Industry Profile

OVERVIEW:
India has a strong and vibrant banking sector comprising state-owned banks, private
sector banks, foreign banks, financial institutions and regional banks including
cooperative banks, rural banks and local area banks. In addition there are non-banking
financial companies (NBFCs), housing finance companies, Nidhi companies and chit
fund companies which play the role of financial intermediaries.
Since the launch of the economic liberalization and global programme in 1991, India
has considerably relaxed banking regulations and opened the financial sector for
foreign investment. India is also committed to further open the banking sector for
foreign investment in pursuance to its commitment to the World Trade Organisation
(WTO).
As monetary authority of the country, the Reserve Bank of India (RBI) regulates the
banking industry and lays down guidelines for day-to-day functioning of banks within
the overall framework of the Banking Regulation Act, 1949, Foreign Exchange
Management Act, 1999 and Foreign Direct Investment (FDI) policy of the government.
The Indian banking system is financially stable and resilient to the shocks that may
arise due to higher non-performing assets (NPAs) and the global economic crisis,
according to a stress test done by the Reserve Bank of India (RBI). Significantly, the RBI
has the tenth largest gold reserves in the world after spending US$ 6.7 billion for the
purchase of 200 metric tons of gold from the International Monetary Fund (IMF). The
purchase has increased RBIs share of gold holdings from approximately 4 per cent to
about 6 per cent.
Following the recent financial crisis, new deposits have gravitated towards the public
sector banks. According to RBI's 'Quarterly Statistics on Deposits and Credit of
Scheduled Commercial Banks: June 2009', nationalized banks, as a group, accounted
for 49.7 per cent of the aggregate deposits, while State Bank of India (SBI) and its
associates accounted for 24.2 per cent. The share of other scheduled commercial
banks, foreign banks and regional rural banks in aggregate deposits were 17.5 per
cent, 5.6 per cent and 2.9 per cent, respectively. With respect to gross bank credit also,
nationalized banks hold the highest share of 50.4 per cent in the total bank credit, with
SBI and its associates at 23.5 per cent and other scheduled commercial banks at 18.0
per cent. Foreign banks and regional rural banks had a share of 5.7 per cent and 2.4
per cent respectively in the total bank credit. The report also found that scheduled
commercial banks served 34,676 banked centers. Of these centers, 28,167 were single
office centers and 62 centers had 100 or more bank offices. The confidence of nonresident Indians (NRIs) in the Indian economy is reviving again. NRI deposits have
increased by nearly US$ 3.7 billion in the first four months of 2009-10, despite the
volatile movements in the interest rates. NRI fund inflows increased since April 2009
and touched US$ 45.33 billion till July 2009, as per the RBI's September bulletin. Most
of this has come through Foreign Currency Non-resident (FCNR) accounts and Nonresident External Rupee Accounts. India's foreign exchange reserves rose to US$
281.861 billion as on October 9, 2009 as against US$ 253.0 billion in April 10, 2009.
India has finalized negotiations for a US$ 2 billion loan from the World Bank to help
recapitalize state-run banks.

State-owned banks
The Indian banking sector is dominated by 28 state-owned banks which operate
through a network of about 50,000 branches and 13,000 ATMs. The State Bank of India
(SBI) in the largest bank in the country and along with its seven associate banks has an
asset base of about Rs. 7,000 billion (approximately US$150 billion). The other large
public sector banks are Punjab National Bank, Canara Bank, Bank of Baroda, Bank of
India and IDBI Bank.
The public sector banks have overseas operations with Bank of Baroda topping the list
with 51 branches, subsidiaries, joint ventures and representative offices outside India,
followed by SBI (45 overseas branches/offices) and Bank of India (26 overseas
branches/offices). Indian banks, including private sector banks, have 171
branches/offices abroad.
SBI is present in 29 countries followed by Bank of Baroda (20 countries) and Bank of
India (14 countries).
Private sector banks India has 29 private sector banks including nine new banks which
were granted licenses after the government liberalized the banking sector. Some of the
well known private sector banks are ICICI Bank, HDFC Bank and IndusInd Bank. Yes
Bank is the latest entrant to the private sector banking industry.
In terms of reach the private sector banks with an asset of over Rs 5,700 billion (about
US$124 billion) operate through a network of 6,500 branches and over 7,500 ATMs.
Foreign banks As many as 29 foreign banks originating from 19 countries are operating
in India through a network of 258 branches and about 900 ATMs. With total assets of
more than Rs 2,000 billion ( about 44 billion US dollars) they are present in 40 centers
across 19 Indian states and Union Territories. Some of the leading international banks
that are doing brisk business in India include Standard Chartered Bank, HSBC Bank,
Citibank N.A. and ABN-AMRO Bank. In addition, 31 foreign banks (as on September 15,
2006) belonging to 14 countries were operating in India through their representative
offices.

Major Developments
A robust increase in non-interest income has helped the SBI post a net profit of US$
530.6 million in the second quarter ended September 30, 2009, up 10 per cent from
the corresponding period last year. The bank has been growing its savings bank deposit
base at the rate of US$ 1.07 billion a month in the last few months, in a bid to grow
low-cost deposits and shed high-cost term deposits. This is expected to improve net
interest margin by 10-15 basis points in every quarter. The SBI is adding 23 new
branches abroad bringing its foreign-branch network number to 160 by March 2010.
This will cement its leading position as the bank with the largest global presence
among local peers.
Amongst the private banks, Axis Banks net profit surged by 32 per cent to US$ 115.4
million on 21.2 per cent rise in total income to US$ 852.16 million in the second quarter
of 2009-10, over the corresponding period last year. HDFC Bank, the countrys second
largest private sector lender, reported a 30.21 per cent rise in its quarterly net profit,
helped by non-interest income.

For the quarter ended September 2009, ICICI Bank reported a 2.6 per cent jump in net
profit at US$ 222.1 million from US$ 216.5 million in the same period a year-back. ICICI
Bank has raised US$ 750 million through a five-year bond issue at its Bahrain branch.
YES Bank, a new private sector bank, has inked pact with Proparco, a French financing
agency, to raise US$ 20 million capital through subordinated bonds to enhance capital
adequacy.
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Foreign banks operating in India:

ABN-AMRO Bank
Abu Bhabi Commercial Bank Ltd
Arab Bangladesh Bank Ltd
American Express Bank
Antwerp Diamond Bank
Bank International Indonesia
Bank of America (5 branches)
Bank of Bahrain & Kuwait
Bank of Nova Scotia
Bank of Tokyo-Mitsubhai UFJ Ltd
BNP Paribas
Bank of Ceylon branch
Barclays Bank Plc
Calyon Bank
Citi Bank N
Shinhan Bank branch
Chinatrust Commercial Bank branch
Deutsche Bank
DBS Bank
HSBC Ltd
JP Morgan Chase Bank N
Krung Thai Bank Public Co
Mizuho Corporate Bank Ltd
Mashreq Bank PSC
Oman International Bank SAOG
Standard Chartered Bank
Sonali Bank
Societe Generale

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Government Initiatives
In its platinum jubilee year, the RBI, the central bank of the country, in a notification
issued on June 25, 2009, said that banks should link more branches to the National
Electronic Clearing Service (NECS). Ideally, all core-banking-enabled branches should
be part of NECS. NECS was introduced in September 2008 for centralized processing of
repetitive and bulk payment instructions. Currently, a little over 26,000 branches of
114 banks are enabled to participate in NECS.

In the Second Quarter Review of Monetary Policy for 2009-10, RBI observed that the
global economy was showing incipient signs of recovery and the prospects for the
domestic economy were improving.
To aid the financial recovery, the RBI has introduced a substantial reduction in policy
rates since October 2008: the repo rate by 425 basis points and the reverse repo rate
by 275 basis points. The CRR was also reduced by 400 basis points.
Banks used the ample liquidity available with them to make large investments in
government securities and also fairly sizeable investments (of the order of US$ 19.59
billion during the current financial year so far) in units of mutual funds.
According to the RBI, the stance of monetary policy for the remaining period of 2009-10
will be to:
Keep a vigil on the trends in inflation and be prepared to respond swiftly and
effectively through policy adjustments to stabilize inflation expectations.
Monitor the liquidity situation closely and manage it actively to ensure that
credit demands of productive sectors are adequately met while also securing
price stability and financial stability.
Maintain a monetary and interest rate regime consistent with price stability and
financial stability, and supportive of the growth process.

Meanwhile, the RBI has restored the Statutory Liquidity Ratio (SLR) back to 25 per cent
on October 27, 2009, which was reduced to 24 per cent in November 2008.
The money supply (M3) growth on a year-on-year basis at 18.9 per cent as on October
9, 2009, remained above the indicative projection of 18.0 per cent set out in the First
Quarter Review of July 2009. The main source of M3 expansion was bank credit to the
government. reflecting large market borrowings of the Government.

Regional banks
Rural areas in India are served through a network of Regional Rural Banks (RRBs),
urban cooperative banks, rural cooperative credit institutions and local area banks.
Many of these banks are not doing well financially and the government is currently
engaged in restructuring and consolidating them. Local area banks were of recent
origin and as on March 31, 2006 four such banks were operating in the country.
Financial institutions India has seven major state-owned financial institutions which
include Industrial Development Bank of India (IDBI), Industrial and Financial Corporation
of India (IFCI), Tourism Finance Corporation of India (TFCI), Exim Bank, Small Industries
Development Bank of India (SIDBI), National Bank for Agriculture and Rural
Development (NABARD) and National Housing Bank (NHB). These institutions provide
term loans and arrange refinance. There are also specialized institutions like the Power
Finance Corporation (PFC), Indian Railway Finance Corporation (IRFC), Infrastructure
Development Finance Company (IDFC) and state-level financial corporations. Nonbanking financial companies
India also has a vibrant NBFC sector comprising 13,000 NBFCs that are registered with
the RBI and fund activities like equipment leasing, hire purchase etc. Out of the total
about 450 NBFCs are allowed by the RBI to collect funds from the public. Large NBFCs
have an asset base of about Rs 3,000 billion (about 65 billion US dollars).

Recent developments:

State Bank of India has acquired 76 per cent stake in Giro Commercial Bank, a
Kenyan bank for US$7 million.
Bank of Baroda is planning to acquire a bank in Africa to consolidate its presence
in the continent.
Canara Bank is helping Chinese banks recover their huge non-performing assets
(NPA).
ICICI bank is in the process of taking over Sangli Bank, a private sector bank
based in Maharashtra.
The RBI has recently allowed the Commonwealth Bank of Australia, Banche
Popolari unite S.c.r.l. (based in Italy), Vneshtorgbank (Russian trade bank),
Promsvyazbank (Russian commercial bank), Banca Popolare di Vicenza (Italian
bank), Monte Dei Paschi Di Siena (Italian bank) and Zurcher Kantonalbank (Swiss
bank) to set up representative offices in India.

GOVERNMENT REGULATIONS:
Although the banking companies are registered under the Companies Act, 1956 they
are regulated by the RBI which grants licence to companies for operating a bank,
opening branches and off site ATMs, fixes statutory liquidity ratio (SLR) and cash
reserve ratio (CRR), and lays down other conditions for day-to-day operations. The RBI
permission is also needed for board level appointments in banks.
With regard to interest rates, individual banks are free to fix rates with the exception of
savings bank rate which is decided by the RBI. The individual banks are free to fix
lending rates.

Company Profile
A. Company Inception:
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal
Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a
small port in Karnataka. The Bank has gone through the various phases of its growth
trajectory over hundred years of its existence. This small seed blossomed into a limited
company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after
nationalization, attaining the status of a national level player in terms of geographical
reach and clientele segments. Eighties was characterized by business diversification for
the Bank. In June 2006, the Bank completed a century of operation in the Indian
banking industry. The eventful journey of the Bank has been characterized by several
memorable milestones. Today, Canara Bank occupies a premier position in the comity
of Indian banks. With an unbroken record of profits since its inception, Canara Bank has
several firsts to its credit. These include:

Launching of Inter-City ATM Network

Obtaining ISO Certification for a Branch
Articulation of Good Banking Banks Citizen Charter
Commissioning of Exclusive Mahila Banking Branch
Launching of Exclusive Subsidiary for IT Consultancy
Issuing credit card for farmers
Providing Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major
'Financial Conglomerate' with as many as nine subsidiaries/sponsored
institutions/joint ventures in India and abroad. As at September 2009, the Bank has
further expanded its domestic presence, with 2802 branches spread across all
geographical segments. Keeping customer convenience at the forefront, the Bank
provides a wide array of alternative delivery channels that include over 2000 ATMs- one
of the highest among nationalized banks- covering 715 centers, 1591 branches
providing Internet and Mobile Banking (IMB) services and 2084 branches offering
'Anywhere Banking' services. Under advanced payment and settlement system, all
branches of the Bank have been enabled to offer Real Time Gross Settlement (RTGS)
and National Electronic Funds Transfer (NEFT) facilities.
Not just in commercial banking, the Bank has also carved a distinctive mark, in various
corporate social responsibilities, namely, serving national priorities, promoting rural
development, enhancing rural self-employment through several training institutes and
spearheading financial inclusion objective. Promoting an inclusive growth strategy,
which has been formed as the basic plank of national policy agenda today, is in fact
deeply rooted in the Bank's founding principles. "A good bank is not only the
financial heart of the community, but also one with an obligation of helping
in every possible manner to improve the economic conditions of the common
people". These insightful words of our founder continue to resonate even today in
serving the society with a purpose. The growth story of Canara Bank in its first century
was due, among others, to the continued patronage of its valued customers,
stakeholders, committed staff and uncanny leadership ability demonstrated by its
leaders at the helm of affairs. We strongly believe that the next century is going to be
equally rewarding and eventful not only in service of the nation but also in helping the
Bank emerge as a "Global Bank with Best Practices". This justifiable belief is

founded on strong fundamentals, customer centricity, enlightened leadership and a

family like work culture. Canara Bank in India has a history of nine decades and is the
largest public sector banks in India. Canara Bank India has a deposit advance base of
Rs.640 bn and Rs 332 bn (figure in the year 2002).

Canara Bank of India has a total of 47,843 employees and is spread with 2409
branches throughout the country. Canara Bank India has an exposure to petroleum,
engineering, infrastructure, factoring, investment management, venture capital, home
finance and securities.
Canara Bank entered Forex arena in 1953 with the opening of its first Foreign Exchange
Department in Mumbai. The Bank has 5 forex dealing rooms located in Mumbai, New
Delhi, Calcutta, Chennai and Bangalore in India and one in London branch. Canbank
provides a wide range of services and products like sale and purchase of 7 world
currencies, swap currency and forward bookings.
"A good bank is not only the financial heart of the community, but also one
with an obligation of helping in every possible manner to improve the
economic conditions of the common people" - A. Subba Rao Pai.
Founding Principles
To remove Superstition and ignorance.
To spread education among all to sub-serve the first principle.
To inculcate the habit of thrift and savings.
To transform the financial institution not only as the financial heart of the
community but the social heart as well.
To assist the needy.
To work with sense of service and dedication.
To develop a concern for fellow human being and sensitivity to the surroundings
with a view to make changes/remove hardships and sufferings.

B. Nature of Business
Since its inception the organization is purely into banking and banking services both
national and international level.

C. Vision, Mission and Quality policy

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

To provide quality banking services with enhanced customer orientation, higher

value creation for stakeholders and to continue as a responsive corporate social
citizen by effectively blending commercial pursuits with social banking.
CORPORATE OBJECTIVE:
E- Efficiency.
P- Profitability and Productivity.
O- Organization Effectiveness.
C- Customers centric
H- Hi Tech Banking
Quality Policy:
In the present scenario of competitive banking, excellence in customer service is the most
important tool for sustained business growth. Ever since inception our Bank has attached high
priority to customer satisfaction. Over the years, steps have been taken to come out with a
number of initiative aimed at achieving high standards of customer satisfaction and complaint
free branch network. Customer complaint is part of the business life of any corporate entity. As
a service organization, customer service and customer satisfaction is the prime concern of the
Bank. We believe that providing prompt and efficient service is essential not only to attract new
customers, but also to retain existing ones. This policy document aims at minimizing instances
of customer complaints and grievances through proper service delivery and review mechanism
and to ensure prompt redressal of customer complaints and grievances. The review mechanism
will help in identifying shortcomings in product features and service delivery.
The Bank's policy on Grievance Redressal follows the under noted principles:

Our customers will be treated fairly at all times.

Complaints raised by our customers will be dealt with courtesy and in time.
Our customers will be fully informed of avenues to esacalate their complaints/grievances
within the organization and their rights to alternative remedy, if they are not fully
satisfied with the response of the bank to their complaints.
Our Bank will treat all complaints efficiently and fairly as they can damage the Bank's
reputation and business if handled otherwise.
Our employees will work in good faith and without prejudice to the interests of the
customer.

In order to make Bank's redressal mechanism more meaningful and effective, a structured
system will function at Branches/Circle Offices/Head Office, which will ensure that redressal
sought is just and fair and is within the given frame-work of rules and regulation.
This policy document will be made available at all branches. All the employees will be made
aware about the complaint handling process to ensure better customer service and general
awareness in the Bank.
1.1 The customer complaint arises due to:
a. The attitudinal aspects in dealing with customers.
b. In adequacy of the functions/arrangements made available to the customers or gaps in
standards of services expected and actual services rendered.
The customer is having full right to register his complaint if he/she is not satisfied with the
services provided by the Bank. He/she can give his/her complaint in writing, orally or over
telephone. If customer complaint is not resolved within given time or if he/she is not satisfied
with the solution provided by the bank, he/she can approach Banking Ombudsman with his/her
complaint or other legal avenues available for grievance redressal.

2. Internal Machinery to handle customer complaints/grievances

a. If the customer wants to make a complaint, we will inform:

Where to make complaint.

How a complaint should be made.
When to expect a reply.
Whom to approach for redressal.
What to do if customers are not happy about the outcome.

b. The Bank will inform customers where to find details of procedures for handling
complaints fairly and quickly.
c. If the customer complaint is received in writing, we will endeavour to send an
acknowledgement/a response within a week. If customer complaint in relayed over
phone at our designated telephone helpdesk or customer service number we shall
provide a complaint reference number and keep customers informed of the progress
within a reasonable period of time.
d. After examining the matter, we will send our final response or explain why we need more
time to respond and shall endeavour to do so within 30 days of receipt of complaint and
will tell customers to take their complaint further if they are still not satisfied.

COMPLAINT REDRESSAL MECHANISM IN OUR BANK (Internal Machinery)

AT BRANCH
Resolution of Grievances
Branch Manager will be responsible for the resolution of the complaints/grievances in respect of
customer's service by the Branch. He/she would be responsible for ensuring closure of all
complaints received at Branches. It is his/her foremost duty to see that the complaint should be
resolved completely to the customer's satisfaction and if the customer is not satisfied, then he
shall be provided with alternate avenues to escalate * the issue if the same is not resolved
within the stipulated period. If the Branch Manager feels that is not possible at his/her level to
solve the problem he/she may refer the case to Regional or Circle Office or Head Office for
guidance. Similarly, if Regional Office/Circle Office finds that they are not able to solve the
problem such cases may be referred to the Nodal Officer of the Bank.
* Grievance Escalation System is provided in Page No.5 for the convenience of the customers

Suggestion Box and complaint Book are provided in all the branches. Any written
complaint is instantly and promptly acknowledged.

All branches other than small branches have May I help you counters ".

Counter staff are provided with training and additional inputs.

If counter staff/Supervisor is unable to resolve a grievance, the branch in-charge

intervenes and tries to resolve the issue.

Customers' Day is observed on 15th of every month. On this day branch in-charge will
make himself available at the branch between 3 p.m. and 5 p.m. to meet customers
without any prior appointment.

Customer Service Committee meetings is held every month at all Branches, Circle
Offices. The sole task of the Committee is to find out ways and means to render service
to the satisfaction of the Customers. For this purpose Committee will meet regularly at
stipulated intervals to discuss in detail the strengths and deficiencies of the services
presently rendered and take steps to improve it.

Special Customers' Meet is conducted on special occasions.

Every year, Customer Fortnight is observed to create awareness among Public as well as staff
for achieving the objective of Complaint free branch network and also highlight our products
and services.
AT REGIONAL OFFICE/CIRCLE OFFICE

Divisional Manager / Assistant General Manager hold exclusive charge of Customer

Service Section at Regional Office/Circle office.
By and large, complaints are redressed within shortest possible time.
Whenever it is not possible and more cross checking is required, steps are taken to settle
the matter within a reasonable time.
Divisional Managers(O) / Assistant General Manager(O) visit branches periodically and
submit a report on Customer Service, as per the detailed checklist.
Divisional Manager / Assistant General Manager in-charge of Customer Service Section,
Regional office / Circle Office contact the aggrieved customers as and when necessary,
meet him personally with the Branch Manager, for ensuring timely redressal of the
complaint.
Wherever deficiencies are noticed, accountability is fixed and erring employees
punished.

Still there may be some aggrieved customers who write to Head office.
AT HEAD OFFICE

A full-fledged Customer Service Section is functioning at M&CRM Wing, Head Office,

overseen by General Manager.

An acknowledgement is sent to the customer immediately on receipt of the complaint.

Thorough analysis of the complaints is done and necessary instructions are given to
CO/RO/ Branches for speedy redressal and followed up till final redressal letter is sent to
the complainant duly explaining the decision taken on the complaint.

On 15 th of every month, Customers' Day is observed between 3 p.m. and 5 p.m. during
which our overseeing Executives are available for meeting the public / Customers
without prior appointment.

Special Customers' Meets are organised for different segments of the market, viz.,
Exporters, SSI, NRI, Agriculturists, etc..

Customer Satisfaction Surveys through In-house as well as by External agencies are

conducted to assess the level of customer satisfaction.

Grievance Escalation System

Customers can lodge their complaints directly to Branch-in-charge and it will be the
responsibility of the Branch-in-charge to resolve the complaint within 7 days from the
date of receipt.

The Branch-in-charge will analyse the complaint and if need be he/she will contact the
complainant personally and resolve the complaint.

A complaint redressal letter will be sent to complainant, if the complaint is resolved at

Branch level. The Branch will also send the details of the grievance received by the at
periodical intervals to Regional Office/Circle Office.

If the Branch-in-charge is not able to resolve the complaint within 7 days, the complaint
will be referred by the Branches to the concerned Regional Office/Circle along with their
comments / replies for further action.

The complaints referred to Regional Office/Circle Office will be analysed by Customer

Service Section and based on the explanation received from the Branch, RO/CO will send
a suitable reply to complainant.

If the reply received from the Branch is not satisfactory and if Regional Office/Circle
Office cannot resolve the complaint within 7 days from the date of receipt of complaints,
the same will be referred to Customer Service Section, Head Office along with their
comments/explanations. The Regional Office/Circle Office will also send the details of the
complaints received directly by them and not settled within seven days to Customer
Service Section, Head Office along with their comments/replies.

Customer Service Section, Head Office will analyse the complaint and the replies
received from Branch and Regional Office/Circle Office. On placing the matter before
appropriate authorities a decision is taken on the complaint. A complaint redressal letter
is sent to the complainant from Head Office and suitable instruction are passed on to
Branch, Regional Office, Circle Office for taking action in the deficient areas.

BANKING OMBUDSMAN SCHEME

We have displayed on our website and in all our Branches a notice explaining that we are
covered by the Banking Ombudsman Scheme, 2006 of the Reserve Bank of India . The
copy of the scheme is made available at all the branches and will be issued to customers
at a nominal charge.

Within 30 days of lodging a complaint with us, if customer does not get a satisfactory
response from us and if customer wishes to pursue other avenues for redressal of
grievances, customer may approach Banking Ombudsman appointed by Reserve Bank of
India under Banking Ombudsman Scheme, 2006. Salient features of the Banking
Ombudsman Scheme, 2006 are displayed in the branch notice boards and the scheme
itself is displayed on our Website www.canarabank.com. If customers face any difficulty
our Staff will explain the procedure in this regard.

2.1. Standing Committee on Customer Service (Constituted on 22.6.2005)

In order to benchmark the current level of service, review the progress periodically, enhance the
timeliness and quality, rationalize the processes taking into account technological developments
and suggest appropriate incentives to facilitate change on an ongoing basis the Standing
Committee on Customer Service is functioning.
The Committee is having the following functions :

Evaluate feedback on quality of customer service received from various quarters. The
committee would also review comments/feedback on customer service, implementation
of commitments in the Code of Bank's Commitments to customers received from BCSBI
and compliance is related to non compliance with the code.

The committee would be responsible to ensure that all regulatory instructions regarding
customer service are followed by the Bank. Towards this, the committee would obtain
necessary feedback from Zonal/Regional Managers/Functional heads.
The committee would consider unresolved complaints/grievances referred to it by
functional heads responsible for redressal and offer its advice. The committee would
submit report on its performance to the customer service committee of the board at
quarterly intervals.

2.2. Customer Service Committee of the Board (Constituted on 1.8.2004)

This sub-committee of the Board would be responsible for formulation of a Comprehensive
Deposit Policy incorporating the issues such as the treatment of death of depositor for
operations of his account, the product approval process and annual survey of depositor
satisfaction, loan policies and service issues for the individual as a borrower and the tri-enniel
audit of such services. The committee would also examine any other issues having a bearing on
the quality of customer service rendered. This committee would also review the functioning of
the Standing Committee on Customer Service.
2.3. Nodal Officer and other designated officials to handle complaints and grievances.
AT HEAD OFFICE
Nodal Officer
The Bank has nominated General Manager, Customer Service Section, M & CRM Wing Head
Office, Bangalore as NODAL OFFICER, who is monitoring the implementation of customer service
and complaint handling for the entire Bank.
Quality Assurance Officer
Deputy General Manager, M & CRM wing, Head Office has been nominated as the Quality
Assurance Officer of our bank who apart from performing various functions, is also undertaking
separate visits to branches to assess the level of service and interact with customers for
initiating necessary action in the deficient areas.
AT CIRCLE OFFICES
Overseeing Executive of Customer Service Section at Circle Offices are handling the complaints
received directly from customers of that region. Customer Service Committees are in place in all
the Circle Offices to look into implementation of customer service.
3. Mandatory display requirements
The Bank has made it mandatory to display the following at Branches for the benefit of our
customers :

Details on appropriate arrangements made for receiving complaints and suggestions.

The name, address and contact number of Nodal Officer(s).
Contact details of Banking Ombudsman of the area.
Details of Code of Bank's commitments to customers/Fair practice code

4. Resolution of Grievances
Branch Manager is responsible for the resolution of complaints/grievances in respect of
customer's service by the branch. He would be responsible for ensuring closure of all complaints
received at the branches. It is his foremost duty to see that the complaint should be resolved
completely to the customer's satisfaction and if the customer is not satisfied, then he should be
provided with alternate avenues to escalate the issue. If the branch manager feels that it is not

possible at his level to solve the problem he can refer the case to Regional or Circle Office for
guidance. Similarly, if Regional or Circle office finds that they are not able to solve the problem
such cases may be referred to the Nodal Officer of the Bank.
4.1 Time Frame
Complaints received will be seen in right perspective and will be analyzed from all possible
angles. Specific time schedule is set up for handling complaints and disposing them at all levels
including branches/Regional Offices/Circle Offices and Head Office. The Branch Manager will try
to resolve the complaint within specified time frames decided by the Bank.
TIME SCHEDULE FOR REDRESSAL OF COMPLAINTS

General Complaints
Complaints forwarded by RBI/MOF
MPs/VVIPs
Complaints from PMs office

Stipulated
by MOF
30 days
21 days
15 days

Adopted by
Bank
21 days
15 days
7 days

All the complaints received will be acknowledged immediately. In cases where complaints
received would require some time for examination, the same will be informed to customer
through a interim reply.
Branches/Regional Offices/Circle Offices will send action taken report on complaints received at
their end to Head Office at the end of every month.

5. Interaction with customers

Customer's expectation/requirement/grievances can be better understood through personal
interaction with customers by Bank's staff. Structured customer meets will give a message to
the customers that the bank cares for them and values their feedback/suggestions for
improvement in customer service. Many of the complaints arise on account of lack of awareness
among customers about bank services and such interactions will help the customers appreciate
the banking services better. The feedback from customers would be a valuable input for revising
our product and services to meet customer requirements.
6. Sensitizing the operating staff on handling complaints
Our staff will be properly trained for handling complaints. During all the Training Sessions at our
Apex Staff Training College and Regional Staff Training Colleges , the importance of handling
complaints is explained to all the participants and they are trained to deal with customer
complaints. Nodal Officer for the Bank will ensure that internal machinery for handling
complaints/grievances operates smoothly and efficiently at all levels and he will be giving
feedback on training needs of staff at various levels to the Human Resources Department.

D. Product5 & Service Profile.

The bank has many financial services and different schemes. Important among them
are as follows:
1. Prime Products

SAVING BANK DEPOSITS: For individuals & non-trading organizations /

institutions.
CURRENT ACCOUNT: For business operations trades, businessmen, corporate
bodies.
FIXED DEPOSITS: Secured way to high returns individuals and institutions.

2. KAMADHENU DEPOSITS: Re-investment money multiplier plan.

3. CANBANK AUTO RENEWAL: Higher return in a shorter plan.
4. CANFLEXI DEPOSITS: A combination of savings & fixed deposits high return
& instant liquidity.
5. ASHRAYA DEPOSITS: Respecting Indian values for senior citizens.
6. RECURRING DEPOSITS SCHEME: Inculcating saving, a rewarding & recurring
habit.
7. FLOATING RATE DEPOSITS SCHEME (FRDS): Insures against interest rate
fluctuations.
8. HOUSING LOAN SCHEME: Purchase of a ready built house / flat construction of
house, purchase of a site and construction of house thereon, for undertaking
repairs, renovations, up gradation, and creation of additional amenities and for
taking over of the HL liability from other recognized housing finance companies
and banks.
9. HOME IMPROVEMENT LOANS: Furnishing the house / flat along with banks
home loans / independently.
10.
CANMOBILE: Facilities purchase of new / used cards / jeeps of all make.
The scheme also covers finance for purchase of brand new two wheelers.
11.
CANCARRY: Provided credit worthy individuals, professional and salaried
class for buying consumer durables and household articles.
12.
CANCASH: Offer assistance for meeting unforeseen contingencies.
Finance is granted against approved shares, bonds and debentures held by the
clients.
13.
CANBUDGET: Fulfills the financial needs of confirmed employees of
reputed PSUs, joint stock companies, central / state / semi government
employees and lecturers / professors / assistant professors of colleges /
universities and research institutes.
14.
CANRENT: Provides loans to property owners whenever the property is
leased / rented out to PSUs central / state / semi government undertakings.
Reputed corporate banks. Financial institutions, Insurance companies and MNCs.
15.
CANMORTGAGE: Designed to meet the financial requirements against
security of equitable mortgagee of property (land & building) to professional,
businessman, salaried persons and individuals.

16.
VIDYASAGAR EDUCATIONAL LOAN SCHEME: Renders financial
assistance for needy and meritous students for pursuing all type of studies
(professionals / general) in India and Abroad.
17.
LOAN SCHEME TO TRADERS / BUSINESS ENTERPRISES: With hassle
free and minimum terms and conditions, the scheme cater to the needs of
traders and other business enterprises for smooth flow of business activities.
18.

CANMAHILA: Exclusive loan scheme for women clientele.

19.
AGRI LOAN SCHEME: Various loan schemes for agri-clinic, minor,
irrigation, farm development / machinery, plantation crops fishers and for agroexports.
20.
SSI LOAN SCHEME: A host of schemed available for technology up
gradation fund in textile and jute industries, credit linked capital subsidy standby
credit for capital expenditure and margin money scheme of KVIC.
21.
OTHER PRIORITY SCHEME: These include loan for retail traders, small
business, professional / self employed, medical practitioners and loan for solar
water heating / home lighting system.
CREDIT CARD OPERATIONS
The first Indian card issuers to bay ISO 9002 certification, CANCARD today as a
distinct recognition in the domestic as well as international market.
All investors of CANCARD namely, CANCARD visa, classic, visa-corporate, master
card and visa international gold are issued through all CANARA BANK branches
& 24 CANCARD service centers located at major cities across the country.
Four Indian Banks are in affiliation with the bank for issue of CANCARD
VISACARD.
Launched DEBIT CARD on November 4, 2003, a value added and tech based
product for its niche clients.

E. Area of Operations
OFFICE AND BRANCHES: Canara bank has a network of 2415 branches, spread over
22states/ 4 union territories of the country and overseas branch @ London which are
administrated through
Head Office at Bangalore
13 Circles offices / International Division
35 Regional offices
2861 Branches
BRANCHES ABORAD:
CANARA BANK established its International Division in 1976, to supervise the
functioning of it various foreign department to give the required thrust to Foreign
Exchange business, particularly export and to meet the requirements of NRIs.

Though small in size the Banks presence abroad has brought in considerable foreign
business, particularly NRI deposits.
The presence of bank is shown under.
CANARA BANK, London, UK (Branch)
Indo Hong Kong International Finance Co Ltd Hong Kong (Subsidiary)
AL Razouki International Exchange company , Dubai, UAE
According to the latest information, both the CANARA BANK and State Bank of India
have come into a mutual agreement as to both the banks will be operating as a one
unit in the Moscow.

F. Ownership Pattern
Share holding pattern as on :
Face value

Indian Promoters
Sub total

Banks Fin Inst and Insurance

FII's
Sub total
Private Corporate Bodies
NRI's/OCB's/Foreign Others
Others
Sub total
General public
Grand total

31/12/2009
10.00
%
No of Shares
Holding
Promoter's holding
300,000,000.00
73.17%
300,000,000.00
73.17%
Non promoter's holding
Institutional investors
31,093,879.00
7.58%
47,261,996.00
11.53%
86,852,596.00
21.18%
Other investors
1,812,978.00
0.44%
242,787.00
0.06%
166,832.00
0.04%
2,222,597.00
0.54%
20,924,807.00
5.1%
410,000,000.00
100%

G. Achievements & Awards.

Received during 2007-08

First National Award, instituted by the Ministry of Micro, Small & Medium
Enterprises, Govt. of India for 'Excellence in Micro & Small Enterprises
(MSE) Lending' for 2006-07.

'Golden Peacock Award for Corporate Social Responsibility' for the year
2007. Canara Bank is the first PSB to receive the award since its institution in the
year 1991.

Golden Peacock National Training Award-2007, instituted by the Institute

of Directors, New Delhi, a pioneer in Quality Revolution.

Conferred the Business Superbrands Status for 2008.

'The Organization of the Year Award- for PR Excellence', instituted by

Public Relations Council of India.

Excellence in the field of Khadi & Village Industries in South Zone for the year
2006-07, instituted by Khadi & Village Industries Commission, Ministry of Micro,
Small & Medium Enterprises, Government of India.

Received during 2008-09

Conferred 'First Rank' in India's Best Banks awards under the category
'Strength and Soundness' for 2006-07 by a survey conducted by Ernst &
Young.

Best Performing Bank under Rural Employment Generation Programme,

(REGP) of Khadi and Village Industries Commission (KVIC), in South Zone for the
year 2007-08, instituted by the Ministry of MSME, Government of India.

Golden Peacock National Training Award 2008 for excellence in training.

Global HR excellence in Training, an award conferred by the Asia Pacific HR

Congress, the largest rendezvous of HR Professionals, at its Employer Branding
Talent Management Congress held on 22nd and 23rd August 2008, Delhi.3

Best Corporate Social Responsibility Practice Award, instituted by BSE, NASSCOM

and Times Foundation.

The Bank won two Silver Corporate Collateral Awards for Best Corporate Ad in
the Print Media and Best Corporate Film on Corporate Social Responsibility at the
Public Relations Council of India Awards 2009.

Received during 2009-10

Best Bank in South Zone Award for the year 2008-09 in respect of lending
under KVIC and PMEGP Schemes. The award was handed over by Dr.Manmohan
Singh, Honble Prime Minister of India.

H. Workflow Model
Sl.
No.
1
2
3

Name
SRI. A. C. MAHAJAN
Mr Jagdish Pai K L
Shri. H. S. U. KAMATH

Dr. K P KRISHNAN

5
6

SMT. VANI J SHARMA

Shri. DEVENDER DASS

Designation
Chairman & Managing Director
Executive Director
Executive Director
Director representing Government
of India
Director representing Reserve Bank
of India
Workmen Employee Director

7
8
9
10
11
12

RUSTAGI
SRI. S K KOHLI
SRI. SUNIL GUPTA
Dr. YOGENDRA PATI
TRIPATHI
Shri. S. Shabbeer Pasha
Shri. Pankaj Gopalji
Thacker
SRI. P. V. MAIYA

Officer Employee Director

Part -time Non-Official Director
Part -time Non-Official Director
Part-time Non-Official Director
Part-time Non-Official Director
Director Representing Shareholders

I. Future growth & Prospects

The Bank is assiduously focusing on consolidating its position by building

profitable core business.

The new brand identity will be leveraged to improve standard of customer

service and attract younger clientele.

The comprehensive 'Corporate Business Strategy' exercise will help Canara Bank
position itself as strong, market savvy and progressive bank.

The Bank is well prepared to switchover to new capital adequacy framework

(Basel II norms) from March 2008.

Under Financial Inclusion, the Bank has set a target for mobilizing one million
no-frill accounts during FY08 and bring all 24 lead districts of the Bank under
total financial inclusion.

The Bank envisages a training/re-skilling target of 1,00,000 during the current

year.

3. 7s Framework with respect to Canara Bank

Hard Elements
Strategy
Structure
Systems

Soft Elements
Shared Values
Skills
Style
Staff

"Hard" elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and reporting lines;
and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less
tangible and more influenced by culture. However, these soft elements are as
important as the hard elements if the organization is going to be successful.
The way the model is presented in Figure below depicts the interdependency of the
elements and indicates how a change in one affects all the others.

Let's look at each of the elements specifically:

1. Strategy: the plan devised to maintain and build competitive advantage over
the competition.

2. Structure: the way the organization is structured and who reports to whom.
3. Systems: the daily activities and procedures that staff members engage in to
get the job done.

4. Shared Values: called "super ordinate goals" when the model was first
developed, these are the core values of the company that are evidenced in the
corporate culture and the general work ethic.

5. Style: the style of leadership adopted.

6. Staff: the employees and their general capabilities.
7. Skills: the actual skills and competencies of the employees working for the
company.

4. SWOT Analysis
5. Analysis of Financial Statement
Canara Bank is engaged in commercial and personal banking services. The bank
provides non-resident banking services, rural and social banking services and
international banking services. It also provides networked automated teller machines,
anywhere banking, telebanking, internet and mobile banking, and debit card services.
The bank operates 2,710 branches and 2000 ATMs in India. It is headquartered in
Bangalore, India and employs 44,090 people. The bank recorded revenues of
INR70,290.3 million (approximately $1,358.1 million) in the financial year ended March
2009 (FY2009), an increase of 22.2% over FY2008. Operating profit was INR39,637.7
million (approximately $765.8 million) in FY2009, an increase of 33.9% over FY2008. Its
net profit was INR20,274.2 million (approximately $400.4 million) in FY2009, an
increase of 32.4% over FY2008.

Canara Bank Loan

Canara Bank provides loans to almost every section of the society.
Some of the loans are mentioned as under:
e. Agriculture & Rural Credit
f. Kisan Credit
g. Loans for AgriClinic
h. Minor Irrigation Loans
i. Farm Machinery Loans
j. Farm Development Loans
k. Vehicle Loan for Agriculturists
l. Loan for Plantation Crops
m. Loan for Marine Fisheries
n. Loan for Inland Fisheries
o. Loan for Sericulture
p. Loan for Purchasing Agricultural Land
q. Loan for Poultry
r. Export Credit for Agro Products
s. Other Agricultural Loans
t. Loans to SSIs
u. Charter for SSIs

Canara Bank for Women

The Centre for Entrepreneurship Development for Women was established by Canara
Bank in India at the Bank's Corporate Office, Bangalore during the year 1988 with an
objective of assisting the potential women entrepreneurs to select income generating
activities and starting ventures of their own. Subsequently 9 such CEDs were opened
and are functioning at Circle Offices situated at various State Capitals. The CED at
corporate office brings out a newsletter VIKAS every bi-monthly.
Mahila Banking branch:
An exclusive branch for women and Mahila banking division - an exclusive division for
women within a branch opened, which is the 1st of kind in the banking industry.
Details are enlisted below:
v. Mahila Banking Branch, Jayanagar, Bangalore, Karnataka
w. Mahila Banking Division, Mandipet Branch, Davangere, Karnataka
x. Mahila Banking Division, M G Road Branch, Agra, UP
y. Mahila Banking Division, N V Street Branch, Madurai, Tamilnadu
z. Mahila Banking Division, West Palace Road, Thrissur, Kerala
aa. Mahila Banking Division, West Hill, Kozhikode, Kerala
bb. Mahila Banking Division, Shimoga Main Branch, Karnataka
These specialized branch and divisions offer all banking services to women.

Objectives:

cc. To identify, select and train women Entrepreneurs.

dd. To conduct EDPs and Skill development programmes (EDPs) for different target

groups.
ee. To assist potential Women Entrepreneurs to start/establish/run an Enterprise

professionally.
ff. To guide existing entrepreneurs to improve the working and modernization of an
existing unit.
gg. To co-ordinate with Government/Voluntary organizations engaged in promoting
entrepreneurship among women.
hh. To offer counseling services to the Entrepreneurs existing as well as new.
ii. To assist in the formation of self-help groups.

Canara Bank Shares

Canara Bank Shares are listed at Bangalore, Mumbai and National Stock exchanges.
The Bank has appointed the under mentioned as its share transfer agent to whom
communications regarding change of address, change in Bank Mandate, transfer of
shares , Mandate for ECS etc. should be addressed.
M/s. Karvy consultants ltd
46, Avenue 4
Street No.1
Banjara Hills
Hyderabad- 500 034

Interms of SEBI guidelines, the Registrar and Transfer agent of the Bank is extending
the facility of simultaneous transfer -cum dematerialization of shares to the investors.
On transfer of shares in the name of the transferee, they are being apprised to submit
letters to their depository participants for dematerialization of shares. On receipt of
Demat request forms, the shares are dematerialized and confirmation through
electronic mode is sent. If the demat request number is not received within a period of
30 days, the duly transferred share certificate is dispatched to the transferee.