Canara Bank - Vishal Nihalani

8/8/2019 Canara Bank - Vishal Nihalani

http://slidepdf.com/reader/full/canara-bank-vishal-nihalani 1/14



Report on Canara Bank

Index

Topic No. Subject Page No.

1 Banking Sector in India 3

2 Public Sector Banks/Private Sector Banks 3-4

3 CANARA Bank - Origin 4

4 Vision & Mission 5

5 Banks Profile 5-6

6 Awards & Accolades 6

7 Subsidiaries and Offices Abroad 7

8 Products and Services 8

9 Branch Network 11

10 InfoTech Progress 11-12

11 Key Financial ratios 13




Banking Sector in India

The banking industry in India started in 1786 with the establishment of the Bank of

Bengal in Calcutta. The Indian Government at the time established three Presidency banks, viz., the Bank of Bengal (established in 1809), the Bank of Bombay (established

in 1840) and the Bank of Madras (established in 1843). In 1921, the three Presidency banks were amalgamated to form the Imperial Bank of India, which took up the role of a

commercial bank, a bankers' bank and a banker to the Government. The Imperial Bank of India was established with mainly European shareholders. It was only with the

establishment of Reserve Bank of India (RBI) as the central bank of the country in 1935,that the quasi-central banking role of the Imperial Bank of India came to an end.

After independence, the Government of India started taking steps to encourage the

spread of banking in India. Accordingly, State Bank of India (SBI) was constituted in1955. Subsequently in 1959, the State Bank of India (subsidiary bank) Act was passed,

enabling the SBI to take over eight former state-associate banks as its subsidiaries. To

better align the banking system to the needs of planning and economic policy, it wasconsidered necessary to have social control over banks. In 1969, 14 of the major privatesector banks were nationalized. This was an important milestone in the history of Indian

banking. This was followed by the nationalisation of another six private banks in 1980.With the nationalization of these banks, the major segment of the banking sector came

under the control of the Government.

To create a strong and competitive banking system, a number of reform measureswere initiated in early 1990s. The thrust of the reforms was on increasing operational

efficiency, strengthening supervision over banks, creating competitive conditions anddeveloping technological and institutional infrastructure. Commercial banks in India have

traditionally focused on meeting the short-term financial needs of Industry, trade andagriculture. However, given the increasing sophistication and diversification of the Indian

economy, the range of services extended by commercial banks has increasedsignificantly, leading to an overlap with the functions performed by other financial

institutions.

Public Sector Banks

Public sector banks are those in which the majority stake is held by the Governmentof India (GoI). Public sector banks together make up the largest category in the Indian

banking system. There are currently 27 public sector banks in India. They include the SBIand its 6 associate banks (such as State Bank of Indore, State Bank of Bikaner and Jaipur

etc), 19 nationalised banks (such as Allahabad Bank, Canara Bank etc) and IDBI Bank Ltd.

Public sector banks have taken the lead role in branch expansion, particularly in the

rural areas. Public sector banks account for bulk of the branches in India (88 percent in2009). In the rural areas, the presence of the public sector banks is overwhelming; in

2009, 96 percent of the rural bank branches belonged to the public sector. The privatesector banks and foreign banks have limited presence in the rural areas.




Private Sector Banks

In Private Sector Banks, the majority of share capital is held by private individualsand corporates. Not all private sector banks were nationalized in in 1969, and 1980. The

private banks which were not nationalized are collectively known as the old private

sector banks and include banks such as The Jammu and Kashmir Bank Ltd., LordKrishna Bank Ltd etc. In July 1993, as part of the banking reform process and as ameasure to induce competition in the banking sector, RBI permitted the private sector to

enter into the banking system. This resulted in the creation of a new set of private sector banks, which are collectively known as the new private sector banks (HDFC Bank, ICICI

Bank). As at end March, 2009 there were 7 new private sector banks and 15 old privatesector banks operating in India.

CANARA BANK

Origin of the Bank

Late Sri Ammembal Subbarao Pai Our Beloved Founder Founded

as 'Canara Bank Hindu Permanent Fund' in 1906, by lateSri.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 improvethe 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 C anara Bank to

be a frontline banking institution of global standards.




Vision

T o emerge as a µBest Practices Bank¶ by pursuing global benchmarks in profitability,

operational efficiency, asset quality, risk management and expanding the global reach.

Mission

T o provide quality banking services with enhanced customer orientation, higher value

creation for stakeholders and to continue as a responsive corporate social citizen by

effectively blending commercial pursuits with social banking

Bank¶s Profile

Widely known for customer centricity, Canara Bank was founded by Shri AmmembalSubba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a

small port in Karnataka. The Bank has gone through the various phases of its growthtrajectory 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:

y Launching of Inter-City ATM Network

y Obtaining IS O Certification for a Branch

y Articulation of µGood Banking¶ ± Bank¶s Citizen Charter

y Commissioning of Exclusive Mahila Banking Branch

y Launching of Exclusive Subsidiary for IT Consultancy

y Issuing credit card for farmers

y P roviding 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/jointventures in India and abroad. As at June 2010, the Bank has further expanded its

domestic presence, with 3057 branches spread across all geographical segments.Keeping customer convenience at the forefront, the Bank provides a wide array of




alternative delivery channels that include over 2000 ATMs- one of the highest amongnationalized banks- covering 732 centres, 2681 branches providing Internet and Mobile

Banking (IMB) services and 2091 branches offering 'Anywhere Banking' services.Under advanced payment and settlement system, all branches of the Bank have been

enabled to offer Real Time Gross Settlement (RTGS) and National Electronic Funds

Transfer (NEFT) facilities.

Not just in commercial banking, the Bank has also carved a distinctive mark, in

various corporate social responsibilities, namely, serving national priorities, promotingrural 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. The growth story of Canara Bank in itsfirst century was due, among others, to the continued patronage of its valued customers,

stakeholders, committed staff and uncanny leadership ability demonstrated by its leadersat the helm of affairs. We strongly believe that the next century is going to be equally

rewarding and eventful not only in service of the nation but also in helping the Bank emerge as a "Global Bank with Best Practices". This justifiable belief is founded onstrong fundamentals, customer centricity, enlightened leadership and a family like work

culture.

Awards/Accolades

Received during 2008-09

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

y Best Performing Bank under Rural Employment Generation Programme,(REGP) of Khadi and Village Industries Commission (KVIC), in South Zone for

the year 2007-08, instituted by the Ministry of MSME, Government of India.

y Golden Peacock National Training Award 2008 for excellence in training.

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

Congress, the largest rendezvous of HR Professionals, at its Employer Branding

Talent Management Congress held on 22nd and 23rd August 2008, Delhi.

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

NASSCOM and Times Foundation.

y The Bank won two Silver Corporate Collateral Awards for Best Corporate Ad in

the Print Media and Best Corporate Film on Corporate Social Responsibility at the Public Relations Council of India Awards 2009.




Received during 2009-10

y Best Bank in South Zone Award for the year 2008-09 in respect of lending under

KVIC and PMEGP Schemes. The award was handed over by Dr.ManmohanSingh, Hon¶ble Prime Minister of India.

y The Bank received the Credit Guarantee Approval Certificate issued by

CGTMSE from Shri Pranab Mukherjee, Hon¶ble Finance Minister of India.

BRANCHES AND OFFICES ABROAD

Canara Bank established its International Division in 1976, to supervise thefunctioning of its various foreign departments, to give required thrust to foreign exchange

business, particularly exports and to meet the requirements of NRIs.

Though small in size, the Bank's presence abroad has brought in considerable foreign business, particularly NRI deposits.

Canara Bank, London Branch

Canara Bank, Leicester Branch,

Canara Bank Hong Kong Branch

Canara Bank Shanghai Branch

Canara Bank Sharjah Representative Office, UAE

Commercial Bank Of India LLC(A Joint Venture With State Bank Of India),

Moscow

Al Razouki International Exchange Co (Secondment Agreement And DD

Drawing Facility On Canara Bank Branches), UAE

Eastern Exchange Establishment, Doha, Qatar




Products and Services

Savings & Deposits

y Savings Bank Account

y SB Gold Scheme

y Canara Champ Deposit Scheme

y Canara saral savings account

y Current account

y Canara premium current account

y Fixed deposit

y Kamadhenu deposit (re-investment plan)

y Canara tax saver scheme

y Recurring deposits

y Special recurring deposit scheme

y Ashraya deposit scheme (for senior citizens)

y Canara auto renewal deposit (card)

y Canara super savings salary account scheme

Loans

Housing Loan Doctors Choice

Home Improvement Loan Canara Rent

Canara Cash (shares) Canara Mortgage

Canara Mobile (Vehicle) Gold LoanCanara Site Loan Canara Guide

Canara Budget (ForEmployed/Business)

Canara Jeevan

Canara Pension Online Education Loan Foreign exchange and international banking services

Canara Bank entered Forex arena in 1953 with the opening of its first Foreign

Exchange Department in Mumbai.

The Bank finances exports at pre-shipment stage as well as post shipment stage,which can be availed either in foreign currency or Indian Rupees.

Canara Bank is pioneer in financing of LC based International Trade transactions in

India.

The Bank has an excellent worldwide correspondent relationship and has the

capability to handle any export, import, remittance and related transactions anywhere

in the world and in any currency.




Non fund based transactions like adding confirmations to LC, issuing inward and

outward Bid bonds & guarantees, establishing LCs for import into India, arranging

buyer's credit at attractive terms etc. are our forte.

Canara Bank has branches in London, Hong Kong and Shanghai, China. We have a

joint venture with SBI at Moscow under the name Commercial Bank of India LLC.

The Bank also manages 2 Exchange houses in the Gulf and has arrangement with 20

Exchange Houses and 17 Banks for drawing DDs from Gulf Countries on our select

branches throughout India.

The Bank has an integrated Treasury with a forex dealing room located in Mumbai in

India. Our London branch has a dealing room of its own. We are active in the Indian

forex market as well as in Overseas forex market. We provide a whole range of

services and products like purchase and sale of 7 world currencies, forward bookings

and other forex hedging instruments like currency swaps.

NRI Banking

The Bank provides a specialized service to help non-resident customers and others

who find it difficult to operate their accounts personally. The bank obtains obtain power of attorney from the customer in their favor and execute the customer¶s instructions

promptly and meticulously. It gives the customer great confidence that his money is safe.The bank offers attorney ship services like sale and purchase of Investments, payment of

bills, insurance premiums and other payments and collection of incomes.Apart from these attorneyship services, the following types of NRI accounts are

offered by Canara Bank:

y Non-Resident External Rupee Accounts

y Non-Resident Ordinary Account

y Foreign Currency Non-Resident Account

y Resident Foreign Currency Account

Remittances Facilities to NRI

y ³REMITMONEY´ - Web Based Remittance Service

y MONEY TRANSFER SERVICE SCHEME (MTSS) - Arrangement with

Western Union Financial Services, USA, for Personal Remittances to

Resident Indiansy Remittance facilities in foreign currency through SWIFT

y Rupee Drawing Arrangement with Exchange Companies

NRI Loans

Canara Bank Offers variety of loans to NRI¶s which include Home Loans,

Vehicle Loan, Mortgage Loan against Deposits and Loan for buying Gold




Agriculture and Rural Credit Schemes

y Kisan Credit Card

y Loans for Agri-Business Centers

y Minor irrigation/Pumpset Loans

y Farm Machinery Loans

y Farm Development Loansy Vehicle Loan for Agriculturists

y Loan for Plantation crops

y Loan for Marine Fisheries

y Loans for Poultry and Duck rearing

y Loan for Cold Storage and Godown

y Loan for Produce

y Loans For construction of Farms Structures

Corporate Banking

The bank is also actively indulged in providing financial services to the corporates.Bank Provides Term Loans, Working Capital Finances, Underwriting services, Merchant

Banking services, Corporate Cash Management Services and also tax payment facilitiesto the corporates at their convenience.

SME Credit

Canara Bank plays a vital role in development of small scale industries through Term

loans for acquiring fixed assets, soft loans for other projects and Co-financingarrangement SIDBI and other financing activities.

The bank is also known for its forefront in the service for common man. Its social banking cell arranges activities like blood donation, health camps, self employment andcareer guidance and assisting the NGO¶s. The bank also provides specialized services to

women with its 7 µMahila Banking Branches¶ all over the country being first of its kindin the banking industry




Branch Network

The year was significant for the Bank in expanding domestic operations across the

country. Befitting its 104th year of existence, the Bank on its Founders Day i.e. 19th November, 2009, opened 104 branches across the country, inaugurated by Honourable

Finance Minister Shri Pranab Mukherjee. The Bank opened 314 branches during theyear, taking the total tally under the branch network to 3046 branches.

Composition of domestic branch network

Category No. of Branches

31.03.2009 31.03.2010

Metropolitan 629

Urban 674 744

Semi-urban 691 793

Rural 735 779

Total Branches 2729 3043

The Bank has 118 specialized branches catering to the specific financial needs of different clientele categories i.e. separate branches for SME¶s, NRI¶s, Micro Finance

Branches, Agri-Finance, Consumer Finance, Capital Market and Prime CorporateBranches.

InfoTech Progress

The Bank took several initiatives in the InfoTech front during the year. As at the endof March 2010, a number of branches were covered under Core Banking Solution (CBS)

expanded to 809, besides 29 Extension Counters, 92 Currency Chests and 80 ServiceUnits (Accounts Sections/Clearing Sections/Local Processing Centres/ Foreign

Departments) along with Integrated Voice Recording System (IVRS) and Internet andMobile Banking (1MB). Several modules/facilities come along with CBS like SPEED-e-

module for enabling clients to deliver instruction through internet, Funds Transfer Facility for the purpose of online trading, sales and marketing module for marketing

purposes, Lending Automation Processing System (LAPS) for Retail and Corporate and

Anti-Money Laundering (AML) modules. CBS branches covered 90% of the Banks total business as at March 2010.

As at March 2010, the Bank had 2017 ATMs spread across 728 centres, including745 offsite ATMs and 180 ATMs in railway stations. It has also set up 150 e-kiosks for

booking railway tickets. Debit card base of the Bank further increased to about 50 lakhsas at March 2010.




The Bank implemented Centralized Online Tax Accounting System (GovernmentBusiness module) in 463 branches and Excise and Service Tax modules in 144 branches,

under CBS setup. Sales Tax module has been implemented in all designated branches of Delhi and Maharashtra.

Local Processing Centres (LPC) have been established in 25 centres all over India,covering 542 branches. Centralized Pension Processing cell was introduced and 84

branches of Bangalore Metro Circle Office have been covered. The Bank has a well-designed and secured Corporate Network, covering all the Branches/Offices for rolling

out network-based delivery channels. All the Circle Offices have been provided withvideo conference facility.

InfoTech Progress 31.03.2009 31.03.2010

Core Banking Branches 1053 1809

Anywhere Banking Branches 2062 2091

Internet and Mobile Banking Branches 1362 1959

NEFT and RTGS 2729 3037




Progress so far (Amt. in Rs. Crore)

2007-08 2008-09 2009-10

Number of Branches 2678 2733

Paid-up Capital 410 410 410

Reserves 10091 11798 14262

Aggregate Deposits 154072 186893 234651

Growth (%) 8.21 21.30 25.55

Non-Resident Deposits 12874 14043

Foreign Business Turnover 136757 142301 127614

Advances (Net) 107238 138219 169335

Growth (%) 8.86 28.89 22.51

Retail Advances 17665 19798 23902

Growth (%) 1.03 12.07 20.73

Priority Sector Advances 43203 48763 59310

Growth (%) 14.16 12.87 21.63

Agriculture 17996 20144 25051

Growth (%) 15.95 11.94 24.36

Agriculture(Disbursal) 11443 14704 18130

Micro, Small and Medium Enterprises 18600 23823 31074

Growth (%) 30.57 28.08 30.44

Advances under DRI Scheme 40 48 50

Advances to SC/ST Clients 2055 2863 3905

Self Help Group (Nos.) 210441 275100 320000

Export Credit 9162 8967 8966

Clientele (In Million) 32.35 34.80 37.34

Total Number of Staff 45260 44090 43380

Total Income 16414 19430 21610

Total Expenditure 13454 15467 16549

Operating Profit 2959 3964 5061

Net Profit 1565 207

Key Performance Ratios (%)

Capital Adequacy Ratio 13.25 14.10 13.43

Earnings Per Share (Rs.) 38.17 50.55 73.69

Book Value (Rs.) 202.33 244.87 305.83

Business Per Employee (Rs. Crore) 6.10 7.80 9.83

Profit Per Employee (Rs. Lakh) 3.65 4.97 7.36

Return on Average Assets 0.92 1.06 1.30

Cost-Income Ratio 48.54 43.61 40.73

Gross NPA Ratio 1.18 1.56 1.52

Net NPA Ratio 0.84 1.09

Credit - Deposits Ratio 69.60 73.96 72.16

Priority Credit to Adjusted Net Bank Credit 44.15 46.02 43.92




Bibliography

www.canarabank.com

www.moneycontrol.com

Canara Bank - Vishal Nihalani

Documents

Transcript of Canara Bank - Vishal Nihalani