ORGANIZATION STUDY ON CANARA BANK

BY:

SANDHYA N MALLYA

4AI20BA048

SUBMITTED TO

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE

Mrs. SHAMBHAVI S M

Assistant Professor

PG Dept, of Management Studies

AIT, Chikkamagalur

PG Department of Management Studies

ADICHUNCHANAGIRI INSTITUTION OF TECHNOLOGY,

Jyothi Nagar, Chikkamagalur- 577102

 DECLARATION

I, SANDHYA N MALLYA, hereby declare that the internship report entitled organisation study

with reference to “ CANARA BANK” is prepared by me under the guidance of Prof. Shambhavi S M,

Department of Business Administration, “ADICHUNCHANAGIRI INSTITUTION OF

TECHNOLOGY‖ I also declare that this internship report is towards the partial fulfilment of the

University Regulations for the award of degree of Master of Business Administration by Visvesvaraya

Technological University, Belagavi. I have undergone an internship for a period of four weeks. I

further declare that this internship report is based on the original study undertaken by me and has not

been submitted for the award of any degree/diploma from any other university/ institution.

Place: chikkamagalur Signature of the student

Date: SANDHYA N MALLYA

 ACKNOWLEDGMENT

First and foremost, i would like to express my sincere gratitude to my internal

guide Mrs SHAMBHAVI S M, Assistant professor, Department of MBA, AIT,
Chikmagalur for her support and guidance in carrying out this organisation
study successfully.

I express my sincere thanks to Dr. PRAKASH RAO, head of the department of

MBA, AIT for his encouragement and support.

I would also like to express my sincere gratitude to Dr. C T JAYADEVA,

Principal AIT for all the support extended by him to complete my internship.

Furthermore, I am thankful to management of AIT, Chikamagalur, for

providing me excellent facilities for doing my internship.

I also take this opportunity to offer my regards to all of those who have
supported directly or indirectly in completing the internship.

Last but not the least, I sincerely express my gratitude to my family for their
consistent encouragement in all my endeavours.

SANDHYA N MALLYA
 EXECUTIVE SUMMARY

The banking scenario in India is changing fast to keep pace with the international banking
practice. As a result, the banks in India have been asked to meet specific standards such as
capital adequacy norms, classification of assets and income recognition norms etc.

The main objectives of this project is to introduce about the corporate governance and how
the corporate governance workout in the Indian banking sector. This project would also
provide fundamental concepts to understand about the corporate governance and Indian
banking system. The project covers emergence of the concept of corporate governance. The
manner in which it is relates with banking sector, its various issues, constituents and how it is
being implemented in the banking sector. The focuses mainly on some specific aspects of
codes of corporate governance and is applicable in the banking sector.

Though outcomes of good corporate governance remains same irrespective of nature of

business, types of ownership, quality of management, business/legal regulations, and political
environment , but the means to achieve this good governance differs a lot based on the factors
mentioned above. Some of the parameters that may influence corporate governance include
ownership structure, board philosophy, industry segment and maturity of business
management process, level of competition, international business participation, and size of
the company.

Lot of effort is being put both nationally and internationally in understanding and suggesting
good practices that can improve governance of banking sector. In India also several initiatives
have been taken up in understanding nuances of banking sector governance.
1 INTRODUCTION ABOUT THE ORGANISATION

2 ORGANISATION PROFILE

BACKGROUND
NATURE OF BUSINESS
VISION, MISSION AND QUALITY POLICY
WORKFLOW MODEL
PRODUCT/SERVICE PROFILE
OWNERSHIP PATTERN
ACHIEVEMENTS/AWARDS IF ANY
FUTURE GROWTH AND PROSPECTS

MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE

3 FORCE MODEL WITH SPECIAL REFERENCE TO
ORGANISATION UNDER STUDY

4 SWOT ANALYSIS

5 ANALYSIS OF FINANCIAL STATEMENTS

6 LEARNING EXPERIENCE AND BIBLIOGRAPHY

 CHAPTER-1

INTRODUCTION ABOUT THE ORGANISATION

INTRODUCTION OF BANK:

Canara Bank is the third largest Nationalised Bank in India. It is under the ownership of
Ministry of Finance, Government of India. It is headquartered in Bengaluru. Established in
1906 at Mangalore by Ammembal Subba Rao Pai the bank also has offices in London, Hong
Kong, Dubai and New York. As per the announcement made by the Finance Minister
Nirmala Sitharaman on 30 August 2019, Manipal based Syndicate Bank merged with Canara
bank on 1 April 2020. Lingam Venkat Prabhakar (1 Feb 2020–31 Dec 2022) is the CEO of
Canara Bank.

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent Fund
in Mangalore, India, on 1 July 1906. The bank changed its name to Canara Bank Limited in
1910 when it incorporated.

AMMEMBAL SUBBA RAO PAI

FOUNDER

The Government of India nationalised Canara Bank, along with 13 other major commercial
banks of India, on 19 July 1969. In 1976, Canara Bank inaugurated its 1000th branch. In
1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue. This brought Canara
Bank some 230 branches in northern India.

In 1996, Canara Bank became the first Indian Bank to get ISO certification for "Total Branch
Banking" for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting
for ISO certification of branches.
 CHAPTER-2

ORGANISATIONAL PROFILE

ABOUT THE ORGANISATION:

India has a diversified financial sector undergoing rapid expansion, both in terms of strong
growth of existing financial services firms and new entities entering the market. The sector
comprises commercial banks, insurance companies, non-banking financial companies, co-
operatives, pension funds, mutual funds and other smaller financial entities. The banking
regulator has allowed new entities such as payment banks to be created recently, thereby
adding to the type of entities operating in the sector. However, financial sector in India is
predominantly a banking sector with commercial banks accounting for more than 64% of the
total assets held by the financial system.

Canara Bank is a state-owned commercial bank with headquarters in Bangalore. The Bank
operates in four segments namely treasury operations retail banking operations wholesale
banking operations and other banking operations. The Bank provides a range of products and
services to the customers.

In the year 1976 they inaugurated their 1000th branch.In the year 1983 the Bank inaugurated
an overseas branch at London. In the year 1984 Laksmi Commercial Bank Ltd was
amalgamated with the Bank. In the year 1985 the Bank commissioned Indo Hong Kong
International Finance Ltd. In the year 1987 they launched Canbank Mutual Fund & Canfin
Homes. In the year 1989 they started Canbank Venture Capital Fund.During the year 1989-90
the Bank incorporated their factoring subsidiary Canbank Factors Ltd. During the year 1992-
93 they became the first Bank to articulate and adopt the directive principles of 'Good
Banking'. During the year 1995-96 they became the first Bank to be conferred with ISO 9002
certification for one of its branches in Bangalore.During the year 2001-02 the Bank opened a
'Mahila Banking Branch' first of its kind at Bangalore for catering exclusively to the financial
requirements of women clientele.
CANARA BANK- OVERVIEW

YEAR

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

1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited

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

on July 19

1976 1000th branch inaugurated

1983 Overseas branch at London inaugurated Cancard (the Bank‘s credit

card) launched

1985 Takeover of Lakshmi Commercial Bank Limited Commissioning of

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

1987 Canbank Mutual Fund & Canfin Homes launched

1989 Canbank Venture Capital Fund started

1989-90 Canbank Factors Limited, the factoring subsidiary launched

1992-93 Became the first Bank to articulate and adopt the directive principles
of ―Good Banking‖.
1995-96 Became the first Bank to be conferred with ISO 9002 certification
for one of its branches in Bangalore

2001-02 Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for
catering exclusively to the financial requirements of women
clientele.

2002-03 Maiden IPO of the Bank

2003-04 Launched Internet Banking Services

2004-05 100% Branch computerization

2005-06 Entered 100th Year in Banking Service. Launched Core Banking

Solution in select branches. Number One Position in Aggregate
Business among Nationalized Banks.

2006-07 Retained Number One Position in Aggregate Business among

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

2007-08 Launching of New Brand Identity. Incorporation of Insurance and

Asset Management JVs. Launching of 'Online Trading' portal.
Launching of a ‗Call Centre‘. Switchover to Basel II New Capital
Adequacy Framework.
2008-09 The Bank crossed the coveted 3 lakh crore in aggregate business.
The Bank‘s 3rd foreign branch at Shanghai commissioned.

2009-10 The Bank‘s aggregate business crossed 4 lakh crore mark.

Net profit of the Bank crossed 3000 crore. The Bank‘s branch
network crossed the 3000 mark.

2010-11 The Bank‘s aggregate business crossed 5 lakh crore mark. Net profit
of the Bank crossed 4000 crore. 100% coverage under Core Banking
Solution. The Bank‘s 4th foreign branch at Leicester and a
Representative office at Sharjah, UAE, opened. The Bank raised
1993 crore under QIP. Govt. holding reduced to 67.72% post QIP.

2011-12 Total number of branches reached 3600. The Bank‘s 5th foreign
branch at Manama, Bahrain opened.
2012-13 Highest Dividend of 130% paid for the year
2013-14 1027 branches and 2786 ATMs opened during the year. Global
business crossed the 7 lakh crore milestone. Switchover to Basel III
New Capital Adequacy Framework.
2014-15 Global Business of the Bank crossed 8 lakh crore.
2015-16 The Bank's 8th foreign branch at DIFC (Dubai) opened.
BACKGROUND:

Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. This had
been founded in September 1944 and at the time of its acquisition on 20 May 1961 had three
branches. The second bank that Canara Bank acquired was Seasia Midland Bank (Alleppey),
which had been established on 26 July 1930 and had seven branches at the time of its
takeover.

In 1958, the Reserve Bank of India had ordered Canara Bank to acquire G. Raghumathmul
Bank, in Hyderabad. This bank had been established in 1870, and had converted to a limited
company in 1925. At the time of the acquisition G. Raghumathmul Bank had five branches.
The merger took effect in 1961. Later in 1961, Canara Bank acquired Trivandrum Permanent
Bank. This had been founded on 7 February 1899 and had 14 branches at the time of the
merger.

Next, Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam Bank,
Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin, and Pandyan
Bank, Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21 February
1923 and at the time of its acquisition it had 14 branches. Arnad Bank had been established
on 23 December 1942 and at the time of its acquisition had only one branch. Cochin
Commercial Bank had been established on 3 January 1936, and at the time of its acquisition
had 13 branches.

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Syndicate Bank
would be merged with Canara Bank. The proposed merger would create the fourth largest
public sector bank in the country with total business of ₹15.20 lakh crore (US$210 billion)
and 10,324 branches. The Board of Directors of Canara Bank approved the merger on 13
September. The Union Cabinet approved the merger on 4 March 2020. The merger was
completed on 1 April 2020 with Syndicate Bank shareholders receiving 158 equity shares in
the former for every 1,000 shares they hold.

LOGO
Founded 1 July 1906

Number of locations 9,877 Branches, 11,819 ATMs

Products Investments banking

Consumer banking
Commercial banking
Retail banking
Private banking
Asset management
Pensions
Mortgages
Credit cards

Revenue ₹84,525 crore (US$12 billion) (2021)

Operating income ₹20,009 crore (US$2.8 billion) (2021)

Net income ₹2,557 crore (US$360 million) (2021)

Total assets ₹1,153,675 crore (US$160 billion) (2021)

Owner Government of India

Number of employees 88,213(march 2021)

Capital ratio 13.36%

Website www.canarabank.com
 HEAD QUARTERS IN BANGALORE

Head Office 112, J C Road

Bangalore - 560 002

Phone Toll free 1800 425 0018

Canara Bank was founded in 1906 by Mr Ammembal Subba Rao Pai at Mangalore in
Karnataka. The bank has gone through various phases of growth trajectory in over hundred
years of its existence. The growth of the bank has been phenomenal, especially after
nationalisation in 1969 and attaining the status of a national level player in terms of
geographical reach and clientele segments.

As of June 2014, the bank has expanded its domestic presence with 5,003 branches spread
across all geographical segments. Keeping customer convenience at the forefront, Canara
Bank provides a wide array of alternative delivery channels that include over 6,509 ATMs
covering 3,658 centres. The bank has set up 102 hi-tech E-lounges in select branches with
facilities like ATM, cash deposit kiosk with voice guided system, cheque deposit kiosk, self-
printing passbook kiosk, Internet banking terminal, online trading terminal and corporate
website access.
NATURE OF BANK:

Banks play an essential role in industrial work and trade. In a country, the development of a
country is measured based on how well the banking sector of country works.

Initially, that people worked well as people were less greedy but because of the increase in
problem in the simple lending and borrowing system, it became necessary to introduce the
formalised system as a result of which banking system were introduced.

 It may be an individual/ firm/ company.

 It is profit and service oriented institution.
 It acts as a connecting link between borrowers and lenders.
 It deals with money.
 It accepts deposit from public.
 It provides advances /loans /credit to customers.
 It provides payment and withdrawal facilities.
 It provides agency and utility services.

VISION, MISSION AND QUALITY POLICY:

Vision:

To emerge as a preferred bank by pursuing global benchmarks in profitability,

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

Mission:

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

Quality policy:

Canara bank aims to provide best in class life insurance products to its customers by assuring
them of the value the solutions provide with a resolve to honour commitment on each
element of the promise made.

The commitment embedded in our guiding principles is driven by:

 Quality mind-set nurtured with the objective of providing customized products

and services in line with our strategic direction
 Quality Management framework of the company & customer needs.
 Maintaining a high standard of governance & ethics in conduct of business thus
complying with all statutory & regulatory requirements.
 Listening to Voice of Customer to continually improve processes by putting in
place solutions driven by technology.
 The customer would be contacted ordinarily at the place of his/her choice and in
the absence of any specified place, at the place of his/her residence and if
unavailable at his/her residence, at the place of business/occupation.
 Identity and authority of persons authorized to represent bank for follow up and
recovery of dues would be made known to the borrowers at the first instance. The
bank staff or any person authorized to represent the bank in collection of dues
or/and security repossession will identify himself/herself and display the authority
letters issued by the bank upon request.
 The bank would respect privacy of its borrowers.
 The bank is committed to ensure that all written and verbal communication with
its borrowers will be in simple business language and bank will adopt civil
manners for interaction with borrowers.
 Normally the bank's representatives will contact the borrower between 0700 hrs
and 1900 hrs, unless the special circumstance of his/her business or occupation
requires the bank to contact at a different time.
 Borrower's requests to avoid calls at a particular time or at a particular place
would be honoured as far as possible.
 The Bank will document the efforts made for the recovery of dues and the copies
of communication sent to customers, if any, will be kept on record.
 Inappropriate occasions such as bereavement in the family on such other
calamitous occasions will be avoided for making calls/visits to collect dues.
WORKFLOW MODEL:

Banking flow charts (also called workflows or process maps) capture the sequence of work
activities that occur when performing tasks like loan application processing or new account
opening. Banks use these flow charts as tools to improve employee productivity, customer
service and profitability. Banks can also use workflows to identify automation opportunities,
and capture the details required to automate selected tasks (i.e., keystrokes, business rules,
logic, etc.).

 Understand the Customer Journey: Documenting customer touch points during

processes such as account opening, loan origination and fraud reporting can help the
bank improve customer experience based on specific data and anecdotes.

 Identify Automation Candidates: Detailed flow chart documentation for high

volume transactional processes such as loan application data entry, billing and wire
processing can help identify specific steps that can benefit from automation. Flow
charts, if created properly, will also capture the keystroke-level detail required to
automate the work at scale.

 Improve Compliance & Reduce Risk: Human error in processes such as know your
customer (KYC) and credit review cause more than re-work – they can expose the
bank to regulatory and financial risk. Documenting error root causes and removing
needless variation from these processes can help standardize the work and mitigate
possible risk.
PRODUCT/ SERVICE PROFILE:

Canara Bank today holds an unmatched reputation especially in South India. Known for its
diverse product portfolio and excellent services and facilities Canara Bank has achieved
several milestones in the financial sector in India. Personal Banking, Corporate Banking, NRI
Banking and Priority & SME Credit are some of the important functions provided by the
bank.

 Education loan:
Using Canara Bank Education Loan, customers can make payment of course fees,
purchase of books, instruments, uniform, hostel fees, examination fees, etc. This
Canara Bank education loan covers expenses including course fees, cost of books
purchased, any necessary equipment or instruments, hostel fees, uniform, examination
fees, insurance premium, passage and travel expenses for study overseas.
 Interest Rate 11.35%
Loan Amount Up to 20 Lakhs
Loan Tenure Up to 15 years
Processing Fees Nil

 Home loan:
Offers various home loan schemes for anyone who desire to purchase, or construct a
house. Home Loan Interest Rate starts from 8.70% p.a.

Interest Rate 6.90% – 10.05%

Loan Amount Depends on the applicant‘s profile
Loan Tenure Up to 30 years
Processing Charges 0.5% of loan amt. (Min. Rs. 1,500 &
Max. of Rs. 10,000) + GST
  Vehicle loan:
Canara Bank Vehicle Loan can help avail loan on new or used four wheeler vehicle. It
may provide loan up to 90% of the on-road price with no ceiling on the maximum
loan amount.

Features New Car Loan Scheme

Interest Rate 7.35% - 9.90% p.a.
Processing Charges 0.25% on the total loan amount subject
to a minimum of Rs.1,000 and a
maximum of Rs.5,000
Loan Amount Up to 90% of the total value which
includes life tax, invoice value,
registration charges, etc.

 Gold loan:
Using Canara Bank Gold Loan (Swarna Loan), account holders can avail a loan
against gold ornaments or gold coins (sold by any bank) to cater to medical or other
expenses.
 Interest Rate Up to 7.65% p.a.
Loan Amount Up to Rs.20 lakh
Loan Tenure Up to 2 years
Processing Fee 0.5 % of the loan amount + GST
subject to a minimum of Rs.500

 Personal loan:
Canara Bank offers 4 types of personal loans, which caters to all the urgent financial
needs of any account holder at affordable interest rates. Canara Bank offers various
personal loan schemes like Canara Budget, Canara Pension, Canara Home
Improvement and Teachers Loan to cater to the financial needs of various individuals.
Get loans of up to Rs. 10 lakh that can be used for purposes such as wedding, home
renovation, medical expenses, vacation and much more.
Interest rate 9.40% p.a. onwards
Loan Amount Up to Rs. 10 Lakh
Loan Tenure Up to 84 months
Processing Fees Up to 1% of loan amount sanctioned

 PM SVANidhi:
The government launched the PM Street Vendor's AtmaNirbhar Nidhi Scheme to
offer loans to street vendors. The main objective of the scheme is to provide an
economic boost to the street vendors by offering them working capital loans, so that
they start their businesses again and bring it back to normalcy. This scheme was
launched on 1st June 2020. Through this scheme, the vendors can apply for a loan of
up to Rs 10,000 for a year. In addition, there is no need to pledge any collateral for it.
This scheme will supposedly help over 50 lakh street vendors across the nation.

Benefits of the PM SVAnidhi Scheme:

The scheme will help street vendors revive their businesses and make way for new
opportunities to this sector to move up the economic ladder.

 Avail working capital loan up to Rs. 10,000/-

 Incentivization of regular loan repayment
 Cash back reward for digital transactions

 Mobile banking app:

Canara bank mobile banking app allows users to access a wide array of banking
facilities from the convenience of their home. CANDI is the primary mobile banking
app offered by the bank, which denotes ‗Canara Digital‘.Canara Bank mobile banking
apps allow customers to access services like making online payments and placing
requests for cheque book, etc. directly through their smartphones.
  CANDI- Mobile banking:

CANDI is the primary Canara Bank Mobile Banking app which provides various banking
facilities and services like balance enquiry, mini statement, fund transfer, utility bill payments
and much more.

Fund transfer Transfer funds from different banks

and people using IMPS
Bill payments Pay water, electricity and gas bills
Enquiry Get updates on Canara Bank savings
accounts and current accountget
downloadable statements
Bank Statement View and download account statement
Debit Card Turn on / off Debit Card, Set Canara
Bank Debit Card limit
Credit Card Access to Credit Card account
information
 Cheque Book Request for a new Cheque book using
Canara Bank mobile banking app
Branches & ATMs Check all Canara Bank branches and
ATMs using GeoLocate

 Canara DiYA:

Using Canara DiYA Mobile Banking app, users can open Canara Bank savings account
online in 5 minutes. Open Canara Bank Savings Account online by providing Aadhaar details
and perform eKYC.

Alerts Get SMS alerts for activated Canara Bank

debit and credit cards when they are used
Data mails Receive monthly pass sheet in the email
stating bank use, deposits and
withdrawals
Internet banking Get advantages of internet banking and
personalised virtual debit cards

 Canara saathi:

Canara Saathi is Credit card service mobile application using which Canara Bank credit card
holders can get complete access to all the information related to their Canara Bank credit
card.
 Real-time transactions Make credit card payments via internet
banking and debit cards
Transaction conversion Convert any transactions which are above
Rs.5,000/- into EMI of 3, 6 or 9 months
with an interest of 13% and 14% for
12,18 and 24 months
Service request Report stolen cards and request for a
replacement. Also one can block and
change the pin of the cards from
anywhere at any time

 Canara mServe:

Canara mServe helps in the protection of Canara Bank Debit card and credit card. Account
holders can easily switch on / off their debit & credit cards. Also, account holders can hotlist
their debit & credit cards instantly using Canara mServe.
 Protection Get protected from fraudulent magnetic
strip card skimming
Virtual cards Receive virtual cards for debit and
credit transactions instead of carrying
physical cards
Enquiry Receive information about the accounts
in real-time

 Canara elnfobook:

With Canara eInfobook get all the information about Canara Bank savings account, view e-
passbook, Canara Bank balance enquiry, account summary, cheque status & much more on
the mobile.

Enquiry Balance enquiry, Know the A/C summary

Offline transaction Carry out offline Transactions on android
phones, anytime anywhere
Transaction details View e-passbook

 Canara OTP:

Users can authenticate the entire internet banking transactions with the OTP generated using
Canara OTP app instead of SMS OTP. This Canara Bank mobile banking app will help
account holders when they are not in mobile network coverage area.

Internet banking Do internet banking transactions while

travelling or out of mobile network coverage
area since OTP can be generated offline
 Credit cards:
Canara Bank issues a variety of cards designed to meet your requirements and in turn,
requires very little from you. To avail of a credit card from Canara Bank, the
minimum income in Rs. 1 lakh per annum. Get generous credit limits, interest-free
periods and revolving credit facilities, earn reward points as you spend and cash
advances with your Canara Bank credit card.

 Classic debit card:

A Canara Bank Debit Card is a plastic card which provides access to ATMs for cash
withdrawals, balance enquiries and mini statement. It also provides on-line electronic
payment for purchases from your savings / current (individual) accounts.

 RuPAY Junior debit card:

This card is personalized Debit Card, specially designed for issuing in the name of
minor students above the age of 10 years.
  PMJDY debit card:
The RuPay PMJDY (Pradhan Mantri Jan-Dhan Yojana) card is issued to people who
have opened accounts under the Pradhan Mantri Jan Dhan Yojana (PMDJY) - a
National Mission for Financial Inclusion that was developed to provide people access
to financial services like banking, savings/deposit accounts, remittance, credit .

 Business debit card:

Business debit cards are cards with credit card numbers that can be used in the same
manner as the way in which business credit cards are used. ... When purchases are
made with business debit cards, the money is subtracted from your account rather than
being added to a linked line of credit.

 Campus cards:
This Card is designed for the use of students studying in schools and colleges. This
card is issued in association with the Schools / Colleges, where the card is treated as
an identity card besides facilitating payment of fees etc. with the Card.

 RuPAY classic debit card:

Reduce the hassle of carrying multiple cards with the RuPay Classic Card. This all
purpose card comes handy when making purchases online or offline. No matter what
kind of merchant you choose to shop from, RuPay Classic Card can help you make
the payment with exclusive merchant offers.

 SB power plus:
The Canara SB Power Plus is a running operative account with an interest rate of 4%
p.a. The interest is payable half-yearly. When opening the account, Canara SB Power
Plus account holders are granted a free personalized ATM debit card. The cash
withdrawal limit for the day from Canara Bank ATMs is Rs. 50,000.
 Fixed deposite:
The canara bank FD interest rates are less in case the FD grows to the highest
maturity period of ten years. This is due to the evaluation of Canara Bank FD interest
rates in which it diminishes in a few years.
Up to a year, the highest rate of interest for FD is 5.40%. for a tenure of more than a
year, it‘s 5.35% and for a tenure of 3 years to 10 years, it is 5.30%. if carefully
examined the Canara Bank FD rates are found closer to each other after the maturity
period of 1 year.

Canara bank fixed deposit interest rates 2021- special features:

 Competitive interest rates on all the fixed deposits

 Canara bank fixed deposits start from Rs1000 with no upper limit
 Loan facility up to 90percent of the FD amount is also available
 Your spouse or any other family member can be nominated to get the maturity
amount
 NRO, FCNR and NRE deposit facility is available
 Both online and offline FD option available

Canara Bank Fixed Deposit Schemes:

 The canara bank offers four types of fixed deposit schemes for domestic customers.
They are:

 Regular FD Scheme
 Tax saver Deposit Scheme
 Kamdhenu Deposit Scheme
 Ashraya Deposit Scheme

 Canara galaxy:
To explore more ways to attract customers and tech savvy young generation who have
a flair for trading in equity/stock market, Canara Bank has introduced a new SB all in
one account namely Canara Galaxy.―CANARA GALAXY‖ is an all in one combo
Product of Canara Bank comprising of Savings Bank A/c, DEMAT, OLT A/c,
Internet & Mobile Banking, Insurance, Card Services and other Add-ons.

Highlights of the account are as mentioned:

 No initial deposit / minimum monthly balance stipulated

 At par Personalized Credit Card
 Waiver of AMC on Demat A/c, SMS, NEFT, RTGS charges
 Instant enrolment under Net Banking & Mobile Banking
 Personalised Debit Card and Cheque Book at Customer‘s doorstep
 Personal Insurance (Accidental Death) cover of Rs. 5,00,000/
 Important features:

 Accounts can be opened with zero balance.

 All Individuals (i.e. Non Institutional accounts) are eligible to open
Galaxy account. Joints Accounts are also permissible.
 Galaxy Account can be opened in any branch of Canara Bank.
 The Demat Account will be opened with Canara Bank DP and Trading
Account with M/s CBSL. (Canara Bank Securities Limited)
 You have to sign the Demat and Trading Account opening form along
with SB account opening form. Necessary KYC documents are to be
submitted to facilitate account opening.
 On successful opening of Account, an automated mail is sent to the
registered Email Id informing you of the net Banking facility and the
required link. Similarly an SMS will be sent to the registered mobile
number along with the link for Mobile Banking.
 You will receive Personalised Debit Card and Personalised Cheque
Book in about 10 days time at your doorstep.
 Canara dhanvarsha:
The Canara Dhanvarsha is a flexi recurring deposit scheme offered by Canara Bank
which features the flexible option of depositing any surplus funds by customers as an
RD. Customers can choose any core amount in multiples of Rs. 100, starting from Rs.
1000 as the minimum amount.

Eligibility Individuals, Joint Acct, Guardian on behalf of

minor, Proprietorship firm, Partnership accts,
Company, association, trust, institution.
Deposit Minimum amount per month: Rs 500 and Maximum
Rs 1 Lac.
Period Minimum 1 year and in multiples of 3 months;
Maximum 10 years
Special features Installment can also be deposited one or more times
during the month.
Additional amounts deposited under flexi option are
not considered as prepayment for future
installments.
Deposits can be made any number of times in a
given month in multiples of regular installment.
Free standing instruction for the credit of
Dhanvarsha
Interest rate As applicable on normal RD
Interest application For the RD Instalment amount as per the existing
RD procedure.
For the top up amount, interest is calculated on daily
product basis.
Special Rate For Senior Additional ROI of 0.50% for Deposits with tenor of
Citizen 180 days and above.
TDS As per prevailing IT rules
 Payroll Package Scheme:
There is no initial deposit required when opening the Canara Bank's Payroll Package
Savings Bank Account. The minimum average monthly balance should be Rs. 1,000.
Deposits in the account come with a half-yearly payable interest of 4% p.a. It‘s an
account for corporate employees.
 Junior saving account:
To ensure that an individual begins their banking experience on a good note, Canara
Bank has come up with a new savings account which is meant to target minors who
are above the age of 10 years. This account is operated by the minor in his/her own
name. Minors are now given the freedom and responsibility to manage money which
becomes an important skill that they will require later on in their lives. With benefits
like a personalised debit card that is issued with the savings account.

Eligibility criteria for opening a Canara Junior Account:

An individual should match the eligibility criteria that has been proposed by the bank
if he/she wants to open a Canara Junior Account with Canara Bank:

 Applicant should be a resident of India

 Minor students should be above the age of 10 years
 Declaration from the minor's parents/guardian is required

Balance and transaction limit on a Canara Junior Account:

 A cap of Rs.50,000 is implemented on this account and this limit should not be
exceeded at any point.
 A total of Rs.10,000 has been set as the transaction limit which includes both deposits
and withdrawals. An individual is allowed to withdraw Rs.5,000 every month.
 The total credit should not exceed Rs.1 lakh p.a.
 The account should always remain in credit.
 Features and benefits of Canara Junior Account:

There are a number of benefits that are offered with a Canara Junior Savings Account,
as listed below:
 Personalized debit card is issued in the full name of the minor.
 The account will continue to function even after the minor reaches the age of 18
years.
 A Canara Junior Account draws a number of different loan schemes which can be
taken up by the individual operating the account.
 The individual receives an SMS for every transaction that is made using this debit
card.
 The parent/guardian can chose to check on the bank statements of the account. The
parent/guardian can then keep a track on the minor‘s spending.
 This account can be used by the parent/guardian to transfer educational fees to the
minor‘s educational institution.
 The bank provides a number of educational loans with attractive rates and features
than can be taken up by the individual.
 E-Info book facility is also available.
OWNERSHIP PATTERN:

The ownership pattern of corporate enterprises can be broadly of three types:

(i) Widely dispersed, ownership particularly amongst large number of individual

shareholders;
(ii) Promotors' dominated shareholding pattern where promoters may be owning 30%
to 80% or more vis-a-vis individual shareholders who own less then 30% of the
total capital
(iii) A unique ownership pattern where even banks and financial institutions, foreign
Institutional investors or foreign individuals are the owners of the company.

Holder's Name No of Shares % Share Holding

No Of Shares 1814130252 100%

Promoters 1141709678 62.93%

Foreign Institutions 152306890 8.4%

N Banks Mutual Funds 24936221 1.37%

Others 71487342 3.94%

General Public 196410071 10.83%

Financial Institutions 227280050 12.53%

IFSC Code Important Links:

 Canara Bank IFSC Code

 Canara Bank Staff training college Bangalore IFSC Code
 Canara Bank Circle office Bangalore IFSC Code
 Canara Bank Circle Office BhopaI FSC Code
 Canara Bank SME branch Madurai IFSC Code
 Canara Bank Mamillagudem Khammam IFSC Code Hyderabad
 Canara Bank Mahuva IFSC Code Bhavnagar
 Canara Bank Jamshedpur IFSC Code Jharkhand
 Canara Bank Basheerbagh Hyderabad IFSC Code
 Canara Bank Circle office Delhi IFSC Code
AWARDS AND ACHIVEMENTS:

Canara Bank has been awarded 'India's Most Trusted Public Sector Banking Services
Company 2019' by International Brand Consulting Corporation, USA. Canara Bank has been
awarded 'SIDBI-ET INDIA MSE AWARD-2019' under noteworthy Lender to MSE Category
– (Public Sector Bank).

Awards/Accolades Received during 2019-20 (So far)

 Canara Bank has been awarded ‗India‘s Most Trusted Public Sector Banking Services
Company 2019‘ by International Brand Consulting Corporation, USA.
 Canara Bank has been awarded ‗SIDBI-ET INDIA MSE AWARD-2019‘ under
noteworthy Lender to MSE Category – (Public Sector Bank).
 Canara Bank received the award for Best Data Quality Management 2018-19 at the
Annual Credit Information Conference.
 Canara Bank received National award for SHG Bank Linkage 2018-19 (Public Sector
Banks) from DAY-NRLM, Ministry of Rural Development.
 Our bank has been conferred with VISA GLOBAL QUALITY AWARD 2018 for the
lowest global frauds reflection our commitment to deliver superior service quality.
 DRBT Banking Technology Innovation Contest for CANDI Branch
 Skoch Order of Merit Award 2019 for Canara DiYA, Canara Recovery App, Canara
Digital Learning & Social Media Analytics and Campaign management.
 Skoch Award 2019 Silver for ―Canara DiYA".
Awards/Accolades Received during 2018-19

 Central Vigilance Commission has awarded Canara Bank with ‗Vigilance Excellence
Award-Outstanding‘ under Category ‗Timely Completion of Disciplinary
Proceedings‘ for the year 2018.
 Bank received first runner up award on theme Credit off-take in EASE Banking
Reform Awards 2019.
 Bank has bagged four awards from the Associated Chambers of Commerce and
Industry of India (ASSOCHAM) under Agriculture, Priority sector lending, Social
Banking and Technology.
 Bank has bagged eight Awards from Public Relations Council Of India (PRCI)
including 3 Gold under Television Commercials, Advertising Corporate Campaign
RADIO and Advertising Corporate Campaign Television
 NPCI Special Award in recognition of excellent performance in NFS ATM Network,
Rupay, CTS & UPI / IMPS.
 Bank‘s House magazine ‗Shreyas‘ bagged Making of Developed India Award
sponsored by ET Now for best in house magazine for the year 2018.
 Secured Chamber of Indian Micro Small & Medium Enterprises (CIMSME) awards
for best bank for promotional schemes (Large category).
 Received runner up CIMSME award for best MSME bank (Large category) and
financially inclusive bank (Large category).
 Secured PFRDA‘s best performing PSB award in APY performance and the splendid
seven awards for the APY campaign.

Awards/Accolades Received during 2017-18

 Received Master card Innovation Award for Canara International Prepaid card under
prepaid segment.
 ―Rupay Special‖ award for being the highest Rupay card issuing bank by NPCI.
 VISA Award on crossing a key milestone on issuance of 1.35 crore VISA debit card.
 Bagged FINNOVITI award for Innovation for CANDI Branch.
 ASSOCHAM Social Banking Excellence Awards 2017 for Government Sponsored
Schemes and Runner-up for Agriculture Banking in the Large Bank Class.
 Golden Peacock Award 2017 for Corporate Social Responsibility from Institute of
Directors, New Delhi.
 Skoch Technologies Growth 2017 for ―CANDI‖, digital branch.
 Excellent Customer Service Award‘ at the 5th SME Excellence 2017 by
ASSOCHAM,
 Best CIO of the Year ‖ by Computer Society of India for ―CANDI‖ an ambitious
digital banking project of the Bank in the ―IT Innovation & Excellence Awards2017‖
 Skoch Smart Security awards 2017 for ―SIEM‖ tool.
 Dun and BradStreet Award for 2016-17 adjudging as Best Public Sector Bank –
Priority Sector Lending Bank. Consecutively third time (2014-15, 2015-16 and 2016-
17) Bank has been receiving this Award.
  Certificate of Excellence for exemplary leadership in promoting RSETIs and
Certificate of Excellence for RUDSETI for FY15 & FY16

FUTURE GROWTH AND PROSPECTS:

State-run Canara Bank‘s board approved a plan to raise up to Rs 9,000 crore in the current
financial year (FY22), of which Rs 2,500 crore will be through a Qualified Institutional
Placement (QIP), to meet regulatory norms and support growth.

The total amount would be raised through a mix of equity and debt instruments and is subject
to market conditions and necessary approvals, the bank informed the BSE on Friday.

The bank had raised Rs 2,000 crore through another QIP in December 2020.Last week
another public sector lender — Union Bank of India — raised Rs 1,447 crore through the QIP
route. The bank‘s stock rose 5.37 per cent to Rs 161.85 a piece on the BSE.

Apart from the QIP, it plans to raise capital through additional tier-I bonds of up to Rs 4,000
crore and additional tier-II bonds up to Rs 2,500 crore, the bank said.

Its capital adequacy ratio was 13.18 per cent in March 2021 with tier I of 10.08 per cent
including common equity portion of 8.61 per cent and tier II of 3.1 per cent.Its advances rose
3.68 per cent to Rs 6.75 trillion in FY21, a first year of operation for the amalgamated entity.
Syndicate Bank merged with Canara Bank on April 1, 2020.
 CHAPTER-3

MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE MODEL WITH

SPECIAL REFERENCE TO ORGANIZATION UNDER STUDY

Mckensy’S 7S Framework:

The McKinsey 7s model is a strategic tool and framework that helps managers and businesses
assess their performance. The McKinsey 7s model identifies 7 key elements for an
organization that need to be focused and aligned for successful change management
processes as well as for regular performance enhancements.

The 7 elements identified in the McKinsey 7s model can be categorized as being hard or soft
in nature. They are identified as:

Hard Elements Soft Elements

Shared Values
Strategy Skills
Structure Style
Systems Staff

 Hard elements:

The hard elements of the McKinsey 7s model comprise of strategy, structure, and systems.
The hard elements of the model are easier to identify, more tangible in nature, and directly
controlled and influenced by the leadership and management of the organization.
 Strategy:

The strategic direction and the overall business strategy for Canara Bank Turnaround are
clearly defined and communicated to all the employees and stakeholders. This helps the
organization manage performance, guide actions, and devise different tactics that are aligned
with the business strategy. Moreover, the business strategy‘s definition and communication
also make operations for Canara Bank Turnaround more transparent and aligns the
responsibilities and actions of the company.

Structure:

Canara Bank Turnaround has a flatter organizational hierarchy that is supported by learning
and progressive organizations. With lesser managerial levels in between and more access to
the senior management and leadership, the employees feel more secure and confident and
also have higher access to information. Moreover, the flatter hierarchy also allows quicker
decision-making processes for Canara Bank Turnaround and increases organizational
commitment in the employees.

Systems:

Canara Bank Turnaround has defined and well-demarcated systems in place to ensure that the
business operations are managed effectively and that there are no conflicts or disputes. The
systems at Canara Bank Turnaround are largely departmental in nature.

 Soft elements:

The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills, and
strategy. These elements are less tangible in nature and are more influenced by the
organizational culture. As such, the management does not have direct influence or control
over them. These elements are also harder to describe and directly identify – but are equally
important for an organization‘s success and improved performance.

Shared values:

The core values at Canara Bank Turnaround are defined and communicated to foster a
creative and supportive organizational structure that will allow employees to perform
optimally, and enhance their motivation and organizational commitment.
 Skills:

Canara Bank Turnaround has a commendable workforce, with high skills and capacities.
All employees are recruited based on their merit and qualifications. Canara Bank
Turnaround prides itself on hiring the best professionals and grooming them further to
facilitate growth and development.

Style:

Canara Bank Turnaround has a participative leadership style. Through a participative

leadership style, Canara Bank Turnaround is able to engage and involve its employees in
decision-making processes and managerial decisions. This also allows the leadership to
regularly interact with the employees and different managerial groups to identify any
potential conflicts for resolution, as well as for feedback regarding strategic tactics and
operations.

Staff:

Canara Bank Turnaround has a sufficient number of employees employed across its
global operations. Employees for different job roles and positions are hired internally as
well as externally – depending on the urgency and the skill levels required. Based on this,
it is seen that Canara Bank Turnaround has employees who are skilled as per the
requirements of their job roles and positions. All employees are given in house training to
familiarize themselves with the company and its values. External training along with in-
house training is provided for skill level enhancement.

Porter’s Five Force Model:

Porter Five (5) Forces Model was proposed by Michael E. Porter in 1979. The purpose
was to assess and evaluate the competitive positioning and strengths of business
organisations. The model has three horizontal competitive forces (Threat of Substitute
Products or services, the threat of new entrants and rivalry among existing firms) and two
vertical forces (Bargaining power of buyers and bargaining power of suppliers).

These forces shape the competition within any industry. The overall industry
competitiveness declines when these forces reduce profitability. Porter found SWOT
analysis lacking in rigour. Many new companies use the Porter Five (5) Forces Model to
decide whether it is profitable to enter in a particular industry.
 Application of this model can help Canara Bank Turnaround to determine the industry
attractiveness and understand its competitive positioning in the market. The analysis can
also be used to make some strategically wise decisions that could improve the
performance of Canara Bank Turnaround and ensure long-term survival.

Threat of new entrants:

Threat of new entrants reflects how new market players impose threats to the existing
market players. If the industry will be profitable and barriers to enter the industry will be
low, it will attract more players and hence, the threat of new entrants will be high. If there
is strong threat of new entrants then current players will be willing to earn less profits to
reduce the threats.

Here are some factors that reduce the threat of new entrants for Canara Bank Turnaround:

 Entry in the industry requires substantial capital and resource investment. This force
also loses the strength if product differentiation is high and customers place high
importance to the unique experience.
 Canara Bank Turnaround will face the low threat of new entrants if existing
regulatory framework imposes certain challenges to the new firms interested to enter
in the market. In this case, new players will be required to fulfil strict, time consuming
regulatory requirements, which may discourage some players from entering the
market.
 The threat will be low if psychological switching cost for consumers is high and
existing brands have established a loyal customer base.
 New entrants will be discouraged if access to the distribution channels is restricted.
Canara Bank Turnaround will be facing high new entrants threat if:

 Existing regulations support the entry of new players.

 Consumers can easily switch the brands due to weak/no brand loyalty.
 Initial capital investment is high.
 Building a distribution network is easy for new players.
 Retaliation from the existing market players is not a discouraging factor.

Threat of substitute:

The availability of substitute products or services makes the competitive environment

challenging for Canara Bank Turnaround and other existing players. High substitute threat
shows that customers can use alternative products/services from other industries to meet their
needs. Various factors determine the intensity of this threat for Canara Bank Turnaround

The Threat of Substitute Products or services increases when:

 A cheaper substitute product/service is available from another industry

 The psychological switching costs of moving from industry to substitute products are
low.
 Substitute product offers the same or even superior quality and performance as
offered by Canara Bank Turnaround‘s product.

However, this threat is substantially low for Canara Bank Turnaround when;

 The switching cost of using the substitute product is high (due to high psychological
costs or higher economic costs)
 Customers cannot derive the same utility (in terms of quality and performance) from
substitute product as they derive from the Canara Bank Turnaround‘s product.

Industry rivalry:

The Rivalry among existing firms shows the number of competitors that give tough
competition to the Canara Bank Turnaround High rivalry shows Canara Bank Turnaround
can face strong pressure from the rival firms, which can limit each other‘s growth potential.
Profitability in such industries is low as firms adopt aggressive targeting and pricing
strategies against each other.
The Rivalry among existing firms will be low for Canara Bank Turnaround if:

 There are only a limited number of players in the market

 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets different sub-
segments
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the industry without
incurring huge losses.

Bargaining Power of Suppliers:

Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted by
suppliers on business organisations by adopting different tactics like reducing the product
availability, reducing the quality or increasing the prices. When suppliers have strong
bargaining power, it costs the buyers- (business organisations). Moreover, high supplier
bargaining power can increase the competition in the industry and lower the profit and
growth potential for Canara Bank Turnaround Similarly, weak supplier power can make the
industry more attractive due to high profitability and growth potential.

Bargaining power of suppliers will be high for Canara Bank Turnaround if:

 Suppliers have concentrated into a specific region, and their concentration is higher
than their buyers.
 This force is particularly strong when the cost to switch from one supplier to other is
high for buyers (for example, due to contractual relationships).
 When suppliers are few and demand for their offered product is high, it strengthens
the suppliers‘ position against Canara Bank Turnaround
 Suppliers‘ forward integration weakens the Canara Bank Turnaround‘s position as
they also become the competitors in that area.
 If Canara Bank Turnaround is not well educated, does not have adequate market
knowledge and lacks the price sensitivity, it automatically strengthens the suppliers'
position against the organisation.
 Other factors that increase the suppliers‘ bargaining power include-high product
differentiation offered by suppliers, Canara Bank Turnaround making only a small
proportion of suppliers‘ overall sales and unavailability of the substitute products.
Bargaining Power of Buyers:

Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer
service. This force directly influences the Canara Bank Turnaround‘s ability to accomplish
the business objectives. Strong bargaining power lowers profitability and makes the industry
more competitive. Whereas, when buyer power is weak, it makes the industry less
competitive and increase the profitability and growth opportunities for Canara Bank
Turnaround

There are some factors that increase the bargaining power of buyers:

 A more concentrated customer base increases their bargaining power against Canara
Bank Turnaround
 Buyer power will also be high if there are few in number whereas a number of sellers
(business organisations) are too many.
 Low switching costs (economic and psychological) also increase the buyers‘
bargaining power.
 In case of corporate customers, their ability to do backward integration strengthens
their position in the market. Backward integration shows the buyers' ability to produce
the products themselves instead of purchasing them from Canara Bank Turnaround
 Consumers‘ price sensitivity, high market knowledge and purchasing standardised
products in large volumes also increase the buyers' bargaining power.
 Chapter-4

SWOT ANALYSIS

Strength:

Strengths are the Canara Bank capabilities and resources that it can leverage to build a
sustainable competitive advantage in the marketplace. Strengths come from positive aspects
of five key resources & capabilities - past experiences and successes, physical resources such
as land, building, activities & processes, human resources, and financial resources.

 Schemes are innovative in nature –

The schemes introduced by the bank are very innovative in nature. It provides loans at
a very low rate for people living in the rural areas and hence helps in uplifting the
living standard in rural areas by helping farmers. It collaborated with UNEP so as to
launch a scheme for solar loans.
 The banking style –
In comparison to other public banks in India Canara bank articulates the best practices
and creates a good banking experience for the customers which lead to the better
brand image in the minds of the customers.
 Employment Generation –
The bank employs more than 40000 people in India and hence generates employment
for the huge amount of people.
 First Mover Advantage – Canara Bank has first mover advantage in number of
segments. It has experimented in various areas financial management. The Strategy &
Execution solutions & strategies has helped Canara Bank in coming up with unique
solution to tap the un-catered markets.
 Strong relationship with existing suppliers – As an incumbent in the industry,
Canara Bank has strong relationship with its suppliers and other members of the
supply chain. According to R.R. Sharma, Deepak Tandon, the organization can
increase products and services by leveraging the skills of its suppliers and supply
chain partners.

Weakness:

Weaknesses are the areas, capabilities or skills in which Canara Bank lacks. It limits the
ability of the firm to build a sustainable competitive advantage. Weaknesses come from lack
or absence of five key resources & capabilities - financial resources, physical resources such
as land, building, human resources, activities & processes, and past experiences and
successes.
  Marketing is Poor –
Being a public bank in India the marketing focus is very less and hence this leads to
low publicity in the market despite offering good banking facilities and experience to
the customers. Bank does not have a marketing department which focuses on
increasing the awareness of the bank in the market.
 Customer Service is Poor –
The banking industry in India is very competitive and customer service is one thing
which uniquely differentiates the bank. Canara bank has not been able to deliver a
good customer service. Customers are generally not happy with the way staff handles
the queries and imparts services at the banks. Also, the online banking facilities are
not very well developed.
 Client Base is Poor –
The bank does not have a good customer base of high-income groups. Thus the
revenue generation is from low-income groups which do not increase the bottom line
of the bank and hence the growth is slow.
 Implementation of Technology in Processes –
Even though Canara Bank has integrated technology in the backend processes it has
still not able to harness the power of technology in the front end processes.
 Low Return on Investment –
Even though Canara Bank is having a stable balance sheet, one metrics that needs
reflection is ―Return on Invested Capital‖. According to R.R. Sharma, Deepak
Tandon in areas financial management that Canara Bank operates in the most reliable
measure of profitability is Return on Invested Capital rather than one favoured by
financial analysts such as – Return on Equity & Return on Assets.

Opportunities:

Opportunities are macro environment factors and developments that Canara Bank can
leverage either to consolidate existing market position or use them for further expansion.
Opportunities can emerge from various factors such as - changes in consumer preferences,
increase in consumer disposable income, political developments & policy changes,
technological innovations, and economic growth.

 Rural Banking –
The bank can explore more aspects of rural banking as the majority of Indians are
living in the rural areas and hence by fulfilling their banking needs the bank can grow
its revenue.
 Social Banking –
In the era of social media the banks are adopting social channels and hence catering to
the needs of customers using an additional challenge and saving their time to visit
physical banks.
  Increasing Standardization –
Canara Bank can leverage this trend to reduce the number of offerings in the market
and focus the marketing efforts on only the most successful products.
 Developments in Artificial Intelligence –
Canara Bank can use developments in artificial intelligence to better predict consumer
demand, cater to niche segments, and make better recommendation engines.
 Increase in Consumer Disposable Income –
Canara Bank can use the increasing disposable income to build a new business model
where customers start paying progressively for using its products. According to R.R.
Sharma, Deepak Tandon of Canara Bank Turnaround case study, Canara Bank can
use this trend to expand in adjacent areas financial management.

Threats:

This analysis helps in understanding what are the areas which can impact the business in
future or right away. So, business has to prepare itself to handle the threats in the market
landscape. Competition or increasing number of players in the market with same value
proposition is a threat to business as it directly lowers down the customer base and revenue

 Competition is increasing from Private Sector Banks –

Private sector banks are coming up with innovative investment schemes and hence
taking the share of retail customers.
 Economic Crisis –
Due to the economic crisis the customers are not saving money in the banks and
hence this reduces the liquidity of banks and they cannot operate smoothly due to lack
of cash.
 Changing Policies –
Banking policies are subject to the rules and regulation of RBI and hence any change
from RBI has a direct impact on the operations of the bank.
 Government Regulations and Bureaucracy –
Canara Bank should keep a close eye on the fast changing government regulations
under the growing pressure from protest groups and non-government organization
especially regarding to environmental and labour safety aspects.
 Increasing costs component for working in developed market because of
environmental regulations –
Canara Bank has to deal with these costs as governments are trying to levy higher
environmental taxes to promote cleaner options. For Canara Bank it may result into
higher logistics costs and higher packaging costs.
 Chapter-5

ANALYSIS OF FINANCIAL STATEMENTS

Financial Statements of Canara Bank:

PROFIT AND LOSS A/C

Particular Mar Mar Mar Mar Mar Mar 2016

2021 2020 2019 2018 2017 (rs).cr
(rs).cr (rs).cr (rs).cr (rs).cr (rs).cr

INCOME:
Interest earned 69239.78 48934.99 46810.34 41252.09 41387.64 44022.14

Other income 15285.29 7813.15 6574.96 6942.85 7554.40 4875.23

Total 84525.07 56748.14 53385.30 48194.94 48942.04 48897.37
Total 81967.50 58983.86 53038.29 52417.18 47820.12 51710.18
Expenditure
Interest expended 45177.62 35811.08 32332.22 29088.76 31515.87 34258.77
Payments to/ provisions for 12689.96 7134.18 6039.81 5444.11 4915.09 4445.88
employees
Operating expenses & 3218.38 1927.37 1853.11 1921.02 1778.58 1634.53
administrative expenses
Depreciation 820.17 432.16 416.84 445.05 327.54 169.96
Other expenses, provisions & 18911.72 13198.91 15070.73 17856.86 8763.05 11573.99
contingencies
Provision for tax 1149.65 480.15 -2674.42 -2338.62 520.00 -372.95
Fringe benefit tax 0.00 0.00 0.00 0.00 0.00 0.00
Deferred tax 0.00 0.00 0.00 0.00 0.00 0.00
Total 84525.07 56748.14 53385.30 48194.94 48942.04 48897.37
Total 81967.50 58983.86 53038.29 52417.18 47820.12 51710.18
Profit & Loss
Reported net profit 2557.58 -2235.72 347.02 -4222.24 1121.92 -2812.24
Extraordinary items 28.70 -1.34 -2.87 -4.53 1.32 -0.58
Adjusted net profit 2528.88 -2234.38 349.89 -4217.71 1120.60 -2812.24
Prior year adjustments 0.00 0.00 0.00 0.00 -1058.00 0.00
Profit brought forward -9270.78 -7035.06 -7035.06 -2748.90 -2812.82 0.00
Appropriation
Transfer to statutory reserve 639.39 0.00 86.76 0.00 0.00 0.00
Transfer to other reserves 11142.71 0.00 260.26 63.92 0.00 0.00
Trans. to Government/ proposed 0.00 0.00 0.00 0.00 0.00 0.00
dividend
Balance carried forward to -18495.30 -9270.78 -7035.06 -7035.06 -2748.90 -2812.82
balance sheet
Equity Dividend% 0.00 0.00 0.00 0.00 10.00 0.00
Earnings per share- unit curr 15.53 -21.70 4.61 0.00 18.78 0.00
Earnings per share(Adj)- unit 15.53 -21.70 4.61 0.00 18.78 0.00
curr
Book value-unit curr 307.28 319.93 394.68 369.59 474.01 481.75
 CASH FLOW STATEMENT

Particular Mar 2021 Mar 2020 Mar 2019 Mar 2018 Mar 2017

Profit before tax 2557.58 -2235.72 347.02 -4222.24 1121.92

Net cash flow from operating activity 58533.23 -5458.74 17886.08 -11503.83 2316.15

Net cash used in investing activity -665.84 -277.05 -461.12 -274.16 -348.46

Net cash used in financing activity 283.89 7854.57 -1184.60 2864.86 124.11

Net inc/dec in cash and cash equivalent 58151.28 2118.78 16240.36 -8913.13 2091.80

Cash and cash equivalent- Beginning of 120256.75 66152.69 49912.33 58825.46 56733.66
the year

Cash and cash equivalent-End of the year 178408.03 68271.47 661752.69 49912.33 58825.46
 BALANCE SHEET

Particulars Mar 2021 Mar 2020 Mar 2019 Mar 2018 Mar 2017 Mar 2016
SOURCES OF FUNDS
Capital 1646.74 1030.23 753.24 733.24 597.29 542.99
Reserves total 57238.19 38262.73 35423.99 34871.59 33088.25 31060.21
Equity share warrants 0.00 0.00 0.00 0.00 0.00 0.00
Equity application money 0.00 0.00 0.00 0.00 0.00 0.00
Deposits 1010874.58 625351.17 599033.27 524771.86 495275.24 479791.56
Borrowings 49983.56 42761.77 40992.29 38808.51 39503.56 26873.32
Other liabilities & 37555.80 19588.26 21665.77 20814.02 19137.86 18702.14
provisions

TOTAL LIABILITIES 1157298.87 726994.16 697868.56 619999.22 587602.20 556970.21

APPLICATION OF
FUNDS

Cash & balances with RBI 43111.62 22570.14 29919.02 22100.04 19922.49 20664.05
Balances with banks & 135296.41 45701.33 36233.67 27812.29 38902.96 36069.61
money at call

Investments 261690.39 176244.94 152985.30 144053.67 150265.89 142309.30

Advances 639048.99 432175.20 427727.27 381702.99 342008.76 324714.82
Fixed assets 11206.53 8276.29 8410.23 8318.64 7168.32 7198.10
Other assets 66944.93 42026.26 42593.08 36011.59 29333.78 26014.33
Miscellaneous 0.00 0.00 0.00 0.00 0.00 0.00
expenditure not written
off
TOTAL ASSETS 1157298.87 726994.16 697868.56 619999.22 587602.20 556970.21
Contingent liability 507071.82 373497.98 359059.22 293728.89 432470.42 287945.56
Bills for collection 53385.99 35939.89 28847.92 26782.08 27176.31 26563.00
 COMPARATIVE BALANCE SHEET

Particular Mar 2021 Mar 2020 Increase or Increase or

decrease in decrease in
amount percentage
SOURCES OF FUNDS
Capital 1646.74 1030.23 616.51 59.84
Reserves total 57238.19 382622.73 -325384.54 85.04
Equity share warrant 0.00 0.00 0.00 0.00
Equity application money 0.00 0.00 0.00 0.00
Deposits 1010874.58 625351.17 385523.41 61.64
Borrowings 49983.56 42761.77 7221.79 16.88
Other liabilities and provisions 37555.80 19588.26 17967.54 91.73
TOTAL LIABILITIES 1157298.87 726994.16 430304.71 59.19
APPLICATION OF FUNDS
Cash and balances with RBI 43111.62 22570.14 20541.48 91.01
Balances with banks & money at 135296.41 45701.33 89595.08 196.04
call
Investments 261690.39 176244.94 85445.45 48.48
Advances 639048.99 432175.20 206873.79 47.86
Fixed assets 11206.53 8276.29 2930.24 35.41
Other assets 66944.93 42026.26 24918.67 59.29
Miscellaneous expenditure not 0.00 0.00 0.00 0.00
written off
TOTAL ASSETS 1157298.87 726994.16 430304.71 59.19

INTERPRETATION:

 Borrowings have increased by 7221.79 (16.88%) in the year 2021 compared to the
year 2020.
 There is increase in investment by 85445.45 (48.48%).
 There is decrease in cash and balance with RBI while compared to balances with
banks & money at call.
 There is no decrease or increase in equity share warrant and equity application money.
 RATIO ANALYSIS

Particular Mar 2021 Mar 2020 Mar 2019 Mar 2018 Mar 2017
PER SHARE RATIOS
Adjusted EPS (Rs.) 15.53 -21.70 4.61 130.22 18.78
Adjusted cash EPS (Rs.) 20.51 -17.51 10.14 136.29 24.27
Reported EPS(Rs.) 15.53 -21.70 4.61 -57.58 18.78
Reported cash EPS(Rs) 20.51 -17.51 10.14 -51.51 24.27
Dividend per share 0.00 0.00 0.00 0.00 0.00
Operating profit per share (Rs) -65.33 -88.68 -112.65 -114.31 -93.50
Book value (Excl Rev res) per 307.28 319.93 394.68 396.59 474.01
share(Rs)
Book value (Incl rev res) per 357.59 381.40 480.29 485.58 563.97
share (Rs)
Net operating income per share 420.47 474.99 621.45 562.60 692.92
(Rs)
Free reserves per share (Rs) 0.00 0.00 0.00 0.00 0.00

PROFITABILITY RATIOS
Operating margin (%) -15.53 -18.67 -18.12 -20.31 -13.49
Adjusted cash margin (%) 3.99 -3.17 1.43 20.73 2.96
Adjusted return on net worth 5.05 -6.78 1.16 32.83 3.96
(%)
Reported return on net worth 5.05 -6.78 1.16 -14.51 3.96
(%)
Return on long term funds (%) 96.60 103.32 100.92 132.86 117.11

LEVERAGE RATIOS
Long term debt/ equity 0.00 0.00 0.00 0.00 0.00
Owners fund as % of total 4.76 5.00 4.72 5.25 5.40
source
Fixed assets turnover ratio 0.08 0.07 0.07 0.07 0.07

LIQUIDITY RATIOS
Current ratio 1.87 2.36 2.13 1.86 1.68
Current ratio (Inc.ST loans) 0.06 0.06 0.06 0.06 0.05
Quick ratio 21.97 29.97 26.78 24.67 25.72
Fixed assets turnover ratio 0.08 0.07 0.07 0.07 0.07

PAYOUT RATIOS
Dividend payout ratio (Net 0.00 0.00 0.00 0.00 0.00
profit)
Dividend payout ratio (Cash 0.00 0.00 0.00 0.00 0.00
Profit)
Earning retention ratio 100.00 100.00 100.00 100.00 100.00
Cash earnings retention ratio 100.00 0.00 100.00 100.00 100.00

COVERAGE RATIOS
Adjusted cash flow time total 299.27 0.00 784.23 52.51 341.70
debt
Financial charges coverage ratio 1.46 1.27 1.34 1.34 1.29
Fin. Charges Cov. Ratio( post 1.07 0.95 1.02 0.87 1.05
tax)

COMPONENT RATIOS
Material cost component (% 0.00 0.00 0.00 0.00 0.00
earnings)
Selling cost component 0.06 0.06 0.07 0.08 0.10
Exports as per cent of total sales 0.00 0.00 0.00 0.00 0.00
Import comp.in Raw Mat. 0.00 0.00 0.00 0.00 0.00
consumed
Long term assets/ total assets 0.81 0.83 0.80 0.82 0.86
Bonus component in equity 0.00 0.00 0.00 0.00 0.00
capital (%)
 CHAPTER-06

LEARNING EXPERIENCE AND BIBLIOGRAPHY

Learning experience:

I visited canara bank beekanahalli branch on 29th sep 2021 and regularly visited the branch
during office hours upto 30th oct 2021. I interacted with the branch manager and studied the
working system of the bank. I also opened the bank website and studied the various bank
deposits and loan schemes I also observed the various types of loans in the bank. The website
also disclosed the bank balance sheet and profit and loss account.

I learnt that bank borrows from the customers as deposits by accepting the deposit and same
is lent to the borrowers for development activity. The bank helps for building houses,
development of industries and opening of new business etc. The bank helped the society to
improve by lending for developing agriculture, small scale industries.

The bank helps the salaried persons by providing them personal loans which supports the
development of the nation where by consumer can purchase the products. The bank helps the
old age people by safe guarding there deposits and paying them a reasonable rate of interest.
The bank pays the government subsidies and old age pensions here by supporting the old age
people. All the government transactions are done by the bank. The banks have earned
confidence of the people. The bank also manages foreign exchange and it also sells pure gold
at a market rate. Bank also manages issue of shares and debentures.

Canara bank was founded with an intension to serve agriculturist, small business people and
the money lenders where charging a exorbitant rate of interest on loans. The borrower
couldn‘t repay the interest have to sell of all his properties to repay the loan.

Canara bank provided loans to small business enterprises agriculturists at a low rate of
interest. The bank obtained deposits from small farmers, aged persons and gave them regular
interest income. The bank has guaranteed the deposits by insuring it in DICGCI.

The bank also works as a intermediary to government agency by paying pension, old age
pension, subsidies, reliefs the government also sends the direct benefits through the banks by
RTGS. The bank has provided a very good service to the customers. The customers are
confident that their hard earned money is in safe hands.
Bibliography:

ANNEXURE RELEVENT TO THE ORGNIZATION STUDY:

Shri Lingam Venkat Prabhakar, CEO of Canara Bank

Headquarters of canara bank

Links used for collecting data:

https://canarabank.com

https://www.paisabazaar.com/canara-bank/

https://www.paisabazaar.com/banking/canara-bank-mobile-banking/

https://economictimes.indiatimes.com/canara-bank/shareholding/companyid-9218.cms

https://canarabank.com/User_page.aspx?fid=9#:~:text=Canara%20Bank%20has%20been%2
0awarded,%E2%80%93%20(Public%20Sector%20Bank).

https://economictimes.indiatimes.com/canara-bank/balancesheet/companyid-9218.cms

https://www.ndtv.com/business/stock/canara-bank_canbk/financials-ratio