The Board of Directors have pleasure in presenting the 55th Annual Report together with the Balance Sheet as on 31st March, 2024 and Profit & Loss Account for the financial year ended March 31, 2024.

The global business of the Bank increased to '22,72,968 crore, up by 11.31% y-o-y, out of which domestic business grew by 11.01% y-o-y to '21,23,133 crore as at March 2024. Domestic CASA deposits stood at '3,92,327 crore with Savings Account of '3,28,378 crore and Current Account of '63,949 crore. Thus, domestic CASA ratio stood at 32.29% as at March 2024.

Bank took various steps in respect of monitoring, control and maintaining asset quality. The sustained efforts ofthe Bank has yielded results on the asset quality front which showed a commendable fall in Gross NPA by 112 bps to 4.23% and Net NPA to 1.27%, down by 46 bps. Further the provision coverage ratio has improved to 89.10% from 87.31% in the previous year. The healthy CRAR of 16.28%, highlights that the bank is well cushioned for an organic growth in the coming quarters. In FY 2023-24, operating profit of the Bank stood at '29,413 crore and net profit at '14,554 crore.

Dividend

The Board of Directors of the Bank has recommended a dividend of '16.10 per equity share (i.e. 161%) of face value of '10/- each to the Shareholders for the year 2023-24, subject to the approval of the Shareholders at the AGM.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

The global economic landscape remained mixed in FY 2023-24, with concerns over recession in the first half being replaced by cautious optimism towards the end of second half with strong growth momentum observed in the United States and a number of large emerging economies including India. Inflationary pressures are easing across global economies, though remaining above target levels of Central Banks. However, the positive sentiments were countered by high political tensions in the Middle East, disruption in the Red Sea and supply cuts by OPEC+ countries.

On the balance, the outlook for the global economy remains cautiously balanced with persisting downside risks from continuing geo-political conflicts, adverse climate events and slower reduction in inflation rates in the last leg of disinflation - which could result in slower-than-expected reductions in policy interest rates. Taking note of these developments, IMF has revised upwards its growth projection for world economy by 10 basis points to 3.2% in its World Economic

Outlook - April 2024. The United Nations in its latest report on “World Economic Situation and Prospects as of mid-2024” has also revised upwards the growth projection for the world economy to 2.7% in 2024 as compared to earlier projection of 2.4%.

INDIAN ECONOMY

Indian economy remained robust in FY 2023-24, supported by strong domestic demand conditions, robust public investments, sustained momentum in the manufacturing and services sectors, improving investment and business sentiments and healthy Corporate & Bank balance sheets. Promising outlook of Indian economy in 2024 has led to upward revision by major multilateral agencies like the IMF, World Bank, Asian Development Bank, United Nations and the rating agencies. As per second advance estimate on national income, India's real GDP growth for FY 2023-24 is estimated at 7.6% as compared to 7.0% in FY 2022-23.

Sector wise the growth momentum remained robust in both manufacturing and services sectors with strong expansions in total sales and business activity. However, agricultural growth contracted in Q3FY24 due to adverse climate conditions.

Headline inflation eased to 4.85% in March 2024, helped by moderation in food prices and disinflation in the 'fuel and light' segment, while core inflation eased to 3.2%. RBI has projected headline inflation at 4.5% for FY 2024-25, with risks evenly balanced amid expectation of a normal monsoon.

OUTLOOK FOR 2024-25

Going forward, the domestic growth momentum is expected to continue in FY 2024-25, supported by improving rural demand and urban demand remaining buoyant, sustained momentum in manufacturing and services sector, positive prospects for investment activity owing to business optimism and robust Government capital expenditure. Further, the forecast of a normal monsoon bodes well for the agricultural sector. The external sector is expected to remain supported by improving outlook for global growth and trade. Considering the domestic and global macroeconomic factors, the RBI has projected real GDP growth at 7.0% for FY 2024-25.

On the inflation front, the inflation trajectory is likely to moderate gradually, though there is sustained upside risk from adverse weather conditions impacting food inflation and crude oil prices amidst continued geopolitical unrest. In Apr'24 meet of MPC, RBI has retained the projection of CPI inflation for FY 2024-25 at 4.5% with risks evenly balanced.

From credit growth perspective, the outlook remains positive in FY 2024-25, with favourable domestic macroeconomic conditions and healthy Corporate and Bank balance sheets.

The Bank will continue to focus on enhancing the low-cost deposits base by providing innovative and customized products and best-in-class customer services to all our customers. On the advances front, Bank focuses on a proper mix of retail, agriculture, MSME and corporate credit, with a view to achieve greater growth in business along with profitability. Strategic focus will also be on strengthening risk management framework with focus on compliance & proper implementation of systems and procedures.

The Bank takes adequate efforts for NPA management with ardent credit monitoring, containing fresh slippages and strengthening recovery efforts. The Bank will continue to strive for process and product improvements in view of evolving customers' and industry requirements. The Bank envisions to be the "Best Bank to Bank With" in the Banking sector, both in terms of optimum business growth and excellent customer service by leveraging technology and creating value for all stakeholders through inclusive growth.

CANARA BANK IN 2023-24

Canara Bank has recorded robust business growth in FY 2023-24 with record 37.25% y-o-y growth in net profit to '14,554 crore with thrust on optimal resource mobilization, robust fee income, expanding retail assets, including agriculture, housing and other retail segments, and improving asset quality

BUSINESS PERFORMANCE

During FY 2023-24, the global business of the Bank stood at '22,72,968 crore with a growth of 11.31% y-o-y from '20,42,001 crore, with global deposits at '13,12,366 crore with a growth of 11.29% y-o-y and global advances at '9,60,602 crore with a growth rate of 11.34%.

Deposits

Total Deposits grew by 11.29% y-o-y from '11,79,219 crore as on March 2023 to '13,12,366 crore as on March 2024. Domestic CASA deposits of the Bank are at '3,92,327 crore as on March 2024 with Savings deposits at '3,28,378 crore and Current deposits at '63,949 crore. The Bank's domestic CASA deposits share to domestic deposits stood at 32.29%. Total deposit clientele of the Bank stood at 11.17 crore as at 31st March 2024.

Advances

The Bank expanded its asset base in a well-diversified manner encompassing sectors such as Agriculture and Micro, Small and Medium Enterprises (MSMEs) as well as keeping a focus on retail assets, including Housing, Education, and Vehicle loans.

Advances (Gross) of the Bank reached '9,60,602 crore as at March 2024. The RAM (Retail, Agriculture & allied activities, MSME) portfolio grew by 13.52% y-o-y to '5,41,489 crore as at March 2024 with retail advances recording a growth of 11.68% y-o-y to '1,56,414 crore, credit to Agriculture & allied activities recording a growth of 18.69% y-o-y to '2,53,206 crore and credit to MSMEs grew by 6.67% to '1,31,869 crore. Within RAM portfolio, Bank's gold loan portfolio increased to '1,51,641 crore with a y-o-y growth of 23.1%. During the year, digital documentation (eSign & eStamping) has been enabled for Gold loans in tie-up with National E-Governance Services Limited (NeSL) and total 3,48,222 Gold loan documents have been digitally signed in FY 2023-24.

FINANCIAL PERFORMANCE

Operating profit of the Bank stood at '29,413 crore for FY 2023-24. Bank reported a Net Profit of '14,554 crore for FY 2023-24. Net Interest income of the Bank stood at '36,566 crore. NIM stood at 3.05% and Yield on Advances at 8.71%.

Income and Expenditure Analysis:

Total income of the Bank stood at '1,27,654 Crore for the FY 2023-24, comprising '78,188 crore interest from advances, '22,673 crore interest from investments, '18,966 crore from non-interest income and '7827 crore from other interest income.

In line with the thrust areas for the Bank, non-interest income (Excl. Trading profit) is at '17,343 crore. Apart from trading profit, other major sources of non-interest income, like, service charges ('3417 crore), commission and exchange ('1412 crore), recovery from written-off accounts ('5963 crore) and Profit from exchange transaction ('765 crore) contributed to the non-interest income of the Bank. The share of non-interest income to total income stood at 14.86%.

Total expenditure of the Bank stood at '98,241 crore in FY 2023-24. Interest expenses of the Bank is at '72,122 crore. Operating expenses is at '26,119 crore, comprising staff cost of '16,434 crore and other operating expenses of '9685 crore.

The net interest income, the difference between interest paid and interest earned by the Bank stood at '36,566 crore.

Capital and Reserves:

Net worth of the Bank, as at March 2024 stood at '71,829 crore. While the total paid-up capital of the Bank stood at '1814.13 crore, the reserves and surplus stood at '76,084 crore (excl. Revaluation Reserve and FCTR).

Capital Adequacy Ratio, under Basel III was 16.28% as at March 2024 against the regulatory requirement of 11.50%, including capital conservation buffer of 2.50%. Within the capital adequacy ratio, CET I ratio was at 11.58% and Tier I capital ratio was at 13.95%.

During the Financial Year 2023-24, Bank has raised capital via Basel III compliant additional Tier I Bond amounting to '3403 crore. Government of India shareholding in the Bank is 62.93% as on 31.03.2024.

RETAIL LENDING OPERATIONS

For the FY 2023-24, Retail Lending as one of the thrust areas of the Bank had shown a considerable growth of 11.68% compared to FY 2022-23. The Core Retail Portfolio of the Bank increased to '1,56,414 Crore as on March 31, 2024 with Housing Loans at '93482 Crore and '17,251 Crore under Vehicle Loans. The share of Retail Loans stood at 17.22% as of March 31, 2024 of Domestic Advances ('908182 crore). The initiatives taken in the hassle-free credit delivery of Retail Portfolio resulted in the growth of 11.68% over the previous year.

HOUSING LOAN

The Bank's Housing Loan Portfolio increased to '93,482 crore as at March 2024. The Bank has financed around 5.82 lakh home loans as at March 2024. During FY 2023-24, the Bank has disbursed housing loans worth '21,487 crore and sanctioned 75199 number of accounts amounting to '24,298 crore. Overall growth in housing loan portfolio is '9118 crores, growth of 10.81% compared to FY 2022-23.

Bank has focussed for maximising Project approvals and Builder tied-up for improving Direct sourcing of housing loan. Bank has also tied up with corporate DSAs to further strengthen housing loan sourcing.

VEHICLE LOAN

The Bank's vehicle loan portfolio increased to '17,251 crore as at March 2024. The Bank has financed around 3.45 lakh vehicles as at March 2024. During FY 2023-24, the Bank has disbursed Vehicle loans worth '7642 crore and sanctioned 86,492 number of accounts amounting to '7916 crores. Overall growth in vehicle loan portfolio is '2122 crore, growth of 14.03% compared to FY 2022-23.

The Bank has increased tie-up with Vehicle dealers and Vehicle manufacturers for increasing Vehicle Loan portfolio. The Bank has also Integrated Maruti Suzuki Smart Finance (MSSF) portal into our Lending Automation Processing System (LAPS) for offering Maruti Suzuki Four Wheeler finance to customers on Digital Platform.

EDUCATION LOAN

Over the years, the Bank has assisted substantial number of promising students to pursue higher education in India and abroad. The Bank's education loan portfolio increased to '15,726 crore as at March 2024. The Bank has financed around 3.66 lakh students as at March 2024. During FY 2023-24, the Bank has disbursed education loans worth '4412 crore and sanctioned 53638 number of accounts amounting to '6600 crore through online Vidya Lakshmi portal.

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 '50 Lakh with concessional rate of Interest. A total of 203 top premier institutions in India are covered under the scheme.

Our Bank has integrated Jan Samarth (National) portal with our loan origination system as a part of DFS initiative for sourcing the credit subsidy linked education loan applications under Central Sector Interest Subsidy Scheme (CSIS).

OTHER PERSONAL LOANS

The Bank's Other Personal Loan Portfolio increased to '29,954 crore as at March 2024. The Bank has financed around 6.75 lakh other personal loans as at March 2024. During FY 2023-24, the Bank has disbursed other personal loans worth '14189 crore and sanctioned 2.43 lakh number of accounts amounting to '14374 crores. Overall growth in this portfolio is '4142 crore, growth of 16.05% compared to FY 2022-23.

Bank has introduced two special personal loan schemes under Canara Budget i.e. Canara Budget Prime (Govt. Employees) and Canara Budget Delight (Private Sector Employees) which has supplemented the growth in Personal Loan segment. Bank has also permitted Special Packages for selected institutions to supplement our branches for sourcing Retail Loans.

PRIORITY SECTOR ADVANCES

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, micro credit, credit to weaker sections and specified minority communities.

Priority Sector Advances of the Bank as at March 2024 reached '4,23,563 Crore and achieved 46.08% to Adjusted Net Bank Credit (ANBC) against 40% mandated norm.

Agriculture priority advances of the Bank as at March 2024 reached '2,49,688 Crore and achieved 22.71% to Adjusted Net Bank Credit (ANBC) against 18% mandated norm.

^ With a focus on credit delivery to Agriculture, the Bank's advances under agriculture portfolio increased by 18.69% to '2,53,206 Crore on Y-O-Y basis, covering over 1.34 crore farmers.

^ During FY 2023-24, the Bank's Agriculture Credit Disbursal was '2,48,128 Crore.

^ Advances to Small & Marginal Farmers achieved 16.08% to ANBC as against the mandatory Target of 10.00% (Net of PSLC-SF / MF sale) as at March 2024.

^ During the year 2023-24 Bank has issued 21.72 Lakh Kisan Credit Cards (KCCs), amounting to '32,665 Crore.

^ The credit outstanding under KCCs reached '44,384 Crore as at March 2024.

^ Advances to Micro Enterprises stood at '73,785 Crore achieving 9.92% to ANBC as against the mandatory Target of 7.5%.

^ Bank has earned '1557.31 Crore fee-based income by way of selling PSLCs (under SF/MF) to the tune of '80700 Crore during FY 2023-24 till March 2024.

^ The Bank actively participated in various Government Sponsored Schemes, such as, Prime Minister's 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 2024, the outstanding advances under the following Government Schemes aggregated to '57,362 Crore, involving around 25.53 Lakh beneficiaries.

Performance under various Government Sponsored

Schemes:

^ Advances to DRI stood at '68 Crore, consisting of 0.79 Lakh beneficiaries, of which, advances by rural and semi-urban branches amounted to '51 Crore.

^ In support of the underprivileged sections of the society, the Bank's Advances to SCs/STs beneficiaries amounted to '22,028 Crore as at March 2024, covering 11.43 Lakh borrowers.

^ The advances to SCs / STs comprised 5.20% of total priority sector advances.

^ Advances to weaker sections reached '2,47,068 Crore, constituting 22.36% to ANBC against mandated norm of 12.00%.

Various components of advances to Weaker Sections

as at March 2024:

^ As at March 2024, advances to specified minority communities aggregated to '63,957 Crore, accounting for 15.11% of the actual priority sector advances against the stipulated 15% norm.

MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

Advances to MSMEs increased to '1,31,869 crores as at March 2024, with a y-o-y growth of 6.67%. Credit to MSE segments increased to '1,12,823 crores, with a 6.99% y-o-y growth. Advances to Micro Enterprises recorded a growth of 10.27%.

V PM SVANidhi - This scheme has been introduced during July 2020 for all street vendors engaged in vending in urban areas as on or before 24.03.2020 as per identification criteria stipulated in scheme guidelines of MoHUA. Small Industries Development Bank of India (SIDBI) is the implementation partner of the MoHUA. Under PM SVANidhi, the Bank sanctioned 617629 accounts amounting to '921 crores, since inception till 31.03.2024. Outstanding under the PM SVANidhi as on 31.03.2024 is '298 cr.

4 Under Pradhan Mantri Mudra Yojana (PMMY), the Bank has disbursed an amount of '21985 crore against the Disbursement target of '21300 crore during FY 2023-24. Sanctions and disbursals under different categories of Mudra Yojana are as under:

Major Highlights:

>    Under Stand-Up India scheme, Bank has sanctioned 18273 accounts under Women category of Stand-Up India scheme since inception till 31.03.2024 and has achieved 198% against the allotted target of 9208. Further, Bank Sanctioned 6768 accounts under SC / ST category against sanctioned target of 9208 since inception till 31.03.2024 i.e. 74% achievement under SC / ST category as on 31.03.2024 as against 64% achievement under SC / ST category as on 31.03.2023.

>    Bank including sponsored RRBs has achieved '35204 crore, (100.58%) against the mandatory Disbursement target of '35000 Crores under PMMY.

>    During FY 2023-24, under PMEGP the Bank sanctioned 15049 proposals amounting to '1722 crore, with Total Margin Money claimed stood at '538 crore, as against sanction of 14488 accounts, sanction amount of '1593 Crore and Margin Money claim of '356 Crore during FY 2022-23.

>    With respect to PSB Loans in 59 minutes, the Bank Sanctioned 37 accounts to the tune of '4.67 crore during FY 2023-24 as against sanction of 120 accounts and sanction amount of '20.98 Crore during FY 2022-23..

>    Under TReDS Platform, our Bank has discounted 33892 Bills amounting to '13031.31 Crore during FY 2023-24.

>    Bank has entered into co-lending Model II tie-up arrangement with M/s India Bulls Commercial Credit Limited, M/s Lendingkart Finance Limited and M/s Protium Finance Limited and has sanctioned loans to the tune of '724.38 Crore to MSMEs as on 31.03.2024. A digital co-lending platform is developed by M/s CredAvenue Pvt. Ltd., for on-boarding NBFCs under Co-Lending Model-II.

>    Bank has implemented 3 Government Sponsored MSME Schemes (PMMY, Stand-Up India and Weavers Mudra) under unified portal called National Portal (also known as Jansamarth Portal) - an initiative by DFS, Ministry of Finance.

>    Canara Bank has On-boarded on Account Aggregator network to facilitate exchange of information as Financial Information Provider (FIP) and Financial Information User (FIU) between the Bank/FIs.

DIGITAL BANKING &ALTERNATE DELIVERY CHANNELS

The Bank has 12,155 number of ATMs / Recyclers. The Average overall uptime of ATMs & Cash Recyclers during Q4 FY 2023-24 stood at 91.04%. The Bank's Debit Card base increased to 5.74 crore with y-o-y growth of 11.89% and Credit Card base reached to 8.64 lakh with y-o-y growth of 38.46% as on March 2024. The number of registered users under Mobile Banking reached 221.05 lakhs with y-o-y growth of 32.47% and that of Net Banking users increased to 266.47 lakhs as at March 2024, a y-o-y growth of 9.24%.

Total cumulative on-boarding under all Merchant channels has reached to 23.32 lakh and total cumulative Point of Sale (PoS) terminal deployment is at 78,248 as on March 2024. Unified Payments Interface (UPI) registration has reached 280.17 lakh as on March 2024 from 207.09 lakh as at March 2023, there by registering the Y-o-Y growth of 35.29%.

As part of our continued efforts towards enhancing our Digital Banking offerings, our Bank has launched Digital Currency in Mobile application by the name of "Canara Digital Rupee". Our Bank is the first Public Sector Bank (PSB) to launch Sound Box facility with Bharat Interface for Money (BHIM) OR merchants. Also, our Bank has become the first Public Sector Bank to tie-up with National Payments Corporation of India (NPCI) Bharat Bill Pay, to process cross- border inbound bill payments from Oman. Apart from this, 200 Application Programming Interface (APIs) have been made live in the new API gateway (APIGEE- API Gateway Enterprise Edition) and 41 clients are live. Bank has achieved Ministry of Electronics and Information Technology (MeitY) digital transaction target for FY 2023-24.

Major functionalities introduced in Debit & Credit Cards:

>    Enabling International Transactions features added to RuPay Credit and Debit Cards.

>    Introduction of premium variants under VISA Cards / Master Cards / RuPay Cards.

>    Credit Card Block Facility Through E-mail.

>    Centralised Issuance of Credit Cards (End-to-End) for pre-approved customers.

>    Launch of National Common Mobility Card (NCMC) Debit Card.

>    Bank had introduced Virtual Debit Card feature for existing customers in the ail Mobile Banking application.

Compliance of RBI guidelines for Cards during FY 2023-24:

>    Guest Check Out Tokenization facility implemented.

>    Enhancement of limits for e-Mandate on Recurring Card Transactions and Product Enhancement of SiHub (Standing Instruction Hub) Solution from '15,000/- to '1,00,000/- for certain MCC (Merchant Category Code).

Tie-up with Online Retailers for providing discounts to customers on using of Debit Card & Credit Card:

Bank had tied-up with BookMyShow, MakeMyTrip, GOIBIBO, ClearTrip, Flipkart, Zomato & Dunzo during FY 2023-24 for providing discounts to customers on use of Debit / Credit card for e-commerce transactions and in the process of more tie-ups in future. It helps to increase the customer delight & spends, enhance the per card spend, ensure activation of more number of cards with these offers and with higher spends, interchange earned will also increase.

Security measures taken for Card transaction security for avoiding online frauds:

As per RBI guidelines, for enhancing security of card transactions for Debit Card & Credit Card, enabling and disabling card for online and international transactions is enabled in all channels like Internet Banking (IB), Mobile Banking (MB), ATM and Branch channels. Enterprise Fraud Risk Management (EFRM) rules for mitigation of online frauds have been modified as per industry best practice.

Security features to arrest ATM frauds & Compliance of RBI guidelines:

>    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. (EMV: Europay, MasterCard and Visa)

>    Implementation of Transport Layer Security (TLS) to mitigate risk arising from Man in The Middle attack in ATM ecosystem is completed in ATMs & Cash Recyclers.

>    Local Area Network (LAN) / Power Cable connections are concealed and not accessible to public to avoid Cyber-attack on ATMs.

>    Cassette swap for Cash replenishment is under implementation in ATMs & Cash Recyclers.

>    All ATMs are migrated for centralized reconciliation.

>    Implemented Card-less Cash Withdrawal and One-time password (OTP) for cash withdrawal of above '10,000/-.

>    Bank is implementing Block Shaft to mitigate the possibility of a false plate being installed in the ATMs.

>    Bank has taken several measures to comply with the directives of RBI on Monitoring of Availability of Cash in ATMs and ensuring availability of cash at all times to avoid penalty

Major features added in Internet Banking in FY 2023-24:

>    Applying for locker facility has been enabled in the pre-login page of Internet Banking in addition to post-login.

>    Mutual Fund platform has been integrated in internet Banking to invest by Systematic Investment Plan (SIP) & Lumpsum modes.

>    Login challenge OTP over E-mail, SMS, Voice call has been implemented to increase security in Internet Banking Service.

>    Credit Score Monitoring facility in Internet Banking.

Major features added in Mobile Banking application

(CANARA ai1) in FY 2023-24:

>    FX4U Integration and FX4U Beneficiary Addition in Mobile Banking.

>    Non-Resident (External) (NRE) / Non-Resident (Ordinary) (NRO) account conversion Integration.

>    Free credit score through Mobile Banking.

>    Updating of account address using Digi-Locker.

>    Aadhaar enabled Mobile Banking activation.

>    Mutual Fund platform has been integrated in Mobile Banking to invest in SIP & Lumpsum modes.

>    ail app for Corporate customers.

>    Account Aggregator facility in Mobile Banking.

>    e-Gift Cards from wide range of service providers through Mobile Banking app.

>    Premium Payroll Accounts holders can avail Overdraft facility instantly without visiting the Branch.

>    Customers can now avail loan against their own eligible deposits using Canara ai1 Mobile Banking application.

>    Customers can open a Goal-based Recurring Deposit like creating a fund to purchase a House / Car and Children's education etc.

>    Adding new category of Super Senior citizen in Fixed Deposit section and new Term Deposit products to Super Senior citizens through mobile banking.

>    EMI conversion of Credit card transaction in Canara ai1 app.

>    Card layout Re-designing in Canara ai1.

>    Apply for Locker through Mobile Banking.

Major features added in UPI in FY 2023-24:

>    Credit Card on UPI on Mobile Banking super app "air’.

>    On-Boarding to UPI app through Aadhaar OTP.

>    Launch of UPI 123.

>    Interoperability of Unified Payments Interface's (UPI) Quick Response (OR) code with Central Bank Digital Currency (CBDC).

>    Implementation of Unified Dispute Issue Resolution (UDIR) system for resolving customer disputes / pending status transactions pertaining to RuPay Credit Card through UPI (Issuer).

>    UPI Lite functionality in Canara ail Mobile banking app at acquirer side.

>    Implementation of UPI registration to NRIs using their international number presently to select countries identified by NPCI.

>    UPI - Pay Now Cross-Border Remittance Transaction (FOR): Implementing Foreign outward remittance transaction to Singapore through UPI.

>    UPI Lite on BHIM.

Major features added in CBDC Application in FY 2023-24:

>    Crediting the staff monthly allowances to CBDC wallet.

>    CBDC Auto load functionality.

Major features added in Digital Lending Platform in

FY 2023-24:

>    Pre-approved loan upto maximum '10.00 lakh to existing salary account holders through Digital Lending on online platform.

>    Term Loan against online opened term deposit to eligible existing customers through Digital Lending on online platform.

Major features added in ATM in FY 2023-24:

>    Migration of electronic Journal pulling services in ATMs from FSS and AGS to EPS.

Major features added in Merchant on-boarding in

FY 2023-24:

>    Credit Card Bill payment through Bharat Bill Payment System (BBPS), Immediate Payment Service (IMPS) and UPI.

>    Integration with Mswipe, Payswiff and Paytm for EMI conversion of Credit Card transactions on their PoS Terminals.

>    BHIM OR self on-boarding via SMS link shared.

ONGOING PROJECTS:

>    Launch of New Variants of Debit and Credit Card in FY 2024-25 viz. “CANARA VISA SIGNATURE" - Credit Card, “CANARA RUPAY

PLATINUM WOMEN" - Debit Card, “CANARA RUPAY PLATINUM MILLENNIAL" - Debit Card and “CANARA RUPAY PLATINUM SENIOR CITIZEN"-Debit Card.

>    On-boarding of new vendors for Pre-paid (Domestic & International) and FASTag.

>    Introduction of new functionalities such as online channel for issuance of Pre-paid cards, Dual interface cards, integration of products with Core Banking System (CBS), Canara ail and net banking, etc.

>    Customer on-boarding on the following new functionalities in Canara ail will be focused:

a.    UPI Lite:

•    We are providing pop-up banner on the user login for enabling.

• To improve the usage, auto top-up functionality will be implemented for UPI Lite.

b.    RuPay Credit Card on UPI

•    We are providing pop-up banner on the user's first login every day for enabling.

> Enabling UPI payment option for lifestyle category in Canara ail Mobile app.

>    EMI facility for UPI transactions using RuPay Credit Card as an issuer.

> Facility of Blocking / Un-blocking of RuPay Credit Card on UPI.

>    Option to set UPI daily transaction limit in Canara ail Mobile app and SAS.

>    Implementing single block-multiple debit mandate for secondary market use under UPI.

>    Enabling My Bill option under UPI tab in Canara ail app for UPI auto pay enabled bill (BBPS).

>    Integration of Online Ticket Booking for Train through IRCTC services in Mobile Banking application.

>    Integration of M/s TAGIC and BAGIC Motor Insurance Renewal Option in Mobile Banking application. (BAGIC: Bajaj Allianz General Insurance Company Limited, TAGIC: TATA AIG General Insurance Co. Ltd.)

> Integration of Open Network for Digital Commerce (ONDC) in Mobile Banking.

>    Target Based Financial Planning Options to set Goal / targets - PFMS.

> IMPS UDIR. (Unified Dispute and Issue Resolution)

>    Implementation of Selection of Language option for Mobile Banking Registration.

>    Online conversion of NRE / NRO account to Resident Indian account and vice-versa.

>    Instant Overdraft (OD) facility to Jeevan Dhara Account holders.

>    PKI (Public Key Infrastructure) facility for large value transactions.

>    Activation and Deactivation of Aadhaar Enabled Payment System (AEPS) services.

>    Buyer and Seller App through ONDC.

>    Display and download of Packing Credit in Rupee (PCRS) / Pre-Shipment Credit in Foreign Currency (PCFC) pass sheet in IB.

>    Internet Banking facility for Minor Accounts.

>    Functionality to Close and Renew the OD opened through Digital Lending Platform (DLP) platform.

>    Integration of Online Dispute Redressal portal in IB for raising dispute for failed transactions.

>    Integration of Merchant OR code functionality in IB and corporate App.

>    Automation of Working Capital (WC) Limit Renewal upto '10 lakh.

>    Providing pre-approved loan in DLP for business purpose.

>    Terminal certification is in progress for Diebold DN200 and Hitachi all three variants of ATMs.

>    Procurement of 3000 passbook updation Kiosk Machines.

TECHNOLOGICAL UPGRADATIONS:

>    SHG Dual Authentication enabled at BC Terminals: Our Bank became one of the top two banks to enable SHG Dual Authentication at BC terminals, enabling the SHG customers to initiate Cash deposit, Cash withdrawal and Fund transfer transactions.

>    Package for Mahila Samman Saving certificate

has been developed to facilitate Female Customers to open Mahila Samman Saving Account at all Canara Bank Branches and through Net Banking. Our Bank is the first Public Sector Bank to enable Mahila Samman Saving Certificate online through Net Banking.

>    Enabled Tax payments through various channels

like Internet Banking, Over the counter, Card Payments and UPI for different state treasuries like Bihar, Odisha, Chhattisgarh, Madhya Pradesh and Rajasthan.

>    Customer option for Rate regime has been introduced through which borrowers can switch over to a fixed rate from floating rate or vice versa during the tenor of the loan.

>    Gujarat International Financial Tec City (GIFT City) Branch at Ahmedabad, Gujarat has been inaugurated to facilitate customers with Forex Transactions, Money Market Deals and Security Investments other than various corporate services.

>    e-BRC Revamp Solution: This solution has been introduced to help facilitating exporter to generate e-BRC on Suo-moto basis going forward from DGFT Website.

>    Implementation of collection of SMS charges on actual basis, charges will be debited based on actual number of SMSs delivered.

>    Enabling of Floating Rate for Deposit Product

to facilitate Customers to opt for Floating Rate Interest in Term Deposit, for passing on the benefit of increasing Deposit rates.

> Functionality enabled to disburse the proceedings of Vehicle Loan directly to Vehicle Loan Dealers

through NEFT / RTGS to make disbursement more seamless and faster.

>    Introduction of Capturing of Disposable Instructions through ai1 app for Inward Forex Remittances for facilitating customers to add instructions for further processing of the received foreign payments as per their requirement through ai1 app.

>    Aadhaar Enabled Payment system at BC Channels has been fine-tuned and overall Technical Declines maintained well below 1%.

>    Sponsor E-mandate Facility: This has been introduced to facilitate Borrowers to lodge the mandate for loan payments and can be validated by using Aadhaar details through our Bank's Corporate Website.

>    Bulk Multiple Payment Functionality for TIN Portal: has been introduced to facilitate Corporate customers to do Tax payments in bulk directly through Canara Bank Tax Portal on behalf of their clients.

>    AEPS OFF US Cash Deposit has been enabled

which facilitates Customers to perform inter-bank cash deposit transactions through BC Terminals.

>    Integration of Our Bank payment system with TANGEDCO of Tamil Nadu for electricity bill payments for facilitating our customers as well as other bank customers to do bill payments using a 16-digit virtual account by NEFT / RTGS.

>    Payment processing of Ayushman Bharat Jan Arogya Yojna through SFTP has been enabled to provide an automated solution using secured mechanism for processing payments to National Health Agency.

>    Integration with National Marine Portal to

facilitate all the customers involved in the Marine Transport and logistics chain including trading partners and end-users to do Direct Bank Transfers, payment of bills and to top-up their port deposit account through Canara Bank Net Banking Option.

>    Aadhaar Based Payment for Central Sponsored Schemes and Central Sector Scheme has

been enabled through CSS portal to facilitate Central or State Government Bodies to disburse payments of different schemes directly to the beneficiaries' accounts linked with their Aadhaar number.

FINANCIAL INCLUSION

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.

>    Bank has made significant efforts to empower underserved communities through the implementation of the Pradhan Mantri Jan Dhan Yojana (PMJDY). We have opened 1.95 crore of PMJDY accounts. Additionally, we have been enrolled in schemes like PMJJBY (69.22 Lakh), PMSBY (220.61 lakh), and APY (30.31 lakh), further enhancing their financial security. Canara Bank's initiatives demonstrate their strong commitment to underserved communities, financial inclusion and socioeconomic empowerment.

>    Bank has opened 1.95 crore accounts under PMJDY, having total outstanding balance of '11655 Crore in those accounts with average balance of '5965 per account.

>    Bank has 13167 Business Correspondent locations out of which 5428 are SSA and 7739 are Non-SSA locations. (SSA: Sub-Service Area)

>    Bank formed 'Canara Financial Advisory Trust' managed by Managing Trustee and Deputy Managing Trustee 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 total 152 FLCs (115 FLCs sponsored by Canara Bank and 37 FLCs sponsored by RRBs) in districts & blocks level across the country, managed by the Counsellors and Asst. Counsellors. Counsellors should have sound knowledge of banking, law, finance, requisite communication and team building skills, etc. Individuals such as retired Bank officers, with domain knowledge in agriculture, ex-servicemen, etc. may be engaged as credit counsellors. The broad objective of the FLCs will be to provide free financial literacy/ education and credit counselling. During FY 2023-24, 23,817 FLC camps were conducted wherein 20,41,190 persons were educated and 1,15,651 persons were counselled.

>    As per RBI directions, 243 CFLs are running across 8 States and one Union Territory with funding from DEAF of RBI and FIF of NABARD collaboration with NGOs. Funding Agency is providing 90% of OPEX and 100% of CAPEX to NGOs for running CFLs smoothly to spread Financial education to financial excluded persons in remote areas.

>    During the year 2023-24, the bank settled 5078 death claims under the PMJJBY, totalling '101.56 crore, and 1,503 cases under PMSBY, amounting to '29.76 crore. Since its inception, the bank has settled 37,079 death claims under the PMJJBY scheme, totaling '741.58 crore, and 8,753 cases under PMSBY, amounting to '173.69 crore

Scheme Enrolments including Renewals as at

March 2024

Under Sukanya Samriddhi Yojana, the outstanding number of accounts as on 31st March 2024 is 248494 accounts. Number of fresh enrolments under Sukanya Samriddhi Yojana during FY 2023-24 is 64560.

AADHAAR ENROLMENTS UPDATION CENTRES:

The Bank is a Registrar and Enrolment Agency for Aadhaar Enrolment. As per UIDAI guidelines, Bank has established 796 ASKs, comprising of 500 centres for the Bank and 296 centres for the 4 sponsored RRBs (KAGB 116, KGB 62, KVGB 63 & APGB 55).

EMPOWERING WOMEN:

Women Empowerment Section at Head Office and Centre for Entrepreneurship Development for Women (CEDW) at 24 Circle Offices and 176 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 386 Programmes were organized by the CEDWs during FY 2023-24.

Lead Bank Responsibility:

As on 31.03.2024, our Bank has been assigned with:

>    State Level Bankers Committee (SLBC) convenorship in two states i.e. Karnataka & Kerala and Union Territory Level Banker's Committee (UTLBC) convenorship in Lakshadweep.

>    Lead Bank Responsibility in 61 Districts across 8 States and 2 Union Territories viz. Andhra Pradesh (6), Bihar (1), Delhi (3), Haryana (3), Lakshadweep (1), Karnataka (15), Kerala (7), Tamil Nadu (7), Telangana (4) & Uttar Pradesh (14).

4. Other Measures for Welfare / Upliftment of SC /

ST /OBC

(i)    Reservation Cell has been setup at Head Office in accordance with the Govt. guidelines to monitor the welfare of SC / ST / OBC employees.

(ii)    Bank has appointed a Chief General Manager as Chief Liaison Officer for SC/STs and also a General Manager as Chief Liaison Officer for OBCs in compliance with the Govt. guidelines. Bank has also nominated Liaison Officers at all its Circle Offices of the Bank to look after the grievances and welfare of SC / ST / OBCs.

(iii)    Reservation Cell at Head Office is conducting the mandatory quarterly and half yearly meetings with the representatives of the majority SC / ST Welfare Association and OBC Welfare Association respectively with the Chief Executive of the Bank. Quarterly meetings with the majority SC / ST association are also conducted at Circles Offices of the Bank and grievances, if any, are redressed by the Liaison Officers at Circles.

(iv)    An Internal Grievance Redressal Committee for SC / STs consisting of Senior Officials of the Bank including CLO has been formed at Head Office for redressal of employment / service grievances of SC / ST employees based on the recommendations of NCSC and NCST.

(v)    Bank is providing pre-promotion and prerecruitment trainings to SC / ST / OBCs in tune with the Govt. guidelines.

INTERNATIONAL OPERATIONS AND BUSINESS

The Bank has 4 overseas branches, viz., London (UK), New York (USA), Dubai International Financial Center - DIFC (UAE) and IBU GIFT CITY Gandhinagar, Gujarat. Besides the above 4 branches, the Bank has a Representative Office at Sharjah (UAE) and a wholly owned subsidiary; Canara Bank (Tanzania) Limited at Dar Es Salam (Tanzania).

Total Business of the overseas branches aggregates to '149,835 Crore comprising of deposits to the tune of '97,415 Crore and advances to the tune of '52,420 Crore as at March 2024. Overseas business constituted 6.59% of the Bank's global business.

During the year, Bank has opened an International Banking Unit at GIFT CITY, Gandhinagar, Gujarat which is operational from 05.09.2023. Bank has also progressed towards divestment / winding up of Canara Bank (Tanzania) Limited, a wholly owned subsidiary in Tanzania which is expected to be completed by the end of this year.

ASSET QUALITY

Gross NPA of the Bank stood at '40605 crore, accounting for 4.23% of Gross Advances and Net NPA stood at '11823 crore, accounting for 1.27% of Net Advances as at March 2024. The cumulative Cash Recovery including Recovery in written-off accounts stood at '10038 crore and upgradation at '1035 crore during FY 2023-24. Provision Coverage Ratio (PCR) stood at 89.10% as at March 2024. Bank has recovered '6718 crore under recovery in written-off accounts during FY 2023-24. Slippage during the year has been contained to '10457 crore.

During FY 2023-24, 2044 properties were sold amounting '1665 crore and 2822 accounts were settled / closed/ upgraded amounting to '1013 crore on account of initiating actions under the SARFAESI Act. The Bank conducted 7541 Recovery Meets during FY 2023-24 that has resulted in settlement of 360872 accounts covering book liability of '6390 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 office level and Mega Adalats at Circle office 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 2024, there were 1757 wilful defaulters with an outstanding amount of '16321 Crore.

As on 31.03.2024, 374 cases have been referred to NCLT under IBC for resolution, where our Bank is having exposure (book liability) of around '37683 crores. Out of the aforesaid cases, our Bank has initiated the resolution process by filing NCLT application in 87 cases involving book liability of '6833 crore. Out of total 374 NCLT referred cases, in 326 cases admitted by NCLT, our Bank's aggregate admitted claim amount is '50853 crore. In these cases referred to NCLT under IBC, our Bank is expecting substantial recovery during FY 2024-25 through resolution / liquidation. During FY 2023-24, Bank recovered '1476 Crore through cases referred to NCLT. Apart from the above, Bank has also formulated various special OTS Schemes for settlement of small value Agriculture / Education / Tractor and other Farm mechanization loan accounts.

As on March 2024, the outstanding Stressed Assets Portfolio (including restructured Standard Accounts) stood at '65194 Crore, accounting for 6.79% of Gross Advances.

RISK MANAGEMENT

Bank's Risk Management ensures identification, measurement, monitoring and mitigation of all pertinent risks and aligns its function for comprehensive solutions. It acts as decision-enabler for effective resource allocation based on the risk impact ranking and risk appetite. Strategic decisions are taken after careful consideration of risks and opportunities.

The guiding principles to manage risk in the Bank is compliance of regulatory and legal requirements and achieving balance between risk and return, while ensuring independence of risk and business functions.

Risk Management Policies are approved by the Board, duly encompassing business strategies, capital strength, risk appetite, laws & regulation in order to function efficiently and effectively in analyzing all pertinent and emerging risks.

Board of Directors is thehighest governing body and isduly assisted by the Risk Management Committee ofthe Board (RMCB) and various executive level risk management committees viz., Enterprise Risk Management Committee (ERMC), Credit Risk Management Committee (CRMC), Market Risk Management Committee (MRMC), Operational Risk Management Committee (ORMC), Asset Liability Management Committee (ALCO), Group Risk Management Committee (GRMC) etc. To meet the goal of making risk governance and culture more pervasive all across the Bank, local risk management committees are also formed at administrative units throughout the country with active involvement of field functionaries.

In order to institutionalize effective risk culture and governance functions, the Bank has also set-up Assurance Committee which comprises of Risk, Compliance & Inspection - bolstering collaboration across different lines of defense.

While the Bank follows standardized approach to measure its risks, it is actively pursuing in moving towards advanced approach to identify and measure all its material risks (credit, market and operational risk) under Pillar I of Basel III framework.

Bank has put in place Credit Policy and Credit Risk Management Policy which articulates Bank's approach to identify, measure, monitor & control / mitigate and actively manage Credit risk. Bank also has in place a robust system for internal rating (internally developed models) of the borrowers, appraisal of loan / credit proposals, credit approval process and credit monitoring. The entire process of the Loan review and monitoring is duly administered by the Credit Administration & Monitoring Wing. Apart from this Bank's risk based pricing framework ensure adequate pricing of credit risk.

Market risk is managed through a well-defined Board approved Market Risk Management Policy and Integrated Treasury Policy that captures risk through limits / triggers. Mid Office of Risk Management Wing monitors the limits on a daily basis. A reporting framework has been put in place for effective and timely monitoring of market risk limits and triggers.

Operational Risk Management framework in the Bank is based on ethics, organization culture and strong operating procedures, involving corporate values, internal control culture, effective internal reporting and

contingency planning. The Bank has adopted policy for management of Operational Risk, which covers aspects, such as Operational Risk Management framework, Outsourcing Activities and Business Continuity Plan, Key Risk Indicators (KRI), Risk Control & SelfAssessment (RCSA) workshops to measure and manage Operational Risks.

The ALM strategy of the Bank strives to maintain adequate liquidity in the system while maintaining NIM at optimum level with given balance-sheet profile of the Bank. In the long run, the Bank aims to maximize shareholders' wealth by improving Return on Asset (RoA) and Return on Equity (RoE).

Bank deploys all standard tools viz., Structural Liquidity Statement (SLS), liquidity ratios, Basel defined stress liquidity ratios viz., Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) to measure and manage liquidity risk.

Interest Rate Sensitivity (IRS) Statements are used to measure repricing gaps of assets and liabilities and its consequent impact on Bank's earning (i.e., Earning at Risk) under different rate cycle movement. A long-term impact of change in market interest rate on shareholder's net-worth is measured through change in economic value of equity (AEVE) approach.

Different stress test scenarios are further used to evaluate the resilience of the Bank under severe liquidity run-off and adverse interest rate movement.

Based on the probable adverse movement of market variables - the Bank develops Contingency Funding Plan (CFP) with inbuilt trigger points and defined actionable across different business and admin units.

Based on the various reports on liquidity and interest rate and macroeconomic variables - the Asset Liability Management Committee (ALCO) of the Bank decides on the incremental asset & liability mix for the Bank along with required changes needed in rate of interest on various interest bearing assets & liabilities of the Bank's balance-sheet.

The Bank has put in place a Board approved Policy on Group Risk Management to assess, identify and monitor risks at consolidated group level. The Group Chief Risk Officer (GCRO) of the Bank is supervising the risk management activities of the Group Entities.

Bank also analyses other imminent risks like concentration, reputational, strategic, compliance, cyber security, country risk and other residual risks both qualitatively and / or quantitatively as part of its Internal Capital Adequacy Assessment Process (ICAAP) under Pillar II of Basel III framework.

Environmental, Social and Governance (ESG) is one of the emerging concern areas for Banks. Envisaging the importance, Bank has initiated ESG related compliance & has formed a ESG Committee (GM / CGM level) & ESG Working Group (AGM / DGM level) for overall implementation of ESG practices and Board Level Sub Committee is overseeing the same. Bank has in place the Board approved ESG Policy - the Sustainability Framework and ESG Statement which is a synopsis of the Bank's commitment, initiatives & actions, built around its Founding Principles, in alignment with the United Nation's Sustainable Development Goals (SDGs).

Bank follows responsible and transparent approach while disclosing all relevant risks and mitigation plan to its stakeholders for meaningful insight into the functioning of the Bank.

Fully appreciable of the facts that the advance risk management practices are all about seamless data flow and its integrity, leveraged by technology for effective and timely management action - the Bank has embarked upon automation of its risk management system and processes.

COMPLIANCE TO INTERNATIONAL STANDARDS

Bank is certified with ISO 27001:2013 for Data Centre, Near Data Centre, Disaster Recovery Site, Information Technology Wing and Technology Operations Wing.

Bank has undergone upgradation of ISO 27001:2013 certification to ISO 27001:2022 certification. Audit has been completed and Bank is certified with ISO 27001:2022. The certification is valid till 11/04/2026.

It is certified that the Information Security management system of the organization has been assessed and found to be in accordance with the requirements of the ISO 27001:2022 standard.

INTEGRATED TREASURY

Aggregate investments Domestic (net) of the Bank stood at '3,54,656.28 crore as at March 2024. Modified duration of the investment portfolio and Available for Sale (AFS) portfolio stood at 4.64 and 3.53 as at March 2024 respectively. The yield on investments stood at 6.91% as at 31st March 2024. The trading profit under domestic treasury operations during financial year is '1,121.04 crore on account of active churning of the investment portfolio.

The Bank continues to be an active player in Government securities market as a Primary Dealer. The total amount of bids submitted for underwriting was '2,89,495 crore out of which the underwriting commitment accepted by RBI was '1,42,803 crore. With regard to treasury bills under PD business as against minimum success ratio of 40% to be achieved in each half year, the Bank has achieved 41.72% during the first half and 51.85% for second half of Financial Year 2023-24.

On 12^th Sept 2023, RBI has issued new Master Direction-Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2023 which is applicable from 1st April 2024. As on 31st March 2024 we have updated our systems and policies to comply the new directions w.e.f 1^st April 2024.

Foreign Business Turnover of the Bank aggregated to '1,86,479 crore, comprising of '77,787 crore under exports, '42,489 crore under imports and '66,203 crore under remittances during the year ended March 2024.

OTHER SERVICES

Merchant Banking

During the Financial year 2023-24 Merchant Banking Division of the Bank:

> Handled 284 Equity Issues and 48 Debt Issues and Bank got float fund benefit for 4-5 days through ASBA. The Bank collected commission of '49,43,784 in respect of ASBA and Syndicate ASBA forms.

>    Under 54EC Capital Gain Bonds, Bank is getting 0.20% (up to Brokerage Annual collection of '125 Crore) and 0.22% (above Brokerage Annual collection of '125 Crore) of the amount mobilized (plus applicable GST) from February 2023 and floating fund for one day.

>    Rural Electrification Corporation Ltd (REC), Indian Railway Finance Corporation Ltd (IRFC) and Power Finance Corporation(PFC) have entrusted the Bank to continue to act as "Arrangers and Collecting Bankers" for the Private Placement Capital Gain Bond Issues.

>    During the year, funds mobilized / Collected by our Bank are '926.89 Crore as collecting banker and '331.81 Crore as arranger. We have received an Arranger fee of '93.24 Lakh.

>    During the year, Section has prepared 1 valuation report of the companies and earned commission '3.25 Lakh.

>    We also initiated the work as arranger for AT1 Bonds, Tier II Bonds and NCDs. During the year we have earned '35.29 Lakh on account of arranger fees.

BANCASSURANCE AND MUTUAL FUNDS

The Bank has tied-up arrangements with life and non-life insurance segments under its 'Bancassurance' arm. During the year FY 2023-24, Bank earned a commission income of '310.01 crore from its joint venture, M/s Canara HSBC Life Insurance Company Ltd. A commission income of '92.06 crore was earned under Non-Life (General Insurance & Health Insurance) business from its tie-up arrangements with all the three GI Partners namely - The New India Assurance Co. Ltd., M/s Bajaj Allianz General Insurance Co. Ltd. and M/s TATA AIG General Insurance Co. Ltd. Under the Mutual Fund business, the Bank earned a commission of '41.93 crore from its joint venture, M/s Canara Robeco Asset Management Company Ltd. Bank has also earned renewal / trail commission of '1.98 crore from E-Syndicate Insurance and Mutual Fund partners.

GOVERNMENT BUSINESS

The Bank undertakes Government Business, comprising Direct and Indirect Tax collections, liasioning with various Government Departments (State / Central) for providing banking solutions as per their requirements, handling State Treasury Transactions, payment of Central Government and State Government Pensions, collection of contributions of Employees' Provident Fund Organisation (EPFO), Public Provident Fund Scheme (PPF), Senior Citizens' Savings Scheme (SCSS), Sukanya Samriddhi Yojana scheme (SSY), National Pension Scheme (NPS), Kisan Vikas Patra Scheme (KVP), Mahila Samman Savings Certificate (MSSC), Floating Rate Savings Bonds (RBI Bonds) and issuing Sovereign Gold Bonds (SGB).

Our Bank has been authorized as the accredited banker for Ministry of Education, Ministry of Culture, Ministry of Youth Affairs & Sports, Ministry of Road Transport & Highways, Ministry of Shipping, Lakshadweep Administration and Kavaratti Administration. Futher more, our Bank is the Nodal Bank for administering the Education Loan interest subsidy schemes by Government of India.

During FY 2023-24, our Bank has mobilized 180 Central Nodal Account (CNA) accounts under Central Sector Scheme with an outstanding balance of '1497.11 crore and the total accounts under Single Nodal Account (SNA) was 317 with an outstanding balance of '13,049.80 crore as on 31st March 2024. Total outstanding balance under both CNA & SNA as on 31st March 2024 was '14,546.91 crore. Bank has also earned commission of '3.96 crore through 30,12,891 number of challans under TIN 2.0 (Tax Information Network 2.0).

GLOBAL TRADE PROCESSING CENTRE (GTPC)

The Bank has centralized its forex transactions as well as inland trade transactions under the Global Trade Processing Centre (GTPC), with an aim to ensure Ease of Doing Business and to improve efficiency in processing of domestic (trade) and forex transactions.

The Bank undertakes ‘foreign inward and outward remittances', ‘foreign cheque collection and foreign currency', 'imports & export transactions', trade credit, foreign bank guarantees, ‘Inland (Domestic) LC and Bank Guarantee including electronic Bank Guarantee

(e-BG)' and bill discounting activities under Global Trade Processing Centre (GTPC).

ORGANISATION AND SUPPORT SERVICES

Branch Network - Expanding Pan-India Presence

In a bid to expand the reach, the Bank added 211 domestic branches during the year. As at March 2024, the Bank had 9604 domestic branches, including Specialized Branches.

Note: Domestic branches merged during the year: 313

The total Specialized Branches of the Bank stood at 620 as at March 2024.

HUMAN RESOURCES

PERSONNEL PROFILE

As at March 2024, the Bank had 82638 employees on its roll. The cadre-wise break-up of manpower for the last 3 years are as under:

Total staff strength of the Bank comprised of 64% Officers, 24% Clerks and 12% Sub Staff / PTE. The Women staff strength of the Bank was 26238 constituting 32% of the employees. The total number of ex-servicemen staff as at March 2024 stood at 5139. There were 2,465 Differently-abled persons (DAPs) on the rolls of the Bank.

RESERVATION POLICY

The Bank has been adhering to the Reservation Policy in respect of Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), Economically Weaker Sections (EWS) and Persons with Benchmark Disabilities (PwBD), as per the Government of India guidelines.

The representation of SCs / STs / OBCs / EWS / PwBD employees as on 31st March 2024 is as under:

Our Bank has nominated Executives in the rank of GM/ CGM as Chief Liaison Officers for SCs / STs / PwBDs / Ex-servicemen and for OBCs/EWS respectively who ensure compliance of various Government guidelines pertaining to implementation of Reservation Policy in the Bank. Our Bank has also set up a Reservation Cell under the direct control of Chief Liaison Officers for monitoring Reservation and other matters related to SC / ST / OBC/ EWS / PwBDs / Ex-Servicemen employees.

RECRUITMENT

During the FY 2023-24, the Bank recruited 800 persons in various cadres. Out of which, 313 were women employees. The category wise representation is as under:

HR INITIATIVES

>    Project Aarohan - HR Transformation Project was initiated for reimagining and redesigning HR functions to align with Bank's strategic goals and objectives.

> Conducted Employee Engagement & Wellness survey for all employees.

> Developed manpower assessment tool, which assesses branch transaction volume on 47 parameters and is used to suggest required manpower for the branch.

>    Canara Samwaad is a new initiative, wherein our Executive Director shall interact with all the field team through VC, once in a month.

>    Psychometric Assessment with 360° Evaluation was introduced in Promotion process for all executives above Scale V.

>    Digitalized the process to obtain NOC for Visa/ Passport through HRMS package and made it live w.e.f 08.01.2024.

>    Introduction of Child Care Allowance - In terms of the facility, Female Employees & Single Male Employees (Parent) who are not availing creche facility shall be eligible for claiming Child Care allowance for maximum of 2 dependent children upto the age of 2 years. A consolidated amount of '2000/- (Rupees Two Thousand only) per month per child upto the age of 2 years shall be paid as Child Care Allowance.

>    Conducted Leadership Development Programme for Senior Management (CGMs, GMs, DGMs, RO Heads)

>    Scheme for rewarding employee for canvassing/ referring new business in thrust areas i.e. CASA & RAM.

>    Work Anniversary - Wishing / Congratulating Employees on their Work Anniversary.

>    Empanelment of Counsellors - To maintain healthy work-life balance and to find ways to deal with stress Bank has introduced scheme of empanelment of counsellors.

>    Monthly sessions on Work-Life balance for employees.

>    Canara Resume - Monthly Webinar Session for Employees joining post Maternity / Sabbatical Leave.

>    Introduced Mentoring concept for Women employees & weak performers.

>    Canara HRMS App was introduced with 75+ HRMS features. Additionally, Internet Access for HRMS was enabled for employees.

>    Introduction of online family Pension application submission / processing through HRMS package.

>    Issuance of Digital PPOs for Family Pensioners through e-mail.

>    SPF & Gratuity nomination can be applied through Canarites Mobile App.

>    Bio Data clearance for staff loans made through HRMS.

>    NOC for Staff Members for standing as Co-obligant/ Guarantor made through HRMS.

>    SPARK - High impact Sales Leadership Training Programme.

>    Know Your Circular (KYC) Quiz: KYC Quiz started for the employees for voluntary participation last year and has been made mandatory for the employees to get four marks in APAS this year.

>    Additional Conveyance allowance to Customer Relationship Officials.

>    Relief loan to Staff members affected due to cyclonic storm “MICHAUNG” and floods caused due to extreme rainfall in ten districts in the state of Tamil Nadu..

>    Introduced Pre-promotion training to Scale IV executives.

>    Circular Synopsis: The details of circulars issued in a day are being shared with the employees through e-mail on the subsequent day.

>    Collaborations: CIBM Manipal has also taken the Membership of Indian Society for Training & Development. Collaboration with SBI Foundation for the training of PwD (Visually Impaired and Speech and Hearing Impaired) employees has also been entered into.

SKILL DEVELOPMENT & TALENT MANAGEMENT

Human Resources are the most valued assets and success lies in developing, retaining and transforming them to act as strategic business partners. Treating people as resources, rewarding them equitably and integrating their goals with that of the organization through suitable HR policies are the present mantras to "Organizational Excellence". Also, with a fast changing banking landscape, skills and qualifications acquired need continued upgradation and there is need for employee training support at periodical intervals to keep them abreast of the latest developments. Accordingly, the HR functions of the Bank are getting tuned in this direction and are moving ahead to do this new transformational role.

Bank has adopted the new 52/26-week induction training module as recommended by the CVC for the newly recruited POs & SWOs respectively. In addition to this, mentoring concept is in place for the benefit of the newly recruited POs to help them to get acclimatized with Bank's culture, tradition and ethos.

Bank is conducting Advaita, a future ready Women Leadership Program - to enhance and empower women employees to take future leadership responsibilities and ensure gender equality and also Women Mentoring has been introduced to equalise leadership in the workplace for Women Employees.

Bank is imparting training in various functional areas to build and upgrade competencies. Through one Apex Centre of Excellence at CIBM Manipal and two Centres of Excellence at Bengaluru and Gurugram, supported by 25 Canara Learning & Development Centres established across the country, functional trainings are imparted to staff members in various cadres by drawing training calendars in consultation with Circle offices.

In order to acclimatize them with their new roles and responsibilities, Executive Development Programs (EDPs) are provided to Executives upon their promotion at institutes of repute like ASCI Hyderabad, MDI Gurugram. During FY 2023-24 around 524 executives have attended EDP & Customised Leadership Development Program was conducted for 360 Executives (CGMs, GMs, DGMs & RO Heads).91 Executives have undergone Mid-career Training programme. 28 Executives have undergone the RBI mandated Certificate program in IT & Cyber Security at IDRBT.

Bank is grooming its top leadership through the Financial Services Institution Bureau (FSIB) Flagship Leadership Development program. In addition to this, around 38 officials were given Foreign Training Programmes/ Workshops during FY 2023-24.

Conducted Competency Assessment and creating Individual Development Plans for all Executives in Scale 5 and above followed by one-on-one behavioral coaching with the institutes of repute.

Bank is providing focused training programme for the Business Outlet Heads so as to equip them well to focus on future challenges. (First Time CO / RO / MCB/LCB/RAH/ ACC/Branch Head). Further, Bank is constantly striving to build effective Management and Leadership traits among its Officers. In this regard, Bank is conducting Officers' Development Program (ODP) and Managerial Development Program (MDP) for promotee Officers and Managers respectively.

During the current FY, following training programmes were conducted covering effective management and Leadership Development Programmes:

Bank has a e-Learning portal - "CanDLE" (Canara Digital Learning Experience) facilitating effective and continuous online learning for our employees for enhancing their knowledge and skills.

Bank has designed Regional Language Acclimatization Program to bridge the communication gap between the regional customers and the frontline staff of the bank,

making the customer relationship more effective and smoother. In this direction, introduced language learning modules for all the 11 Regional Languages in bank's eLearning Package.

CUSTOMER ORIENTATION

Bank has taken several initiatives to remain customer focused through provision of fast service, offering diversified products & services, responding to customers' queries in shortest possible time and redressal of customer complaints within the timelines stipulated.

S As per the instructions of IBA and RBI, Bank has adopted Customer Rights Policy in July 2015, which spells out the Rights of the Customers and also responsibilities of the Banker.

S To assess the quality of customer service rendered by the Branches and to get feedback an online "Annual Customer Satisfaction Survey" was conducted from 01.01.2024 to 31.03.2024 with 12 pre-definedquestionnaires. A total of 70,690 customer responses were collected. The responses under each parameter were rated on a scale of 1-5, 1 is very dissatisfied, 5 is Very Satisfied.

S Bank's overall services was rated as 3.46 out of 5.

S Quality of customer service at Branch was rated as 3.66 out of 5.

S Efficiency and ease of using our digital products was rated as 3.78 out of 5.

S Bank has implemented suggestions and customer feedback on customer service under Online Grievances Registration and Status Tracking System in Bank's Corporate website.

S Customers can provide their rating in Net Banking & mobile Banking.

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

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 Bank introduced a New Toll free number for its customers - 1800 1030. The existing Toll-free Number 1800 425 0018 will be kept functional as a back-up for ensuring Business Continuity.

S Non toll free number for customers calling from abroad is +91 80 2206 4232 & 080 6821 2121.

S Dedicated land line towards Mis-selling of Credit Cards is 080 2206 4222.

S Call Centres are functioning 24X7 & catering to customers in 17 regional languages, viz., Assamese, Bengali, Gujarati, Kannada, Malayalam, Marathi, Odiya, Punjabi, Tamil, Telugu, Khasi, Konkani, Kashmiri, Urdu and Tulu, besides Hindi and English for redressal of grievances.

S Call Centres are providing 37 services in IVR through Bank's Toll-free number 1800 1030.

S Bank introduced WhatsApp Banking Channel through the mobile number 9076030001 and providing 29+ services in Hindi & English languages.

S Bank introduced Web Chatbot Banking Channel through Bank's Corporate Website and is providing 6 services in Hindi & English.

S Bank has revamped the Online Grievances Registration and Status Tracking System for customers to lodge their grievances in Bank's website www.canarabank.com under Canara Public Grievance Redressal System (CPGRS) Portal. The complaints received at the Call Centres of the Bank are also integrated with CPGRS package.

S The complaints received at helpdesk e-mail of the Bank are also integrated with CPGRS package.

S WhatsApp Banking user manual is also provided under Online Grievances Registration and Status Tracking System.

S The pre-defined Turnaround Time (TAT) for resolution of complaint at Branch Level is 6 days and on 7th day, the grievances are auto escalated to next higher authority.

S On redressal of grievance, an SMS with web link is pushed to the customer to submit his/her feedback regarding resolution.

S Bank has introduced 'VCIP - Video Based Customer Identification Process' for submission of Life Certificate by pensioners.

S Online re-KYC submission is made available to the customers ( If there is no change in KYC, Customer can give rekyc by i) Customer's E-mail ID / Mobile number registered with the Bank ii) ATM iii) Digital channels (such as Online Banking / Internet Banking, Mobile Banking) iv) Letter)

S Facility of filing Form 15G/15H through Net banking is enabled for the convenience of customers. Customers can also file Form 15G/15H through Bank's corporate Website.

S 7 Central Processing Centers are established at Bhubaneswar, Ernakulam, Manipal, Patna, Ranchi, Vijayawada & Vishakapatnam for CASA (Current Account & Savings Bank Account) account opening purposes.

S Our Bank is a partner in the PSB Alliance which has floated Door Step Banking Services (DSB).

S Our Bank has extended Doorstep Banking Services from 100 Centres to 1000 Centers covering our 3365 branches for the benefit of all the individual customers, including Senior Citizens & Differently abled persons. Customers can book many of the banking services by downloading the DSB Mobile App, or through DSB Website or Vendor's Call Centres.

S Bank offers 3 Door Step Banking Services per month absolutely free for customers aged above 75 years at all the select 1000 centers.

S Bank has Implemented QMS (Queue Management System) in selected high foot falls branches to improve customer service at branches. QMS provides the list of services offered, queries, instructions and relevant information to customers, automatic ticket dispenser, where the customer will get a voucher as per their required service and a voucher number will be issued.

S Bank has introduced an online death claim portal where nominee/legal heir of customer can lodge death claim.

S Bank has complied with the New Integrated Ombudsman Scheme, 2021 introduced by RBI. A copy of the new scheme, salient features and the contact details of the Principal Nodal Officer are displayed in our corporate website www.canarabank.com under the head Customer Service and also in Notice Board of the Branches.

INTERNAL OMBUDSMAN

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 submits periodical reports on her 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 IO's recommendations.

Reserve Bank of India has introduced new Integrated Ombudsman Scheme 2021 with effect from 12.11.2021.

Ms. Manorama K. N. has taken over as Internal Ombudsman with effect from 25.02.2022 on expiry of the term of the earlier IO.

INTERNAL CONTROL AND AUDIT

Risk-based Internal Audits (RBIA) numbering 7089 were conducted along with Information System audit (IS Audit) across branches / service units as per the program for onsite RBIA for the FY 2023-24. Monthly concurrent / continuous audits were conducted in branches / service units, of which 449 branches / service units were subjected to concurrent/continuous audit by Internal Auditors and 1441 branches / service units were subjected to concurrent audit by External Auditors, covering 70% of Advances and corresponding deposits of the total business of the Bank. 3883 branches were subjected to income / revenue audit on Quarterly basis.

1.    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, new queries / checklist are added on a regular basis since 2014. Redundant / old queries / checklist points were removed and queries/ checklist is revamped.

2.    During the FY 2023-24, Dashboard facility (Tabular / Graphical) is enabled in Audit Package (Darpan) home screen of all users (Wing / ZI / CO / RO / Branch/ Inspecting Officer) providing complete information regarding audit status, queries / checklist position and spot rectification on real time basis.

3.    Spot Rectification Report is enabled in Audit Package with selection of date for different audit stages (commenced / concluded / closure) for all admin units (Wing / ZI / RO / CO).

4.    During the FY 2023-24, CPH Audit Package for SB & Current Account has been Revamped with complete automation of audit process.

5.    During the FY 2023-24, Audit packages of Regional Office & Circle Office including Management Audit has been revamped as per the new compendium.

6.    Bank has shown NIL tolerance on frauds. The branches where fraud has been detected or serious irregularities were observed, those branches are Re-risk rated as "High Risk" to have more control on such branches / units and subjected to concurrent audit for 6 months.

7.    To improve the effectiveness of Concurrent Audit, Bank has introduced a procedure of verification of the effective implementation of system of concurrent audit including verification of audit reports submitted by External Concurrent Auditors through Inspecting officials to ensure coverage of areas envisaged in the scope.

8.    Bank has introduced Concurrent / Continuous audit for V-CIP and Credit Cards.

9.    As per the directions of Regulator, Bank has conducted External Assessment of Internal Audit by external agency M/s PwC and implemented their suggestions.

RISK BASED SUPERVISION

The Bank was brought under Risk Based Supervision (RBS) regime by RBI, in lieu of Annual Financial Inspection (AFI) from FY 2013-14. Presently, the Bank has completed the 10th 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 Bank's risks is made by RBI on an on-going basis through a combination of offsite analysis of the data and information furnished by the Bank as well as the findings of the on-site Inspection for supervisory Evaluation (ISE).

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.

IMPLEMENTATION OF OFFICIAL LANGUAGE

Our Bank is ensuring compliance of Official Language Implementation as per Official Language Act 1963, Official Language Rules 1976, recommendations of Parliamentary Committee on Official Language, Annual programme of Department of Official Language, Ministry of Home Affairs and also as per the guidelines issued by Department of Financial Services, Ministry of Finance, Government of India.

OL Implementation encompasses teaching & training of Employees to learn and understand Hindi and its use in day to day banking activities. Employees who do not possess working knowledge in Hindi are nominated for Prabodh, Praveen and Banking Pragya examinations conducted by Central Hindi Training Institute, New Delhi and they are also incentivized on passing it. Incentives are also provided to employees for passing Parangat examination who aspire to obtain proficiency in Hindi. Bank provides cash incentives to motivate employees for obtaining Hindi Degrees like Graduation, Post Graduation, M.Phil. and Ph.D. in Hindi and also for creative writing in Hindi whose literary work is recognized by institutes of repute.

Bank has made available forms in Bilingual in Region 'A' and Trilingual in 'B' & 'C' Region branch counters for the use of customers. Official Language Section, Human Resources Wing provides translation from English to Hindi and vice versa to meet the requirements of all the Wings in Head Office. Official Langauge Cells established at Circle Offices & Regional Offices are also providing the requisite translations in Hindi & English apart from ensuring implementation of OL in their respective areas.

Official Language Implementation Committees are constituted at all levels, where quarterly meetings are conducted promptly and review of status of OL implementation is effectuated. A Hindi inter-translator system has been introduced in CBS through which pass book / pass sheets could be generated in Hindi, including generation of Deposit receipts and DDs. CBS Screens (in Hindi) have been created and a facility to generate reports in Hindi are now made available. Provision has been made in ATM Screen to view the transactions in 11 Regional Languages. Standard greetings and messages to customers are being sent through SMS in Hindi & Regional Languages also. Customers can now opt to receive SMS in their opted language.

An online package has been made live (in SAS portal) for submission of OPR i.e., STR-18 by all branches and administrative offices. Hindi Workshops and Unicode trainings are being organized for staff. Existing manual branch visit report by OL Officers has been digitalised. Branch visits by OL Officers are helpful for branches to face visit / inspection by Govt. Depts. and Parliamentary Committees, etc. Hindi workshop and conference for Official Language Officers' are conducted annually to ensure effective implementation of Hindi.

Our Bank's Head Office is the Convenor of Town Official Language Implementation Committee (Banks) meetings at Bengaluru. Our Bank is also the Convener of 21 TOLICs at various Cities/Towns across the Country. Bank has secured numerous Shields and Certificates pan-India, awarded by various TOLIC committees for the best implementation of OL. TOLIC (Bank) Bengaluru has been adjudged best performing TOLIC in the country. Further, TOLIC (Bank) Bengaluru has also won the Ist prize under Southern Region for commendable performance in implementing the OL policy of the Union.

Our Bank has secured prizes from Regional Implementation Office for commendable performance in implementation of Official Language during the year. In order to accelerate OL implementation, Shields are being awarded to Offices and Branches under 'Rajbhasha Akshay Yojana'. 'Rajbhasha Puraskar Yojana' has also been conceptualized and put in place to motivate the employees towards effective OL implementation.

Canara Bank has been awarded with "Rajbhasha Sammaan" Shield for outstanding performance in the field of Official Language by Rajbhasha Academy, New Delhi.

Banking related news in Hindi under the title "Aaj Ke Samachar" is included in Today's Tidings, a daily news brief. 'HRD (e)light's, 'NRI Bulletin' & 'Staff Meeting Literature' are being brought out in Hindi as well, on a monthly basis. 'Canara Jyoti', a quarterly Hindi House Magazine to showcase the literary talent of our staff members in Hindi has received many accolades. Canara Bank's in-house magazines 'Shreyas' and 'Canara Jyoti' has been awarded the Global Brand Excellence Award by the World Brand Congress for the year 2022-23.

Regional Language Cells i.e., Kannada Cell, Tamil Cell, Telugu Cell, Marathi Cell etc., are formed in Circle Offices located in Region 'B' & 'C'. Regional Language Cell under OL Section, HR Wing has been formed as the Nodal Cell for co-ordinating the usage of Regional Languages. "Hindi Mein Paricharcha", an innovative Discussion Programme in Hindi on contemporary banking subjects is being organized by all Administrative Units of the bank on a quarterly basis.

Bank has established Hindi library at HO, COs & ROs for motivating employees to read books in Hindi. A Digital Library portal has also been initiated and made available to all the employees.

VIGILANCE SETUP

Vigilance set up at Head Office level comprises of Chief Vigilance Officer, who is assisted by the Executives and staff of Vigilance Department at HO. The Chief Vigilance Officer is also assisted by Vigilance Officers at Regional Offices/Circles/HO/RRBs/other subsidiaries of the Bank in Vigilance administration. The Vigilance Management in the Bank under the supervision/ guidance of CVO administers various functions on preventive, participative, proactive and punitive aspects of vigilance with more emphasis on preventive vigilance measures to eliminate / minimise factors which provide opportunities for frauds, corruption and malpractices in the organization and also to take punitive action as a deterrent measure to check recurrence of such instances.

Vigilance Awareness Week was observed in our Bank from 16th August 2023 - 15th November 2023 with the theme, "PTSTCTC MT fester mU; Tl^" M    TTOfifiT it”’/ “Say no

to corruption; commit to the Nation”. All the Branches/ Offices have actively participated in conducting various activities such as administering Integrity Pledge, Seminars, Workshops, Customer Grievance Redressal Meetings, Awareness Walkathon, Awareness Sabhas in Gram Panchayats, Panel Discussions / Colloquium, Competitions in Schools / Colleges (viz. Essay Writing, Debate & Quiz Competitions) etc. to bring awareness in society about the ill-effects of Corruption. Social Media Platforms / FM Radio stations have been used to create awareness in General Public and popularize the Vigilance Awareness Week theme of the year. Various competitions were also organized in Circle Offices and Regional Offices

level for the Bank staff / general public. Moreover, 03-day online quiz and Essay Writing & Cartoon Drawing competitions were also conducted for employees of the Bank.

We have advised all the Learning & Development centres to have a session on "Preventive Vigilance" aspect to the newly recruited probationary officers during their induction-training programme.

To bridge the knowledge gap at the operational level, a compendium on Preventive Vigilance, Monthly Preventive Vigilance Series, Quarterly Vigilance Magazine "Canara Vigil" and case studies on Fraud & unethical practices by concerned wings (monthly basis) are made available in the CANNET for the benefit of all Canarites.

An exclusive in-house package - Preventive Vigilance Management System (PVMS) towards Online Reporting of Surprise Branch & Unit Visits of Vigilance Officers is introduced by Vigilance Wing, thereby Preventive Vigilance Exercise is automated. PVMS package is an edge forward in compliance with GHOSH Committee recommendations, an effective tool in stemming out the rot at the initial stage itself (Instantaneous / quick reporting of frauds).

Systemic improvements are periodically suggested based on the lapses observed while determining vigilance angle in respect of lACs.

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 on Half-yearly basis as per the guidelines of RBI.

FINANCIAL SUPERMARKET

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 seven domestic subsidiaries, one overseas subsidiary, five associates and one joint venture. All the Domestic Subsidiaries / Associate / Joint Venture of the Bank recorded satisfactory performance during the year 2023-24. RBI has identified Canara Group as a Bank-led Financial Conglomerate and Canara Bank as the designated entity for the group.

CANFIN HOMES LIMITED (CFHL):

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 29.99% stake with the company. The loans outstanding of the Company as at March 2024 were '34999 Crore. The Company earned a Net Profit of '750.70 crore as against '621.21 crore in the previous year, with y-o-y growth of 20.84%. Gross NPAs of the Company was '286 crore (0.82%) and Net NPA was '147 crore (0.42%) as on 31.03.2024. The Company has provided an interim dividend of 100% and also declared final dividend of 200% for FY 2023-24.

CANARA HSBC LIFE INSURANCE COMPANY LIMITED:

M/s Canara HSBC Life Insurance Company Ltd (CHLIC) is a Life Insurance Joint Venture floated by the Bank in association with HSBC Insurance (Asia Pacific) Holding Limited and Punjab National Bank 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 Punjab National Bank (23%). The Company recorded gross premium of '6932.6 crore during the year. The Company registered Net Profit of '113.30 crore for FY 2023-24. The company has provided an interim dividend of 2% and also declared final dividend of 2% for the year 2023-24.

CANARA ROBECO ASSET MANAGEMENT CO LIMITED (CRAMC):

M/s Canara Robeco Asset Management Company Limited is a joint venture (JV) of Canara Bank and M/s Orix Corporation, Japan with Canara Bank holding 51%

Stake. The Company is currently managing 24 Mutual Fund Schemes with a mix of equity, balanced and debt schemes. The Company registered a net profit of '124.75 crore and has provided an interim dividend of 25% and also declared final dividend of 50% for FY 2023-24.

CANARA BANK SECURITIES LIMITED (CBSL):

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 Demat Services (Depository Participant), Online Trading, e-Insurance and distribution of Financial products. The Company offers stock broking services to both institutional and retail clients. The Company has registered a net profit of '10.06 crore for the year 2023-24.

CANBANK FACTORS LIMITED (CFL):

M/s Canbank Factors Limited is a factoring Subsidiary of the Bank with 70% stake held by the Bank. During 2023-24, the Company had a total business turnover of '2156.45 crore, registering net profit of '2.71 Crore.

CANBANK VENTURE CAPITAL FUND LIMITED (CVCFL):

M/s Canbank Venture Capital Fund Limited is a wholly Owned Subsidiary of the Bank and the Trustee and Manager of Canbank Venture Capital Fund Trust. The company is presently managing 4 funds including Fund of Fund with present total AUM of '252.00 crore.

The Company recorded a net profit of '1.29 crore during the year 2023-2024. The company has provided interim dividend of 1000% for FY 2023-24.

CANBANK COMPUTER SERVICES LIMITED (CCSL):

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 net profit of '15.84 crore for FY 2023-24.

CANBANK FINANCIAL SERVICES LIMITED (CANFINA):

M/s Canbank Financial Services Limited is confining its activities to legal matter arising out of past transactions in securities and recovery of dues under decreed accounts. Company has posted a profit of '4.60 crore for the year 2023-24 by way of receipt of dividends, interest received on Bank deposits and amount pertaining to pending litigations. The Company has provided an interim dividend of 25% for FY 2023-24.

HIGHER EDUCATION FINANCING AGENCY (HEFA):

Higher Education Financing Agency (HEFA), is a not-for-profit organization, set up by the Bank under a joint venture shareholder agreement with the Ministry of Education (MoE), 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. As on 31.03.2024, MoE has infused Capital of '4812.50 crore and Canara Bank has contributed '481.25 crore respectively. The total loans sanctioned till 31.03.2024 is '39719.75 crore and disbursement stood at '19968.26 crore.

HEFA has disbursed '3123.03 crore of loans to different institutions during FY 2023-24 and Bank has received '31.23 crore of Management Fee from HEFA.

REGIONAL RURAL BANKS (RRBs)

As at March 2024, the Bank had four sponsored RRBs, viz., Andhra Pragathi Grameena Bank (APGB) in Andhra Pradesh, Kerala Gramm Bank (KeGB) in Kerala, Karnataka Gramin Bank (KaGB) and Karnataka Vikas Grameena Bank (KVGB) in Karnataka.

Andhra Pragathi Grameena Bank (APGB) operates in 10 districts of Andhra Pradesh with 551 branches and 98 ATMs. Total business of the Bank as at March 2024 is '46,345 Crore. (Deposits: '21,665 Crore Advances: '24,680* Crore). (*Aggregate Advances is inclusive of '2300 Crore IBPC).

Kerala Gramin Bank (KeGB) operates in all 14 districts of Kerala with 634 branches & 269 ATMs. The total business of the Bank as at March 2024 is '48,899 Crore. (Deposits: '24,510 Crore, Advances: '24,389* Crore). (*Aggregate Advances is inclusive of '650 Crore IBPC).

Karnataka Gramm Bank (KaGB) operates in 22 districts of Karnataka with 1122 branches & 172 ATMs. The total business of the Bank as at March 2024 is '63,697 Crore. (Deposits: '34,462 Crore, Advances: '29,235* Crore). (*Aggregate Advances is inclusive of '1275 Crore IBPC).

Karnataka Vikas Grameena Bank (KVGB) operates in 9 districts of Karnataka with 629 branches & 50 ATMs. The total business of the Bank as at March 2024 is '35,884 Crore. (Deposits: '19,856 Crore, Advances: '16,028* Crore). (*Aggregate Advances is inclusive of '500 Crore IBPC).

Through the Bank's infrastructure support, the RRBs are extending facilities, like, ATM-cum-Debit Card services. 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, Account Aggregator and also Aadhaar-enabled services and remittance facilities through NEFT / RTGS to their customers.

CORPORATE SOCIAL RESPONSIBILITY

Our Bank remains committed to Corporate Social Responsibility (CSR), towards betterment of the society at large through various activities like training unemployed rural youth, scholarship to meritorious SC/ ST Girl students, renovation 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 74 training institutes, which have trained more than 12.44 lakh unemployed youth so far, with a settlement rate of 74%.

S The Bank has donated four ‘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 202324, 17992 students have been benefitted, utilizing a total amount of '8.00 crore.

S Education: Bank has taken up initiatives to promote education and skill development in the country. Our Bank has contributed towards providing infrastructure to schools, books and school essentials for students, setting up of Digital classrooms, computer labs, libraries etc. especially in the rural areas of our country.

S Health: Bank has financed for providing Hi-tech ambulances in rural areas, providing basic healthcare facilities like hemodialysis unit in Androth Island of Lakshwadeep and supporting Cachar Cancer Hospital at Silchar, which provides free treatment for cancer patients. Bank has also supported Civil Hospitals and Government hospitals with ambulances, surgical equipments etc. and provided ICU ventilators, Ultrasound machines to Satya Sai Sarala Memorial Hospital to serve the downtrodden villagers in rural areas of Karnataka.

S Poverty and Nutrition: Bank has undertaken various initiatives to alleviate poverty and improve nutrition in the country. Bank has taken initiatives to provide food & nutrition to underprivileged people through temples, orphanages, old age homes etc.

S Environmental Protection: Bank has undertaken initiatives to protect the environment and promote sustainability. Bank has implemented green initiatives, such as installation of solar panels, solar power plants, grids, water harvesting systems, bio gas plants in Govt. Schools, Universities, Panchayats etc. to promote environment protection. Bank has also assisted in distribution of 40,000 coconut trees in the cyclone affected areas of Odisha.

S Swachh Bharat: Bank has taken up initiatives to support the Swachh Bharat Mission, such as building girls toilets in rural areas, providing water purifiers in schools etc. Under Swachh Bharat Abhiyan, Bank has provided vehicles for garbage collectors and setting up of bio waste processing units & portable sewage water treatment units.

S Persons with Disabilities (PWD): Bank has taken initiatives to empower PWDs by financing Braille Resource Centres and by providing wheel chairs, foot abduction braces, assistive devices, transportation van to children with special needs.

S Rural Development: Bank has undertaken initiatives to promote rural development and security by strengthening of Kotwal Cadre through activation of 200 Local Service Centers by providing Pre Fabrication Rooms and Furniture under CSR activity. Bank has set up training institutes like Rural Self Employment Training Institutes (RSETIs) to provide self-employment training and credit to rural entrepreneurs.

S Sports initiatives were undertaken this year for implementation of District level sports through all Circle Offices and Regional Offices pan-India.

S During the FY 2023-24, under the Sustainable Development & Corporate Social Responsibility (SD &CSR) initiatives of the Bank, the Bank has spent to the tune of '70.09 Crore on various sectors like Skill Development, Financial Inclusion, Women Empowerment Activities, Education, Environment Protection, Health, Poverty & Nutrition, Persons with Disability, Rural Development, Swachh Bharat, Sports & other Sectors.

Visits by Standing Committee

During the year 2023-24, following Standing Committees conducted Study visits and reviewed the Bank's performance: Committee on Finance; Committee on Housing and Urban Affairs; Committee on Education, Women, Children, Youth & Sports; Committee on Petroleum, Natural Gas; Committee on Subordinate Legislation; Committee on Information and Communication Technology Management;

Committee on Estates; Committee on Government Assurances; Committee on Petitions; Committee on Rural Development and Panchayati Raj; Committee on Empowerment of Women; Parliamentary Committee on SC / ST; Public Accounts Committee; Committee on Social Justice and Empowerment and Committee on Industry.

AWARDS / ACCOLADES & ACHIEVEMENTS

S Canara Bank has been conferred with Best Data Quality Index (DQI) award for achieving Best Data Quality among Public Sector Banks for the FY 2023-24 by the Credit Information Company -M/s TransUnion CIBIL.

S Canara Bank was conferred with the "Data Excellence" award for the FY 2023-24 by the Credit Information Company M/s CRIF.

S Canara Institute of Bank Management has been awarded National BFSI Awards for Leadership & Business Excellence under the categories of "Best Training & Development Practices in Banking Sector" and "Best Use of Technology in Training -Banking Sector".

S CIBM Manipal Campus has been certified Green Campus by Indian Green Building Council, a part of the Confederation of Indian Industry.

S Canara Bank has received accolades at the Diversity, Equity, Inclusion (DEI) Excellency awards during International Inclusion Alliance Conference 2024.

S Canara Bank has been conferred Global Brand Excellence award for Best Bi-lingual In-House Magazine "Shreyas" by World Brand Congress in February 2024.

S Canara Bank has been conferred with IT Banking technology awards under the Larger PSBs & PVBs Banks category for "Best Fintech & DPI adoption-Runner Up", "Best Financial Inclusion-Runner Up", "Best Digital Engagement - Special mention" for FY 2022-23 by IBA.

S Canara Bank has received "Best Cyber Security implementation award" at an event Organized by EnQube.

S Central Vigilance Commission has ranked Canara Bank as No. 1 among the comity of Public Sector Banks, in the area of "Best Practices in Vigilance Administration.

S Canara Bank has received Inclusive Finance India award 2023 under Priority sector lending by Bank (Public sector) presented by Access Development services and HSBC India.

S The Indian Green Building Council felicitated Canara Bank as IGBC Founding member during Green Building Congress held in November 2023.

S Canara Bank has been adjudged outstanding Performer in Large Public Sector Banks category under Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme.

S Bank has received accolades from NPCI for making live "Dual Auth. Transaction for AePS".

S Canara Bank is honoured with the prestigious Emerging Asia Banking Awards in multiple categories, organized by Indian Chamber of Commerce viz. winner in 'Best Performance on Growth' category, runner up in 'Best Bank in India' category, second runner up in 'Best Performance on Profitability', second runner up in 'Best Performance on Asset Quality' and second runner up in 'Best Performance in Risk Management'.

S Canara Bank has received the APY Annual award for achieving the set targets under APY during FY 2022-23 at "APY Annual Felicitation Programme" in June 2023.

S Canara Bank has received the "Rajbhasha Sopan Samman" by the Center for Indian Language and Culture for the year 2023 for the best performance in the field of official language implementation.

CHANGE IN DIRECTORS, INCLUDING MANAGING DIRECTOR / WHOLE-TIME DIRECTOR

Board of Directors

(APPOINTMENT / CESSATION OF DIRECTORS DURING

THE YEAR 2023-24)

Cessations:

1.    Shri Brij Mohan Sharma was appointed as Executive Director w.e.f. 19.05.2021,by the Central Government u/s 9 (3) (a) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, up to the date of his attaining the age of superannuation (i.e.30.06.2023), or until further orders, whichever is earlier. He was superannuated on 30.06.2023.

2.    Shri Suchindra Misra was appointed as GOI Nominee Director w.e.f. 14.06.2016, by the Central Government u/s 9 (3) (b) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with effect from the date of assumption of office or until further orders, whichever is earlier. He was cessated on 25.10.2023.

Appointments:

1.    Shri dra Kumar was appointed as Executive Director w.e.f. 09.10.2023, by the Central Government u/s 9 (3) (a) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of three years with effect from the date of assumption of office or until further orders, whichever is earlier.

2.    Shri Parshant Kumar Goyal was appointed as GOI

Nominee Director w.e.f. 25.10.2023, by the Central Government u/s 9 (3) (b) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with effect from the date of assumption of office or until further orders, whichever is earlier.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors, in preparation of the annual accounts for

the year ended March 31, 2024, 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.

SECRETARIAL AUDIT FOR FINANCIAL YEAR 2023-24

Pursuant to the requirements of Regulation 24A of the SEBI (LODR) Regulations, 2015 & SEBI Circular CIR/CFD/CMD1/27/2019 dated February 08, 2019, the Bank has appointed S. KEDARNATH & ASSOCIATES, Practicing Company Secretary (CP No. 4422) as the Secretarial Auditor for 2023-24 and their report addressed to the members of the Bank which forms part of this Annual Report is attached as an annexure to the Board's report.

ACKNOWLEDGEMENT

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 Bank's 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.