Canara Bank Directors Report.

: 2019-20

The Board of Directors have pleasure in presenting the 51st Annual Report together with the Balance Sheet as on 31st March, 2020 and Profit & Loss Account for the financial year ended March 31, 2020.

A snapshot of Banks financial performance is given below: (In Crore)

Particulars Mar-19 Mar-20 Growth (%)
Global Deposits 599033 625351 4.39%
of which - Domestic Deposits 565917 601664 6.32%
Overseas Deposits 33116 23687 (28.47%)
Domestic Deposits 565917 601664 6.32%
Current Account Deposits 23274 26458 13.68%
Savings Bank Deposits 151535 169749 12.02%
CASA Deposits 174809 196207 12.24%
Domestic CASA to Domestic Deposits (%) 30.86 32.59
Global Advances 444216 451223 1.58%
of which - Domestic Advances 419005 426684 1.83%
Overseas Advances 25211 24539 (2.67%)
Total Assets 694767 723875 4.19%
Net Interest Income (NII) 14478 13124 (9.35%)
Other Income 6575 7813 18.83%
of which - Fee Income 2442 2685 9.94%
Forex Income 633 1115 76.23%
Trading Gains 402 758 88.70%
Recovery from TWO 1304 1470 12.69%
NII + Other Income 21053 20937 (0.55%)
Operating Expenses 10462 11577 10.66%
Operating Profit 10591 9360 (11.62%)
Provisions 10244 11596 13.20%
of which - Provisions for NPAs & Bad debts written off 12723 10655 (16.25%)
Profit Before Tax (2327) (1756) -
Provision for Tax (2674) 480 -
Net Profit 347 (2236) -

The global business of the bank increased to 1076574 crore, up by 3.19% y.o.y, with specific thrust on domestic business which grew by 4.41% y.o.y to 1028348 crore as at March 2020. CASA deposits surged 12.24% y.o.y to 196207 crore with Savings Account growing at 12.02% y.o.y and Current Account at 13.68% y.o.y. Thus, domestic CASA share registered a robust improvement by 173 bps to 32.59% as at March 2020.

Bank took various steps in respect of monitoring, control and maintaining asset quality. The sustained efforts of the bank has yielded results on the asset quality front which showed a commendable fall in Gross NPA by 62 bps to 8.21% and Net NPA to 4.22%, down by 115 bps. Cumulative Cash recovery stood at 10886 crore. Further the provision coverage ratio has improved to 75.86% from 68.13% in the previous year. The healthy CRAR of 13.65%, up by 175 bps, highlights that the bank is well cushioned for an organic growth in the coming quarters. In FY2020, operating profit of the Bank stood at 9360 crore and net loss at 2236 crore.


Bank is not eligible to pay dividend for the Financial Year 2019-20 on account of not meeting the eligibility criteria as stipulated by RBI for this purpose.

Further, RBI vide its Circular No. RBI/2019-20/218 DOR. BP.BC.No.64/21.02.067/2019-20 dated April 17th, 2020 has directed that, in an environment of heightened uncertainty caused by COVID-19, it is important that Banks conserve capital to retain their capacity to support the economy and absorb losses. Accordingly, all banks shall not make any further dividend payouts from the profits pertaining to the financial year ended March 31, 2020 until further instructions. This restriction shall be reassessed by the Reserve Bank based on the financial results of banks for the quarter ending September 30, 2020.



The global economy slowed down to 2.9% in 2019 Calendar Year from 3.6% in 2018 on the back of sluggish demand, dwindling global trade volumes and geo-political woes. A slew of global events such as US-China trade war tensions, uncertainty over Brexit and geo-political tensions in Middle East and other parts of the world were responsible for the slow pace of

economic activities in the bygone year. The outbreak of the novel Covid-19 virus, kept the entire world standstill, since mid-January 2020. Consequently, the global macroeconomic conditions have undergone a massive change in all respects.

Though global financial markets broadly remained resilient in the major part of the year, pandemic induced volatile swing was evident post January 2020 with respect to equities and debt segments. All major central banks turned dovish and provided accommodative guidance in the latter part of the fiscal to mitigate the ripple effects of the pandemic.

First part of the year saw elevated crude oil and gold prices, however post pandemic outbreak, crude oil prices nosedived due to massive sell offs. On the other hand, gold prices increased as investors preferred safe havens. International food prices inched up tracking higher demand and supply gluts during the latter part of the year.

The unprecedented Covid-19 virus spread dented the growth estimates further for 2020 and its repercussions in every respect are deeper than ever anticipated. Citing the evolving challenges of the global economy, International Monetary Fund (IMF) estimated the world economic output to contract by 4.9% in 2020 and recover at a pace of 5.4% in 2021. The revival of the economic growth is now projected to be more gradual than earlier estimates. Advanced Economies will contract by 8.0% y.o.y, while Emerging Market and Developing Economies will shrink 3.0% y.o.y in 2020. Nevertheless, positive growth is expected during 2021.


The domestic economy grew at 4.2% in FY2020, lower than 6.1% in FY2019, as the Covid-19 pandemic adversely impacted economic activity in the last month of the fiscal year, especially manufacturing and construction. Agriculture was the only sector which saw a healthy growth of 4% y.o.y, led by normal monsoon and robust food production. The essential services status of agriculture produce contributed to the near normal functioning of the sector in last two weeks of March even during the lockdown. Sluggishness in tourism and financial services pulled down the service sector growth to 5.5% y.o.y from 7.7% y.o.y in March 2020. The lower growth in financial services can be attributed to prolonged liquidity crisis in the NBFC segment. On the expenditure front, private consumption expenditure decelerated to 5.3% y.o.y, while Government expenditure increased at a pace of 11.8% y.o.y and investments contacted to 2.8% y.o.y in FY2020.

The headline inflation rose in the later part of the year and stood at an elevated level of 4.8% in FY2020 owing to the reversal in food prices. However, the core inflation remained low at 4.0%, highlighting lower underlying inflationary pressure in the economy.

With changing landscape of domestic macroeconomic fundamentals amid pandemic challenge, economic activities other than agriculture are expected to be muted in the near term. The revival of commercial activities, restoration of supply chains and improved demand impulses are the prerequisite to keep economy back on growth track. Thus, with lingering uncertainty in the current fiscal, downside risk to domestic growth is pronounced in FY2021 and by FY 2022, it is likely to be in the positive zone as pandemic concerns ebb off. The expansionary fiscal and monetary policy of the Government and RBI will remain supportive for few more quarters to support economic growth.

RBI provided significant monetary stimulus to support economic growth. The central bank cut the repo rate, by a cumulative 200 basis points since April 2019 to the current 4.0% level and maintained an accommodative policy stance. In a bid to mitigate the economic impact of the pandemic, RBI resorted to several measures including auctioning under TLTRO.1 and 2 to the tune of 1.5 lakh crore to infuse adequate liquidity.

Government also announced several measures to arrest the slide in growth and support the economy during the first half of the year. The most important among those measures was the cut in corporate tax from 30% to 22% without any exemptions.

Keeping the economic risk emanating from the pandemic, Government has rolled out 20 lakh crore plus stimulus package for all significant sectors in the economy, out of which 6 lakh crore will be financed through banking channel. This effective complementarity of fiscal and monetary policies will indeed give impetus to economic growth in the coming years.

The credit guarantee provided by the central Government for lending to MSMEs, and slew of measures taken for liquidity support to NBFCs, HFCs and MFIs in the special economic package is likely to stimulate bank credit off take. The credit growth is expected to pick up in tandem with rebound in economic growth.


The fiscal 2020 witnessed structural reforms with respect to banking sector. In order to tap the economies of scale, the Central Government announced mega merger of 10 Public Sector Banks (PSBs). Consequently Oriental Bank of Commerce (OBC) and United Bank of India (UBI) merged into Punjab National Bank (PNB), Syndicate Bank merged with Canara Bank, Andhra Bank and Corporation Bank merged with Union Bank of India and Allahabad Bank merged into Indian Bank. An upfront capital infusion of 70,000 crore in state-run banks was made in the last fiscal by way of recapitalisation bonds.

Digitalization being recognized as the driver of the banking industry in the wake of upgradation and implementation of EASE agendas, majority of the banks resorted to online service provisions such as psbloansin59minutes launched in FY2020. Even the India Post who entered into banking services stepped up the digital services by providing mobile facilities for PPFs and Savings Account. There is a paradigm shift witnessed across the banking sector in turning more digital to support cashless economy initiatives.

In FY2020, RBI made it mandatory for banks to link all new floating rate loans to micro and small enterprises (MSME) and loans to buy homes, vehicles and for personal consumption to an external interest rate benchmark effective from October 1st.


In view of the Covid-19 pandemic, the Bank as a responsible organization discharged the duties duly following the Covid-19 guidelines by taking required measures.

During nation-wide lockdown, 97% of the branches and 92% of ATMs were fully operational to serve customers effectively in the wake of pandemic. Digital channels have been used effectively to make the banking services available to the customers and E-transactions increased by 24 crore since March 25th. Services of Business Correspondents was stepped up and the transactions thorough this channel stood at 1.2 crore during the shutdown days. The Bank actively participated in the community support initiatives by crediting 783 crore under PM Kisan and 1029 crore to PMJDY women beneficiaries. As a part of CSR initiatives, bank spent

4.35 crore for Covid-19 relief measures. In solidarity with those suffering from the pandemic, the Banks employees have contributed 15.53 crore to PM CARES Fund.

The Bank has given Work from Home options for the employees, introduced staggered working hours and sanitization of working units for ensuring employees safety. 1.30 cr has been provided to 7745 Business Correspondents for sanitizing the Biometric machines.

The Bank ensured that all its alternate delivery channels work uninterrupted. Further, foreseeing the depth of pandemic crisis, the Bank has taken all precautionary initiatives to ensure continuity in operations. The Bank has a Disaster Recovery site which is capable of handling the CBS and other functions of the Bank. In case of closure of Data Centre, Bank will function from the Disaster Recovery Site.

The details of the financial impact of the pandemic are provided in the Notes on Account Section. As per the detailing, there would not be any significant impact on the Banks financials.


Given the extent of crisis emanated from the pandemic, outlook for the next fiscal remains uncertain at this juncture. Notwithstanding, a recovery is most likely with resuming of commercial activities and easing of lockdown. The fiscal and monetary stimulus will remain growth supportive in the coming year.

The banking sector continues to serve as the backbone of the economy ensuring smooth recovery path. To strive for better performance in the coming years, the Bank gives thrust on shoring up of CASA while consciously reducing the reliance on bulk deposits. The Bank focuses on balanced advance portfolio with proper mix of retail, agriculture, MSME and corporate credit. The bank has provided hundred per cent guaranteed MSME lending to give unrelenting support to this segment in tandem with Government guidelines. The Bank takes adequate efforts for NPA management with ardent credit monitoring, contain fresh slippages and strengthen recovery efforts. Further strengthening of digital capabilities is in the anvil ensuring best services to customers with end-to-end digital solutions. The bank will continue to strive for process and product improvements in view of changing requirements and circumstances. Bank has already rationalised the organisational structure and plans to further optimize its branch network. Separate verticals and dedicated workforce will support in augmentation of business. In the coming years, the Bank looks forward for leveraging amalgamation benefits for maximizing the efficiency and productivity.


Under various business parameters, Canara Bank performed better during the year in sync with its major thrust areas, viz. balanced growth, optimal resource mobilization, expanding retail assets, including Agriculture, Housing and other retail segments, and improving asset quality.


During FY2020, the global business of the Bank increased to 1076574 crore, up by 3.19% y.o.y with global deposits growing at a pace of 4.39% y.o.y at 625351 crore and global advances growing 1.58% y.o.y at 451223 crore.

A snapshot of business growth in FY2020

Particulars Mar-19 Mar-20 Growth y.o.y (%)
Global Deposits 599033 625351 4.39%
of which- Domestic Deposits 565917 601664 6.32%
Overseas Deposits 33116 23687 (28.47%)
Domestic Deposits 565917 601664 6.32%
Current Account Deposits 23274 26458 13.68%
Savings Bank Deposits 151535 169749 12.02%
CASA Deposits 174809 196207 12.24%
Domestic CASA to Domestic Deposits (%) 30.86 32.59
Advances 444216 451223 1.58%
of which- Domestic Advances 419005 426684 1.83%


25211 24539 (2.67%)
Total Assets 6,94,767 7,23,875 4.19%


Total Deposits increased to 625351 crore as at March 2020 compared to 599033 crore a year ago, with a y.o.y growth of 4.39%. Current and Saving (CASA) deposits of the Bank increased by 12.24% y.o.y. to 196207 crore on March 2020. The Banks CASA deposits share to domestic deposits stood at 32.59% from the last years 30.86%. Savings deposits grew by 12.02% to 169749 crore. Current deposits grew by 13.68% to 26458 crore.

The focus on premier CASA products, like, Canara Galaxy, Canara Privilege, SB Powerplus and NRI accounts were given to improve the average balances under CASA. Pursuing a strategy of expanding deposit clientele, the Bank added 39 lakhs deposit clientele during the year, taking the total number of deposit clientele to 7.37 crore.


The Bank expanded its asset base in a well-diversified manner comprising of the productive segments of the economy, like, Agriculture and Micro, Small and Medium Enterprises (MSMEs) and other productive sectors in addition to Retail assets, including Housing, Education, and Vehicle loan segments.

Advances (Gross) of the Bank grew by 1.58 % to reach 451223 crore as at March 2020 compared to 444216

crore a year ago. The number of borrowal clientele increased to 82.75 lakhs as at March 2020.

Total business of the Bank increased to 1076574 crore, with a y.o.y. growth of 3.19% compared to 1043249 crore in the previous year.


Operating profit of the Bank stood at 9360 crore compared to 10591 crore last year. Bank reported a net loss of 2236 crore for 2019-20 compared to a net profit of 347 crore during last year. Net Interest income of the bank stood at 13124 Crore compared to 14478 crore generated during last year. NIM stood at 2.29% and Yield on Advances at 8.18%.

Key Financial Ratios (%) Mar-19 Mar-20
Cost of Funds 5.24 5.12
Yield on Funds 7.59 6.99
Cost of Deposits 5.66 5.57
Yield on Advances 8.39 8.18
Net Interest Margin (NIM) 2.63 2.29
Return on Assets (RoA) 0.06 (0.32)
Return on Equity (RoE) 1.40 (8.05)
Cost to Income Ratio 49.69 55.30

Income and Expenditure Analysis

During the year, total income increased by 6.30% y.o.y to 56748 crore, comprising 36076 crore interest from advances, 11336 crore interest from investments, 7813 crore from non-interest income and 1523 crore from other interest income.

Operating performance of the Bank






Interest Earned




Interest Expended




Net Interest Income (NII)




Other Income




of which- Fee Income




Forex Income




Trading Gains




Recovery from TWO




Operating Income (NII + Other Income)



Operating Expenses



Employee Expenses



Other Operating Expenses



Operating Profit






of which- Provisions for NPAs & Bad debts written off



Provision for Standard Advances



Provision for Depreciation on Investment



Other Provisions



Profit Before Tax



Provision for Income Tax



Net Profit




In line with the thrust areas for the Bank, non-interest income (Excl. Trading profit) registered a growth of 14.27% to 7054 Cr compared to 6173 crore during last year. Apart from trading profit, other major sources of non-interest income, like, service charges (1319 crore), commission and exchange (824 crore), recovery from written off accounts (1470 crore) and Profit from exchange transaction (1115 Crore) contributed to the non-interest income of the Bank. The share of non-interest income to total income stood at 13.77%.

Total expenditure of the Bank increased by 10.73% y.o.y to 47388 crore from 42794 crore incurred during last year. Interest expenses of the Bank increased by 10.76% to 35811 crore. Operating expenses increased by 10.66% to 11577 crore, comprising staff cost of 7134 crore and other operating expenses of 4443 crore. Staff cost increased in FY 20, mainly on account of the increased provision towards Superannuation benefits and additional provision for wage revision. Other operating expenses, increased mainly on Banks property, insurance expenses, AMC expenses, maintenance of software/ hardware and increase in GST expenses.

Due to the decrease in interest rates, the Banks cost of deposits decreased by 9 bps to 5.57% from the last years 5.66%. The net interest income, the difference between interest paid and interest earned by the Bank, declined by 9.35% to 13124 crore compared to the last years 14478 crore.

Capital and Reserves

Net worth of the Bank, as at March 2020 stood at 28969 crore compared to 26180 crore as at March 2019.

While the total paid-up capital of the Bank stood at 1030.23 Crore, the reserves and surplus increased to 38262.73 crore.

Composition of Capital ( Cr) March 2019 Basel III March 2020 Basel III
Risk Weighted Asset 352456 360906
CET I 29300 33881
CET I (%) 8.31% 9.39%
AT I 2551 2648
AT I (%) 0.72% 0.73%
Tier I Capital 31851 36529
CRAR (%) (Tier I) 9.04% 10.12%
Tier II Capital 10082 12727
CRAR (%) (Tier II) 2.86% 3.53%
Total Capital 41933 49256
CRAR (%) 11.90% 13.65%

Capital Adequacy Ratio, under Basel III was 13.65% as at March 2020 against the regulatory requirement of 10.875%, including capital conservation buffer of 1.875%. Within the capital adequacy ratio, CET I ratio was at 9.39% and Tier I capital ratio was at 10.12%.

Ministry of Finance, Government of India has infused Capital of 6571 Crore in the Bank during the current financial year by way of preferential allotment of equity shares. The Bank issued 27, 69, 88,576 fully paid-up equity

shares of 10/- each at an issue price of 237.23 per equity share including premium of 227.23 aggregating 6571 crore, on preferential basis to the Government of India and there by Government of India holding in the bank increased to 78.52%.


In line with the thrust areas set for the year, the Banks retail lending operations recorded good y.o.y growth.

Retail Segments

As at March

Y.O.Y Growth

2019 2020 Quantum (%)
1. Housing 33581 39611 6030 17.96
2. Vehicle 9446 10446 1000 10.59
3. Other Personal 19299 20320 1021 5.29
4. Education 8859 9423 564 6.37
Core Retail Loans (1+2+3+4) 71185 79800 8615 12.10
5.Indirect HL 17854 16172 (1682) (9.42)
6.Indirect+ Buyout 8346 9075 729 8.73
Total Retail Loans (1+2+3+4+5+6) 97385 105047 7662 7.87

The outstanding Core Retail loans portfolio grew by 12.10% y.o.y to 79800 crore as at March 2020. The outstanding housing loan portfolio rose to 39611 crore, with a y.o.y growth of 17.96 % and accounted for 49.63 % of the Core retail lending portfolio. Vehicle loans and other personal loans increased by 10.59% and 5.29% y.o.y respectively. During 2019-20, Bank has sanctioned 250527 retail loans amounting to 24748 Crs.

The reason for decline in indirect Housing Loan is decrease in our exposure towards HFCs / NBFCs during the FY 2019-2020. Our exposure towards HFCs / NBFCs during FY 2018-2019 was 16268 crs which declined to 13290 crs during FY 2019-2020.

Education Loans

Over the years, the Bank has assisted substantial number of promising students to pursue higher education in India and abroad. The Banks education loan portfolio increased to 9423 crore as at March 2020. The Bank has financed around 2.80 lakh students as at March 2020. During 2019-20, the Bank has disbursed education loans worth 1604 crores.

Among all Nationalized Banks, our Bank is in the forefront in extending education loans. Further, considering the huge thrust on skill development in recent years, "IBA Skill Loan Scheme" has been implemented to support skill development initiatives of Department of Financial Services (DFS). The Bank has a special education loan scheme namely "Vidya Turant", Collateral-free Education loans for the meritorious students who are admitted to premier institutes such as IITs, IIMs, ISB etc up to a limit of 36 Lakh with concessional rate of Interest, Bridge Loan Scheme namely "Vidya Sahay" to assist the needy and meritorious students who are in need of the down payment to be made to the CET / Counseling Authorities at the time of selection /c ounseling and "Vidya Shakthi", education loan scheme for the PWD category of students including expenses for specially designed equipments for differently abled persons with concessional interest rate.


The Bank continues to accord importance to varied goals under national priorities, including agriculture, micro, small and medium enterprises, education, housing, social infrastructure, renewable energy, microcredit, credit to weaker sections and specified minority communities.

Priority Sector Advances of the Bank as at March 2020 reached ?203029 crore, recording a y.o.y growth of 3.05% and achieved 44.66% to Adjusted Net Bank Credit (ANBC) against 40% mandated norm.

Priority Sector

Priority Sector Advances

As at March

Y.O.Y Growth

2019 2020 Quantum (%)
Total Priority Sector 197013 203029 6016 3.05
Agriculture 91843 97043 5200 5.66

With a focus on credit delivery to Agriculture, the Banks advances under agriculture portfolio increased by 5.66%

to ?97043 crore, covering over 72 lakh farmers. Under agriculture lending, the Bank achieved 18.58% to ANBC against 18% mandated norm. During 2019-20, the Banks agriculture credit disbursal increased to ?84891 crore compared to ?76384 crore in the previous year. Advances to Small & Marginal Farmers achieved 13.01% to ANBC as against the mandatory Target of 8% (Net of PSLC-SF / MF sale) as at March 2020.

During the year, the Bank issued 8.48 lakh Kisan Credit Cards (KCCs), amounting to ?13872 crore. The credit outstanding under KCCs was at ?20263 crore as at March 2020. 7.69 lakh Kisan RuPay Cards were issued against eligible accounts of 7.87 lakh, with an achievement of 97.71%.

Advances to Micro Enterprises (Priority) stood at 33485 crores achieving 8.24% to ANBC as against the mandatory Target of 7.5%.

The Bank actively participated in various Government Sponsored Schemes, such as, Prime Ministers Employment Generation Programme (PMEGP), National Rural Livelihood Mission (NRLM), National Urban Livelihood Mission (NULM), Differential Rate of Interest (DRI) Scheme, Stand Up India, Pradhan Mantri Mudra Yojana (PMMY).

As at March 2020, the outstanding advances under the following Government Schemes, aggregated to ?13505 crore, involving around 15.97 lakh beneficiaries.

Performance under various Government Sponsored Schemes:



Accounts Amount
Prime Minister Employment Generation Programme (PMEGP) 21548 920
Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM) 79672 1824
Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM) 7594 73
Differential Rate of Interest 112951 101
Stand Up India 3835 600
Pradhan Mantri Mudra Yojana (PMMY) 1371603 9987
Total 1597203 13505

Advances to DRI stood at 101 crore, consisting of 1.13 lakh beneficiaries, of which, advances by rural and semi-urban branches amounted to 78 crore. In support of the underprivileged sections of the society, the Banks advances to SCs / STs beneficiaries amounted to 8284 crore as at March 2020, covering 5.03 lakh borrowers. The advances to SCs / STs comprised 4.08% of total priority sector advances. Advances to Weaker Sections reached 94619 crore, constituting 18.48% to ANBC against mandated norm of 10%.

Various components of advances to Weaker Sections as at March 2020:



Accounts Amount
Small & Marginal Farmers, Landless Labourers, Tenant Farmers and Share Croppers 6585686 72403
Artisans, Village and Cottage Industries 32247 670
SC / ST Beneficiaries 503377 8284
DRI Loan 112951 101
Self Help Group 165642 4079
Joint Liability Group 49727 990

As at March 2020, advances to specified minority communities aggregated to 35977 crore, accounting for 17.85% of the actual priority sector advances against the stipulated 15% norm.


Advances to MSME stood at 78773 Crore reaching out to around 10.50 Lakh Borrowers. Meanwhile MSE advances stood at 63666 Crores as at March 2020. In order to increase credit flow to this segment, in FY20 the Bank has launched various need based Schemes and products catering to the needs of specific segments.

V Canara GST - For Working Capital needs of GST Registered MSMEs

V Canara Sahyog - Stand By Line of Credit for MSME borrowers to meet the temporary liquidity mismatch

V CANARA CREDIT SUPPORT to COVID - 19 affected Customers (CCS)-Fund based Working Capital Demand Loan to meet liquidity mismatches arising out of COVID-19 Outbreak

S MSME SUGAM for the purpose of Working Capital requirements / asset creation to Micro Small and Medium Enterprises by way of Short term Loan under Co-origination / Origination with NBFCs / Fin-Techs with validity up to 31.03.2021 on a PAN India basis.

With 52 SME Sulabhs, set up across the country, 167 SME Specialised Branches, 500 SME Focus Branches and SME Clusters, Bank has Branches in all 388 UNIDO identified clusters. Specialised SME Marketing Officers have also been employed by the bank to proactively disburse credit to this segment.

Sanctions under MUDRA loans in FY20 stood at 15362.55 crore with 102% achievement (Including RRBs) as against the target of 15000 crore in March 2020.

Sanctions and disbursals under different categories of Pradhan Manthri Mudra Yojana (PMMY) are as under:


FY 2019-20 (Amt. in Crore )

No. of Accounts Sanction Amount Disbur sement Amount Out standing Amount
Shishu (<50,000) 446327 676 673 666
Kishore (Above 50,0005 Lakhs) 150994 3910 3722 3565
Tarun (Above 5 Lakh to 10 Lakhs) 58628 4904 4604 4557
Total 655949 9490 8999 8788

Major highlights

S Under Stand Up India, the Bank sanctioned 3998 accounts to the tune of 989 crore with a growth of 111% y.o.y were made during the year.

S During FY20, under PMEGP the Bank sanctioned 4810 proposals amounting to 150 crore, with total margin money claimed stood at 144 crore, which is 30% more than last fiscal.

S With respect to PSB Loans in 59 minutes, the Bank is one of the top performers on this portal with 7002 in-principle sanctions since the inception till 31.03.2020 on this platform.

S On TReDS, the Bank has discounted 1703 bills to the tune of 333.79 Crores.


S Post outbreak of COVID-19, Bank has introduced CANARA CREDIT SUPPORT to COVID-19 affected Customers (CCS) - Fund based Working Capital Demand Loan to meet liquidity mismatches arising out of COVID-19 Outbreak. Bank has also launched Guaranteed Emergency Credit Line (GECL for MSMEs, as a special scheme under Emergency Credit Line Guarantee Scheme (ECLGS).



The bank has 8850 number of ATMs as on March 2020. The Banks EMV debit card base is at 2.44 crore. Besides the above, 177 hi-tech E-lounges were operational 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. Interactive Video Conference System was also configured at select e-Lounges.

As a result of such alternate delivery channels adopted by the Bank, the e-transaction ratio stood at 73.92% as at March 2020. The number of registered users under Mobile Banking is at 42.24 lakhs (up by 93.21% y.o.y) and Net Banking users increased to 109.35 lakhs (up by 76.76% y.o.y) as at March 2020. Digital Branch-CANDI, was opened at Chandigarh, Indore & Pune during the year along with existing branches at Bangalore, Chennai, Delhi and Mumbai, with fully automated facilities and robotic assistance for customers to open accounts and do transactions themselves.

? New functionalities introduced in Mobile Banking during 2019-20:

"CANDI" - Canara Bank Mobile Banking App. It is made available in 11 languages i.e English, Hindi, Kannada, Telugu, Punjabi, Marathi, Bengali, Tamil, Malayalam, Gujarati and Oriya. CANDI is flavored with latest features like:

> Biometric Authentication

> Cardless Cash withdrawal

> Lifestyle services (Mobile Recharge, DTH, Flight Booking, Bus Booking, Hotel Booking etc.)

> Omni Channel Consumer Internet Banking application is a device and platform compatible mode of digital banking channel, which works seamlessly on tabs, mobile browser, mobile App, PCs, and laptops etc.

? New functionalities introduced in Internet Banking during 2019-20:

Following features were introduced:

> Loan against Deposit

> Green Pin option

> Card Security Management

> Generation of Interest Certificates

> Part Redemption of FD

> Nomination Facility

? New functionalities introduced in ATM during 2019-20:

> All safety measures mandated by RBI (i.e. Terminal Security Solution, Anti-skimming Devices, EMV compliance) have been successfully implemented in all our operational ATMs within the timelines.

> All ATMs are migrated for centralised reconciliation.

> Implemented OTP for cash withdrawal above 10,000.

Important initiatives taken by the Bank to improve customer service at various levels

Digital Channels

> Canara DiYA - Canara DiYA (Digitally Your Account) is an instant online account opening application (App / Browser) without visiting branch. This App is hassle-free and comes with a host of added features.

> CANDI - It is a paperless, digital branch, without human intervention. Customer can open Account through Kiosk & get Instant Personalized debit card, Digital Challan & Token management, Humanoid Robot and Video Banking.

> Canara Recovery mobile app - for employees to recover Special Mention Accounts, NPA and Overdue accounts. Option enabled for Users to send notifications to customers via SMS / WhatsApp to remit the overdues. It is very useful to employees to know the status of SWL and NPA accounts anywhere any time.

> New Packages for handling Government Business

- Pension, Kisan Vikas Patra, Senior Citizen Savings

Scheme, Gold Monetization Scheme, OLTAS (Online Tax Accounting System), PPF & RBI - Relief Bond modules are released for branches / offices.

> Canara OTP (Off-line) - App based self-generation of OTP by customers themselves for doing financial transactions through internet banking. This will be mainly helpful for NRI customers and customers on travel facing mobile network issues.

> Canara Saathi app - (Credit Card Services) Toggle ON / OFF, Hotlist, Payment, Generate Statement, View Card Summary & Un-billed transactions, option to convert unbilled transactions to EMI.

Business Correspondent (BC) network

Bank has migrated from traditional HHM (Hand Held Machines) model to BC Hybrid model (TAB based solution), which is easily accessible, fast, convenient and secure. Services under BC channels are as follows:

1. Aadhaar Enabled Payment System (AEPS) ONUS - Cash Deposit / Cash Withdrawal / Balance Enquiry / Funds Transfer / Mini Statement

2. AEPS OFFUS - Cash Withdrawal / Balance Enquiry / Funds Transfer /Mini statement

3. RuPay ONUS - Cash Withdrawal / Balance Enquiry / Mini Statement

4. Third Party Deposit

5. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) enrollment

6. Pradhan Mantri Suraksha Bima Yojana (PMSBY) enrollment

7. Atal Pension Yojana (APY) enrollment

8. Bharat Bill Payment System

9. E-KYC Based Account opening (Account can be opened under 3 minutes by just giving AADHAAR number and Biometric details)

10. AADHAAR seeding / status of linking

11. Lodge & Track Complaints

12. Pension Life Certificate updation (Jeevan Praman) With the implementation of TAB based solution, number of transactions has increased by 40% and transaction charges has decreased by 60%.

Other channels

> NPS All Citizen Model - National Pension System in All Citizen portal for public to apply for PRAN under New Pension Scheme.

> i-Lead - Inspiring lead system for inculcating marketing culture among staff and to augment Bank business.


In a bid to cover considerable unbanked population under the mainstream banking channel, the Bank undertakes an inclusive approach. As a part of financial inclusion drive, the bank makes its products and services available to financially excluded and marginalized sections of the society. As per the Government of India and the Reserve Bank of India directions, the Bank has been proactive in financial inclusion efforts, with key interventions, viz., expanding banking infrastructure, offering appropriate financial products, making extensive & intensive use of technology and advocacy of financial literacy.

S The Bank has 903 Financial Inclusion (FI) Branches under branch model and also engaged 2652 Business Correspondent Agents (BCAs) under Business Correspondents (BC) model.

S Bank formed Canara Financial Advisory Trust to take care of the affairs of the Financial Literacy Centres (FLCs) of the Bank as well as the FLCs promoted by the Regional Rural Banks (RRBs) sponsored by the Bank. The Bank has 82 FLCs in districts & blocks level across the country, managed by the Counsellors (retired bankers).

S Bank opened 76.38 lakh accounts under PMJDY.

S Covered all allotted 10049 villages comprising of 3962 allotted SSAs and 3371 Urban wards by opening of 903 brick & mortar branches and engaging 2652 Business Correspondent Agents (Bank Mitras) at remaining locations.

S Under social security schemes launched by the Government of India during the year, following enrolments have been made under PMJJBY & PMSBY.

Scheme Enrolments including Renewals as at March 2020

Scheme Enrolments including Renewal As at March 2020
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) 107.12
Pradhan Mantri Suraksha Bima Yojana (PMSBY) 37.24
Atal Pension Yojana (APY) 3.86


S Under Sukanya Samriddhi Yojana, the Bank has mobilized 15211 accounts

AADHAAR Enrolments Updation Centres

The Bank is a Registrar and Enrolment Agency for Aadhaar Enrolment. As per UIDAI guidelines, the Bank has to establish ASKs at 10% of the bank branch premises. Accordingly, bank has established 791 ASKs, comprising of 613 centres for the bank and 178 centres for the 2 sponsored RRBs (KAGB 116 & KGB 62).

Empowering Women

Women Empowerment Section at Head office and Centre for Entrepreneurship Development for Women (CEDW) at 21 Circle Offices and 118 Regional offices across the country are working relentlessly towards economic empowerment of women. These CEDWs have reached potential entrepreneurs, undertaken counselling, supported their training needs, provided finance and arranged marketing facilities. A total of 360 Programmes were organized by the CEDWs during 2019-20.

Lead Bank Responsibility:

The Bank has Lead Bank Responsibility in 31 Districts in the country, viz., 8 in Karnataka, 7 in Tamil Nadu, 5 in Kerala, 5 in Uttar Pradesh, 3 in Delhi, 2 in Telangana and 1 in Bihar. The Bank is the Convenor of the State Level Bankers Committee (SLBC) in Kerala.


The Bank has 5 overseas branches, viz., London (U.K.), Hong Kong, Johannesburg (South Africa), New York (U.S.A.) and Dubai International Financial Centre (DIFC),

Dubai (UAE). Besides the above 5 overseas branches, the Bank has a Representative Office at Sharjah (UAE), Canara Bank (Tanzania) Ltd., a wholly-owned subsidiary at Dar-es Salaam in Tanzania and Commercial Indo Bank LLC, a Joint Venture with State Bank of India in Moscow, Russia.

Total business of the overseas branches aggregated to 48226 crore comprising of deposits of 23,687 crore and advances of 24,539 crore as at the end of the financial year. Overseas Business constituted 4.50% of the Banks global business. As per the rationalisation plan for overseas branches, bank has closed Shanghai (China), Manama (Bahrain) branches during the financial year and Johannesburg branch has stopped accepting deposits.


The consistent efforts of the bank for improving the asset quality have yielded results with Gross NPA decreasing

from 8.83% (39224 Crore) as at March, 2019 to 8.21% (37041 Crore) as at March 2020. Net NPA reduced from 5.37% (22955 crore) as at March 2019 to 4.22% (18251 crore) as at March 2020. This marked improvement in asset quality was on the back of significant recoveries. : The cumulative Cash Recovery during FY20 was at 10886 crore

as against 10355 crore last year. Upgradation for FY20 was at 1208 crore compared to 3074 crore in FY19. Provision Coverage Ratio (PCR) improved considerably during the period from 68.13% to 75.86%. Recovery in written off accounts for FY20 was 1470 crore as against 1304 crore in FY19. Slippage has been contained during the year to 15044 crore as against 15480 crore last year.

During FY 20, recoveries amounting to 1653.06 Crore were made on account of initiating actions under the

SARFAESI Act. The Bank conducted 945 Recovery Meets during FY 2019-20 that has resulted in recovery of 1700 crore. In FY20, 251146 cases were referred to Lok Adalat, out of which, 24014 cases were settled, covering an amount of 478 crore. Besides, the Bank took several initiatives to contain slippages and speed up recovery from overdue loan accounts. These include, conduct of Can Adalats at branch level, cluster adalats at Regional level and mega adalats at Circle level for one time settlements (OTS), Lok Adalats at district level,

regular follow-up of overdue in loan accounts through Call Centre, conduct of e-auctions for sale of seized assets and initiation of stringent recovery measures against Wilful Defaulters. As on March 2020, there were 573 Wilful Defaulters with an outstanding amount of 6065.94 crore.

The Bank has initiated resolution process in respect of 223 Cases by referring to NCLT / filing our claim as at 31.03.2020 and is expecting substantial recovery through resolution during 2020-21. In FY 20, recoveries amounting to 3750.82 Cr were done in NCLT referred accounts. The Bank has also formulated various special OTS Schemes for settlement of small value NPAs in agriculture, Education loans, tractor loans and other farm mechanisation, etc.

As on March 2020, the outstanding stressed assets portfolio (including restructured standard accounts) of the Bank stood at 42223 Crore, accounting for 9.36% of gross advances.


BASEL III Capital Adequacy Framework and Future Strategies

An independent Risk Management Wing at the Head Office is functioning as a nodal centre for overall implementation of various risk management initiatives

across the Bank. The Bank has in place various policies on Credit Risk Management, Operational Risk Management, Market Risk Management, Asset Liability Management and Group Risk Management. The Bank has in place an Internal Capital Adequacy Assessment Process (ICAAP) under Pillar 2 of Basel III norms. The ICAAP exercise covers the domestic and overseas operations of the Bank, Subsidiaries, Joint Ventures, Sponsored Entities and Associates. Stress testing exercise is also performed by the Bank to ascertain the potential risks faced by the Bank. The ICAAP document is reviewed and approved by the Risk Management Committee of the Board and the Board of Directors.

Adoption of Advanced Approaches under Basel III

In an endeavour to move towards Advanced Approaches under Basel III for computation of capital for Credit, Market and Operational Risks, the Bank has engaged the services of a Consultant for implementation of Enterprise-wide Integrated Risk Management solution for itself and the Group Entities, so as to build requisite risk management framework. As a pre-requisite for the implementation of Enterprise wide Integrated Risk Management architecture, the Bank has procured a Risk Solution that would enable it to meet requirements of Advanced Measurement Approaches.

Preparedness for Basel III

As per RBI guidelines, the transitional period for full implementation of Basel III Capital regulations are extended up to 30.09.2020. The banks in India need to maintain a minimum Common Equity Tier 1 (CET1) capital of 5.50%, Tier 1 capital of 7.00%, total capital of 9.00% and Capital Conservation Buffer (CCB) of 2.50% at the end of September 2020. The banks also have to maintain a minimum Tier 1 Leverage Ratio of 3.50% as a credible supplementary measure to the risk based capital requirements. The Bank endeavours to remain adequately capitalized and has drawn plans to meet the capital requirements stipulated by the RBI in transitory phase. The Bank has adequate headroom to raise capital from the market, including recapitalization support from the Government of India. Going forward, the Banks capital requirement shall be met by injecting fresh equity capital, retention of profits, optimization of business levels, proactive capital planning and management.

Credit Risk Management

In order to comprehensively address the issues and concerns of the Credit Risk, the Bank has put in place a comprehensive Credit Risk Management Policy.

A robust system for appraisal of loan / credit proposals, including seeking adequate information for appraising the viability of the proposal and creditworthiness of the applicant for sanctioning credit limits, well defined credit approval process and authorization matrix, standards for collateral management, credit monitoring, restructuring of advances, MSME and Off Balance Sheet Exposures, is followed.

In order to address the credit risk at portfolio level and the issue of concentration risk, the Policy prescribes fixation of various exposure ceilings. Risk Based Pricing is in tune with the Risk profile of the borrower to generate returns to achieve targeted RoA and NIM

Market Risk Management

The Market Risk framework of the Bank aims at restricting loss from all types of market risk loss events and also to establish limit structure and triggers for various market risk factors. Exposure limits, such as, Stop Loss Limits on Trading Book, Intraday and Overnight Limit for various Currency Positions, Dealer-wise Limits, Aggregate Gap Limit, Limits on Money Market Operations, Modified Duration Limits for investment portfolio and VaR Limits are fixed to act as risk mitigants / triggers.

Operational Risk Management

The Bank has adopted polices for management of Operational Risk, which covers various aspects, such as, Operational Risk Management Structure, Outsourcing Activities and Business Continuity Plan. At present, the Bank is in the process of migration to Advanced Approach of Basel III framework from the Basic Indicator Approach (BIA). The Bank has already put in place Incident Management module for timely reporting of incidents, Review of Key Risk Indicators (KRI), Conducting of Risk Control & Self-Assessment (RCSA) workshops and Scenario Analysis workshops to compute capital charge for Operational Risk.

Asset Liability Management

Within the policy framework, the Board of the Bank has set up Asset Liability Management Committee (ALCO), which is entrusted, inter alia, with the role of management of assets and liabilities including the funding strategies and its composition, product pricing, stress test and contingency action plan among others. The Bank has implemented the RBI guidelines with respect to Liquidity Coverage Ratio (LCR) with effect from 01.01.2015. Bank has been computing LCR on a daily basis w.e.f 01.01.2017. As on 31.03.2020, LCR of the Bank is above the stipulated regulatory minimum of 100%.

Group Risk

The Bank has various Subsidiaries, Joint Ventures and Sponsored Entities, which are engaged in diversified activities. As the Bank has considerable stake in these Group Entities, it has put in place a Group Risk Management Policy to identify and manage risk in intra Group transactions. It has also put in place policies for exposure to raise the standard of Corporate Governance by reducing and avoiding conflicts of interest between the Group Entities and to ensure Arms Length Principle among Entities, with regard to business parameters. The Group Chief Risk Officer (GCRO) of the Bank is supervising the risk management activities of the Group Entities.

Compliance to International Standards:

Bank has been certified with ISO: 27001:2013 for Data Centre, Disaster Recovery centre and Department of Information Technology Wing and the certification is valid from 11/04/2020 for a period of 3 years. It is certified that the Information Security management system of the organization has been assessed and found to be in accordance with the rerquirement of the ISO 27001:2003.


Aggregate investments (net) of the Bank stood at 174311 crore as at March 2020. While modified duration of the investments portfolio stood at 4.46 as at March 2020, the modified duration of the Available for Sale (AFS) portfolio has decreased to 1.39 as at March 2020 from 3.01 as at March 2019. The yield on investments stood at 7.33% as at 31st March 2020 as compared to 7.62% as at 31st March 2019. The trading profit under domestic treasury operations during the year increased to 758 crore from 402 crore during FY 2018- 2019 on account of active churning of the trading portfolio and offloading of securities from the HTM portfolio under permissible limit. The Bank continues to be an active player in the Government Securities Market as a Primary Dealer (PD).

The total amount of bids submitted for underwriting was 86274 crore, of which, the underwriting commitment accepted by the RBI was 46975 crore. With regard to Treasury Bills under PD business, as against the minimum success ratio of 40% to be achieved in each half year, the Bank has a success ratio of 42.36% for the first half year ended September 2019 and 72.34% for the second half year ended March 2020.

Foreign Business Turnover of the Bank aggregated to 293425 crore, comprising of 148204 crore under exports, 86086 crore under imports and 59135 crore under remittances during the year ended March 2020.


Merchant Banking

During the year the Banks Merchant Banking Division has handled, as arrangers for private placements of 54EC-Capital Gains Bond Issues of National Highways Authority of India (NHAI), Rural Electrification Corporation Ltd (REC), Indian Railway Finance Corporation Ltd (IRFC) and Power Finance Corporation (PFC). The amount mobilized in respect of these issues during the year was 53.78 crore.

As a Collecting Banker, the Bank was involved in four Private Placement Issues, collecting an amount of 741.57 crore. Further, the bank has handled 74 Equity Issues and 32 Debt Issues under Application Supported by Blocked Amount (ASBA) and the amount blocked therein was 1301.55 crore. Two specialized assignments of ‘Fair Market Valuation of Equity were also handled by the Division during the year. The Merchant Banking Division of the Bank has finalised the Basel III Compliant Tier II Bond Offer Document and filed the same with NSE for listing of Bonds.

Bancassurance and Mutual Funds

The Bank has tie-up arrangements in both life and non-life insurance segments under its Bancassurance arm. During the year 2019-20, the Bank earned a commission income of 114.89 crore from its joint venture, M/s Canara HSBC OBC Life Insurance Company Ltd. Under the Mutual Fund business, the Bank earned a commission of 24.43 crore from its joint venture, M/s Canara Robeco Asset Management Company Ltd. A commission income of 34.27 crore was earned under Non-Life (General) Insurance business from its tie-up arrangements with all the three GI Partners M/s Bajaj Allianz General Insurance Co Ltd, M/s TATA AIG General Insurance Co. Ltd and M/s The New India Assurance Co. Ltd. The Bank also earned a commission income of 24.07 crore from its tie-up agreement with M/s HDFC Ergo Health Insurance Co. Ltd (Erstwhile AMHI) for marketing their health insurance products.

Government Business

The Bank undertakes Government Business, comprising Direct and Indirect Tax collections, payment of Central Government and State Government Pensions, Handling of Postal Transactions and State Government Treasury Transactions, Public Provident Fund Scheme and

Senior Citizens Saving Scheme, issuing Sovereign Gold Bonds and Sukanya Samridhi Scheme. These products contributed to improvement of CASA and earned a fee income of 105.29 crores during FY20.

The Bank has been authorized as the accredited banker for Ministry of Human Resources Development (MHRD), Ministry of Culture, Ministry of Youth Affairs & Sports, Archaeological Survey of India and Unique Identification Authority of India (UIDAI), New Delhi. The Bank was implementing the National Pension System for Unorganised Sectors under Swavalamban Scheme since 2012-13. The Government of India has launched Atal Pension Yojana (APY) in place of Swavalamban with a view to provide defined pension to unorganised sector. The Bank could mobilise 3,86,957 accounts under APY as at March 2020.


Branch Network-Expanding Pan India Presence

In a bid to expand the reach, the bank added 45 domestic branches during the year. As at March 2020, the Bank had 6334 branches, including Specialized Branches and 5 overseas branches.

Composition of Branch Network


No.of Branches

Opened during the year

31.03.2019 31.03.2020
Metropolitan 1282 1273 10
Urban 1204 1226 25
Semi-urban 2003 2004 6
Rural 1821 1826 4
Overseas 6 5 0
Total domestic Branches 6310 6329 45

Note: 26 domestic branches were merged / closed during the year.

1 Overseas branch was merged / closed during the year.

The total Specialized Branches of the Bank stood at 291 as at March 2020.

Manpower Profile

As at March 2020, the Bank had 58632 employees on its roll. The cadre-wise break-up of manpower is as follows:

Cadre March 2019 March 2020
Officer 29882 32596
Clerk 19951 18353
Sub Staff* 8517 7683
Total 58350 58632

*includes Part Time Employees (PTEs)

Total staff strength of the Bank comprised of 56% Officers, 31% Clerks and 13% Sub Staff. The Women staff strength of the Bank was 18,167, constituting 31% of the employees. The total number of ex-servicemen staff as at March 2020 stood at 4,573. There were 1538 Physically Challenged Employees on the rolls of the Bank. During the year, the Bank recruited 3497 persons in various cadres, out of which 641 belonged to Scheduled Castes (SCs) and 256 to Scheduled Tribes (STs) categories. 197 ex-servicemen were recruited in various cadres during the year. 1129 women employees were recruited.

Reservation Policy in respect of Scheduled Castes and Scheduled Tribes, Other Backward Classes and Persons with Disabilities

The composition of SCs / STs / OBCs / DAPs employees as at March 2020 was as under:

Grade SCs STs OBCs PWDs
Officer 5941 2586 9242 810
Clerk 3354 1174 5169 630
Sub Staff 2324 443 2216 98
Total 11619 4203 16627 1538

The Bank has been strictly adhering to the Reservation Policy in respect of Scheduled Castes, Scheduled Tribes, Other Backward Classes and Persons with Disabilities as per the Government of India guidelines.


• The HR policies of the Bank have been revised to suit the changing banking scenario.

• The e-Learning portal of our Bank, named "CanDLE" (Canara Digital Learning Experience) was launched. The objective of the project has been to provide an effective online learning facility for our employees for enhancing their knowledge and skills. The portal brings the ease and convenience of online learning and also supplements traditional training in terms of delivery of content. The portal is accessible to all the employees of the Bank, Right from Single Window Operators to Top Level Executives. They can self-register in the portal and refer all the resources, participate in various events and utilize the facilities available on the portal.

• HR initiatives like ‘Soft Skill Training Program for bringing attitudinal change among frontline staff through reputed institutes have been introduced.

• The Bank has in place a robust Training Setup with the Apex Staff Training College at Bengaluru & 25 Regional Staff Training Colleges (RSTCs) across the country. In addition to this, around 3000 employees have been trained at external institutes of repute (domestic & international) like IIMs, XLRI-Jamshedpur, IDRBT-Hyderabad, TISS-Mumbai, NIBM-Pune, SIBSTC - Bangalore, CRISIL-Mumbai, Franklin - Covey Noida and CAB (RBI)-Pune.

• Bank has focused on the thrust areas, including Credit Management, Risk Management, Orientation/ Induction Program for Probationary Officers, Agriculture Extension Officers and Specialist Officers.

• Executives on promotion are sent for 05 to 07 days Leadership Development Programs at institutes like IIMs, XLRI Jamshedpur, TISS Mumbai etc.

• A Governing Body for the training setup, headed by the Managing Director & CEO monitors and streamlines the training policies of the Bank. A scheme for Training as Incentive to Top Performers has been formulated. Under the scheme, around 320 top performing officers were sent for training at External institutes during the FY 2019-2020.


Several initiatives were taken to remain customer focused through providing fast service, bringing in diversified products & services, responding to customers queries and redressal of customer complaints.

S The Code of Commitment to Customers issued by Banking Codes and Standards Board of India (BCSBI) and Revised Citizens Charter of Indian Banks Association (IBA) are made available in the Banks homepage of the website <>.

S As per the instructions of IBA and RBI, the Bank has adopted Customer Rights Policy as advised by the RBI since July 2015, which spells out the Rights of the Customers and also responsibilities of the Banker. To assess the quality of customer service rendered by the branches and to get the feedback, "Grievance Redressal - At Canara Bank, We Love to Listen" and a "Customer Satisfaction Survey Form" were made available in the Banks website.

S As per the Damodaran Committee recommendations, the Bank has appointed a Chief Customer Service Officer (CCSO), who acts as an Internal Ombudsman of the Bank. Customers.

S In order to enhance customer focus, Project Shikhar - Branch Transformation is being implemented since April 2014 wherein various customer centric initiatives like Welcome Desk, Queue Management System (QMS), Single Window Operation and allocation of larger space for Customer Waiting Area etc., along with self-service kiosks (CAN express area) are put in place.

S In order to enhance customer convenience, Bank has popularized 24/7 Self Service Functions on IVRS (Missed Call facility) for various services like Balance Enquiry, Mini Statement (last 5 transactions), Hot Listing of Cards etc.

S A Call Center with single point contact Toll free number 1800 425 0018 is also functioning to cater to customers in 9 regional languages, viz., Kannada, Malayalam, Marathi, Tamil, Oriya, Telugu, Gujarati, Bengali and Punjabi besides Hindi and English for redressal of grievances.

S The Bank has implemented online grievance redressal facility of customers in the website for lodging grievances online under the portal Canara Public Grievance Redressal System (CPGRS). The complaints received at the Call Centre of the Bank were also integrated with the CPGRS package, established exclusively for handling pensions and resolving pension related grievances.

S There is a pre-defined Turn Around Time for resolution at Branch Level for 6 days and on 7th day, grievances are auto escalated to next higher authority.

S On closure of grievance a SMS with web link is pushed to the customers, to submit his / her feedback regarding resolution. 41 Central Processing Centers are established at selected places for account opening purposes. The Bank has framed a policy on Customer Protection for limiting liability of customers in unauthorized Electronic Banking Transactions (EBT) in tune with the RBI guidelines.

S Our Bank has brought out an SMS based Customer Service Feedback mechanism to measure customer satisfaction levels at branches. This feedback mechanism is used to gauge the customer service levels over the counters and helps in providing insights for rewarding our customer service champions and also taking remedial actions, wherever required.

S Bank has introduced Jeevan Praman online portal for submitting Life certificate for pensioners. Facility for filing Form 15G / 15H through Net banking is enabled for the convenience of customers. We are committed to increase our customer base by extending best possible customer service.


In terms of the Reserve Bank of India guidelines, the Bank has appointed an Internal Ombudsman (IO) as an independent authority to review complaints that are partly or wholly rejected by the Bank. The IO mechanism is set up with a view to strengthen the internal grievance redresal system of the Bank and to ensure that the complaints of the customers are redressed at the level of Bank itself. The Internal Ombudsman reports to the Managing Director / Executive Director of the Bank handling customer grievances. The IO submits periodical reports on his activities to the Customer Service Committee of the Board analyzing the pattern of complaints, for taking action to address the root cause of complaints. Changes where necessitated on the procedures / guidelines have also been carried out based on the IOs recommendations. During the year, the Bank has conducted a number of Outreach Programmes under the auspices of Reserve Bank of India to create awareness on the Banking Ombudsman scheme at various locations.


Risk based Internal Audits (RBIA) numbering 4605 were conducted along with Information System audit (IS Audit) across branches / service units as per the program for onsite RBIA for the FY 2019-20. Concurrent/ continuous audits were conducted in 956 branches / service units, of which 440 branches / service units were subjected to concurrent / continuous audit by Internal Auditors and 516 branches / service units were subjected to concurrent audit by External Auditors, covering 70% of Advances and 50% of Deposits of the total business of the Bank. 410 branches were subjected to income/ revenue audit on quarterly basis.

S As part of strengthening the audit process, policy has been revised to grade the branches / service units under three scales - LOW / MODERATE & HIGH in RBIA as against the existing four scale rating of LOW, NORMAL, MODERATE and HIGH.

S The Bank has been continuously going for upgradation of audit packages, duly revising the checklists to include latest developments and trends in the Bank. Further, the Concurrent Audit System version upgradation was effected duly revising the checklist in line with the RBI directions.

S Bank has shown NIL tolerance on frauds and in that process the Inspection / Audit policy of the bank has been revised and accordingly the branches where fraud has been detected or serious irregularities were observed the gradation was reassigned as "High Risk" to have more control on such branches / units.


The Bank is brought under Risk Based Supervision (RBS) regime by RBI, in lieu of Annual Financial Inspection (AFI) from FY 2014-15. Presently, the Bank has completed the 6th cycle of RBS. RBS framework is named as Supervisory Programme for Assessment of Risk and Capital (SPARC). Under SPARC, a detailed qualitative and quantitative assessment of the Banks risks is made by the RBI on an on-going basis through a combination of offsite and onsite Risk Discovery Process (RDY).

Know Your Customers (KYC) / AML / CFT

The bank is committed to implement the KYC / AML/ CFT norms in its completeness and has zero tolerance towards non-compliance. To ensure this, the bank has put robust systems and processes in place. Advisories issued by the regulators with respect to designated individuals/entities are scrupulously followed. Regular training is provided to staff members to increase their awareness on matters regarding KYC / AML / CFT.


The Bank made noteworthy progress under the implementation of official language and won many prizes at various levels during the year under review. As at March 2020, more than 88% of employees possess working knowledge in Hindi and the Bank has complied with the requirement of notification of branches under Rule 10(4) of OL Rules 1976. All these employees who possess working knowledge in Hindi have been trained in functional Hindi through Hindi workshops. During the year under review, Bank has conducted 336 such workshops. In the sphere of using Information Technology in the Official Language, the Bank has furthered the use of Unicode package for word processing by training the employees for use of more and more Hindi through Unicode standard and also made provision in ATM screens of the Bank for carrying transaction in 08 Regional languages. Apart from Hindi and English, transaction slips can be obtained in Malayalam, Tamil, Telugu, Kannada, Punjabi and Marathi from our ATMs (Transactions done in concerned language).

Official Language Implementation Committees have been constituted at all levels i.e., Head Office, Circle Offices, ROs and in all the branches of the Bank for reviewing progress made in use of Hindi by conducting quarterly meetings promptly. Our Bank is the convener for the Town Official Language Implementation Committee at Etah, Agra, Hatharas, Coimbatore, Dindigul and Thiruvananthapuram and the meetings are being conducted promptly.

Notable Initiatives in Regional Languages

Apart from Hindi and English, importance is being given to regional languages along with Hindi in B and C Regions. Letters are being replied in the regional language as and when received.

A few initiatives are as under:

S ATM Transactions are made available in 8 Indian Languages for the convenience of customers -Tamil, Telugu, Kannada, Marathi, Gujarati, Malayalam, Bengali, Punjabi.

S In B Region and C Region, as per the Official Language Rules all the name boards, informatory boards are made available in Regional Language also. S Trilingual / Bilingual format in display of Banners and Publicity Material is ensured.

S Bank Advertisements and Notices in regional news papers are being published in concerned regional Languages.

S According to OL rules, importance is being given to Regional languages along with Hindi in B and C regions

S Circle offices are sending letters, recovery notices and Gold loan notices in regional Languages


Canara Bank has always been encouraging & supporting sports and contributed generously to sporting activities all over the country by sponsoring tournaments, providing scholarships to talented sports personalities, etc. A Sports Council at Head Office was setup in the year 1982 to monitor and encourage sports activities in the Bank. Bank has put in place a comprehensive Board approved Sports Policy for the development of Sports and Sportspersons in the Bank. A separate and dedicated Sports Cell is also setup, headed by a Sportsperson and who acts as Convener of Head Office Sports Council. Every year, under the aegis of this Sports Council, Employees Sports Competitions are held to inculcate sportsmen spirit and team work etc., amongst employees.

The Bank is presently having teams in 6 disciplines.




Athletics - 5 5
Ball Badminton 3 - 3
Cricket 14 - 14
Hockey 18 - 18
Shuttle Badminton 1 - 1
Table Tennis 1 1 2
TOTAL 37 06 43

The Bank has several National & International Sportspersons on its roles. Prominent amongst them are Shri B K Venkatesh Prasad & Shri Sunil B Joshi (Cricket), Smt M K Asha, & Smt H M Jyothi(Athletics), Shri P Shanmugam, Shri Bharath Kumar Chetri (Captain Indian Hockey Team, London Olympics-2012) & Shri K M Somanna (Senior-Hockey), Shri Vineet Manual (Shuttle Badminton).

Canara Bank is one of the few Institutions in the country to get direct entry to the Senior National Inter State Hockey Championships and Senior National Inter State Ball Badminton Championships. Our All Women Athletic Team was adjudged the "BEST WOMEN TEAM" and "BEST TRACK & FIELD WOMEN TEAM" at the All India Public Sector Athletic Championships held at Kolkata during Feb 2020.

Apart from the teams at Head Office, the Bank is also encouraging sports at Circle level by allotting Annual Budget for sports activities and also by organizing sports competitions for employees which are duly monitored by Circle level Sports Councils.


Vigilance Wing of the Bank is headed by the Chief Vigilance Officer (CVO). The CVO is assisted by the Vigilance Officers stationed at Circles, RRBs and the Banks Subsidiaries. Vigilance Management in the Bank includes preventive, surveillance and detection, punitive and proactive functions.

Vigilance Awareness Week was observed in our Bank from 28th October 2019 to 2nd November 2019, with the theme "Integrity - A way of Life and all the Branches / Offices have actively participated in conducting various activities such as Seminars, Workshops, Customer Grievance Redressal Meetings, Awareness Sabhas in Gram Panchayats, Panel Discussions, Competitions in Schools / Colleges (viz. Essay Writing, Debate & Quiz Competitions) & Walkathon/ Marathons etc., to bring awareness in the Society about the ill effects of corruption.

Implementation of Indian Accounting Standards

As per RBI guidelines, the Bank is in the process of implementing the Indian Accounting Standards (Ind AS). A Project Steering Committee headed by Executive Director has been formed to take the required steps on a continuous basis for smooth convergence. RBI, vide its communication ref : DBR. BP.BC.No.29/21.07.001/2018-19 dated 22nd March,2019 has deferred implementation of Ind AS for all Scheduled Commercial Banks till further notice. Bank is submitting Pro-Forma Financial Statements to RBI for every quarter as per the guidelines of RBI.


Canara Bank, with an objective of offering One Stop Banking facilities for the customers, forayed into diversified business activities by opening subsidiaries during late 1980s. Today, the Bank functions as a Financial Supermarket, with nine Domestic Subsidiaries / Associate / Joint Venture in diversified fields. All the Domestic Subsidiaries / Associate / Joint Venture of the Bank recorded satisfactory performance during the year 2019-20.


M/s Canfin Homes Limited, a sponsored entity of Canara Bank is one of the premier housing finance entities in the country. The bank holds 30% stake with the company. The loans outstanding of the Company as at March 2020 were 20708 crore. The Company earned a profit after tax of 376.12 crore as against 296.76 crore in theprevious year, with y.o.y growth of 26.74%. Gross NPAs of the Company was 157.13 crore (0.76%) and Net NPA was 111.82 crore (0.54%) as on 31.03.2020. The Company proposed 100% dividend for the year 2019-20.


M/s Canara Bank Securities Limited is a wholly owned subsidiary of the Bank.

CBSL has taken over the Depository participant services from Canara Bank w.e.f. 01.04.2017. M/s Canara Bank Securities Ltd is extending Online Trading Facility to DP clients. The Company offers stock broking services to both institutional and retail clients. Company has launched INSTA DEMAT ACCOUNT opening, the First PSU Depository Participant having the facility of opening of instant Demat A/c through Internet and Mobile Banking. The Company has declared a profit after tax of 22.71 crore as against 9.71 Cr in the previous year and declared a dividend of 42.50% for the year 2019-20.


M/s Canara Robeco Asset Management Company Limited is a joint venture (JV) with M/s Robeco Groep N V with the Banks holding of 51% Stake. This JV was formed in 2007 divesting 49% Stake held by the bank in M/s Can Bank Mutual Fund in favour of M/s Robeco Groep N V. Total Assets under Management (AUM) was at 15823 crore with investor base of 11.98 lakhs as at March 2020. The Company is currently managing 28 Mutual Fund Schemes, including Gold Exchange Traded Fund. The Company has declared a net profit of 23.24 crore and declared a dividend of 11% for the year 2019-20.


M/s Canbank Factors Limited is a factoring Subsidiary of the Bank with 70% stake held by the Bank. During 2019-20, the Company had a total business turnover of 1308 crore. The Company has made a profit of 4.44 crore as against 2.72 crore in the previous year.


M/s Canara HSBC Oriental Bank Of Commerce Life Insurance Company Ltd (CHIOCE) is a Life Insurance Joint Venture floated by the Bank in association with HSBC Insurance (Asia Pacific) Holding Limited and Oriental Bank of Commerce in the year 2007. The JV commenced its business operations with effect from 16.06.2008, with majority shareholding of 51% by Canara Bank, followed by HSBC (26%) and Oriental Bank of Commerce (23%). The Company recorded new business premium of 1528 crore and gross premium of 3889 crore during the year. The Company achieved a statutory profit of 105 crore for 2019-20.


M/s Canbank Venture Capital Fund Limited is the Trustee and Manager of Canbank Venture Capital Fund and a wholly owned subsidiary of the Bank. The company has managed 5 funds so far with total Asset under Management of 552.78 crore. CVCFL has been appointed by the Department of Electronics and Information Technology (DeitY) to manage the Electronic Development Fund (EDF) with a corpus of 2206 crore, with 2200 crore from Government of India, 5 crore from Canara Bank and 1 crore from CVCFL. Another new fund named as "Empower India Fund" is being setup with a target corpus of 650 crore. The Company recorded a profit after tax of 5.02 crore against the previous year 4.50 crore for the year 2019-20.


M/s Canbank Computer Services Limited is the only Software Company promoted by a Public Sector Bank in the country, with a 69.14% shareholding by the Bank. CCSL is mainly engaged in IT and Software development services, BPO services, ATM / Any Time Payment services, Training, Consultancy and R&T agent. The Company has posted a profit after tax of 3.94 crore for 2019-20 as against 3.01 crore in the previous year.


M/s Canbank Financial Services Limited is confining its activities to legal matters arising out of past transactions in securities and recovery of dues under decreed accounts. Company has posted a profit of 62.21 crore for the year 2019-20 with recovery in pending cases.


Higher Education Financing Agency (HEFA), a not-for profit organization, is set up by the bank under a joint venture share holder agreement with the Ministry of Human Resource Development (MHRD), Government of India.

HEFA has been set up for developing the educational infrastructure, including R&D infrastructure thereby enabling the institutions to reach top rankings globally. MHRD extended the scope of existing mandate of HEFA equity base and range of institutions to be financed. The authorized capital has been increased to 10,000 crore wherein Govt. will provide an additional equity of 5000 crore and Canara Bank will contribute 500 crore. As on 31.03.2020, MHRD has infused Capital of 4612.50 crore and Canara Bank has contributed

461.25 crore respectively. The total loans sanctioned as on 31.03.2020 is 29233.84 crore and disbursed is 7630.10 crore HEFA has disbursed 5095.09 crore of loans to different institutions and bank is eligible to get 50.95 crore of Management Fee.

Under RISE by 2022 (Revitalizing Infrastructure & Systems in Education (RISE) sector by 2022 ), HEFAs role is hugely expanded to cover all centrally funded institutions. Under this model, HEFA would be funding larger basket of institutions by moving all infrastructure financing. The investment proposed over the next 4 years is 1,00,000 crore This would be financed through a mix of debt and equity. The equity contribution is estimated to be 10,000 crore and the residual 90,000 crore is to be raised from the market in the form of debt.


As at March 2020, the Bank had two sponsored RRBs, viz., Kerala Gramin Bank (KeGB) in Kerala and Karnataka Gramin Bank (KaGB) in Karnataka.

Kerala Gramin Bank (KeGB) operates in all the 14 districts of Kerala State with 634 branches and 320 ATMs. The total business of the KeGB was 37188 crores as at March 2020, comprising a total Deposits of 19276 crore and Advances of 17912 crores.

Karnataka Gramin Bank (KaGB) operates in 21 districts of Karnataka with 1142 branches & 236 ATMs. The total business of the KaGB was 50236 crores as at March 2020 with total Deposits of 28436 crores and Advances of 21800 crores.

Aggregate business of both the RRBs increased to 87,424 crores as at March 2020 with a y.o.y growth of 7.33 % comprising Deposits of 47712 crores and Advances 39712 crores. Through the Banks infrastructure support, the RRBs are extending facilities, like, ATM cum Debit Card services and installed 556 ATMs / Cash Dispensers (320 by KeGB, 236 by KaGB) as at March 2020. The sponsored RRBs are 100% CBS compliant and are ahead of their peer RRBs under technology front by extending IT based products, like Internet Banking, Mobile Banking, RuPay Debit Card services and also Aadhaar enabled services and remittance facilities through NEFT / RTGS to their customers. The RRBs have put in place Cheque Truncation System and e-KYC technology.


Following the founding principles and century old tradition, the Bank is engaged in varied Corporate Social Responsibility (CSR) activities. CSR initiatives of the Bank are multifarious, covering activities like training unemployed rural youth, scholarship to meritorious SC / ST Girl students, repair of schools and providing of other infrastructural facilities to needy educational institutes, providing primary health care, drinking water, community development, empowerment of women, environment protection, Swachh Bharat and other social initiatives. A few social initiatives are outlined below.

S Cumulatively, the Bank has sponsored / co-sponsored 62 training institutes, which have trained more than 8.83 lakh unemployed youth so far, with a settlement rate of 74%.

S The Bank has donated 4 hi-tech, custom- built, solar powered Retail Mobile Marketing Vans to assist women entrepreneurs, SHGs and artisans to market their products.

S Canara Vidya Jyothi Scholarship scheme to meritorious SC / ST Girl Students. During FY 2019-20, 7392 students have been benefitted utilizing a total amount of 3.34 Crores.

S Financial assistance for combating poverty & malnutrition to persons with disability (PWD), homeless and people affected by floods for supporting to lead a better life.

Visits by Parliamentary Committees

During the year 2019-20, Parliamentary Committees relating to Subordinate Legislation, Standing Committee on Commerce, Social Justice and Empowerment conducted study visit and reviewed the Banks performance.


In recognition of the varied initiatives, the Bank was conferred with the following awards during the year 2019-20.

S Canara Bank received Indias Most Trusted Public Sector Banking Services Company 2019 award by International Brand Consulting Corporation, USA.

S Best innovation in Banking technology award for CANDI Branch received in IDRBT banking technology innovation contest.

S Canara DiYA won Silver in SKOCH Awards 2019.

S IBAs 15th Annual Banking Technology Award 2020 received for Most Customer-Centric Bank using Technology

S FINNOVITI 2020 award received for CANDLE for one of the best innovation in financial sectors technology.

S Canara Bank won Tax Deductor of the Year Award for recognition of timely compliance to the TDS / TCS provisions of Income Tax Act.

S SIDBI-ET INDIA MSE AWARD-2019 for noteworthy Lender to MSE - (Public Sector Bank) Award Category.

S The Bank receieved Rajbhasha Kaaraynvayan Ratna Award by Parivartan Jan Kalyan Samiti, Delhi

Change in Director, including Managing Director/ Whole-time Director:

Sl Name No. Designation Designation Date of Appointment Date of Cessation
Shri R A 1 Sankara Narayanan Managing Director & CEO 15.04.2019 31.01.2020
2 Shri L V Prabhakar Managing Director & CEO 01.02.2020 31.12.2022
3 Shri R Kesavan RBI Nominee Director 26.04.2019 Until further orders
4 Shri S Raghunath Part-Time Non-Official Director 21.10.2019 31.03.2020
5 Shri Venkatachalam Ramakrishna Iyer Shareholder Director 27.07.2019 (Re-elected) 26.07.2022
6 Shri Krishnamurthy H Shareholder Director 27.07.2016 26.07.2019
7 Shri Bimal Prasad Sharma Shareholder Director 27.07.2019 26.07.2022
8 Smt Uma Shankar RBI Nominee Director 23.02.2015 25.04.2019

Board of Directors

(Appointment / Cessation of Directors during the year 2019-20)


Shri R A Sankara Narayanan was appointed as Managing Director and Chief Executive Officer w.e.f 15.04.2019, by the Central Government u/s 9 (3) (a) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 till his superannuation i.e. 31.01.2020.

Shri L V Prabhakar was appointed as Managing Director and Chief Executive Officer w.e.f 01.02.2020, by the Central Government u/s 9 (3) (a) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 upto 31.12.2022.

Shri R Kesavan was appointed as RBI Nominee Director w.e.f. 26.04.2019 by the Central Government u/s 9 (3) (c) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, to hold the post until further orders.

Shri S Raghunath was appointed as Part-time Non-official Director w.e.f. 21.10.2019 by the Central Government u/s 9 (3) (3-A) (h) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, for a period of one year, or until the amalgamation of the Bank

i.e. 31.03.2020.

Shri Bimal Prasad Sharma was elected as Shareholder Director of the Bank w.e.f. 27.07.2019 u/s 9 (3) (i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of 3 years. i.e. upto 26.07.2022.

Shri Venkatachalam Ramakrishna Iyer was re-elected as Shareholder Director of the Bank w.e.f. 27.07.2019 u/s 9 (3) (i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of 3 years. i.e. upto 26.07.2022.


Shri R A Sankara Narayanan ceased to be Managing Director and Chief Executive Officer w.e.f 31.01.2020 upon attaining the age of superannuation.

Smt Uma Shankar ceased to be RBI Nominee Director w.e.f. 25.04.2019 on the appointment of Shri R Kesavan.

Shri S Raghunath ceased to be Part-time Non-official Director w.e.f. 31.03.2020 on completion of his tenure.

Shri Krishnamurthy H ceased to be Shareholder Director w.e.f. 27.07.2019 on completion of his tenure of 3 years.


The Directors, in preparation of the annual accounts for the year ended March 31, 2020, confirm the following:

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

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

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

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

• Internal financial controls followed by the Bank are in accordance with guidelines and that such internal financial controls are adequate and were operating effectively.

• The directors had devised proper systems to ensure compliance with the provision of all applicable laws and that such systems were adequate and operating effectively.


Pursuant to the requirements of Regulation 24A of the SEBI (LODR) Regulations, 2015 & SEBI Circular CIR/CFD/ CMDl/27/2019 dated February 08, 2019, the Bank has appointed Mr. S. VISWANATHAN Practicing Company Secretary (COP 5284) as the Secretarial Auditor for 2019-20 and their report addressed to the members of the Bank which forms part of this Annual Report is attached as an annexure to the Boards report.


The Board wishes to place on record its sincere appreciation to the customers for their patronage, to the shareholders for their support, to the Government authorities and the Reserve Bank of India for their valuable guidance and support, to the Directors who completed their tenure during the financial year under review, to the Banks Correspondents in India and abroad for their co-operation and goodwill and to all the Staff Members for their full support in the pursuit of organizational growth and excellence.