CONTENTS

S.NO. PARTICULARS

1 INTRODUCTION To The Industry

2 INTRODUCTION TO the Organization

3 RESEARCH METHODOLOGY

3.1 Title of the study

3.2 Duration of the product

3.3 Objective of the study

3.4 Type of Research

3.5 Sample size and method of selecting ample

3.6 Scope of study

3.7 Limitation of study

4 FACT & FINDINGS

5 ANALYSIS & INTERPRETATION

6 SWOT

7 CONCLUSION

8 RECOMMENDATION & SUGGESTION

9 APPENDIX

10 BIBLIOGRAPHIES

INTRODUCTION TO THE INDUSTRY

BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy

economy. The banking system of India should not only be hassle free but it should

be able to meet new challenges posed by the technology and any other external and

internal factors. For the past three decades India's banking system has several

outstanding achievements to its credit. The most striking is its extensive reach. It is

no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian

banking system has reached even to the remote corners of the country. This is one

of the main reasons of India's growth process.

HISTORY :

The first bank in India, though conservative, was established in 1786. From 1786 till

today, the journey of Indian Banking System can be segregated into three distinct

phases. They are as mentioned below:

· PHASE I - Early phase from 1786 to 1969 of Indian Banks

· PHASE II - Nationalization of Indian Banks and up to 1991

· PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of

Hindustan and Bengal Bank.

The East India Company established

Bank of Bengal (1809), Bank of Bombay(1840) and Bank of Madras (1843) as independent units and called it Presidency

Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans

shareholders. During the first phase the growth was very slow and banks also

experienced periodic failures between 1913 and 1948. There were approximately

1100 banks, mostly small. To streamline the functioning and activities of commercial

banks, the Government of India came up with The Banking Companies Act, 1949

which was later changed to Banking Regulation Act 1949 as per amending Act of

1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers

for the supervision of banking in India as the Central Banking Authority. During those

day’s public has lesser confidence in the banks. As an aftermath deposit mobilization

was slow. Abreast of it the savings bank facility provided by the Postal department

was comparatively safer. Moreover, funds were largely given to the traders.

PHASE II:

Government took major steps in this Indian Banking Sector Reform after

independence. In 1955, it nationalized Imperial Bank of India with extensive banking

facilities on a large scale especially in rural and semi-urban areas. Second phase of

nationalization Indian Banking Sector Reform was carried out in 1980 with seven

more banks. This step brought 80% of the banking segment in India under

Government ownership.

The following are the steps taken by the Government of India to Regulate Banking

Institutions in the Country:

· 1949: Enactment of Banking Regulation Act.

· 1955: Nationalization of State Bank of India.

· 1959: Nationalization of SBI subsidiaries.

· 1961: Insurance cover extended to deposits.

· 1969: Nationalization of 14 major banks.

· 1971: Creation of credit guarantee corporation.

· 1975: Creation of regional rural banks.

· 1980: Nationalization of seven banks with deposits over 200 crores.

After the nationalization of banks, the branches of the public sector bank India raised

to approximately 800% in deposits and advances took a huge jump by

11,000%.Banking in the sunshine of Government ownership gave the public implicit

faith and immense confidence about the sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking sector in

its reforms measure. In 1991, under the chairmanship of M Narasimham, a

committee was set up by his name which worked for the liberalization of banking

practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being

put to give a satisfactory service to customers. Phone banking and net banking is

introduced. The entire system became more convenient and swift. The financial

system of India has shown a great deal of resilience. It is sheltered from any crisis

triggered by any external macroeconomics shock as other East Asian Countries

suffered. This is all due to a flexible exchange rate regime, the Foreign Reserves are

high, the capital account is not yet fully convertible, and banks and their customers

have limited foreign exchange exposure.

1.2 NATIONALIZED BANKS IN INDIA

Banking System in India is dominated by nationalized banks. The nationalization of

banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The

major objective behind nationalization was to spread banking infrastructure in rural

areas and make available cheap finance to Indian farmers. Fourteen banks were

nationalized in 1969.

Before 1969, State of India (SBI) was only public sector bank in India. SBI was

nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization

of Indian banks took place in the year 1980. Seven more banks were nationalized

with deposits over 200 crores

1.3 PRIVATE BANKS

All the banks in India were earlier private banks. They were founded in the pre-

independence era to cater to the banking needs of the people. But after

nationalization of banks in 1969 public sector banks came to occupy dominant role in

the banking structure. Private sector banking in India received a fillip in 1994 when

Reserve Bank of India encouraged setting up to private banks as part of its policy of

liberalization of the Indian Banking Industry. Housing Development Finance

Corporation Limited (HDFC) was amongst the first to receive an ‘In principle’

approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.

Private Banks have played a major role in the development of Indian banking

industry. They have made banking more efficient and customer friendly. In the

process they have jolted public sector banks out of complacency and forced them to

become more competitive.

INTRODUCTION TO THE ORGANIZATION

HISTORY OF THE ORGANIZATION

Beloved Founder

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

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

Founding Principles

1. To remove Superstition and ignorance.2. To spread education among all to sub-serve the first principle.3. To inculcate the habit of thrift and savings.4. To transform the financial institution not only as the financial heart of the

community but the social heart as well.5. To assist the needy.6. To work with sense of service and dedication.

7. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.

Sound founding principles, enlightened leadership, unique work culture and remarkable adaptability to changing banking environment have enabled Canara Bank to be a frontline banking institution of global standards.

Significant Milestones

Year  1st July 1906

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

1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited

1969 14 major banks in the country, including Canara Bank, nationalized on July 19

1976 1000th  branch inaugurated

1983 Overseas branch at London inaugurated Cancard (the Bank’s credit card) launched

1985 Takeover of Lakshmi Commercial Bank Limited Commissioning of Indo Hong Kong International Finance Limited (now a full fledged branch)

1987 Canbank Mutual Fund & Canfin Homes launched1989 Canbank Venture Capital Fund started1989-

90 Canbank Factors Limited, the factoring subsidiary launched

1992-93

Became the first Bank to articulate and adopt the directive principles of “Good Banking”.

1995-96

Became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore

2001-02

Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering exclusively to the financial requirements of women clientele.

2002-03 Maiden IPO of the Bank

2003-04 Launched Internet Banking Services

2004-05 100% Branch computerization

2005-06

Entered 100th Year in Banking Service. Launched Core Banking Solution in select branches. Number One Position in Aggregate Business among Nationalized Banks.

2006-07

Retained Number One Position in Aggregate Business among Nationalized Banks. Signed MoUs for Commissioning Two JVs in Insurance and Asset Management with international majors viz., HSBC (Asia Pacific) Holding and Robeco Groep N.V respectively.

2007-08

Launching of New Brand Identity. Incorporation of Insurance and Asset Management JVs. Launching of 'Online Trading' portal. Launching of a ‘Call Centre’. Switchover to Basel II New Capital Adequacy Framework.

2008-09

The Bank crossed the coveted  3 lakh crore in aggregate business. The Bank’s 3rd foreign branch at Shanghai commissioned.

2009-10

The Bank’s aggregate business crossed  4 lakh crore mark.Net profit of the Bank crossed  3000 crore. The Bank’s branch network crossed the 3000 mark.

2010-11

The Bank’s aggregate business crossed  5 lakh crore mark. Net profit of the Bank crossed  4000 crore. 100% coverage under Core Banking Solution. The Bank’s 4th foreign branch at Leicester and a Representative office at Sharjah, UAE, opened. The Bank raised  1993 crore under QIP. Govt. holding reduced to 67.72% post QIP.

2011-12

Total number of branches reached 3600. The Bank’s 5th foreign branch at Manama, Bahrain opened. 

2012-13 Highest Dividend of 130% paid for the year

2013-14

1027 branches and 2786 ATMs opened during the year. Global business crossed the  7 lakh crore milestone. Switchover to Basel III New Capital Adequacy Framework.

2014-15 Crossed  8 lakh crore in Total Business

As at March 2015, the total business of the Bank stood at  803876 crore. 

PROFILE OF THE ORGANIZATION

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

Launching of Inter-City ATM Network Obtaining ISO Certification for a Branch Articulation of ‘Good Banking’ – Bank’s Citizen Charter Commissioning of Exclusive Mahila Banking Branch Launching of Exclusive Subsidiary for IT Consultancy Issuing credit card for farmers Providing Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and

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

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

BOARD OF DIRECTORS

l. No. Directors Photo

1Shri. T.N. MANOHARAN No.2, C.P. Ramasamy RoadAbiramapuramChennai - 600 018 Chairman

2Shri. RAKESH SHARMA Head Office112, J.C. RoadBANGALORE - 560002  Managing Director & Chief

Executive Officer

3Shri. PRADYUMAN SINGH RAWAT Canara BankHead Office,112, J. C. Road,BANGALORE - 560002

Executive Director

4Shri.HARIDEESH KUMAR B Canara Bank,Head Office,112, J.C.Road,Bangalore - 560002

Executive Director

5Dr.RAJAT BHARGAVA Joint SecretaryDepartment of Economic Affairs,Government of India,North Block, New Delhi - 110011

Director representing Government of India

6Smt. Uma Shankar Chief General Manager,Department of Currency Management,Reserve Bank of India,Amar Building,4th floor,Sir P M Road, Mumbai -400 001

Director representing Reserve Bank of India

7Shri G. V. ManimaranCanara Bank, IIT BranchShopping Complex,IIT Campus,Chennai – 600 036 Officer Employee Director

8Shri SUNIL HUKUMCHAND KOCHETAVardhman, Ram NagarAusa Road,LATUR – 413512

Part Time Non Official Directorunder Chartered Accountant category

9Shri. MOCHERLA SAIRAM BHASKARH. No. 8-2-472/6Road No. 4, Banjara HillsHYDERABAD - 500034

Part Time Non Official Director

10Shri.RAJINDER KUMAR GOELE-6,Jhandewalan Extension2nd Floor,NEW DELHI-110055 Shareholder Director

11Shri.SANJAY JAINFlat no. 802, Tower – 2, Vipul Belmonte Golf Course Road Sector-53, GURGAON HARYANA – 122011

Shareholder Director

Awards & Achievements 

Awards/Accolades Received during 2014-15

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

"MSME Banking Excellence Awards-2014" organized by Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) at New Delhi. The Bank has been adjudged as the "Best Bank Award-Winner" among other awards.

Awarded ‘Niryat Bandhu’ instituted by Federation of Indian Export Organization (FIEO) for excellent support services rendered for the promotion of export.

“SKOCH Renaissance Award 2014” under India's Best Projects 2014 Category for

Rural Self Employment Training Institute, Institute for Artisans, Institute for information Technology, Community Development and Women Empowerment.

Secured 1st Position in mobilizing new Demat Accounts for the second consecutive year and also adjudged Best Performer in Account Growth Rate by NSDL Star Performer Awards 2014. 

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

Conferred with Reserve Bank Rajbhasha Shield for effective implementation of Official Language in Region 'B' & 'C'. 

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

Awarded ‘Best Inspiring Place to Work (Public Sector)’ by Banking Frontiers partnering with M/s.Deloitte in an effort to recognize the HR efforts of the BFSI sector.

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

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

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

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

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

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

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

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

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

prestigious M/s Greentech Foundation, New Delhi. 

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

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

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

Vision & Mission

Vision

To emerge as a ‘Preferred Bank’ by pursuing global benchmarks in profitability, operational efficiency, asset quality, risk management and expanding

the global reach.

Mission

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

Customer Support:

IT DrivenATM Anywhere Banking

Anywhere Banking Tele Banking

Customer terminal computerized information Facilitation

NRI Services Non Resident External Rupee Account.

Non Resident Ordinary Account.

Foreign Currency Non Resident Accounts-Banks.

Loans & Advances

Retail Loan Products -

Canmahila .

Housing Loan.

Home Improvement Loan .

Cancarry.

Cancash .

Canmobile.

Canbudget .

Teachers Loan .

Canmahila : A Loan Scheme exclusively designed for the benefit of women.

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

To meet any personal financial needs, viz., for buying household articles, gold

jewellery, computers, gift articles, etc.

No Security required in case of working women, however, in respect of a non-

working woman, for loan amount exceeding Rs.25,000./-, co-obligation of

husband / parent / son is insisted.

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

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

house / flat including the purchase of land and construction thereon. For taking over

of the Housing Loan liability with other recognized Housing Finance Companies,

Housing Boards, Co-operative Banks, Co-operative Societies and Commercial Banks

at prevailing low rate of interest.

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

self-employed persons.NRIs are also eligible to avail loans without specific

permission of RBI.Persons above the age of 55 years are also eligible subject to

certain stipulations.

Maximum loan amount of Rs.50 lacs for purchase / construction of house / flat. (Loan

is also granted up to Rs.1 crore selectively.) And Rs.7.5 lacs for repairs / renovations /

additions to the existing house / flat.

Security: Mortgage of House / Flat

Repayment: In convenient equated monthly installments up to 20 years

 Home Improvement Loan :

Purpose: For furnishing house / flat with household furniture items, air conditioners,

wardrobes, kitchen cabinets, refrigerator, washing machine, etc.,

Can be availed along with a Housing Loan from Canara Bank

OR Without any Housing Loans

This loan can also be availed where a Housing Loan is already obtained from Canara

bank and the liability is subsisting.

Eligibility: Owners of House / flat who are salaried individuals / individuals engaged

in business / professionals / self-employed. NRIs are also eligible.

Salaried individuals with minimum 25% net take home salary or Rs.2000/- after

meeting loan repayment, whichever is more. Other than salaried individuals -

minimum annual income of Rs.50, 000/- as evidenced by ITAO / IT Returns.

Repayment: In convenient equated monthly installments up to 60 months

Security: Hypothecation of assets created out of this loan. Mortgage of house / flat (if

housing loan is availed from Can Bank) suitable co-obligation / personal guarantee.

Waivers considered selectively.

Loan Quantum & Margin:

1. When availed along with Housing Loan from Canara Bank, amount up to one year's

gross salary / income over and above the normal eligible amount for housing finance.

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

quantum under this Scheme.

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

quantum considered selectively.

4. If availed as a part of the housing finance from canara Bank, then, the margin

stipulated is 15%. In other cases, the margin is 20%.

Cancarry (Loan to purchase Consumer Durables)

Purpose: To pick up favorite household articles and latest gadgets to enhance the

quality of life. The personal computer, laptop, handy cam, cameras, music

systems, washing machine, microwave oven, refrigerators and many other items.

Eligibility: Salaried individuals with minimum 25% net take home salary or Rs.2,

000/- after meeting loan repayments, whichever is more. Other than salaried

individuals - minimum annual income of Rs.50, 000/- as evidenced by IT Returns.

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

less. And for non salaried persons and professionals, finance up to 50% of net

annual income of immediate previous year or 80% of the invoice value whichever

is less.

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

Cancash - (Loan against Shares)

Cancash loan can be availed by pledging investments in Shares, Debentures,

Bonds or Units.

Eligibility: Individuals - Existing customers with satisfactory dealings. New

customers - well-introduced and credit worthy can also avail.

Amount of Finance: Shares and Debentures - up to 60% of market value, PSU

Bonds up to 70% of Market Value, Units of UTI and CBMF - 50% of NAV or

market value whichever is less.

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

Canmobile - Vehicle Loan Purpose: For buying new or used four wheeler / new two Wheeler.

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

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

eligible.

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

loan amount.

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

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

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

Canbudget:

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

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

Purpose: To meet genuine personal needs.

Eligibility: Confirmed employees of reputed PSUs and Joint Stock

Companies ,Confirmed Central / State Government officials, Lecturers / Asst.

Professors / Professors of Colleges / Research Institutions and Universities

,Employees salary account has to be maintained with Canara bank branch

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

salary is also permitted.

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

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

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

Teachers Loan: Purpose: To meet any genuine personal needs

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

college - drawing salary through Canara bank branches

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

Repayment: Up to 36 months. EMIs also possible.

Security : A life insurance policy or a suitable co-obligation

Commercial Banking Loans: Working Capital Finance - Cash Credit

Bill Discounting

Term Loans

Export Finance

Non Fund Based Limits - Letters of Credit

Bank Guarantee

Other Commercial Loans Loans to SSIs

Loans to Traders

Agriculture Loans

Other priority Sector loans Agriculture & Rural Credit

    -     Kisan Credit

    -     Loans for setting up Agri Clinic

    -     Minor Irrigation Loans

    -     Farm Machinery Loans

    -     Farm Development Loans

    -     Vehicle Loan for Agriculturists

    -     Loan for Plantation Crops

    -     Loan for Marine Fisheries

    -     Loan for Inland Fisheries

    -     Loan for Sericulture

    -     Loan for Purchasing Agricultural Land

    -     Loan for Poultry

    -     Export Credit for Agro Products

-Other Agricultural Schemes

Vidyasagar (Educational Loan)

Housing Loan

Other Priority Sector Loans

Government Sponsored Schemes

Lead Bank Activities

Agricultural Consultancy Services

General Facilities Safe custody Services

Safe custody Lockers

Nomination Facility

Deposits

Fixed Deposit: It is safe, liquid and fetches high returns.

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

Period of Deposit - 15 days to 120 months.

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

choice.

Facility of part withdrawal of deposits in units of Rs.1000/- keeping the rest of the

deposit to earn contracted rate of interest.

Closure before maturity permissible.

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

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

No ceiling on maximum amount

Closure before maturity

Loan against deposit permissible

Interest compounded every quarter

CANBANK AUTO RENEWAL DEPOSITCARD :

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

Period of deposit: 15 days to 46 days.

Auto renewal: CARD has built-in features for automatic renewal of the deposit, with

or without interest accrued.

Loans against deposits permissible.

Closure before maturity permissible.

CANFLEXI DEPOSITS

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

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

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

earning more interest.

Savings bank account continues to serve as before.

If cheque amount exceeds the available balance in Savings Account balance, Canflexi

transfers funds from fixed deposit account, to ensure that cheque is honored.

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

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

ASHRAYA DEPOSITS ( For senior citizens ) Individuals, who have completed the age of 60 years and above, are eligible.

Accounts can be opened jointly with other Senior Citizens or with other persons

below the age of 60 subject to the condition that the Senior Citizen is No.1 depositor...

Period of Deposit - 15 days to 120 months.

Age proof certificate to be produced.

Loans against deposits permitted

SWOT ANALYSIS

Strengths:

Canara Bank is a premier leading public sector bank enriched with banking discipline, founder principles, and steady growth. The organizational study shows a significant improvement in Net profits year after year. For the year March 2004 the bank clocked highest net profit of Rs1338 Crore among nationalized banks. It has registered a net profit of Rs1110 crore for the year March 2005.There assets are qualified workforce and brand name in India. Major income is Interest on advances. It is in the business for 100 years, which celebrated its centenary year this year. It has a separate Planning and development wing.

The present stature of the bank is due to strong fundamentals and quality customer orientation. Profit making since its inception the bank today epitomizes a perfect blend of commercial and social banking.

Weaknesses

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

Opportunities:

Economic scenario is favorable to banking sector as compared to other industries. As for as the bank is concerned it has many opportunities

More Rural Branches: It can concentrate into more rural areas. Technological Breakthrough: Credit/Debit Card, Electronic Fund

transfer and mobile Banking. It can ring customers into these services.

Foreign Accounts (Deposits)

Threats:

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

It should prepare itself for major threats like mergers in the banking; increasing NPAs, New technology, Electronic cash transfer, and internets

banking that are predominant today.

DETAILS OF SECTIONS/DIVISIONS/DEPARTMENTS COMING

UNDER EACH FUNCTIONAL WING OF HEAD OFFICE

PERSONNEL WING:

1.    Personnel Management Section

2.    Industrial Relations Section

3.    Human Resources and Organization Development Section

4.    Head Office Staff Administration Section

5.    House Magazine and Library Section

6.    Official Language Section

7.    Staff Training College

8.    Recruitment Cell

9.    SC/ST Cell

PLANNING AND DEVELOPMENT WING:

1.      Development Section

2.      Economic Research Section

3.      Management Information and Planning Section

4.      Customer Service Section

5.      Publicity and Public Relations Section

6.      Corporate Merchant Banking Division

7.      Marketing, Research & Product Development Section

8.      Corporate Cash Management Services

CORPORATE CREDIT WING:

1.    General Credit Sanctions-I Section

2.    General Credit Sanctions-II Section

3.    Export Import Credit and Development Section

4.    Project Finance Department

RECOVERY WING:

1.      Recoveries Section

2.      NPA Management Section

3.      Legal Section

4.      Sick Industries and Rehabilitation Section

RISK MANAGEMENT WING:

1.    Credit Policy Section

2.    Industrial Advisory Division

3.    Risk Management Section

4.    Credit Monitoring and Statistics Section

5.    Credit Review Section I & II

FINANCIAL   AND GENERAL ADMINISTRATION WING:

a)      General Administration Department –

1.      Furniture and Bills Section

2.      Premises, Policy and Administration Section

3.      Technical Cell

4.      Records and Tappal Section

5.      Premises and Estate Section

6.      Printing Section

7.      Stationery Section

8.      Central Security Cell

9.      Estate Policy and Control Section

.

b)      Accounts and Taxation Department –

1.      Balance Sheet and Central Accounts Section

2.      Staff Provident Fund

3.      Staff Welfare Fund

4.      Pension Fund

5.      Government Accounts Section

6.      Executor, Trustee and Taxation Section

7.      IBA Réconciliation Section

8.      DD Réconciliation Section

9.      ATM and Debit Card Reconciliation Section

PRIORITY CREDIT WING:

1.    Priority Credit Section

2.    Agricultural Consultancy Services

3.    Small Scale Industries Division

4.    Regional Rural Banks Division

5.    Rural Development Section

6.     Social Banking Cell

INSPECTION WING:

1.      Planning Section

2.      Follow Up Section

3.      Review and Reporting Section

4.      Information Systems Audit Section

5.      Vigilance Department

6.      Staff Administration Section

7.      Organization and Methods Section

DEPARTMENT OF INFORMATION TECHNOLOGY - WING:

1.       Department of Information Technology

TREASURY AND INTERNATIONAL OPERATIONS WING:

1.      Treasury and Investment Division

2.      Overseas Banking Division

RETAIL BANKING AND SUBSIDIARIES WING:

a)      Cancard Division

b)      Retail Banking Division

1.      Retail Banking Division

2.      Bancaassurance Section

3.      Cross Selling of Mutual Fund Products Section

c)      Subsidiaries Division

1. Subsidiaries Section

Names of Subsidiaries and Associates

a)      Canbank Mutual Fund Limited

b)      Canbank Factors Limited

c)      Canfin Homes Limited

d)      Canbank Investment Management Services Limited

e)      Canbank Computer Services Limited

f)       Canbank Venture Capital Fund Limited

g)      Gilt Securities Trading Corporation Limited

h)      Canbank Financial Services Limited

Customer Support:

IT DrivenATM Anywhere Banking

Anywhere Banking Tele Banking

Customer terminal computerized information Facilitation

NRI Services Non Resident External Rupee Account.

Non Resident Ordinary Account.

Foreign Currency Non Resident Accounts-Banks.

Loans & Advances

Retail Loan Products -

Canmahila .

Housing Loan.

Home Improvement Loan .

Cancarry.

Cancash .

Canmobile.

Canbudget .

Teachers Loan .

Canmahila : A Loan Scheme exclusively designed for the benefit of women.

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

To meet any personal financial needs, viz., for buying household articles, gold

jewellery, computers, gift articles, etc.

No Security required in case of working women, however, in respect of a non-

working woman, for loan amount exceeding Rs.25,000./-, co-obligation of

husband / parent / son is insisted.

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

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

house / flat including the purchase of land and construction thereon. For taking over

of the Housing Loan liability with other recognized Housing Finance Companies,

Housing Boards, Co-operative Banks, Co-operative Societies and Commercial Banks

at prevailing low rate of interest.

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

self-employed persons.NRIs are also eligible to avail loans without specific

permission of RBI.Persons above the age of 55 years are also eligible subject to

certain stipulations.

Maximum loan amount of Rs.50 lacs for purchase / construction of house / flat. (Loan

is also granted up to Rs.1 crore selectively.) And Rs.7.5 lacs for repairs / renovations /

additions to the existing house / flat.

Security: Mortgage of House / Flat

Repayment: In convenient equated monthly installments up to 20 years

 Home Improvement Loan :

Purpose: For furnishing house / flat with household furniture items, air conditioners,

wardrobes, kitchen cabinets, refrigerator, washing machine, etc.,

Can be availed along with a Housing Loan from Canara Bank

OR Without any Housing Loans

This loan can also be availed where a Housing Loan is already obtained from Canara

bank and the liability is subsisting.

Eligibility: Owners of House / flat who are salaried individuals / individuals engaged

in business / professionals / self-employed. NRIs are also eligible.

Salaried individuals with minimum 25% net take home salary or Rs.2000/- after

meeting loan repayment, whichever is more. Other than salaried individuals -

minimum annual income of Rs.50, 000/- as evidenced by ITAO / IT Returns.

Repayment: In convenient equated monthly installments up to 60 months

Security: Hypothecation of assets created out of this loan. Mortgage of house / flat (if

housing loan is availed from Can Bank) suitable co-obligation / personal guarantee.

Waivers considered selectively.

Loan Quantum & Margin:

5. When availed along with Housing Loan from Canara Bank, amount up to one year's

gross salary / income over and above the normal eligible amount for housing finance.

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

quantum under this Scheme.

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

quantum considered selectively.

8. If availed as a part of the housing finance from canara Bank, then, the margin

stipulated is 15%. In other cases, the margin is 20%.

Cancarry (Loan to purchase Consumer Durables)

Purpose: To pick up favorite household articles and latest gadgets to enhance the

quality of life. The personal computer, laptop, handy cam, cameras, music

systems, washing machine, microwave oven, refrigerators and many other items.

Eligibility: Salaried individuals with minimum 25% net take home salary or Rs.2,

000/- after meeting loan repayments, whichever is more. Other than salaried

individuals - minimum annual income of Rs.50, 000/- as evidenced by IT Returns.

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

less. And for non salaried persons and professionals, finance up to 50% of net

annual income of immediate previous year or 80% of the invoice value whichever

is less.

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

Cancash - (Loan against Shares)

Cancash loan can be availed by pledging investments in Shares, Debentures,

Bonds or Units.

Eligibility: Individuals - Existing customers with satisfactory dealings. New

customers - well-introduced and credit worthy can also avail.

Amount of Finance: Shares and Debentures - up to 60% of market value, PSU

Bonds up to 70% of Market Value, Units of UTI and CBMF - 50% of NAV or

market value whichever is less.

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

Canmobile - Vehicle Loan Purpose: For buying new or used four wheeler / new two Wheeler.

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

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

eligible.

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

loan amount.

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

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

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

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

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

Purpose: To meet genuine personal needs.

Eligibility: Confirmed employees of reputed PSUs and Joint Stock

Companies ,Confirmed Central / State Government officials, Lecturers / Asst.

Professors / Professors of Colleges / Research Institutions and Universities

,Employees salary account has to be maintained with Canara bank branch

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

salary is also permitted.

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

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

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

Teachers Loan: Purpose: To meet any genuine personal needs

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

college - drawing salary through Canara bank branches

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

Repayment: Up to 36 months. EMIs also possible.

Security : A life insurance policy or a suitable co-obligation

Commercial Banking Loans: Working Capital Finance - Cash Credit

Bill Discounting

Term Loans

Export Finance

Non Fund Based Limits - Letters of Credit

Bank Guarantee

Other Commercial Loans Loans to SSIs

Loans to Traders

Agriculture Loans

Other priority Sector loans Agriculture & Rural Credit

    -     Kisan Credit

    -     Loans for setting up Agri Clinic

    -     Minor Irrigation Loans

    -     Farm Machinery Loans

    -     Farm Development Loans

    -     Vehicle Loan for Agriculturists

    -     Loan for Plantation Crops

    -     Loan for Marine Fisheries

    -     Loan for Inland Fisheries

    -     Loan for Sericulture

    -     Loan for Purchasing Agricultural Land

    -     Loan for Poultry

    -     Export Credit for Agro Products

-Other Agricultural Schemes

Vidyasagar (Educational Loan)

Housing Loan

Other Priority Sector Loans

Government Sponsored Schemes

Lead Bank Activities

Agricultural Consultancy Services

General Facilities Safe custody Services

Safe custody Lockers

Nomination Facility

Deposits

Fixed Deposit: It is safe, liquid and fetches high returns.

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

Period of Deposit - 15 days to 120 months.

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

choice.

Facility of part withdrawal of deposits in units of Rs.1000/- keeping the rest of the

deposit to earn contracted rate of interest.

Closure before maturity permissible.

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

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

No ceiling on maximum amount

Closure before maturity

Loan against deposit permissible

Interest compounded every quarter

CANBANK AUTO RENEWAL DEPOSITCARD :

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

Period of deposit: 15 days to 46 days.

Auto renewal: CARD has built-in features for automatic renewal of the deposit, with

or without interest accrued.

Loans against deposits permissible.

Closure before maturity permissible.

CANFLEXI DEPOSITS

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

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

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

earning more interest.

Savings bank account continues to serve as before.

If cheque amount exceeds the available balance in Savings Account balance, Canflexi

transfers funds from fixed deposit account, to ensure that cheque is honored.

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

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

ASHRAYA DEPOSITS ( For senior citizens ) Individuals, who have completed the age of 60 years and above, are eligible.

Accounts can be opened jointly with other Senior Citizens or with other persons

below the age of 60 subject to the condition that the Senior Citizen is No.1 depositor...

Period of Deposit - 15 days to 120 months.

Age proof certificate to be produced.

Loans against deposits permitted

SWOT ANALYSIS

Strengths:

Canara Bank is a premier leading public sector bank enriched with banking discipline, founder principles, and steady growth. The organizational study shows a significant improvement in Net profits year after year. For the year March 2004 the bank clocked highest net profit of Rs1338 Crore among nationalized banks. It has registered a net profit of Rs1110 crore for the year March 2005.There assets are qualified workforce and brand name in India. Major income is Interest on advances. It is in the business for 100 years, which celebrated its centenary year this year. It has a separate Planning and development wing.

The present stature of the bank is due to strong fundamentals and quality customer orientation. Profit making since its inception the bank today epitomizes a perfect blend of commercial and social banking.

Weaknesses

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

Opportunities:

Economic scenario is favorable to banking sector as compared to other industries. As for as the bank is concerned it has many opportunities

More Rural Branches: It can concentrate into more rural areas. Technological Breakthrough: Credit/Debit Card, Electronic Fund

transfer and mobile Banking. It can ring customers into these services.

Foreign Accounts (Deposits)

Threats:

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

It should prepare itself for major threats like mergers in the banking; increasing NPAs, New technology, Electronic cash transfer, and internets

banking that are predominant today.

DETAILS OF SECTIONS/DIVISIONS/DEPARTMENTS COMING

UNDER EACH FUNCTIONAL WING OF HEAD OFFICE

PERSONNEL WING:

1.    Personnel Management Section

2.    Industrial Relations Section

3.    Human Resources and Organization Development Section

4.    Head Office Staff Administration Section

5.    House Magazine and Library Section

6.    Official Language Section

7.    Staff Training College

8.    Recruitment Cell

9.    SC/ST Cell

PLANNING AND DEVELOPMENT WING:

1.      Development Section

2.      Economic Research Section

3.      Management Information and Planning Section

4.      Customer Service Section

5.      Publicity and Public Relations Section

6.      Corporate Merchant Banking Division

7.      Marketing, Research & Product Development Section

8.      Corporate Cash Management Services

CORPORATE CREDIT WING:

1.    General Credit Sanctions-I Section

2.    General Credit Sanctions-II Section

3.    Export Import Credit and Development Section

4.    Project Finance Department

RECOVERY WING:

1.      Recoveries Section

2.      NPA Management Section

3.      Legal Section

4.      Sick Industries and Rehabilitation Section

RISK MANAGEMENT WING:

1.    Credit Policy Section

2.    Industrial Advisory Division

3.    Risk Management Section

4.    Credit Monitoring and Statistics Section

5.    Credit Review Section I & II

FINANCIAL   AND GENERAL ADMINISTRATION WING:

a)      General Administration Department –

1.      Furniture and Bills Section

2.      Premises, Policy and Administration Section

3.      Technical Cell

4.      Records and Tappal Section

5.      Premises and Estate Section

6.      Printing Section

7.      Stationery Section

8.      Central Security Cell

9.      Estate Policy and Control Section

.

b)      Accounts and Taxation Department –

1.      Balance Sheet and Central Accounts Section

2.      Staff Provident Fund

3.      Staff Welfare Fund

4.      Pension Fund

5.      Government Accounts Section

6.      Executor, Trustee and Taxation Section

7.      IBA Réconciliation Section

8.      DD Réconciliation Section

9.      ATM and Debit Card Reconciliation Section

PRIORITY CREDIT WING:

1.    Priority Credit Section

2.    Agricultural Consultancy Services

3.    Small Scale Industries Division

4.    Regional Rural Banks Division

5.    Rural Development Section

6.     Social Banking Cell

INSPECTION WING:

1.      Planning Section

2.      Follow Up Section

3.      Review and Reporting Section

4.      Information Systems Audit Section

5.      Vigilance Department

6.      Staff Administration Section

7.      Organization and Methods Section

DEPARTMENT OF INFORMATION TECHNOLOGY - WING:

1.       Department of Information Technology

TREASURY AND INTERNATIONAL OPERATIONS WING:

1.      Treasury and Investment Division

2.      Overseas Banking Division

RETAIL BANKING AND SUBSIDIARIES WING:

a)      Cancard Division

b)      Retail Banking Division

1.      Retail Banking Division

2.      Bancaassurance Section

3.      Cross Selling of Mutual Fund Products Section

c)      Subsidiaries Division

1. Subsidiaries Section

Names of Subsidiaries and Associates

a)      Canbank Mutual Fund Limited

b)      Canbank Factors Limited

c)      Canfin Homes Limited

d)      Canbank Investment Management Services Limited

e)      Canbank Computer Services Limited

f)       Canbank Venture Capital Fund Limited

g)      Gilt Securities Trading Corporation Limited

h)      Canbank Financial Services Limited