CONTENTS

S.NO.

PARTICULARS

INTRODUCTION To The Industry

INTRODUCTION TO the Organization

3

RESEARCH METHODOLOGY
1

Title of the study

Duration of the product

Objective of the study

Type of Research

Sample size and method of selecting ample

Scope of study

Limitation of study

FACT & FINDINGS

ANALYSIS & INTERPRETATION

SWOT

CONCLUSION

RECOMMENDATION & SUGGESTION

APPENDIX

10

BIBLIOGRAPHIES

INTRODUCTION TO THE INDUSTRY

BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should
be able to meet new challenges posed by the technology and any other external and
internal factors. For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach. It is
no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian
banking system has reached even to the remote corners of the country. This is one
of the main reasons of India's growth process.
HISTORY:
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
PHASE I - Early phase from 1786 to 1969 of Indian Banks
PHASE II - Nationalization of Indian Banks and up to 1991
PHASE III - Indian Financial & Banking Sector Reforms after 1991.
PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank.
The East India Company established

Bank of Bengal (1809),

Bank of Bombay(1840) and

Bank of Madras (1843) as independent units and called it Presidency
Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India

was established which started as private shareholders banks, mostly Europeans

shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of commercial
banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers
for the supervision of banking in India as the Central Banking Authority. During those
days public has lesser confidence in the banks. As an aftermath deposit mobilization
was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to the traders.

PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with seven
more banks. This step brought 80% of the banking segment in India under
Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.

 1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised
to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.

PHASE III
This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalization of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. The financial
system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the Foreign Reserves are
high, the capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.
1.2 NATIONALIZED BANKS IN INDIA
Banking System in India is dominated by nationalized banks. The nationalization of
banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The
major objective behind nationalization was to spread banking infrastructure in rural
areas and make available cheap finance to Indian farmers. Fourteen banks were
nationalized in 1969.
Before 1969, State of India (SBI) was only public sector bank in India. SBI was
nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization
of Indian banks took place in the year 1980. Seven more banks were nationalized
with deposits over 200 crores

1.3 PRIVATE BANKS

All the banks in India were earlier private banks. They were founded in the preindependence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role in
the banking structure. Private sector banking in India received a fillip in 1994 when
Reserve Bank of India encouraged setting up to private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development Finance
Corporation Limited (HDFC) was amongst the first to receive an In principle
approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them to
become more competitive.

INTRODUCTION TO THE ORGANIZATION

HISTORY OF THE ORGANIZATION

Beloved Founder
Founded as 'Canara Bank Hindu Permanent Fund' in 1906,
by late Shri Ammembal Subba Rao Pai, a philanthropist, this
small seed blossomed into a limited company as 'Canara
Bank Ltd.' in 1910 and became Canara Bank in 1969 after
nationalization.

"A good bank is not only the financial heart of the community, but also one
with an obligation of helping in every possible manner to improve the
economic conditions of the common people" - A. Subba Rao Pai.

Founding Principles
1. To remove Superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the
community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.

7. To develop a concern for fellow human being and sensitivity to the

surroundings with a view to make changes/remove hardships and sufferings.
Sound founding principles, enlightened leadership, unique work culture and
remarkable adaptability to changing banking environment have enabled Canara
Bank to be a frontline banking institution of global standards.

Significant Milestones

Year
1st
Canara Hindu Permanent Fund Ltd. formally registered with a capital of
July
2000 shares of 50/- each, with 4 employees.
1906

1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited

1969

14 major banks in the country, including Canara Bank, nationalized on July

19

1976 1000th branch inaugurated

1983

Overseas branch at London inaugurated Cancard (the Banks credit card)

launched

1985

Takeover of Lakshmi Commercial Bank Limited Commissioning of Indo

Hong Kong International Finance Limited (now a full fledged branch)

1987 Canbank Mutual Fund & Canfin Homes launched

1989 Canbank Venture Capital Fund started
1989Canbank Factors Limited, the factoring subsidiary launched
90
1992- Became the first Bank to articulate and adopt the directive principles of
93 Good Banking.
1995- Became the first Bank to be conferred with ISO 9002 certification for one of
96 its branches in Bangalore
2001- Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering
02 exclusively to the financial requirements of women clientele.
2002Maiden IPO of the Bank
03
2003Launched Internet Banking Services
04
2004- 100% Branch computerization

05
Entered 100th Year in Banking Service. Launched Core Banking Solution in
2005select branches. Number One Position in Aggregate Business among
06
Nationalized Banks.
Retained Number One Position in Aggregate Business among Nationalized
2006- Banks. Signed MoUs for Commissioning Two JVs in Insurance and Asset
07 Management with international majors viz., HSBC (Asia Pacific) Holding
and Robeco Groep N.V respectively.
Launching of New Brand Identity. Incorporation of Insurance and Asset
2007Management JVs. Launching of 'Online Trading' portal. Launching of a Call
08
Centre. Switchover to Basel II New Capital Adequacy Framework.
2008- The Bank crossed the coveted 3 lakh crore in aggregate business. The
09 Banks 3rd foreign branch at Shanghai commissioned.
The Banks aggregate business crossed 4 lakh crore mark.
2009Net profit of the Bank crossed 3000 crore. The Banks branch network
10
crossed the 3000 mark.
The Banks aggregate business crossed 5 lakh crore mark. Net profit of
the Bank crossed 4000 crore. 100% coverage under Core Banking
2010Solution. The Banks 4th foreign branch at Leicester and a Representative
11
office at Sharjah, UAE, opened. The Bank raised 1993 crore under QIP.
Govt. holding reduced to 67.72% post QIP.
2011- Total number of branches reached 3600. The Banks 5 th foreign branch at
12 Manama, Bahrain opened.
2012Highest Dividend of 130% paid for the year
13
1027 branches and 2786 ATMs opened during the year. Global business
2013crossed the 7 lakh crore milestone. Switchover to Basel III New Capital
14
Adequacy Framework.
2014Crossed 8 lakh crore in Total Business
15
As at March 2015, the total business of the Bank stood at 803876 crore.

PROFILE OF THE ORGANIZATION

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

Launching of Inter-City ATM Network

Obtaining ISO Certification for a Branch

Articulation of Good Banking Banks Citizen Charter

Commissioning of Exclusive Mahila Banking Branch

Launching of Exclusive Subsidiary for IT Consultancy

Issuing credit card for farmers

Providing Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial
Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and
abroad. As at June 2015, the Bank has further expanded its domestic presence, with 5708 branches
spread across all geographical segments. Keeping customer convenience at the forefront, the Bank
provides a wide array of alternative delivery channels that include 9039 ATMs, covering 4081 centres.
Several IT initiatives were undertaken during the year. The Bank set up 147 hi-tech E-lounges in
select branches with facilities like ATM, Cash Deposit Kiosk with voice guided system, Cheque
Deposit Kiosk, Self Printing Passbook Kiosk, Internet Banking Terminal, Online Trading Terminal and
Corporate Website Access. Canara e-Info book an electronic passbook and banking related
information facility was introduced on mobile platforms - Android, Windows8 & iOS. The Bank also
launched Canara Bank RuPay Debit Card, Canara Club Card Debit, Canara Secured Credit Card,
Canara Elite Debit Card, Canara Bank Platinum Rupay Cards, Platinum Rupay Card and EMV Chip
Cards under debit and credit cards. Online Savings Bank and PPF account opening were introduced

during the year. The Bank made several value additions under internet banking and mobile banking
services.
Not just in commercial banking, the Bank has also carved a distinctive mark, in various corporate
social responsibilities, namely, serving national priorities, promoting rural development, enhancing
rural self-employment through several training institutes and spearheading financial inclusion
objective. Promoting an inclusive growth strategy, which has been formed as the basic plank of
national policy agenda today, is in fact deeply rooted in the Bank's founding principles. "A good bank
is not only the financial heart of the community, but also one with an obligation of helping in
every possible manner to improve the economic conditions of the common people". These
insightful words of our founder continue to resonate even today in serving the society with a purpose.
The growth story of Canara Bank in its first century was due, among others, to the continued
patronage of its valued customers, stakeholders, committed staff and uncanny leadership ability
demonstrated by its leaders at the helm of affairs. We strongly believe that the next century is going
to be equally rewarding and eventful not only in service of the nation but also in helping the Bank
emerge as a "Preferred Bank" by pursuing global benchmarks in profitability, operational efficiency,
asset quality, risk management and expanding the global reach.

BOARD OF DIRECTORS

l.
No.

Directors

Photo

Shri. T.N. MANOHARAN

No.2, C.P. Ramasamy Road
Abiramapuram
Chennai - 600 018

Chairman

Shri. RAKESH SHARMA

Head Office
112, J.C. Road
BANGALORE - 560002

Managing Director & Chief

Executive Officer

Shri. PRADYUMAN SINGH

RAWAT
Canara Bank
Head Office,
112, J. C. Road,
BANGALORE - 560002
Shri.HARIDEESH KUMAR B
Canara Bank,
Head Office,
112, J.C.Road,
Bangalore - 560002

Executive Director

Executive Director

Dr.RAJAT BHARGAVA
Joint Secretary
Department of Economic Affairs, Director representing
Government of India,
Government of India
North Block, New Delhi - 110011
Smt. Uma Shankar
Chief General Manager,
Department of Currency
Management,
Reserve Bank of India,
Amar Building,4th floor,
Sir P M Road,
Mumbai -400 001

Director representing
Reserve Bank of India

Shri G. V. Manimaran
Canara Bank, IIT Branch
Shopping Complex,IIT Campus,
Officer Employee Director
Chennai 600 036

Shri SUNIL HUKUMCHAND

KOCHETA
Vardhman, Ram Nagar
Ausa Road,
LATUR 413512
Shri. MOCHERLA SAIRAM
BHASKAR
H. No. 8-2-472/6
Road No. 4, Banjara Hills
HYDERABAD - 500034

Part Time Non Official

Director
under Chartered Accountant
category

Part Time Non Official

Director

Shri.RAJINDER KUMAR GOEL

10 E-6,Jhandewalan Extension
2nd Floor,
Shareholder Director
NEW DELHI-110055
Shri.SANJAY JAIN
11 Flat no. 802, Tower 2,
Vipul Belmonte
Golf Course Road
Sector-53, GURGAON
HARYANA 122011

Shareholder Director

Awards & Achievements

Awards/Accolades Received during 2014-15

Golden Peacock Business Excellence Award 2015 by the Institutes of Directors,

India.

"MSME Banking Excellence Awards-2014" organized by Chamber of Indian Micro,

Small and Medium Enterprises (CIMSME) at New Delhi. The Bank has been
adjudged as the "Best Bank Award-Winner" among other awards.

Awarded Niryat Bandhu instituted by Federation of Indian Export Organization

(FIEO) for excellent support services rendered for the promotion of export.

SKOCH Renaissance Award 2014 under India's Best Projects 2014 Category for
Rural Self Employment Training Institute, Institute for Artisans, Institute for
information Technology, Community Development and Women Empowerment.

Secured 1st Position in mobilizing new Demat Accounts for the second consecutive

year and also adjudged Best Performer in Account Growth Rate by NSDL Star
Performer Awards 2014.

Awarded First Prize under Indira Gandhi Rajbhasha Shield in Region C for
effective implementation of Official Language for the year 2013-14.

Conferred with Reserve Bank Rajbhasha Shield for effective implementation of

Official Language in Region 'B' & 'C'.

Ranked 1st among Public Sector Banks in an article on India's Best Companies for
CSR published in the "Corporate Dossier" of Economic Times.

Awarded Best Inspiring Place to Work (Public Sector) by Banking Frontiers

partnering with M/s.Deloitte in an effort to recognize the HR efforts of the BFSI
sector.

Golden Peacock Award for Corporate Governance by the Institutes of Directors,

India.

Assocham Social Banking Excellence Award 2014 under Public Sector Banks
category for excellent performance under Corporate Social Responsibility initiatives.

CEO with HR Orientation at the Asia Pacific HRM Congress 2014 instituted by World
HRD Congress.

40 Most Talented HR Leaders at the Asia Pacific HRM Congress 2014 instituted by
World HRD Congress.

1st Prize under Indira Gandhi Rajbhasha Puraskar Yojana for effective
implementation of Official Language in Region C.

Conferred with Asia HRD Award under the category Contribution to Organization
of the Asia HRD Congress Awards 2014.

Awarded by NABARD for its performance in the State of Karnataka under Share of
SHG business to overall business during 2012-13 and Maximum number of
branches involved in SHG-Bank linkage programme during 2012-13.

Conferred with Platinum Award under the category of Innovation in the Skoch
Financial Inclusion & Deepening Award 2014. The Bank also received Order-ofMerit Certificate in the 7 categories of Access to Banking and Financial Services,
CSR, Customer Service, SME Advances, Technology, Strategy and Innovation.

Conferred with Gold Award under the Corporate Category for Innovation in
Recruitment and the Banks C&MD Shri R K Dubey was conferred with Leading
CEO of the Year - Platinum Award under Individual Category instituted by

prestigious M/s Greentech Foundation, New Delhi.

Conferred with Pt. Madan Mohan Malviya Silver Award for Education 2014 for its
CSR initiative of Promoting Computer Education and Employment.

Awarded the "Namma Bengaluru's Best Brand" among Bangalore's Top 50 Brands.

Conferred with the Best PSB award and C&MD Shri R.K. Dubey was conferred the
Banking Financial Services & Insurance Lifetime Achievement Award by Lokmat
Group.

Vision & Mission

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

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

Customer Support:
IT Driven
ATM

Anywhere Banking

Anywhere Banking

Tele Banking

Customer terminal

computerized information Facilitation

NRI Services

Non Resident External Rupee Account.

Non Resident Ordinary Account.

Foreign Currency Non Resident Accounts-Banks.

Loans & Advances

Retail Loan Products -

Canmahila.

Housing Loan.

Home Improvement Loan.

Cancarry.

Cancash.

Canmobile.

Canbudget.

Teachers Loan.

Canmahila:

A Loan Scheme exclusively designed for the benefit of women.

Loan for women Aged between 18 and 55 years, Married or single, Working or not (housewives
also), Engaged in business or self employed.

To meet any personal financial needs, viz., for buying household articles, gold
jewellery, computers, gift articles, etc.

No Security required in case of working women, however, in respect of a nonworking woman, for loan amount exceeding Rs.25,000./-, co-obligation of
husband / parent / son is insisted.

Interest 11.5% p.a. - EMI Rs.329/- per ten thousand for 36 months

Housing Loan:

Purpose: For construction / purchase / repairs / additions / renovations of residential

house / flat including the purchase of land and construction thereon. For taking over
of the Housing Loan liability with other recognized Housing Finance Companies,
Housing Boards, Co-operative Banks, Co-operative Societies and Commercial Banks
at prevailing low rate of interest.

Eligibility: Salaried individuals, individuals engaged in business / professionals and

self-employed persons.NRIs are also eligible to avail loans without specific
permission of RBI.Persons above the age of 55 years are also eligible subject to
certain stipulations.

Maximum loan amount of Rs.50 lacs for purchase / construction of house / flat. (Loan
is also granted up to Rs.1 crore selectively.) And Rs.7.5 lacs for repairs / renovations /
additions to the existing house / flat.

Security: Mortgage of House / Flat

Repayment: In convenient equated monthly installments up to 20 years

Home Improvement Loan:

Purpose: For furnishing house / flat with household furniture items, air conditioners,
wardrobes, kitchen cabinets, refrigerator, washing machine, etc.,

Can

be

availed

along

with

Housing

Loan

from

Canara

Bank

OR Without any Housing Loans

This loan can also be availed where a Housing Loan is already obtained from Canara
bank and the liability is subsisting.

Eligibility: Owners of House / flat who are salaried individuals / individuals engaged
in business / professionals / self-employed. NRIs are also eligible.

Salaried individuals with minimum 25% net take home salary or Rs.2000/- after
meeting loan repayment, whichever is more. Other than salaried individuals minimum annual income of Rs.50, 000/- as evidenced by ITAO / IT Returns.

Repayment: In convenient equated monthly installments up to 60 months

Security: Hypothecation of assets created out of this loan. Mortgage of house / flat (if
housing loan is availed from Can Bank) suitable co-obligation / personal guarantee.
Waivers considered selectively.

Loan Quantum & Margin:

When availed along with Housing Loan from Canara Bank, amount up to one year's
gross salary / income over and above the normal eligible amount for housing finance.

In other cases, one year's gross income / salary will be reckoned to determine the loan
quantum under this Scheme.

Subject to above, normally, the maximum loan quantum shall be Rs.2 lacs. Higher
quantum considered selectively.

If availed as a part of the housing finance from canara Bank, then, the margin
stipulated is 15%. In other cases, the margin is 20%.

Cancarry (Loan to purchase Consumer Durables)

Purpose: To pick up favorite household articles and latest gadgets to enhance the
quality of life. The personal computer, laptop, handy cam, cameras, music
systems, washing machine, microwave oven, refrigerators and many other items.

Eligibility: Salaried individuals with minimum 25% net take home salary or Rs.2,
000/- after meeting loan repayments, whichever is more. Other than salaried
individuals - minimum annual income of Rs.50, 000/- as evidenced by IT Returns.

Finance up to 80% of the invoice value or 15 months of net salary, whichever is

less. And for non salaried persons and professionals, finance up to 50% of net
annual income of immediate previous year or 80% of the invoice value whichever
is less.

Repayment: In convenient equated monthly instalments up to 36 months.

Cancash - (Loan against Shares)

Cancash loan can be availed by pledging investments in Shares, Debentures,
Bonds or Units.
Eligibility: Individuals - Existing customers with satisfactory dealings. New
customers - well-introduced and credit worthy can also avail.
Amount of Finance: Shares and Debentures - up to 60% of market value, PSU
Bonds up to 70% of Market Value, Units of UTI and CBMF - 50% of NAV or
market value whichever is less.

Repayment: Up to 60 months. EMI is also acceptable.

Canmobile - Vehicle Loan

Purpose: For buying new or used four wheeler / new two Wheeler.

Eligibility: Salaried persons, professionals and business people, with qualifying

income and required repayment capacity. Reputed firms and corporates are also
eligible.

Loan amount up to 90% of the invoice value. There is no ceiling on maximum

loan amount.

Loan also available for used cars, Up to 75% of the value.

Repayment: In convenient Equated Monthly Instalments up to 72 months in case

of four wheelers.48 months in case of two Wheeler.

Canbudget:

A simple Personal Loan Scheme exclusively for the benefit of employees of

Corporates, PSUs, Government Departments, Institutions, etc.,

Purpose: To meet genuine personal needs.

Eligibility: Confirmed employees of reputed PSUs and Joint Stock Companies

,Confirmed Central / State Government officials, Lecturers / Asst. Professors /
Professors of Colleges / Research Institutions and Universities ,Employees salary
account has to be maintained with Canara bank branch

Net take home salary - 40% of the gross salary. Selectively up to 25% of gross
salary is also permitted.

Quantum: Six months' gross salary or Rs.1 lac whichever is less.

Repayment: In convenient Equated Monthly Instalments up to 60 months.

Security Normally, Co-obligation is required for loans above Rs.50,000/-

Teachers Loan:

Purpose: To meet any genuine personal needs

Eligibility: All confirmed teaching / non-teaching staff working in a school /

college - drawing salary through Canara bank branches

Quantum: 6 months' net salary or Rs.1, 00,000/- whichever is less.

Repayment: Up to 36 months. EMIs also possible.

Security

life

insurance

policy

Commercial Banking Loans:

Working Capital Finance - Cash Credit

Bill Discounting

Term Loans

Export Finance

Non Fund Based Limits -

Letters of Credit
Bank Guarantee

Other Commercial Loans

Loans to SSIs
Loans to Traders
Agriculture Loans

Other priority Sector loans

Agriculture & Rural Credit
- Kisan Credit
- Loans for setting up Agri Clinic
- Minor Irrigation Loans
- Farm Machinery Loans
- Farm Development Loans
- Vehicle Loan for Agriculturists
- Loan for Plantation Crops
- Loan for Marine Fisheries

or

suitable

co-obligation

- Loan for Inland Fisheries

- Loan for Sericulture
- Loan for Purchasing Agricultural Land
- Loan for Poultry
- Export Credit for Agro Products
-Other Agricultural Schemes

Vidyasagar (Educational Loan)

Housing Loan

Other Priority Sector Loans

Government Sponsored Schemes

Lead Bank Activities

Agricultural Consultancy Services

General Facilities

Safe custody Services

Safe custody Lockers

Nomination Facility

Deposits
Fixed Deposit:

It is safe, liquid and fetches high returns.

Minimum Rs. 1000/-, Maximum - No ceiling.

Period of Deposit - 15 days to 120 months.

Interest Payment - Monthly, Quarterly, Half-yearly or Annual intervals at depositor's

choice.

Facility of part withdrawal of deposits in units of Rs.1000/- keeping the rest of the
deposit to earn contracted rate of interest.

Closure before maturity permissible.

RECURRING DEPOSITS:

Enables to build up a sizeable capital in a regular and systematic way.

Amount of Deposit As low as Rs.50/- per month(in multiples of Rs.50/-)

No ceiling on maximum amount

Closure before maturity

Loan against deposit permissible

Interest compounded every quarter

CANBANK AUTO RENEWAL DEPOSITCARD:

Self-propelled phenomenon that rotates deposits to fetch higher returns.

Period of deposit: 15 days to 46 days.

Auto renewal: CARD has built-in features for automatic renewal of the deposit, with
or without interest accrued.

Loans against deposits permissible.

Closure before maturity permissible.

CANFLEXI DEPOSITS

A combination of Savings Account and Fixed Deposit, CANFLEXI enables to earn

maximum interest. Automatic transfer of funds beyond Rs.15, 000/- from Savings

Bank account to an automatically created Fixed Deposit in multiples of Rs. 1000/-,

earning more interest.

Savings bank account continues to serve as before.

If cheque amount exceeds the available balance in Savings Account balance, Canflexi
transfers funds from fixed deposit account, to ensure that cheque is honored.

Such transfers are effected automatically in multiplies of Rs.1000/- allowing the

remaining portion of the Fixed Deposit to earn contracted rate of interest.

ASHRAYA DEPOSITS (For senior citizens)

Individuals, who have completed the age of 60 years and above, are eligible.

Accounts can be opened jointly with other Senior Citizens or with other persons
below the age of 60 subject to the condition that the Senior Citizen is No.1 depositor...

Period of Deposit - 15 days to 120 months.

Age proof certificate to be produced.

Loans against deposits permitted

SWOT ANALYSIS
Strengths:

Canara Bank is a premier leading public sector bank enriched with

banking

discipline,

founder

principles,

and

steady

growth.

The

organizational study shows a significant improvement in Net profits year

after year. For the year March 2004 the bank clocked highest net profit of
Rs1338 Crore among nationalized banks. It has registered a net profit of
Rs1110 crore for the year March 2005.There assets are qualified
workforce and brand name in India. Major income is Interest on
advances. It is in the business for 100 years, which celebrated its
centenary year this year. It has a separate Planning and development
wing.
The present stature of the bank is due to strong fundamentals and quality
customer orientation. Profit making since its inception the bank today
epitomizes a perfect blend of commercial and social banking.

Weaknesses
Structural Barriers delay in decision making due to a tall hierarchy.

Opportunities:
Economic scenario is favorable to banking sector as compared to other
industries. As for as the bank is concerned it has many opportunities
More Rural Branches: It can concentrate into more rural areas.
Technological Breakthrough: Credit/Debit Card, Electronic Fund
transfer and mobile Banking. It can ring customers into these
services.
Foreign Accounts (Deposits)

Threats:
Liberalization policy of the government is an alarm for public as well as
private sector banks. With the hike in FDI in Banking foreign banks have
good opportunities. These foreign banks take away the customers of
Public sector banks. The bank continues to face competition from private
banks like ICICI, HDFC, and UTI etc

It should prepare itself for major threats like mergers in the banking;
increasing NPAs, New technology, Electronic cash transfer, and internets
banking that are predominant today.DETAILS OF

SECTIONS/DIVISIONS/DEPARTMENTS COMING UNDER

EACH FUNCTIONAL WING OF HEAD OFFICE
PERSONNEL WING:
1.

Personnel Management Section

2.

Industrial Relations Section

3.

Human Resources and Organization Development Section

4.

Head Office Staff Administration Section

5.

House Magazine and Library Section

6.

Official Language Section

7.

Staff Training College

8.

Recruitment Cell

9.

SC/ST Cell

PLANNING AND DEVELOPMENT WING:

1.

Development Section

2.

Economic Research Section

3.

Management Information and Planning Section

4.

Customer Service Section

5.

Publicity and Public Relations Section

6.

Corporate Merchant Banking Division

7.

Marketing, Research & Product Development Section

8.

Corporate Cash Management Services

CORPORATE CREDIT WING:

1.

General Credit Sanctions-I Section

2.

General Credit Sanctions-II Section

3.

Export Import Credit and Development Section

4.

Project Finance Department

RECOVERY WING:
1.

Recoveries Section

2.

NPA Management Section

3.

Legal Section

4.

Sick Industries and Rehabilitation Section

RISK MANAGEMENT WING:

1.

Credit Policy Section

2.

Industrial Advisory Division

3.

Risk Management Section

4.

Credit Monitoring and Statistics Section

5.

Credit Review Section I & II

FINANCIAL AND GENERAL ADMINISTRATION WING:

a)

General Administration Department

1.

Furniture and Bills Section

2.

Premises, Policy and Administration Section

3.

Technical Cell

4.

Records and Tappal Section

5.

Premises and Estate Section

6.

Printing Section

7.

Stationery Section

8.

Central Security Cell

9.

Estate Policy and Control Section

.
b)

Accounts and Taxation Department

1.

Balance Sheet and Central Accounts Section

2.

Staff Provident Fund

3.

Staff Welfare Fund

4.

Pension Fund

5.

Government Accounts Section

6.

Executor, Trustee and Taxation Section

7.

IBA Rconciliation Section

8.

DD Rconciliation Section

9.

ATM and Debit Card Reconciliation Section

PRIORITY CREDIT WING:

1.

Priority Credit Section

2. Agricultural Consultancy Services

3.

Small Scale Industries Division

4.

Regional Rural Banks Division

5.

Rural Development Section

6.

Social Banking Cell

INSPECTION WING:
1.

Planning Section

2.

Follow Up Section

3.

Review and Reporting Section

4.

Information Systems Audit Section

5.

Vigilance Department

6.

Staff Administration Section

7.

Organization and Methods Section

DEPARTMENT OF INFORMATION TECHNOLOGY - WING:

1.

Department of Information Technology

TREASURY AND INTERNATIONAL OPERATIONS WING:

1.

Treasury and Investment Division

2.

Overseas Banking Division

RETAIL BANKING AND SUBSIDIARIES WING:

a)

Cancard Division

b)

Retail Banking Division

1.

Retail Banking Division

2.

Bancaassurance Section

3.

Cross Selling of Mutual Fund Products Section

c)

Subsidiaries Division

1. Subsidiaries Section
Names of Subsidiaries and Associates
a)

Canbank Mutual Fund Limited

b)

Canbank Factors Limited

c)

Canfin Homes Limited

d)

Canbank Investment Management Services Limited

e)

Canbank Computer Services Limited

f)

Canbank Venture Capital Fund Limited

g)

Gilt Securities Trading Corporation Limited

h)

Canbank Financial Services Limited

Customer Support:
IT Driven
ATM

Anywhere Banking

Anywhere Banking

Tele Banking

Customer terminal

computerized information Facilitation

NRI Services

Non Resident External Rupee Account.

Non Resident Ordinary Account.

Foreign Currency Non Resident Accounts-Banks.

Loans & Advances

Retail Loan Products

Canmahila.

Housing Loan.

Home Improvement Loan.

Cancarry.

Cancash.

Canmobile.

Canbudget.

Teachers Loan.

Canmahila:

A Loan Scheme exclusively designed for the benefit of women.

Loan for women Aged between 18 and 55 years, Married or single, Working or not (housewives
also), Engaged in business or self employed.

To meet any personal financial needs, viz., for buying household articles, gold
jewellery, computers, gift articles, etc.

No Security required in case of working women, however, in respect of a nonworking woman, for loan amount exceeding Rs.25,000./-, co-obligation of
husband / parent / son is insisted.

Interest 11.5% p.a. - EMI Rs.329/- per ten thousand for 36 months

Housing Loan:

Purpose: For construction / purchase / repairs / additions / renovations of residential

house / flat including the purchase of land and construction thereon. For taking over
of the Housing Loan liability with other recognized Housing Finance Companies,
Housing Boards, Co-operative Banks, Co-operative Societies and Commercial Banks
at prevailing low rate of interest.

Eligibility: Salaried individuals, individuals engaged in business / professionals and

self-employed persons.NRIs are also eligible to avail loans without specific
permission of RBI.Persons above the age of 55 years are also eligible subject to
certain stipulations.

Maximum loan amount of Rs.50 lacs for purchase / construction of house / flat. (Loan
is also granted up to Rs.1 crore selectively.) And Rs.7.5 lacs for repairs / renovations /
additions to the existing house / flat.

Security: Mortgage of House / Flat

Repayment: In convenient equated monthly installments up to 20 years

Home Improvement Loan:

Purpose: For furnishing house / flat with household furniture items, air conditioners,
wardrobes, kitchen cabinets, refrigerator, washing machine, etc.,

Can

be

availed

along

with

Housing

Loan

from

Canara

Bank

OR Without any Housing Loans

This loan can also be availed where a Housing Loan is already obtained from Canara
bank and the liability is subsisting.

Eligibility: Owners of House / flat who are salaried individuals / individuals engaged
in business / professionals / self-employed. NRIs are also eligible.

Salaried individuals with minimum 25% net take home salary or Rs.2000/- after
meeting loan repayment, whichever is more. Other than salaried individuals minimum annual income of Rs.50, 000/- as evidenced by ITAO / IT Returns.

Repayment: In convenient equated monthly installments up to 60 months

Security: Hypothecation of assets created out of this loan. Mortgage of house / flat (if
housing loan is availed from Can Bank) suitable co-obligation / personal guarantee.
Waivers considered selectively.

Loan Quantum & Margin:

When availed along with Housing Loan from Canara Bank, amount up to one year's
gross salary / income over and above the normal eligible amount for housing finance.

In other cases, one year's gross income / salary will be reckoned to determine the loan
quantum under this Scheme.

Subject to above, normally, the maximum loan quantum shall be Rs.2 lacs. Higher
quantum considered selectively.

If availed as a part of the housing finance from canara Bank, then, the margin
stipulated is 15%. In other cases, the margin is 20%.

Cancarry (Loan to purchase Consumer Durables)

Purpose: To pick up favorite household articles and latest gadgets to enhance the
quality of life. The personal computer, laptop, handy cam, cameras, music
systems, washing machine, microwave oven, refrigerators and many other items.

Eligibility: Salaried individuals with minimum 25% net take home salary or Rs.2,
000/- after meeting loan repayments, whichever is more. Other than salaried
individuals - minimum annual income of Rs.50, 000/- as evidenced by IT Returns.

Finance up to 80% of the invoice value or 15 months of net salary, whichever is

less. And for non salaried persons and professionals, finance up to 50% of net
annual income of immediate previous year or 80% of the invoice value whichever
is less.

Repayment: In convenient equated monthly instalments up to 36 months.

Cancash - (Loan against Shares)

Cancash loan can be availed by pledging investments in Shares, Debentures,
Bonds or Units.
Eligibility: Individuals - Existing customers with satisfactory dealings. New
customers - well-introduced and credit worthy can also avail.
Amount of Finance: Shares and Debentures - up to 60% of market value, PSU
Bonds up to 70% of Market Value, Units of UTI and CBMF - 50% of NAV or
market value whichever is less.

Repayment: Up to 60 months. EMI is also acceptable.

Canmobile - Vehicle Loan

Purpose: For buying new or used four wheeler / new two Wheeler.

Eligibility: Salaried persons, professionals and business people, with qualifying

income and required repayment capacity. Reputed firms and corporates are also
eligible.

Loan amount up to 90% of the invoice value. There is no ceiling on maximum

loan amount.

Loan also available for used cars, Up to 75% of the value.

Repayment: In convenient Equated Monthly Instalments up to 72 months in case

of four wheelers.48 months in case of two Wheeler.

Canbudget:

A simple Personal Loan Scheme exclusively for the benefit of employees of

Corporates, PSUs, Government Departments, Institutions, etc.,

Purpose: To meet genuine personal needs.

Eligibility: Confirmed employees of reputed PSUs and Joint Stock Companies

,Confirmed Central / State Government officials, Lecturers / Asst. Professors /
Professors of Colleges / Research Institutions and Universities ,Employees salary
account has to be maintained with Canara bank branch

Net take home salary - 40% of the gross salary. Selectively up to 25% of gross
salary is also permitted.

Quantum: Six months' gross salary or Rs.1 lac whichever is less.

Repayment: In convenient Equated Monthly Instalments up to 60 months.

Security Normally, Co-obligation is required for loans above Rs.50,000/-

Teachers Loan:

Purpose: To meet any genuine personal needs

Eligibility: All confirmed teaching / non-teaching staff working in a school /

college - drawing salary through Canara bank branches

Quantum: 6 months' net salary or Rs.1, 00,000/- whichever is less.

Repayment: Up to 36 months. EMIs also possible.

Security

life

insurance

policy

Commercial Banking Loans:

Working Capital Finance - Cash Credit

Bill Discounting

Term Loans

Export Finance

Non Fund Based Limits -

Letters of Credit
Bank Guarantee

Other Commercial Loans

Loans to SSIs
Loans to Traders
Agriculture Loans

Other priority Sector loans

Agriculture & Rural Credit
- Kisan Credit
- Loans for setting up Agri Clinic
- Minor Irrigation Loans
- Farm Machinery Loans
- Farm Development Loans
- Vehicle Loan for Agriculturists
- Loan for Plantation Crops
- Loan for Marine Fisheries

or

suitable

co-obligation

- Loan for Inland Fisheries

- Loan for Sericulture
- Loan for Purchasing Agricultural Land
- Loan for Poultry
- Export Credit for Agro Products
-Other Agricultural Schemes

Vidyasagar (Educational Loan)

Housing Loan

Other Priority Sector Loans

Government Sponsored Schemes

Lead Bank Activities

Agricultural Consultancy Services

General Facilities

Safe custody Services

Safe custody Lockers

Nomination Facility

Deposits
Fixed Deposit:

It is safe, liquid and fetches high returns.

Minimum Rs. 1000/-, Maximum - No ceiling.

Period of Deposit - 15 days to 120 months.

Interest Payment - Monthly, Quarterly, Half-yearly or Annual intervals at depositor's

choice.

Facility of part withdrawal of deposits in units of Rs.1000/- keeping the rest of the
deposit to earn contracted rate of interest.

Closure before maturity permissible.

RECURRING DEPOSITS:

Enables to build up a sizeable capital in a regular and systematic way.

Amount of Deposit As low as Rs.50/- per month(in multiples of Rs.50/-)

No ceiling on maximum amount

Closure before maturity

Loan against deposit permissible

Interest compounded every quarter

CANBANK AUTO RENEWAL DEPOSITCARD:

Self-propelled phenomenon that rotates deposits to fetch higher returns.

Period of deposit: 15 days to 46 days.

Auto renewal: CARD has built-in features for automatic renewal of the deposit, with
or without interest accrued.

Loans against deposits permissible.

Closure before maturity permissible.

CANFLEXI DEPOSITS

A combination of Savings Account and Fixed Deposit, CANFLEXI enables to earn

maximum interest. Automatic transfer of funds beyond Rs.15, 000/- from Savings

Bank account to an automatically created Fixed Deposit in multiples of Rs. 1000/-,

earning more interest.

Savings bank account continues to serve as before.

If cheque amount exceeds the available balance in Savings Account balance, Canflexi
transfers funds from fixed deposit account, to ensure that cheque is honored.

Such transfers are effected automatically in multiplies of Rs.1000/- allowing the

remaining portion of the Fixed Deposit to earn contracted rate of interest.

ASHRAYA DEPOSITS (For senior citizens)

Individuals, who have completed the age of 60 years and above, are eligible.

Accounts can be opened jointly with other Senior Citizens or with other persons
below the age of 60 subject to the condition that the Senior Citizen is No.1 depositor...

Period of Deposit - 15 days to 120 months.

Age proof certificate to be produced.

Loans against deposits permitted

SWOT ANALYSIS
Strengths:

Canara Bank is a premier leading public sector bank enriched with

banking

discipline,

founder

principles,

and

steady

growth.

The

organizational study shows a significant improvement in Net profits year

after year. For the year March 2004 the bank clocked highest net profit of
Rs1338 Crore among nationalized banks. It has registered a net profit of
Rs1110 crore for the year March 2005.There assets are qualified
workforce and brand name in India. Major income is Interest on
advances. It is in the business for 100 years, which celebrated its
centenary year this year. It has a separate Planning and development
wing.
The present stature of the bank is due to strong fundamentals and quality
customer orientation. Profit making since its inception the bank today
epitomizes a perfect blend of commercial and social banking.

Weaknesses
Structural Barriers delay in decision making due to a tall hierarchy.

Opportunities:
Economic scenario is favorable to banking sector as compared to other
industries. As for as the bank is concerned it has many opportunities
More Rural Branches: It can concentrate into more rural areas.
Technological Breakthrough: Credit/Debit Card, Electronic Fund
transfer and mobile Banking. It can ring customers into these
services.
Foreign Accounts (Deposits)

Threats:
Liberalization policy of the government is an alarm for public as well as
private sector banks. With the hike in FDI in Banking foreign banks have
good opportunities. These foreign banks take away the customers of
Public sector banks. The bank continues to face competition from private
banks like ICICI, HDFC, and UTI etc

It should prepare itself for major threats like mergers in the banking;
increasing NPAs, New technology, Electronic cash transfer, and internets
banking that are predominant today.DETAILS OF

SECTIONS/DIVISIONS/DEPARTMENTS COMING UNDER

EACH FUNCTIONAL WING OF HEAD OFFICE
PERSONNEL WING:
1.

Personnel Management Section

2.

Industrial Relations Section

3.

Human Resources and Organization Development Section

4.

Head Office Staff Administration Section

5.

House Magazine and Library Section

6.

Official Language Section

7.

Staff Training College

8.

Recruitment Cell

9.

SC/ST Cell

PLANNING AND DEVELOPMENT WING:

1.

Development Section

2.

Economic Research Section

3.

Management Information and Planning Section

4.

Customer Service Section

5.

Publicity and Public Relations Section

6.

Corporate Merchant Banking Division

7.

Marketing, Research & Product Development Section

8.

Corporate Cash Management Services

CORPORATE CREDIT WING:

1.

General Credit Sanctions-I Section

2.

General Credit Sanctions-II Section

3.

Export Import Credit and Development Section

4.

Project Finance Department

RECOVERY WING:
1.

Recoveries Section

2.

NPA Management Section

3.

Legal Section

4.

Sick Industries and Rehabilitation Section

RISK MANAGEMENT WING:

1.

Credit Policy Section

2.

Industrial Advisory Division

3.

Risk Management Section

4.

Credit Monitoring and Statistics Section

5.

Credit Review Section I & II

FINANCIAL AND GENERAL ADMINISTRATION WING:

a)

General Administration Department

1.

Furniture and Bills Section

2.

Premises, Policy and Administration Section

3.

Technical Cell

4.

Records and Tappal Section

5.

Premises and Estate Section

6.

Printing Section

7.

Stationery Section

8.

Central Security Cell

9.

Estate Policy and Control Section

.
b)

Accounts and Taxation Department

1.

Balance Sheet and Central Accounts Section

2.

Staff Provident Fund

3.

Staff Welfare Fund

4.

Pension Fund

5.

Government Accounts Section

6.

Executor, Trustee and Taxation Section

7.

IBA Rconciliation Section

8.

DD Rconciliation Section

9.

ATM and Debit Card Reconciliation Section

PRIORITY CREDIT WING:

1.

Priority Credit Section

2. Agricultural Consultancy Services

3.

Small Scale Industries Division

4.

Regional Rural Banks Division

5.

Rural Development Section

6.

Social Banking Cell

INSPECTION WING:
1.

Planning Section

2.

Follow Up Section

3.

Review and Reporting Section

4.

Information Systems Audit Section

5.

Vigilance Department

6.

Staff Administration Section

7.

Organization and Methods Section

DEPARTMENT OF INFORMATION TECHNOLOGY - WING:

1.

Department of Information Technology

TREASURY AND INTERNATIONAL OPERATIONS WING:

1.

Treasury and Investment Division

2.

Overseas Banking Division

RETAIL BANKING AND SUBSIDIARIES WING:

a)

Cancard Division

b)

Retail Banking Division

1.

Retail Banking Division

2.

Bancaassurance Section

3.

Cross Selling of Mutual Fund Products Section

c)

Subsidiaries Division

1. Subsidiaries Section
Names of Subsidiaries and Associates
a)

Canbank Mutual Fund Limited

b)

Canbank Factors Limited

c)

Canfin Homes Limited

d)

Canbank Investment Management Services Limited

e)

Canbank Computer Services Limited

f)

Canbank Venture Capital Fund Limited

g)

Gilt Securities Trading Corporation Limited

h)

Canbank Financial Services Limited