• Engaged Financial Literacy Coordinators to monitor and motivate the Bank Mitrasto involve themselves in Financial Literacy in a big way in their sub service areas andencourage the people to do more transactions.

• Trained Bank Mitras through Indian Institute of Banking & Finance (IIBF) andInfrastructure Leasing & Finance Services (IL&FS). They were also provided withextensive training on Banking and Technology aspects by the Bank and the Corporate BCs.

• Special training was given to Branch Managers for conducting financial literacyprogrammes at their branches and in their service area.

• A short film about PMJDY & Social Security Schemes was made. This film wasscreened on 137 cinema halls and in all Financial Literacy programmes of the Bank.

• Conducted 2530 financial literacy camps under Financial Inclusion Fund Schemefrom the NABARD.

AADHAAR Enrolments

The Bank has empanelled 7 Aadhaar Enrolment Agencies. A total of 161 lakh enrolmentshave been done. Aadhaar has been seeded in 128 lakh accounts and are on National PaymentsCorporation of India (NPCI) mapper.

Implementation of Direct Benefit Transfer (DBT) Scheme

The Bank has successfully launched modified DBTL. 428 lakh transactions amounting toRs. 1216 crore were processed under modified DBT/DBTL during the year.


Setting Examples in CSR Activities

Following founding principles and century old tradition the Bank is engaged in variedCorporate Social Responsibility (CSR) activities. CSR initiatives of the

Bank are multifarious covering activities like training unemployed rural youthproviding primary health care drinking water community development empowerment of womenand other social initiatives.

Rural Development

The Bank through its Canara Bank Centenary Rural

Development Trust (CBCRDT) has established 34 exclusive training institutes including26 Rural Self Employment Training Institutes (RSETIs) 5 Institutes of InformationTechnology and 3 Artisan Training Institutes to promote entrepreneurship development amongrural youth and encourage them to take up self employment activities. During 2015-16these Institutes trained 30387 candidates taking the tally to 2.57 lakhs unemployedyouth since inception with an impressive settlement rate of 73%.

TheBankhasco-sponsoredanother27RuralDevelopment and Self Employment Training Institutes(RUDSETIs) across 17 States engaged in training of rural youth for taking upself-employment programmes. During 2015-16 these Institutes trained 26909 candidatestaking the tally to 3.96 lakhs unemployed youth since inception with a settlement rate of72%.

The Bank has co-sponsored Andhra Pradesh Bankers Institute for Rural andEntrepreneurship Development (APBIRED) at Hyderabad Canara Bank Deshpande RSETI atHaliyal Karnataka Karnataka Farmers Resource Centre (KFRC) at Bagalkot Karnataka andBharat Ratna Shri M Visvesvaraya Training Institute at Bengaluru.

Cumulatively the Bank’s sponsored/ co-sponsored 65 training institutes havetrained 6.78 lakhs unemployed youth with a settlement rate of 72%.

The Bank has 4 donated a hi-tech custom built solar powered ‘Retail MobileMarketing Van’ to assist women entrepreneurs SHGs and artisans to market theirproducts.

During the year the Bank undertook a number of activities for the benefit of thecommunities as part of CSR programmes.

Health care for the underprivileged

Financial assistance provided to Sri Rangadore Memorial Hospital a unit of Sri SriJagadguru Shankaracharya Mahasansthanam Sringeri Karnataka for procuring "FullyAutomated Chemistry & Electrolyte Analyser" equipment M/s St. ScholasticsConvent Thondernadu Calicut Kerala for Winger Ambulance M/s Our Lady of LourdsCharitable Hospital Dharwad Karnataka for procuring Ambulance Central University ofKarnataka Gulbarga for an Ambulance Sri Ramakrishna Ashrama Charitable HospitalTrivandrum Kerala for an Ambulance Parvathi Mahabala Shetty Charitable Trust for aPhaco Eye care machine Brahma Kumaris Educational Society Latur for Ambulance KanchiKamakoti Medical

Trust - Sankara Eye Foundation Coimbatore for procuring Bus for conveyance ofpatients Model Blood Bank & Blood Component Centre - Gandhi Medical College Bhopalfor Blood storage equipment Jan Kalyan Health Care Centre Delhi for Eye care Phacomachine.

Direct and Indirect support to Education

Education being one of the prime sectors of CSR and a vital part of personalitydevelopment the Bank has assisted various educational institutions.

Canara Vidya Jyothi Scholarship scheme to meritorious SC/ST girl students studying inGovernment/Government aided schools has been implemented for the third successive year andas many as 9390 students have been benefitted utilizing a total amount of Rs. 3.68 crore.The Bank has partnered with M/s Swami Vivekananda Youth Movement (SVYM) Mysuru Karnatakasponsored students under Mid Day Meals scholarship Solar lights to Schools at Mohani& Adboda villages in Dehradun Uttarakhand construction of a portion of Hostelbuilding for Rajapura Saraswatha Samaja Bengaluru supply of benches to schools atVishakapatnam Andhra Pradesh School Bus to Bale Ram Brij Bhushan Saraswati Shishu MandirInter College Meerut Uttar Pradesh computer accessories to Swarna Gowri Prouda Shaaleand Govt. Higher school Yerehalli Karnataka.

The Bank has assisted Canara Bank Jubilee Education Fund Bengaluru forupgradation/automation of the Book bank and extending scholarships to students.

Construction of Toilets for Girls in Government schools in Lead Districts.

The Bank has undertaken construction of toilets for girls in 78 schools in the LeadDistricts at a total cost of Rs. 2 crore under CSR.

Swachh Vidyalaya Campaign

The Bank has identified 200 schools in the districts of

Dindigul and Madurai Tamil Nadu for construction of toilets under the Swachh Vidyalayacampaign launched by Government of India.

De-fluoridation – Reverse Osmosis drinking water plants in villages

The Bank has undertaken an ambitious project of providing De-fluoridation – ROplants for pure drinking water facility in fluoride affected 217 villages of Kolar and

Chikkaballapur districts Karnataka. Installation work has been completed in 156villages and made operational.

Support to extend Mid Day Meals to students

The Bank has provided vehicles to M/s Marikamba Devasthanam Sirsi Karnataka andAkshaya Patra Foundation Guwahati Assam for supplying mid-day meals to students.

Assisting the people in distress

During the year Chennai faced unprecedented heavy rains and flash floods. The peoplewere in dire need of food drinking water clothing medicine and other essentialrequirements. The Bank rose to the occasion and assisted them with food packets blanketsmedicines and other basic materials.

Support to persons with disability to lead a better life

A number of programmes in association with like- minded agencies have been taken up bythe Bank to support persons with disability such as assistance to M/s Sri VaishnaviSpecial Educational Academy Ramanagara Karnataka for play ground equipments for mentallychallenged children M/s Seth Anand Lal Poddar Institutes of Deaf & Blind Boys Hosteland Deaf Aid Society Bengaluru for repairs and renovation of toilets and hostel buildingVehicles to M/s Karnataka Welfare Association for the Blind M/s Snehadeepa Trust forblind Bengaluru and distributed Motorized Tricycles & Wheel Chairs through Departmentof Social Security & Empowerment Government of Odisha.

Initiatives for environment protection

Bank has participated in environment protection and energization projects likeproviding solar street lights in Bhupsingh village in Philibhit district Uttara Pradeshdistribution of solar lanterns to 28 tribal families at

Moongilpaliam village Kodaikanal Taluk Tamil Nadu and

2000 tribal families in Uttara Kannada district Karnataka.

Besides the Bank has also extended financial assistance to South Andaman ZillaParishath Port Blair for construction of foot path toilets; M/s Mulki Sunder Ram ShettyTrust for construction of Community centre in Mulki village Dakshina Kannada districtKarnataka and installed RO drinking water plant at Lepakshi Veerabhadra swamy TempleLepakshi Andhra Pradesh for the benefit of the public.

Visits by Parliamentary Committees

During the year Parliamentary Committees relating to Commerce Human ResourcesDevelopment Urban Development Industry Official Language Transport Tourism &Culture and prevention of Corruption (Amendment) Bill 2013 visited the Bank.


Branch Network

Expanding Pan India Presence

The Bank has further expanded its branch network in 2015-16 by adding 175 domesticbranches and one foreign branch in Dubai International Financial Centre Dubai. As atMarch 2016 the Bank had 5849 branches including 8 overseas branches.

Composition of Branch Network

No. of Branches
Category 31.03.2015 31.03.2016 Opened during the year
Metropolitan 1004 1019 21
Urban 1111 1142 30
Semi-urban 1756 1815 62
Rural 1804 1865 62
Overseas 7 8 1
Total Branches 5682 5849 176*

* 9 branches merged/closed during the year.

There were 282 Specialized Branches as at March 2016 in various categories as under:

Categories of Specialized Branches 31.03.2016
1. SME 165
2. Mid Corporate 26
3. Micro Finance 18
4. Asset Recovery Management 16
5. Prime Corporate 12
6. Overseas 11
7. Agri-Finance 10
8. NRI 6
9. Savings 5
10. Industrial Finance 3
11. Stock Exchange 2
12. Capital Market 1
13. Mahila Banking 2
14. Branch for Physically Challenged 1
15. Specialized Govt Business Branch 4

Progress in Alternate Delivery Channels

During 2015-16 the Bank added 718 ATMs taking the total number of ATMs to 9251. TheBank’s debit card base rose to 3.19 crore compared to 2.54 crore as at March 2015.

The Bank opened 170 hi-tech E-lounges in select branches with facilities like ATM CashDeposit Kiosk with voice guided system Cheque Deposit Kiosk Self Printing PassbookKiosk Internet Banking Terminal Online Trading Terminal and Corporate Website Access.Interactive Video Conference System is configurated at select e-Lounges. Pass-BookSelf-Printing Kiosks has been enabled in 1398 branches.

As a result of various alternate delivery measures adopted by the Bank e-transactionratio increased to 54.21% as at March 2016 compared to 50.21% last year.

Customer-friendly InfoTech Initiatives

During the year the Bank introduced and improved upon several tech-products / servicesfor the convenience of the customers.

• Improved Mobile Applications such as CanMobile Canara e-InfoBook and Canaram-Wallet to provide more convenience and facilities to customers. Customers can nowdownload register and activate CanMobile without visiting a Branch or ATM.

• Upgraded Internet Banking by providing a number of new features betternavigation and refreshed look.

• Implemented Social Security Schemes of Govt. of

India. Facility to subscribe these schemes provided to the customers through multiplechannels. viz. Branches ATMs and Internet Banking.

• Implemented Digital Life Certificate (Jeevan Praman) for Pensioners. Pensionersneed not to be physically required to be present in the Branch for this purpose.

• Implemented Proactive Risk Manager system for ATM and POS channels with morerobust security for transactions through these channels.

• Enabled the facility of closure of Term Deposit through Internet Banking.Customers can now open and close term deposits without visiting Branches.

• Provided e-KYC facility at its Branches. The Customers with Aadhaar number neednot bring any KYC document and can get their KYC formalities done by just swiping theirFinger on Biometric Device in a Branch. The Customer details are verified from UIDAI.

• Provided facility of Foreign Inward Remittance through IMPS.

• Released Online Instant Loan portal for Housing and Car Loan where applicantswill get instant in-principle sanction letter based on the information provided.

Bank is in the process of implementing a number of digital initiatives for customerconvenience and better service.

Compliance to International Standards

The Bank has fully implemented the recommendations of the RBI Working Group (ChairmanShri G Gopalakrishna) on Information Security Electronic Banking Technology RiskManagement and Cyber Frauds. The Bank obtained the ISO 27001: 2013 Certification on12.04.2014.

Manpower Profile

As at March 2016 the Bank had 54008 employees on its rolls.

March 2015 March 2016
Total No. of Employees 53984 54008
Officers 23372 24174
Clerks 20268 20194
Sub-Staff* 10344 9640

* includes part-time employees (PTEs)

The Bank’s staff comprised 45% Officers 37% Clerks and 18% Sub-Staff. Womenemployees comprising 15729 constituted 29% of the Bank’s total staff. The totalnumber of ex-servicemen staff as at March 2016 stood at 3499. There were 1175 PhysicallyChallenged Employees on the rolls of the Bank.

During the year the Bank recruited 3747 persons in various cadres out of which 634belonged to Scheduled Castes (SCs) and 309 to Scheduled Tribes (STs) categories. 344ex-servicemen were recruited in various cadres during the year.

1178 women employees were recruited and 622 women employees were promoted under variouscadres during the year.

Reservation Policy in respect of Scheduled Castes and Scheduled Tribes

As at March 2016 the number of Scheduled Castes and Scheduled Tribes togetherconstituted 26.99% of total staff strength of the Bank. The composition of SCs/STsemployees in the Bank as at March 2016 was as under:

Cadre Scheduled Castes Scheduled Tribes
Officers 4282 1783
Clerks 3832 1236
Sub-staff + PTEs 2921 521
Total 11035 3540

The Bank has been strictly adhering to the Reservation Policy in respect of ScheduledCastes and Scheduled Tribes as per the Govt. of India guidelines.

(a) Reservation Policy is implemented through mechanism of Post Based Rosters. In termsof the directives of the Ministry of Finance Government of India Bank has switched overto Post Based Rosters for all cadres.

(b) The Bank has been extending Reservation/ Relaxations/Concessions in DirectRecruitment as well as in promotions to candidates belonging to Scheduled Castes andScheduled Tribes as per the Govt. of India guidelines.

(c) Pre-recruitment and pre-promotion training is given to candidates belonging toScheduled Castes and Scheduled Tribes. In the Advertisement inviting application from theeligible candidates for recruitment to Clerical cadre a specific reference is made withregard to imparting of pre-recruitment training to candidates belonging to SC / ST / PWD/Minority Communities / Ex-SM. Pre-recruitment training for Officer Cadre is provided tocandidates belonging to SC / ST & Minority Communities. Such of those candidates whoopt for pre-recruitment training will be given training to prepare themselves for writtentest as well as interview. The duration of the training is for a week. Study materialsnote books stationeries are provided free of cost to all the participants.

(d) The Bank has setup SC/ST Cell at the Head Office and also at Circle Offices toensure maintenance of Rosters and proper implementation of other aspects of ReservationPolicy.

(e) Chief Liaison Officer has been nominated at Head Office and Liaison Officers havebeen nominated at Circle Offices for ensuring implementation of Reservation Policy.

Further representations received from Scheduled Caste / Scheduled Tribe employeeseither directly or through the SC/ST Associations are looked into by the LiaisonOfficers/Chief Liaison Officer. Wherever required necessary enquiries are conducted andappropriate action is taken. A separate register is maintained for recording variousrepresentations received from Scheduled Caste/Scheduled Tribe employees and the actiontaken is also recorded in the register.

In addition to the above the representatives of majority Scheduled Caste / ScheduledTribe Employees’ Association are invited for Quarterly Meeting with the ChiefExecutive of the Bank to discuss on the implementation of guidelines on reservationpolicy. Quarterly Meetings are also held at Circle Offices where Rosters are maintainedand grievances if any are redressed by the Liaison Officer.

(f) The Board of Directors of the Bank also review the progress made in theimplementation of Reservation Policy half yearly and yearly.

Human Resource Development (HRD) Activities

The HR policies of the Bank have been revisited to suit the changing banking scenario.HR initiatives like ‘Soft skill training programme’ for bringing attitudinalchange among frontline staff and Executives grooming through reputed institutes and othersignificant HR tools like Study Circles Staff Meetings and Brain Storming Sessions havebeen implemented for effective team building and fostering collective excellence. VariousCorporate Communications were brought out to boost the morale of the employees and educatethem in various facets of banking.

The Bank has in place an exhaustive training process that cover Internal TrainingExternal Training In Company Training and Foreign Training. Internally the Bank hasStaff Training College at Bengaluru and 23 Regional Staff Training Colleges across thecountry.

The Bank trained 77455 employees during the year covering a wide range of functionalareas including Credit Orientation Marketing Skills Induction Programme for OfficersAEOs and Specialist Officers. Out of the trained staff 15352 personnel belonged to theScheduled Caste category and 5220 belonged to the Scheduled Tribe category. The totalemployees trained include 24943 women employees. The Bank designed and implemented severalnew training programmes including Fraud Awareness and Prevention Compliance and beyondCore banking.

Under a novel programme viz. Talent Bank the Bank is providing opportunities forgeneralist officers to assume the role of specialists in 10 identified streams.Establishing a proper Talent Management and Reward System will be the Bank’s focus inthe coming years. There will be concerted efforts to identify potential leaders and groomthem to take up higher responsibilities.

Further the Bank’s quest to enhance the competencies of the workforce continuedthrough focused and need based trainings at various institutes of repute like IIMsJNIBF ISB XLRI and NIBM etc. Customized programmes are also organized to developexpertise in certain niche areas like Credit Risk Management Treasury Operations andIT.

Specialized trainings to the Senior Management Level/ Top Management Level Executiveswere conducted based on the requirement. The Bank has been able to add substantially tothe skill level of its officials through training intervention and motivating them toperform with renewed vigour and enthusiasm.

A Sub-Committee of the Board of Directors on HR is in place to review and improvise theexisting HR policies and make suggestions to accelerate the employee engagementinitiatives.

Changes brought about in the organizational set up

Further keeping in view the increased business complexities and the need for impartingmore focus on certain key functional areas the reorganization/ realigning functions ofWings at Head Office and Circles was undertaken. Post re-organization there were 22

Wings at Head Office apart from Compliance Department and Corporate CommunicationsDepartment.

In the previous year the Bank had launched Project ‘Shikhar’ aimed atrejuvenating the Bank by focusing on several themes like energizing branches andcustomer service increasing sales from branches growing a robust asset base andrevamping the operating model. Global Management Consulting firm viz. M/s BostonConsulting Group (India) Private Limited (BCG) assisted the Bank in this transformation.

In the journey of transformation of branches 700 branches of the Bank were transformedas ‘Shikhar Branches’ with 75 branches under star 5 category and 38 under star4 category as at March 2016.

Marketing and Publicity

The Marketing Vertical played a significant role in improving the CASA share FeeIncome from Associate Party Business wallet maximization and propagating the multifarioustechnological products and services for the benefit of the customers.

The Bank further strengthened marketing vertical during the year by inductingspecialized personnel into the setup with the support of marketing sections in all CircleOffices overseen by dedicated Marketing Executives and lead management system. Marketingset up has taken initiatives in cross selling and up selling of Bank’s products bylaunching several campaigns during the year.

The Bank also launched publicity campaigns for its several new products and servicesintroduced during the year and used effectively all channels of communication includingadvertising social media and marketing collaterals to enhance its brand image.

Customer Orientation

Several initiatives were taken to remain customer focussed through providing fastservice bringing in diversified products/services responding to customers’ queriesand redressal of customer complaints. The ‘Code of Commitment to Customers’issued by Banking Codes and Standards Board of India (BCSBI) and ‘RevisedCitizen’s Charter’ of IBA is available in Bank’s website. As per theinstructions of IBA and RBI the Bank has adopted the newly formulated ‘CustomerRights Policy of RBI’ since July 2015 which spells out the Rights of the Customersand also responsibilities of the Banker. To assess the quality of customer servicerendered by the branches and to get the feedback "Customer Satisfaction SurveyForm" is available in the Bank’s website <>. Furtherduring the year the Bank has undertaken the customer satisfaction survey through anExternal Agency to assess the level of customer service and customer satisfaction acrossthe Country. Customers’ fortnight was conducted from 16.11.2015 to 30.11.2015 toinvite suggestions. In order to enhance customer focus ‘Project Shikhar’ forbranch transformation was implemented during the year with various customer centricinitiatives introduced like Welcome Desk Queue Management System Single WindowOperation and allocation of larger space for ‘Customer Waiting Area’ along withself-service kiosks were put in place.

As per Damodaran Committee Recommendations the Bank has appointed the Chief CustomerService Officer (CCSO) who acts as an Internal Ombudsman of the Bank.

Call centre with single point contact toll free number <18004250018> isfunctioning to cater to customers in 6 regional languages such as Bengali KannadaMalayalam Marathi Tamil and Telugu besides Hindi and English for redressal ofgrievances. The number of calls received by the Call Centre during the year was 23.10lakhs and percentage of complaint redressal is 100%.

The Bank has implemented online grievance redressal facility of customers in thewebsite for lodging grievances online under the portal "Canara Public GrievanceRedressal System" (CPGRS). The complaints received at Call Centre were alsointegrated with CPGRS package. During the year Call Centre registered 4432 grievances inCPGRS and all grievances were redressed as per prescribed time norms. Centralized PensionProcessing Cell has been functioning exclusively for handling pensions and resolvingpension related grievances. 41 Central Processing Centres were established at selectedplaces for account opening purposes.

During the year ‘Town Hall Customers Meets’ were conducted at Bhopal MadhyaPradesh and Sakleshpur Belur and Chickballapur in Karnataka in association with theBanking Ombudsman RBI and Banking Codes and Standards Board of India (BCSBI).

Systems and Procedures

Risk based Internal Audit (RBIA) was conducted in 4162 branches / units programmed foronsite RBIA during the year. Information Security audit was conducted along with RBIA.Concurrent/continuous audit was conducted in 825 branches/service units of which 275branches / units were subjected to concurrent/continuous audit by internal auditors and650 branches / service units were subjected to concurrent audit by external auditorscovering 70% of the total business of the Bank. 2321 branches were subjected toincome/revenue audit which included branches identified for income audit on quarterlybasis.

The web based package for RBIA was further strengthened with enhanced new version. Planfor computerization of Concurrent Audit of branches and Offices is on the offing.

The Bank ensured full implementation of the recommendations of the Committee onInternal and Concurrent Audit Systems in Public Sector Banks under the Chairmanship ofShri Basant Seth.

The Bank introduced a unique audit system called "Stress Audit" coveringLarge Borrowal Accounts under Standard Asset Category to identify early warning signalsand to take remedial measures. The Stress Audit is first of its kind in Indian bankingindustry. The Bank also conducted Audit on specific themes like functioning of RetailAsset Hubs pan India to evaluate their efficacy towards better customer service. Offsitemonitoring has been further strengthened to have an oversight over the transactions on anear real time basis.

Risk Based Supervision (RBS)

The Bank has been brought under Risk Based Supervision (RBS) regime by the RBI in lieuof Annual Financial Inspection (AFI) from the Financial Year 2014-15. Pesently it hascompleted the 2nd cycle of RBS. RBS framework is named as Supervisory Program forAssessment of Risk and Capital (SPARC). Under SPARC a detailed qualitative andquantitative assessment of the Bank’s risks is made by the RBI on an on-going basisthrough a combination of Offsite and onsite Risk Discovery process (RDY).

Know Your Customers (KYC)

The Bank took various measures for the effective implementation of guidelines on KnowYour Customer (KYC) Anti Money Laundering (AML) and Combating Financing of Terrorism(CFT).

Some of the major achievements and initiatives taken were as under:

• System checks/enhancements are put in place to ensure compliance to guidelineson KYC/AML/CFT.

• Branch staff were sensitized by way of issuance of guidelines and periodicaltraining.

• Nodal Executives for KYC/AML/CFT at the Bank’s Circle Offices weresensitized on guidelines by arranging workshops.

• Around 3 crores alerts were processed during the year.

• A robust Offsite Transaction Monitoring System (the third eye supervision)introduced which monitors the transactions off-site on a near real time basis throughdesktop audit by leveraging Core Banking Solution (CBS).

Vigilance Setup

The Vigilance Wing of the Bank is headed by Chief Vigilance officer (CVO) in the rankof General Manager. The CVO is assisted by Executives and other Officials in the Wing atHO and Vigilance Officers stationed at Head Office all Circle Offices RRBs sponsored byBank and Subsidiaries of the Bank. The CVO acts as an advisor to the Chief Executive inall matters pertaining to vigilance. He also provides a link between the Bank and theCentral Vigilance Commission on one hand and the Bank and the Central Bureau ofInvestigation on the other.

Vigilance functions in the Bank can broadly be divided into three parts viz. (i)Preventive vigilance; (ii) Punitive vigilance; and (iii) Surveillance and detection. Thesefunctions are interlinked with the objective of the Bank to achieve sustainable andequitable growth. Vigilance functions are primarily aimed at achieving the objective ofnurturing and promoting corruption-free fair and healthy work environment in the Bank.These goals are pursued and promoted through various initiatives taken by the VigilanceWing throughout the year.

A special campaign of disseminating awareness on vigilance matters was undertakenduring "Vigilance Awareness Week" celebrated by Bank from 26th October 2015 to31st October 2015. Various functions at school/ colleges were organised by Circles andBranches at identified centres during the week to promote vigilance awareness atgrass-root level and highlight the vigilance theme of the year "Preventive Vigilanceas a Tool of Good Governance". Other Branches and Circles of the Bank organisedvarious functions during the week long campaign.

In concluding function at HO a talk was organised on 31st October 2015. Sri T M BhasinVigilance Commissioner CVC addressed the gathering at Head Office.

The Bank was conferred with "Vigilance Excellence Award" for consecutively3rd year instituted by M/s Institute of Public Enterprise Hyderabad in commemoration ofcelebrating the Golden Jubilee year of the Institute with a view to promote excellence inthe field of Vigilance in all the Central and State Level Public Sector Enterprisesnationalised Banks and other Financial Institutions.

Security Arrangements

Out of 5841 branches and 99 currency chests in 47 Circles the Bank identified 54Branches as High Risk 1583 Branches as Medium Risk and 4204 as Low Risk. These Brancheswere periodically visited by Security Officers as per statutory guidelines. All thesensitive currency chests were visited by the Chief Security Officer/Circle SecurityOfficers during the year.

The following measures were initiated based on the instruction from RBI and StatePolice Authorities.

a) All branches are provided with CCTVs. 7858 ATMs are provided with standalone CCTV inaddition to the inbuilt CCTV in the equipment.

b) 1729 ATMs are guarded with private Security Guards based on the threat perceptionand local police directions.

Ambience Improvement

Under ‘Project Shikhar’ layout and ambience of 700 branches (ShikharBranches) transformed for single window service implemented through Queue ManagementSystem.

Right to Information

Under the Right to Information Act 2005 an exclusive Right to Information Act outfitis functioning to provide information and bring transparency. As per the requirement ofthe RTI Act the Bank has nominated Public Information Officers and Appellate Authoritiesat Head Office and in all its 47 Circle Offices to provide information to the applicants.During the year the Bank received 2938 RTI applications 527 First Appeals and 113 SecondAppeals as per the provisions of RTI Act 2005.

Implementation of Official Language

The Bank made noteworthy progress under the implementation of official language and wonmany prizes at various levels during the year under review.

As at March 2016 around 98% of employees have obtained working knowledge in Hindi andthe Bank has notified 3300 Branches under Rule 10(4) of OL Rules 1976. All the employeesof the Bank possessing working knowledge of Hindi have been trained in functional Hindithrough Hindi workshops. During the year under review Bank has conducted 384 refreshertraining programmes for such employees.

In the sphere of using Information Technology in the Official Language the Bank hasfurthered the use of Unicode package for word processing and also made provision in ATMscreens of the Bank for carrying transaction in 10 Indian languages. Apart from Hindi andEnglish transaction slips can be obtained in Malayalam Tamil Telugu Kannada Punjabiand Marathi from ATMs (Transactions done in concerned language). Tele-banking facility hasalso been provided in Hindi and English and other 6 major regional languages. TheBank’s corporate website is in bilingual. The Bank is also giving SMSs in Hindi toall its customers on special occasions.

With effect from 1st July 2011 Bank has provided Hindi option in Core Banking System.The Bank’s bilingual address booklet CANPATHA is made available to all branches andoffices in electronic form. Hindi option provided in Mobile Banking platform e-Infobookand Internet Banking portal.

To encourage effective implementation of Official Language in the Bank 238 prizes weregiven to Branches Circles Staff Training Colleges and Sections of Head Office under theaward Scheme formulated by the Bank viz. Canara Bank Rajbhasha Akshay Yojana and 148employees were awarded under Rajbhasha Puraskar Yojana. Bank has also conducted Annual"All India Hindi Essay Competition" for its employees and cash prizes were givento prize winners.

Half Yearly Hindi journal "Canarajyoti" – 15th & 16th issues werebrought out during the year. The 15th issue was released by MD&CEO Shri Rakesh Sharmaduring Hindi Day Celebration 2015 at Head Office Bengaluru and 16th issue was released byDr. V. K. Malhotra Director (Rtd) Dept. Of OL Ministry of Railways GOI. Canarajyoti isbrought out to encourage original writing in Hindi. This publication contains articles onbanking related subjects as well as Poetry Short Stories Travelogues written in Hindi byemployees of the Bank.

The 33rd All India Conference of OL Officers of the Bank was held at Regional StaffTraining College Gurgaon on 10th and 11th March 2016.

During the year the Third Sub Committee of Parliamentary Committee on OfficialLanguages had inspected the Bank’s Kullu Branch (Shimla Circle Office) KhajurahoBranch (Bhopal Circle Office) and Ajmer Main Branch (Jaipur Circle Office). Besides thisthe Drafting and Evidence Sub-Committee of the Parliamentary Committee on OfficialLanguage had inspected our Delhi Circle Office and Head Office Bengaluru. The Committeelauded the efforts put in by the Bank in the field of Official Language implementation.The Bank is convening the Town Official Language Implementation Committees of BengaluruAgra Coimbatore and Thiruvananthapuram.

Official Language Implementation Committees are constituted in all the branches of theBank as per the Government guidelines to propagate the progressive use of Hindi.

The Bank received the following important awards / accolades in recognition of theimplementation of the official language.

• IInd prize under Rajbhasha Kirti Puraskar Yojana for effective implementation ofOfficial Language in Region "C" for the year 2014-15. The award received by ourExecutive Director Sri P S Rawat from Honble President of India on 14.09.2015 at VigyanBhavan New Delhi.

• Encouragement Prize under Region "C" by RBI under RBI Rajbhasha ShieldYojana.

• Sri G Ashok Kumar Sr. Manager Bengaluru Circle Office received 3rd Prizeunder "Rajbhasha Gaurav Puraskar Yojana" for the year 2014-15 from Hon’blePresident of India on 14.09.2015 at Vigyan Bhavan New Delhi’.

Promotion of Sports

The Bank has always encouraged and supported sports and contributed generously to thesporting activities all over the country by sponsoring tournaments and providingscholarship to talented sports personalities. A Sports Council at Head Office was set upin the year 1982 to monitor and encourage sports in the Bank.

The Bank has teams in 6 disciplines as under.

Athletics Women 4 Members
Ball Badminton Men 3 Members
Cricket Men 16 Members
Hockey Men 13 Members
Shuttle Badminton Men 2 Members
Table Tennis Men 3 Members

International Sportspersons in the Bank fold are Shri B K Venkatesh Prasad and ShriSunil B Joshi (Cricket) Smt. M K Asha Smt. Suma Gopalakrishna (Athletics) and Smt. H MJyothi (Presently International Athlete) Shri P Shanmugam Shri Bharath Kumar Chetri(Captain Indian Hockey Team London Olympics-2012) and Shri K M Somanna (Senior-Hockey)Shri K P Dinesh (Junior-Hockey) Shri D Guruprasad Shri Vineet Manuel (Shuttle Badminton)and Shri Nitin V Thiruvengadam (International Table Tennis Player). Some of the abovesportspersons have earned laurels while representing the Bank in tournaments/competitionsat the State/ National level.

During the year Smt. H M Jyothi secured Gold Medal in the 100 Meters Individual eventin the National Senior Athletic Championship held at Chennai. She also secured BronzeMedal in the 100 Meters Individual event in the National Senior Athletic Championship heldat Kolkata. She is the only Athletic from all the Public Sector Banks who is one amongthe fastest three sprinters in the country at the moment. The Bank’s Cricket Team wasRunner-up in the State Level T-20 Cricket tournament held at Mysuru. Shri D Siva KumarRepresented Andhra Pradesh State Cricket Team in the Ranji Trophy. During the year Shri DGuruprasad secured Bronze Medal in the National Ranking Senior Shuttle Badmintontournaments held at Kakinada Andhra Pradesh and Kolkata. Shri Vineeth Manuel securedBronze Medal in the Bahrain International Series/Challenge held at Bahrain and reached upto Pre-Quarter Finals in the Syed Modi International Shuttle Badminton Grand Prix held atLucknow. He also secured his maiden entry into All England Badminton Championship atBirmingham United Kingdom during 2015-16. Shri Hemanth M Gowda was winner of Senior SouthZone Shuttle Badminton Championship held at Puducherry. Shri Nitin V Thiruvengadam wasshortlisted by the Table Tennis Federation of India for advanced training programme atGermany & Netherlands. The Bank’s Hockey Team won 7th All India Lakshmi AmmalHockey Tournament held at Kovilpatti Tamil Nadu. The Bank’s Table Tennis Team wasranked 1st in Karnataka during 2015-16.

Apart from the teams at the Head Office the Bank is also encouraging sports at theCircle level by allotting annual budget for sports activities and sports competition foremployees monitored by the Circle Sports Council. More than 50 % of the Banks sportspersons are representing the State in their respective sports discipline.


Canara Bank with an objective of offering ‘One Stop Banking’ facilities forthe customers forayed into diversified business activities by opening subsidiaries duringlate 1980s. Today the Bank functions as a ‘Financial Supermarket’ with as manyas nine subsidiaries/ sponsored entities/ joint ventures in diversified fields. All thesubsidiaries / sponsored entities/joint ventures of the Bank recorded satisfactoryperformance during the year 2015-16.


Canfin Homes Limited a sponsored entity of Canara Bank is one of the premier housingfinance entities in the country. The Bank’s stake in the Company is at 43.45%. For FY2015-16 the Company has sanctioned loans amounting to Rs.4418 crore and disbursed loansamounting to Rs. 3922 crore. The loan outstanding was at Rs. 10643 crore as on 31.3.2016.The Company earned a profit after tax of Rs. 157.11 crore against Rs. 86.24 crore in theprevious year with a growth of 82%. The Company has declared 100% dividend for the year2015-16.


Canara Bank Securities Limited is a wholly owned subsidiary of the Bank. The Companyoffers stock broking services to both institutional and retail clients. Online TradingCounter for retail customers is its flagship product and has diversified into CurrencyDerivatives with a clientele base of 39352. The Company has posted a profit after tax ofRs. 5.97 crore for the year 2015-16. The Company has declared a dividend of 12% during theyear.


In the year 2007 Canara Bank divested 49% of its stake in Canbank Mutual Fund infavour of M/s Robeco Groep N V and formed a Joint Venture (JV) for managing the assetsunder Canara Robeco Asset Management Company Limited. The Bank’s share in the JV isat 51%. Total Assets under management was at Rs.7526 crore with investor base of 6.12lakhs. The Company is currently managing 29 Mutual Fund Schemes including Gold ETF. TheCompany posted a net profit of Rs.15.20 crore for the year 2015-16 and has declared adividend of 10%.


Canbank Factors Limited is a factoring subsidiary of the Bank with a 70% stakeholding.During 2015-16 the Company has achieved a total business turnover of Rs. 3119 crore. TheCompany has earned profit after tax of Rs. 2.24 crore for the year 2015-16. The Companycontinues to enjoy the highest rating of "A1+" by CRISIL for its Short Term DebtProgramme.


A life insurance Joint Venture (JV) was floated by the Bank in association with HSBCInsurance (Asia Pacific) Holding Limited and Oriental Bank Commerce in the year 2007. TheJV commenced its business operations from 16.06.2008. Canara Bank holds majorityshareholding of 51% followed by 26% by the HSBC and 23% by the Oriental Bank of Commerce.During the year the Company recorded new business premium of Rs. 859 crore and grosspremium of Rs.2045 crore. The Company achieved a statutory profit of Rs.126 crore for theyear 2015-16.


Canbank Venture Capital Fund Limited is the Trustee and Manager of Canbank VentureCapital Fund and a wholly owned subsidiary of the Bank. The Company has managed 5 funds sofar with total assets under management of Rs. 553 crore. The latest fund is the EmergingIndia Growth Fund with corpus of Rs. 436 crore. CVCFLhas been appointed by the Departmentof

Electronics and Information Technology Govt. of India to manage the ElectronicDevelopment Fund with a corpus of Rs. 2200 crore. The Company recorded a profit after taxof Rs.4.88 crore for the year 2015-16 and has paid a dividend of 1000%.


Canbank Computer Services Limited is the only Software Company promoted by a PublicSector Bank in the country with a majority 69.13% held by the Bank. The Company isprimarily engaged in IT and Software development services BPO services Any Time Payment(ATP)/ATM services training / consultancy and Registrar & Share Transfer agency. TheCompany has achieved the profit after tax of Rs.6.57 crore for the year 2015-16 anddeclared a dividend of 50%.


Canbank Financial Services Limited is confining its activities to legal matter arisingout of past transactions in securities besides concentrating on collection of leaserentals and recovery of dues under decreed accounts.


CIBL a joint venture of Canara Bank and State Bank of India has been operationalsince April 2004 in Moscow Russia. The Company earned a profit after tax of US$3.94million for the year ended 31st March 2016.

Regional Rural Banks (RRBs)

As at March 2016 the Bank had two sponsored RRBs viz. Kerala Gramin Bank (KGB)covering entire 14 districts of Kerala with 595 branches and Pragathi Krishna Gramin Bank(PKGB) covering 11 districts of eastern Karnataka with 647 branches. Both the RRBstogether have a branch network of 1242 and 515 ATMs of which 32 branches and 103 ATMswere opened during the year.

The aggregate business of the RRBs as at March 2016 stood at Rs. 48008 crorecomprising Rs.24957 crore under deposits and Rs. 23051 crore under advances. Kerala GraminBank with a total business of Rs. 24607 crore ranked 1st amongst RRBs followed by thePragathi Krishna Gramin Bank with Rs. 23401 crore business. Both the RRBs achieved themandated target of 75% of total advances under priority sector lending. Gross NPA and NetNPA levels were below the tolerable level of 5% of their advances.

Both these RRBs were profit making and posted a gross Rs. profit of 398 crore and netprofit of Rs. 188 crore during the year. Their capital adequacy ratios were above themandatory norm of 9%.

The sponsored RRBs are 100% CBS compliant and ahead of their peers under technologyfront with extension of IT based products like Mobile Banking RuPay Debit Cardservices Cheque truncation system eKYC technology Aadhaar enabled services andremittance facilities through NEFT/RTGS to their customers.

Kerala Gramin Bank was awarded as the ‘Best IT Enabled Regional Rural Bank’for the year 2014-15 under Banking Technology Excellence Awards of IDRBT. Pragathi KrishnaGramin Bank has received ‘Best Social Bank-2015’ and ‘Best AgriculturalBank–2015’ awards from ASSOCHAM. PKGB has also bagged ‘Best Technology Bankfor 2015’ Runners-up from the Indian Banks Association (IBA).

Implementation of Financial Inclusion Pradhan Mantri Jan Dhan Yojana (PMJDY) &Social Security Schemes (SSS) in the Sponsored RRBs

The Bank’s sponsored RRBs are extending basic banking services to villages through1041 Business Correspondents (BCs). 22 Financial Literacy Counselling Centers (FLCs) wereestablished by the RRBs and financial literacy camps were also conducted during the year.

Under PMJDY both the RRBs together have opened 9.30 lakh accounts and issued RuPayCards to all the account holders. The Bank’s sponsored RRBs were the first amongstRRBs to implement e-KYC technology and Aadhaar enabled Payment System (AEPS). Togetherthese RRBs had done 10.50 lakh enrollments under the Social Security Schemes.


In recognition of the varied initiatives the Bank was conferred with the followingmajor awards during the year:

• Golden Peacock Business Excellence Award (GPBEA) 2015 by the Institute ofDirectors New Delhi.

• Special Award for the Best Financial Institution – Gold 2015 by theFederation of Karnataka Chamber of Commerce & Industry (FKCCI) Bengaluru.

• Order of Merit for SME Enablement 2014-15 by SKOCH Group.

• ‘SKOCH Achiever Award’ as a top Bank in ‘SME Enablement’ bySKOTCH Group.

• ‘Best Use of Digital and Channels Technology’ award amongst largebanks in IBA Banking Technology Awards 2014-15.

• Best MSME Bank award by Chamber of Indian Micro Small & medium Enterprises(CI MSME).

• "Agricultural and Best Social Bank" award (under large bank category)by ASSOCHAM for its outstanding performance under Agricultural Banking and SocialBanking.

• Global Visa Service Quality Performance Award 2014 for consistent and superioroperating performance.

• Dun & Bradsteet Banking Awards 2015 for Best

Bank under Priority Sector Lending and Best Retail Growth performer amongst the PSBs.

• NationalAwardsforExcellenceinCSR&Sustainability 2015 constituted by WorldCSR Congress under Best Overall Excellence in CSR category.

• Agricultural and Best Social Banking Excellence Award 2015 by ASSOCHAM.

• Best Bank Award for implementation of RSETIs 2013-14 by the Ministry of RuralDevelopment Govt. of India.

• 5th Annual Greentech CSR Gold Award 2015.

• CSR World Congress Award for overall excellence in CSR.

• Golden Peacock Award for ‘Corporate Social Responsibility 2015’ inrecognition of its pioneering work done through CSR initiatives.

• Best Banker Award instituted by Elets Technomedia under "FinancialInclusion" for special focus on Micro Finance & Financial Literacy.

• Pandit Madan Mohan Malaviya Gold Award for the project Canara Sahara a CSRactivity in education and rehabilitation of physically challenged.

• Awarded 36th Rank in Brandz India’s 50 Most Valuable Indian Brands 2015compiled by the research agency Millward Brown and commissioned by WPP Plc a worldwidecommunications service group.

• India’s Most Trusted Brand-2015 under India’s Best Banks Category ina survey conducted by IBC Infomedia & Media Research Group (MRG).

• SKOCH Smart Technology Award 2015.

• Inspiring Workplace Award 2015 (PSBs) instituted by Banking Frontiers inpartnership with M/s. Deloitte.

• Chanakya Award for Excellence in Business Leadership 2016 by the PublicRelations Council of India (PRCI).

• ‘Vigilance Excellence Award 2015-16’ 3rd Best in Banking Sectorinstituted by M/s Institute of Public Enterprise.

• 2nd Prize in Region ‘C’ under Rajbhasha Kirti Pursakar 2014-15.

• Reserve Bank Rajbhasha Shield for effective implementation of Official Languagein Region ‘C’ for the year 2013-14.

• House Journal "Shreyas" won Gold in Photography and Silver in SpecialColumn (English) and Features (English) instituted by the ABC.

• Annual Report won 2nd Runner–up under the category of Public Sector BankingInstitutions for Best Presented Annual Report Awards 2014.

• ICC Corporate Governance & Sustainibility Vision Awards 2016 under PublicSector Banking Institutions instituted by M/s Indian Chamber of Commerce.


There is a system of well-defined policies and procedures of the Bank. During the yearconcerted efforts were made to streamline the policies and procedures of the Bank in thelight of regulatory requirements of the RBI the directions of the Government of India andthe emergent requirements of the Bank in the present day context. Accordingly there hasbeen a sharper focus on policies relating to among others Credit Risk Management MarketRisk Management Operational Risk Management Asset Liability Management Liquidity RiskManagement Group Risk Management Country Risk Counterparty Bank Risk CorporateGovernance Disclosures Collateral Management Stress Testing Compliance FunctionsDisaster Recovery and Business Continuity Planning Business Lines Outsourcing and ICAAPKYC AML Recovery and Investments.


The year 2015-16 saw the following changes in the composition of the Board of Directorsof the Bank.

Changes in the Bank’s Board of Directors during the year 2015 16

Name of the Director Designation Date of Appointment Date of Cessation
Shri V.S. Krishna Kumar Executive Director 04.04.2013 30.04.2015
Shri T.N. Manoharan Part time Non official Director as well as Non Executive Chairman 14.08.2015 Tenure on the Board ending on 13.08.2018
Shri Rakesh Sharma MD & CEO 11.09.2015 Tenure on the Board ending on 31.07.2018
Dr. Rajat Bhargava GOI Nominee Director 26.07.2013 13.12.2015
Shri Pankaj Jain GOI Nominee Director 14.12.2015 01.05.2016
Shri Dinabandhu Mohapatra Executive Director 22.01.2016 Tenure on the Board ending on 21.01.2019

Brief Profile of the newly appointed Directors on the Board of the Bank during 2015-16

Shri T N Manoharan

Shri T N Manoharan has been appointed as the Non-Executive Chairman of the Canara Bankwith effect from 14th August 2015.

Shri T N Manoharan is a Post Graduate in Commerce a Law graduate and a fellowChartered Accountant by profession of 32 years standing. He was the President of theInstitute of Chartered Accountants of India (ICAI) during 2006-07. He is the founderpartner of M/s Manohar Chowdhry & Associates and was associated with Central StatutoryAudit of Corporation Bank and for about two decades with Branch Audits of various PSBssuch as Indian Overseas Bank Punjab National Bank and Indian Bank.

He was the Chairman of the Committee on Education and Centre for Excellence of SouthAsian Federation of Accountants in 2004. He was a member of the International AccountingEducation Standards Board of IFAC during 2006-07 and Chairman of the National Committee onAccounting Standards constituted by the Confederation of Indian Industry (CII) during2009-11.

Shri Manoharan was nominated by the Government of India as a Special Director forrevival of Satyam Company from 2009 to 2012. He was on the Board of the InsuranceRegulatory and Development Authority (IRDA) in 2006.

Shri Manoharan was a Member of the Advisory Board on Banks Commercial & FinancialFrauds (ABBCFF) constituted by the CVC during 2012-14. He was a Member of the AppellateAuthority constituted by the Government with reference to the disciplinary mechanism forCAs during 2011-14. He has authored books for professionals and students on Indian Taxlaw. He was a visiting faculty of renowned Institutions.

Shri Manoharan is a recipient of many awards. He received the "Business LeadershipAward" under the aegis of NDTV Profit in October 2009 and in the Business categorythe CNN IBN "Indian of the year 2009" as part of the Satyam Revival Team. Shri TN Manoharan was conferred the civilian honour "PADMA SHRI" award by thePresident of India on 7th April 2010.

Shri Rakesh Sharma

Shri Rakesh Sharma has been appointed as Managing Director & Chief ExecutiveOfficer of the Bank with effect from the date of his assumption of charge of the post andupto 31.07.2018 i.e. the date of his attaining the age of superannuation or untilfurther orders whichever is earlier vide GOI Notification dated 14.08.2015. He has takenover charge on 11.09.2015.

Shri Rakesh Sharma a Post Graduate in Economics and Certified Associate of the IndianInstitute of Bankers carries with him varied knowledge and multi-dimensional bankingexperience of over three decades covering retail and wholesale banking asset liabilitymanagement loan syndication trade finance international banking and personneldevelopment.

Shri Rakesh Sharma started his banking career in State Bank of India (SBI). In SBI hehandled most of the important portfolios. He was the Head of the Mid-corporate Accounts inAndhra Pradesh region overseeing the Retail Operations in the States of RajasthanUttarakhand and Western U.P. regions. He administered banking operations for InternationalBanking Group (IBG) encompassing consolidation of balance sheets for all the foreignoffices of SBI. He was also in-charge of overall functioning of SBI branches in Japanwhile posted at Tokyo. With his expertise and experience he rose to the level of ChiefGeneral Manager in SBI.

Shri Rakesh Sharma also held the post of MD&CEO of M/s Lakshmi Vilas Bank Ltd.since 7th March 2014 till he took over charge as MD&CEO of Canara Bank.

Shri Pankaj Jain

Shri Pankaj Jain is an Associate of Institute of Cost and Works Accountants and holdsM.B.A Degree. He has been nominated on the Board of SIDBI EXIM Bank IIFCL and IIFC (UK).

Shri Pankaj Jain has also worked earlier in Ministry of Micro Small & MediumEnterprises Government of Assam Government of Meghalaya and Department for InternationalDevelopment.

Presently he is holding the position of Joint Secretary Department of FinancialServices Ministry of Finance Government of India.

Shri Dinabandhu Mohapatra

Shri Dinabandhu Mohapatra joined Bank of India as a Direct Recruit Officer in the year1984. During his career spanning over three decades he has headed various branches anddepartments across the country.

He carries with him vast knowledge and multidimensional banking experience spanningover thirty one years including international exposure as head of Hong Kong and Singaporebranches of Bank of India.

Shri Dinabandhu Mohapatra joined Canara Bank as Executive Director on 22nd January2016. He is presently overseeing International Operations Overseas Credit StrategicPlanning & Development Risk Management Financial Management & SubsidiariesPriority Credit & Financial Inclusion including RRBs& LB Corporate SocialResponsibility MSME Retail Resources Marketing Selling & Cross-selling GovernmentBusiness and Fee Income CDR & Stressed Accounts Wings of the Bank.


The Directors in preparation of the annual accounts for the year ended March 31 2016confirm the following:

• That in the preparation of the annual accounts the applicable accountingstandards had been followed along with proper explanation relating to material departures.

• That they had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Bank at the end of the financial year and of theprofit or loss of the Bank for the period.

• That they had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of applicable laws governing banks inIndia for safeguarding the assets of the Bank and for preventing and detecting fraud andother irregularities.

• That they had prepared the annual accounts on a going concern basis.


The Board wishes to place on record its sincere appreciation to the customers for theircontinued patronage to the shareholders for their support to the Government authoritiesand the Reserve Bank of India for their valuable guidance and support to the Directorswho completed their tenure during the financial year under review to the Bank’sCorrespondents in India and abroad for their co-operation and goodwill and to all theStaff Members for their wholehearted support in the pursuit of organizational growth andexcellence.