MIRA INFORM REPORT

Report Date :

15.09.2012

IDENTIFICATION DETAILS

Name :	CANARA BANK
Head Office :	Canara Bank Building, 112, J C Road, P B No.6648, Bangalore – 560002, Karnataka
Country :	India
Financials (as on) :	31.03.2012
Year of Establishment :	1906
Capital Investment / Paid-up Capital :	Rs.4430.000 Millions
TAN No.: [Tax Deduction & Collection Account No.]	BLRC03111D BLRC02429A BLRC01080C
Legal Form :	Nationalized Bank
Line of Business :	Providing Banking Services
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Aa (76)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 910000000
Status :	Excellent
Payment Behaviour :	Prompt
Litigation :	Exists
Comments :	Subject is a well established and reputed bank having excellent track. It derives its strength from its majority owner, the Government of India. The bank has got strong market position, adequate assets quality and capitalisation. Trade relations are reported as praise worthy. Business is active. Payments are reported to be prompt. The bank can be considered best for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	INFRASTRUCTURE BONDS : AAA
Rating Explanation	Highest degree of safety and lowest credit risk
Date	03.07.2012

Rating Agency Name	CRISIL
Rating	CERTIFICATE OF DEPOSITS : A1+
Rating Explanation	Very strong degree of safety and lowest credit risk
Date	03.07.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Head Office :	Canara Bank Building, 112, J C Road, P B No.6648, Bangalore – 560002, Karnataka
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	hosecretarial@canarabank.com

DIRECTORS

As on 31.03.2012

Name :	Mr. S Raman
Designation :	Chairman & Managing Director
Name :	Mrs. Archana S. Bhargava
Designation :	Executive Director
Name :	Mr. Ashok Kumar Gupta
Designation :	Executive Director
Name :	Dr. THOMAS MATHEW
Designation :	Director representing Government of India
Name :	Mrs. Meena Hemchandra
Designation :	Director representing Reserve Bank of India
Name :	Mr. G.V. Sambasiva Rao
Designation :	Workmen Employee Director
Name :	Mr. G.V. Manimaran
Designation :	Officer Employee Director
Name :	Mr. Khalid Luqman Bilgrami
Designation :	Part -time Non-Official Director
Name :	Mr. Sutanu Sinha
Designation :	Part Time Non Official Director
Name :	Mr. P. V. Maiya
Designation :	Director Representing Shareholders
Name :	Mr. Sunil Gupta
Designation :	Shareholder Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	300,000,000	67.72
Sub Total	300,000,000	67.72
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	300,000,000	67.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	10,151,131	2.29
Financial Institutions / Banks	5,145,555	1.16
Insurance Companies	33,885,378	7.65
Foreign Institutional Investors	65,069,633	14.69
Sub Total	114,251,697	25.79
(2) Non-Institutions
Bodies Corporate	6,738,842	1.52
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	20,258,036	4.57
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	850,053	0.19
Any Others (Specify)	901,372	0.20
Trusts	118,314	0.03
Clearing Members	416,313	0.09
Non Resident Indians	366,745	0.08
Sub Total	28,748,303	6.49
Total Public shareholding (B)	143,000,000	32.28
Total (A)+(B)	443,000,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	443,000,000	-

BUSINESS DETAILS

Line of Business :

Providing Banking Services

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Reserve Bank of India

Facilities :

BORROWINGS	As on 31.03.2012 (Rs. in Millions)	As on 31.03.2011 (Rs. in Millions)
BORROWINGS IN INDIA
- Reserve Bank of India	0.000	0.000
- Other Banks	1271.875	0.000
- Other Institutions and Agencies	8207.625	9885.207
- Unsecured Redeemable Bonds, IPDI and Sub-Ordinated Debt)	76935.500	79435.500
Total (A)	86415.000	89320.707
BORROWINGS OUTSIDE INDIA
- Other Banks	56103.222	42098.776
- Unsecured Redeemable Bonds (Sub-Ordinated Debt)	12735.694	11196.975
Total (B)	68838.916	53295.751
Total (A) + (B)	155253.916	142616.458

Banking Relations :	--
Auditors :	Not Available
Parent :	· Canara Bank
Subsidiaries :	· Canbank Financial Services Limited · Canbank Venture Capital Fund Limited · Canbank Factors Limited · Canara Robecco Asset Management Company Limited · Canbank Computer Services Limited · Canara Bank Securities Limited (formerly GILT Securities Trading Corporation Limited) · Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited
Joint Venture :	· Commercial Bank of India LLC, Moscow
Associates :	· Canfin Homes Limited · Commonwealth Trust (India) Limited · CARE Limited · Regional Rural Banks sponsored by the Bank - Pragati Gramin Bank - South Malabar Gramin Bank - Shreyas Gramin Bank

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000000	Equity Shares	Rs.10/- each	Rs.30000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
443000000	Equity Shares	Rs.10/- each	Rs.4430.000 Millions

Of the above

- 300000000 Equity Shares of Rs.10/- each held by Central Government

- 143000000 Equity Shares of Rs.10/- each held by Others

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

CAPITAL AND LIABILITIES	31.03.2012	31.03.2011	31.03.2010
CAPITAL	4430.000	4430.000	4100.000
RESERVES AND SURPLUS	222469.556	195968.188	142617.834
DEPOSITS	3270537.271	2934366.416	2346514.432
BORROWINGS	155253.916	142616.458	84405.573
OTHERLIABILITIES AND PROVISIONS	88911.184	82067.505	69772.989
TOTAL	3741601.927	3359448.567	2647410.828
ASSETS
CASH AND BALANCES WITH RESERVE BANK OF INDIA	177951.357	220147.924	157194.642
BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE	103842.651	86933.228	39337.458
INVESTMENTS	1020574.282	836360.200	696769.522
ADVANCES	2324898.185	2112682.925	1693346.306
FIXED ASSETS	28575.368	28444.049	28593.722
OTHER ASSETS	85760.084	74880.241	32169.178
TOTAL	3741601.927	3359448.567	2647410.828

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2012	31.03.2011	31.03.2009
I.	INCOME
	Interest Earned	308506.215	229400.689	187519623
	Other Income	29275.965	28114.621	28579024
	TOTAL	337782.180	257515.310	216098647
II.	EXPENDITURE
	Interest Expended	231613.116	152407.357	130714284
	Operating Expenses	46737.434	44193.156	34776235
	Provisions And Contingencies	26604.500	20655.914	20393824
	TOTAL	304955.050	217256.427	185884343
III.	NET PROFIT FOR THE YEAR	32827.130	40258.883	30214304
IV.	APPROPRIATIONS
	Transfers To
	Statutory Reserve	8250.000	10200.000	7600000
	Capital Reserve	51.500	452.864	705577
	Investment Reserve Account	0.000	0.000	1457876
	Revenue Reserve	11852.630	16933.018	8650851
	Special Reserve	7000.000	7000.000	7000000
	Proposed Dividend	4873.000	4873.000	4100000
	Dividend Tax	800.000	800.000	700000
	TOTAL	32827.130	40258.882	30214304
	Earnings per share(basic and diluted)-in RS.	74.10	97.83	73.69

QUARTERLY RESULTS

PARTICULARS	30.06.2012
	1^stQuarter
	Unaudited
Interest Earned	54728.600
Income On Investments	20398.900
Interest On Balances With Rbi Other Inter Bank Funds	2039.000
Interest / Discount On Advances / Bills	62290.700
Others	0.000
Other Income	6926.100
Total Income	91654.700
Interest Expended	66293.200
Operating Expenses	11423.800
Total Expenditure	11423.800
Operating Profit Before Provisions and Contingencies	139.37.700
Exceptional Items	0.000
Provisions and contingencies	4185.300
Profit Before Tax	9752.400
Tax	2000.000
Profit After Tax	7752.400
+/- Extraordinary Items	0.000
+/- Prior period items	0.000
Net Profit	7752.400

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	No
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	No
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	No
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	No
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS

HIGH COURT OF KARNATAKA

Principal Bench at Bangalore
CMP (Civil Misc Petition)			Case No.	86		Case Year.	2012
	High court of Karnataka - Principal Bench at Bangalore
	CMP 86/2012
CASE PENDING
	Petitioner / Appnt. Name			3M INDIA LIMITED
	Respondent / Defnt. Name			CANARA BANK
	Petnr./Appnt. Advocate			POOVAYYA AND CO AND
	Respnt. / Defnt. Advocate			V HARIDAS BHAT
	Date Filed			28/06/2012
	Distict			Bangalore City
Stage		PENDING FOR ADMISSION			Last Posted for
		ADMISSION
Last Action Taken		ADJOURNED		Last Date of Action	06/08/2012	Next hearing date
Latest order :		1 WK
Before Hon'ble Judges\s		SUBHASH B ADI

MANAGEMENT DISCUSSION AND ANALYSIS

ECONOMIC ENVIRONMENT

Indian economy continues to be one of the fastest growing economies in the world. Compared to challenging global economic environment, Indian economy remained, by and large, stronger and resilient. As a cumulative impact of past monetary policy tightening and global uncertainties, the GDP growth moderated during the year. As per the advance estimates released by the Central Statistical Organization (CSO), GDP growth for 2011-12 was estimated at 6.9% compared to 8.4% in 2010-11. Agriculture and industrial sectors grew by 2.5% (7.0%) and 3.9% (7.2%) respectively Services sector recorded a healthy growth of 9.4% (9.3%). Under industry segments, while electricity, gas and water supply grew by 8.3% (3%), manufacturingsectorgrewby3.9% (7.6%). Under services, trade, hotels, transport and communications grew by 11.2% (11.1%) and community sociaI and personaI services grew by 5.9% (4.5%).

Moderation in major macroeconomic indices and slowdown in investment demand resulted in a slightly lower consumer sentiment during the year. Savings and investment rates for 2011-12 estimated at 31.6% (32.3%) and 35.2% (35.1%) respectively. Inflation continued to be the primary concern among the policy makers during 2011-12. Inflation, which remained over9%fora large part of 2011-12, was mainly driven by food and fuel items. The monthly wholesale price index (WPI) stood at 6.89% in March 2012 com pa red to 9.68% in March 2011.

India's exports posted a significant growth and surpassed the growth target of US$300 billion set for 2011-12, despite challenging economic environment in major markets like the US and Europe. As per the provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), during April-March 2011-12, merchandise exports of India increased to US $304 billion, recording a growth of 20.9%. Cumulative value of imports during April-March 2011-12 increased to US$489 billion, registering a growth of 32.2%. Trade deficit widened to a record US$185 billion in 2011-12, higher than the Government's target of US$150 billion and US$119 billion deficit recorded during 2010-11.

The financial markets in India moved in tune with the developments witnessed in the global and domestic fronts. Indian financial market segments having a high degree of external linkages turned volatile, while the other segments without strong linkages remained less so. The foreign exchange and equity markets exhibited high volatility. Money markets remained largely stable with call money rate largely remaining within the Liquidity Adjustment Facility (LAF) corridor. Increase in capital outflows coupled with higher trade deficit resulted in sharp fall in the exchange rate of the Indian rupee during the year. Rupee depreciated against US dollar and reached 54.20 in December 2011. However, with market interventions by RBI and the deregulation of NRE deposits, the rupee was at 51.16 against US dollar as on March 30,2012.

Economic Environment in Karnataka

Karnataka is one of the progressive States in India. Widely acclaimed for its internationally reputed Information and Bio-technology companies, the State is home to varied industrial activities, leading research and development institutions and a pool of skilled manpower. As per the Economic Survey of Karnataka 2011-12, the real growth in Gross State Domestic Product (GSDP) is estimated at 6.4% during 2011-12 driven by higher growth in services sector (10.6%). Canara Bank, owing its origin to the State, is continuing its key position in the State. The Bank has been playing a leading role in extending financial services to large number of people through its 682 branches, spread across the State. The State contributes over 15% to total domestic business of the Bank. The total business of the Bank in the State stood at Rs. 823780.000 Millions comprising Rs. 484550.000 Millions under deposits and Rs.=39230.000 Millions under advances as at March 2012.

MONETARY AND BANKING DEVELOPMENTS

Growth in key monetary aggregates and money supply in 2011-12 reflected the changing liquidity conditions arising from domestic and global financial environment. The monetary policy stance during the year was to contain inflation and actively manage liquidity to support growth.

Money supply (M3) growth, which was 17% at the beginning of the financial year, moderated during the course of the year to 13.7% bend-March 2012, lower than the Reserve Bank of India's (RBI) indicative trajectory of 15.5%.

During the year, Scheduled Commercial Banks (SCBs), aggregate deposits increased by 17.4% as against 15.9% recorded in 2010-11. The growth in credit was at 19.3% compared to 21.5% a year ago. With the y-o-y credit growth outpacing deposits growth during the year, the credit-deposit (CD) ratio increased sharply to 76.97% as on March 30,2012, the highest in the past 5years.

The banking sector in India remained healthy and resilient and performed reasonably well during 201112. However, the slowdown in macro economy has resulted in some deterioration in the asset quality

The year 2011-12 saw the following key policy measures announced by the RBI.

· RBI increased the Repo rate and Reverse Repo rate by 175 basis points to 8.50% and 7.50% respectively

· RBI reduced the CRR by 125 basis points from 6.00%to 4.75% of NDTL

· RBI, during May 2011 policy announcement, has changed the operating procedure of monetary policy The Repo Rate was made as the only independently varying policy rate in order to more accurately signal the monetary policy stance. The Reverse Repo Rate would be determined with a spread of a 100 basis points below the Repo Rate. RBI has instituted a new Marginal Standing Facility (MSF). Banks can borrow overnight from the MSF up to 1% of their respective NDTL. The MSF rate was fixed at 100 basis points above Repo rate.

· RBI, during October 2011 policy announcement,

- has deregulated the savings bank deposit rate with the following two conditions

· First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1 lakh, irrespective of the amount in the account within this limit.

· Second, for savings bank deposits over Rs.0.100 Million, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.

- and under a more liberalized branch authorization policy, the banks were permitted to open branches in Tier 3 to Tier 6 centres (with population up to 49,999) and in Tier 2 centres (with population of 50,000 to 99,999) under a general permission, subject to reporting.

· RBI, during December 2011, has deregulated interest rates on Non-Resident (External) Rupee (NRE) Deposits and Ordinary Non-Resident (NRO) Accounts. The important draft guidelines were issued under Basel III Capital Regulations and Liquidity Risk Management and Basel III Framework on Liquidity Standards.

· RBI, during February 2012 announcement, realigned the Bank Rate to MSF Rate in a one-time technical adjustment.

OUTLOOK FOR 2012-13

Global growth prospects are seen gradually strengthening but downside risks remain elevated. The International Monetary Fund, in its latest World Economic Outlook, projected global growth at 3.5% for 2012 and 4.1% for 2013. Emerging economies will continue to lead global growth. However, uncertainties may emerge in the form of high crude oil prices and other commodity prices, medium-term sovereign debt concerns, macroeconomic imbalances persisting in many economies, disruption in global bond and currency markets

.

India's GDP growth is expected to improve in 2012-13 in view of the expansionary monetary policy stance and improving domestic demand conditions. Improved savings and investment rates, favorable financial market conditions, increase in capital flows, moderating inflation and positive business outlook would help the economy to broad-base the growth momentum during 2012-13. Savings and investment rates for 2012-13 estimated at 32.5% and 35.5% respectively. Services sector will be a major contributor in the positive domestic outlook.

FINANCIAL PERFORMANCE

During the year, due to slackened business growth and increase in stressed assets at the industry level, the Bank took a conscious decision to consolidate its business position and rebalance assets and liabilities. The performance of the Bank on the business, profits and profitability fronts areas under.

The Bank earned a net profit of Rs.32830.000 Millions for 2011-12 compared to Rs.40260.000 Millions last year. Operating profit of the Bank stood at Rs.59430.000 Millions compared to Rs.60910.000 Millions last year. Return on average assets (RoAA) for the year stood at 0.95%. Profit per employee worked out to Rs.0.821 Million for the year.

BUSINESS GROWTH

Deposits

Total Deposits of the Bank registered a growth of 11.5% to reach Rs.3270540.000 Millions as at March 2012 compared to Rs.2934370.000 Millions a year ago. The Bank's CASA deposits reached Rs.796110.000 Millions as at March 2012. The Bank's CASA deposits to domestic deposits stood at 25.16%.

Savings deposits rose by 10.5% to Rs.647920.000 Millions as at March 2012. During FY12, the Bank launched nationwide campaign to mobilize SB deposits in two phases. During the campaign period, the Bank has brought in about 24 lakhs fresh SB clientele and about Rs.30000.000 Millions SB deposits in the new accounts.

Pursuing a strategy of broad-basing deposit clientele, all the branches together opened over 33 lakhs deposit accounts, taking the total number of deposit accounts to 3.75 crores.

Advances (Net)

During 2011-12, the Bank's net advances witnessed a 10% growth to reach Rs.2324900.000 Millions compared to Rs.2112680.000 Millions a year ago. The Bank's diversified credit portfolio include all productive segments of the economy like agriculture and Micro, Small and Medium Enterprises (MSME), exposure to corporate and infrastructure segments. As at March 2012, the number of borrowal accounts stood at 45 lakhs

During 2011-12, the total business of the Bank grew by 10.9% to reach Rs.5595440.000 Millions as against Rs.5047050.000 Millions during the previous financial. The Bank's domestic business constituted about 96% of the total business.

Productivity, as measured by business per employee, increased to Rs.137.400 Millions from Rs.119.600 Millions a year ago. During the year, the Bank's clientele base increased to 4.20 crores.

Retail Lending Operations

Outstanding retail lending of the Bank stood at Rs.247820.000 Millions as at March 2012. The disbursals under the retail lending stood at Rs.122790.000 Millions. The outstanding housing loan portfolio increased to Rs.158080.000 Millions, constituting 64% of the total retail lending portfolio.

The Bank took several measures during the year to expand retail credit. Retail Loan festival was observed during September-March 2012, wherein rate of interest was reduced along with concession in processing charges. To facilitate speedy disposal of proposals and credit flow, 19 Centralized Processing Units (CPU) were upgraded to Retail Asset Hubs (RAHs). As at March 2012, the Bank had 37 RAHs and 6 CPUs at major centres across the country covering 1456 branches. The Bank has implemented Online Loan Application and Tracking System.

TREASURY AND INTERNATIONAL OPERATIONS

Aggregate investments (net) of the Bank was at Rs.1020570.000 Millions as at March 2012. Portfolio modified duration came down to 4.62 years as at March 2012 from 4.75 years a year ago. The modified duration of the Available for Sale (AFS) portfolio has increased to 3.23 years as at March 2012 from 2.23yearsasat March 2011 due to redemption of short dated securities and fresh investments made in medium and long dated securities. The trading profit for the year wasRs.3240.000 Millions as against Rs.2360.000 Millions last year. The yield on investments improved to 7.96% as compared to 7.72% a year ago

The Bank continues to be an active player in Government securities as a primary dealer. The total amount of underwriting commitments for the year was Rs. 526880.000 Millions. During the year, the Bank achieved over 64% success ratio as against mandatory 40% of its obligation as a Primary Dealer.

Foreign Business Turnover of the Bank aggregated to Rs.1446240.000 Millions, comprising Rs.540360.000 Millions under exports, Rs.411510.000 Millions under imports and Rs.494370.000 Millions under remittances as at March 2012. Outstanding export credit of the Bank stood at Rs.103820.000 Millions as at March 2012.

The Bank's overseas operations covered 6 countries with one branch each at London and Leicester (UK), Hong Kong, Shanghai (China) and Manama (Bahrain) and a Representative Office at Sharjah (UAE). These apart, a joint venture Bank, namely Commercial Bank of India LLC in Moscow is also operational in association with State Bank of India.

All overseas branches recorded improved business performance during the year. Total business of the five overseas branches aggregated to US$4.33 billion for the financial year ending March 2012.

The Bank has approval from RBI for expansion in 8 other International Centres, namely, Qatar, Johannesburg (South Africa), Frankfurt (Germany), New York (USA), Sao Paulo (Brazil), Dar-es-Salaam (Tanzania), Tokyo (Japan) and Abuja (Nigeria). In this regard, the Bank has filed application with regulators of South Africa, USA and Qatar

The Bank's international operations are well supported by a wide network of 373 Correspondent Banks, spread across 79 countries. Rupee Drawing Arrangement has been made with 29 Exchange Houses and 17 Overseas Banks in the Middle East for channelizing the remittances of Non Resident Indians. The Bank has been managing two Exchange Houses viz., Al Razouki International Exchange Company, Dubai and Eastern Exchange Est., Qatar under Secondment and Management Agreement respectively

The Bank has implemented 'Remit Money', a Web Based Speed Remittance product by extending to 28 Exchange Houses and to 4 branches abroad viz. London, Leicester, Shanghai and Hong Kong. During the year 2011-12, the Bank obtained approval from RBI for remittance arrangements with 5 more Exchange Houses in UAE.

Financial Inclusion

With the basic objective of bringing the large unserved population under the banking mainstream, the Bank is striving towards a more inclusive growth by making financial products and services available to the poor in particular. As per the Government of India and the Reserve Bank of India directions, the Bank has been actively pursuing the agenda of Financial Inclusion, with key interventions in four groups, viz., expanding banking infrastructure, offering appropriate financial products, making extensive and intensive use of technology and through advocacy and stakeholder participation.

The Bank has successfully covered all the allotted 1618 villages (spread across 23 States) with population above 2000 for providing banking facilities. Under the Financial Inclusion Plan drawn by the Bank, 206 villages were covered by providing Brick & Mortar Branch facility (of which 167 financial inclusion branchesopenedduring2011-12)and by engaging 1412 Customer Service Providers (CSPs) under Business Correspondents (BC) model, which includes 30 Ultra Small Branches opened in these Centres.

In a major thrust to financial inclusion, the Bank, on its Founder's Day on 19th November 2011 issued 1.06 lakh Smart Cards, 25000 General Credit Cards (GCCs), Credit linking of 5000 SHGs, opened 106 Farmers Clubs and 15 Financial Literacy and Credit Counseling Centres (FLCCs) on the occasion.

Business Canvassed in the New FI Branches

The Bank opened 167 new branches at Financial Inclusion villages. This worked out to 48% of the 342 branches opened by the Bank during 2011-12 as against RBI stipulation of 25% of new branches required to be opened in tier V and VI centres. The branches opened in the financial inclusion villages also showed good results with more than 4 lakh accounts, Rs.4050.000 Millions business translating into an average of 2395 accounts per branch and Rs. 24.300 Millions business per branch.

No Frill Accounts

The Bank opened about 17 lakh no-frill accounts during the year with an accretion of Rs.3000.000 Millions in the no-frill accounts. The total number of no-frill accounts in the Bank at the end of 2011-12 reached 44 lakh with a balance of Rs.8200.000 Millions . On an average, the Bank covered about 1000 accounts per village. The Bank's endeavor is to credit link at least 50% of all the eligible beneficiaries through KCC, GCC and DRI Schemesduring2012-13.

Information and Communication Technology(ICT) Model

Under ICT Model, the Bank canvassed 6.5 lakh no-frill accounts during the year through Customer Service Providers (CSPs) engaged by Bank's Business Correspondents. The Bank issued Smart Cards to 2.14 lakh customers.

Micro Insurance

The scheme was originally launched to cover women SHC members for insurance. The member of SHGs gets coverage of Rs.25000 by paying an annual premium of Rs.100.Thescheme has now been extended to all members of SHGs irrespective o gender. During the year the Bank extended Micro Insurance Schemetomorethan20000customers.

Micro Pension

The Bank is also implementing Pilot Micro Pension Scheme in association with NABARD and M/S Invest India Micro Pension Services (IIMPS) in Madurai District of Tamil Nadu.

Electronic Benefit Transfer (EBT)

The payment of wages under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and Social Security Pension has been taken up in four districts of Karnataka under EBT. In two districts of Tamil Nadu, the Bank is participating in pilot projects for Old Age Pension payment and in Nadauta Village of Agra District, the Bank is participating in Pilot Project for MGNREGA payments.

AADHAAR Enrolments

Pilot Project for Aadhaar enrolments has been undertaken in 8 States,coveringl.95 lakh residents.

Micro Finance Branches

The Bank has opened 19 Micro Finance Branches in urban centres, which contributed a total business of Rs. 1500.000 Millions .

Financial Literacy and Credit Counselling Centres (FLCCs)

The Bank has set up FLCCs in 24 districts. The Bank sponsored RRBs viz., Pragati Gramin Bank (PGB) and Shreyas Gramin Bank (5GB) set up one FLCC each in Shimoga and Etah respectively. With this, the Bank has set up FLCCs in all the 26 Lead Districts. The Bank registered a new trust by name "Canara Financial Advisory Trust" for managing the FLCCs.

Farmers' Club

During the financial year, 151 Farmers' Clubs were formed. Presently, the Bank has about 1360 farmers' clubs all over the country. These farmers' clubs disseminate information to the rural people about the banking products and advanced technology

Canara Gramin VikasVahini

The Bank has provided Canara Gramin Vikas Vahini (Vehicles) in 35 districts across the country, with an objective of providing awareness about Bank's products and banking facilities among the rural households.

Bio-metric ATMs

During the year, the Bank has installed six Bio-metric ATMs, taking the total to 29. These Bio-Metric ATMs enable the rural illiterate customers to access their accounts, using biometric features like finger prints and withdraw the amount or get balance confirmation, using color codes.

Credit Linkage

The Bank has not limited its activity in financial inclusion for opening of No-frill accounts alone. Besides No-frill accounts, the Bank has endeavored to provide host of other facilities like General Credit Cards (GCCs), Differential Rate of Interest (DRI) Scheme, Self Help Groups (SHGs), Micro Credit Groups (MCGs), Micro Insurance and Micro Pension under Canara Nayee Disha Scheme.

· GCC: Extending credit under financial inclusion, the Bank has so far issued 4.19 lakh GCCs, amounting to Rs.7270.000 Millions .

· SHGs: The Bank has so far formed 3.71 lakh SHGs as at March 2012, with credit linking of 3.59 lakh SHGs.

· Under the intensive SHG improvement for women's SHGs, Canara Bank has been allotted Waynad in Kerala and Chitradurga in Karnataka and in both the districts anchor NGOs have been identified viz., M/s Waynad Social Service Society in Waynad and M/s SKDRDP in Chitradurga. Anchor NGOs have started formation of Groups and opening of their accounts in both the districts.

Canara Mega Rural Outreach Utsavs

Canara Mega Rural Outreach Utsavs have been held in 13 States. Besides providing basic bank accounts, the Bank has given thrust on disbursement of Consumption Credit through GCC, extension of Farm Credit through KCC, Skill updation and Livelihood Creation activities through Financial Literacy, Financial Awareness and Financial Support Programme. Holistic financial inclusion has been achieved by providing other facilities like Micro insurance and Aadhaar Enrolments.

Position of Financial Inclusion in the sponsored Regional Rural Banks

All the three sponsored RRBs implemented financial inclusion plan in all 968 allotted villages by opening 30 'Brick and Mortar' branches and engaging 938 Customer Service Providers (CSPs) under Business Correspondents (BC) model, which includes 3 Ultra Small Branches opened in these Centres.

Lead Bank Scheme

Canara Bank has lead bank responsibilities in 26 districts in the country viz., eight in Karnataka, seven in Tamil Nadu, five in Kerala, five in Uttar Pradesh and one in Bihar. The Bank works as the Convenor of the State Level Bankers' Committee (SLBC) in the State of Kerala.

Entrepreneurship Development among Women

Centre for Entrepreneurship Development for Women (CEDW) at Head Office, Bangalore and Centres at 34 Circle Offices are working towards economic empowerment of women. These Centres conducted several training programmes during the year, including general Entrepreneurship Development Programmes (EDP), Entrepreneurship Awareness programmes, Seminars, Career Guidance programmes, Skills and provided marketing support to women entrepreneurs by organizing Canutsav /Canbazar. CEDW cells have also assisted in formation of SHGs and credit linkages. A Rural Self Employment Training Institute has been set up at Harohalli to provide EDP skill trainings to women in various vocations and enable them to take up self employment ventures. The Institute has so far trained 14836 women in EDP skill since inception.

Subsidiaries, Sponsored Entities and Joint Ventures

Canara Bank, with an objective of offering 'One Stop Banking Mart' for the customers, forayed into diversified business activities by opening subsidiaries during late 1980s. Today the Bank functions as a 'Financial Supermarket' with as many as eight subsidiaries/ sponsored entities/ joint ventures in diversified areas. The Bank has taken significant steps towards strengthening fundamentals of these entities so as to emerge as a strong 'Financial Supermarket in India. All the subsidiaries/ sponsored entities/ joint ventures of the Bank recorded satisfactory performance during the reporting year.

Commercial Bank of India LLC (CBIL)

CBIL, a joint venture of Canara Bank and State Bank of India, has been operational since April 2004 in Moscow, Russia. The Company earned a profit after tax of USD 3.58 million as on 31st March 2012.

Canbank Venture Capital Fund Limited (CVCFL)

CVCF, the Trustee and Manager of Canbank Venture Capital Fund (CVCF), is a wholly owned subsidiary of the Bank. The Company recorded a profit after tax of Rs.70.600 Millions for the year 2011-12 as against Rs.40.800 Millions for 2010-ll.The Company has proposed a dividend of 100%forthe year2011-12.

Can Fin Homes Limited (CFHL)

Canfin Homes Limited, a sponsored entity of Canara Bank, is one of the premier housing finance entities in the country As on 31.03.2012, the Bank's stake in CFHL was 42.35%. The Company sanctioned loans amounting to Rs.11050.000 Millions and disbursed loans amounting to Rs.8590.000 Millions during the year. The Company earned a profit after tax of =Rs.43.76 crore for the year ended March 2012.The Company has proposed a 30%dividendfortheyear2011-12.

Canbank Factors Limited (CFL)

Canbank Factors Limited is a factoring subsidiary of the Bank. During 2011-12, the Company achieved a total business turnover of Rs.41560.000 Millions crore. The Company has earned Profit after Tax of Rs. 168.600 Millions for the year ended March 2012.TheCompanyhasproposed 16% dividend for 2011-12. The Company enjoys the highest rating of "P1+" by CRISIL for its short term debt programme.

CanbankComputer Services Limited (CCSL)

Canbank Computer Services Limited is the only Software Company promoted by a public sector bank in the country CCSL is primarily engaged in IT and Software development services, training/consultancy and registrar and share transfer agency. The Company is a member of the NASSCOM and Registered as a software solution provider for World Bank projects. The Company has achieved the Profit after Tax of Rs. 31.000 Millions for the year. The Company has been successfully managing the Call Centre activity and ATM outsource services for 990 ATMs of the Pa rent Bank.

Canara Bank Securities Limited (CBSL)

Canara Bank Securities Limited, (formerly Gilt Securities Trading Corporation Limited) has diversified into Capital Market related activities, mainly stock broking since 2007. The Company offers stock broking services to both institutional and retail clients. Online Trading Counter for retail customers is its flagship product. The Company has diversified into Currency Derivatives. The Company has posted a Profit after Tax of=Rs.90.200 Millions and paid dividend of 10%for2011-12.

Canbank Financial Services Limited (Canfina)

Canbank Financial Services Limited has confined its activities to legal matters arising out of past transactions in securities, besides concentrating on collection of lease rentals and recovery of dues under decreed accounts.

During 2011-12, Canfina recorded a profit after tax of Rs.105.400 Millions. It has repaid Rs.3514.500 Millions out of the Hand Holding support of Rs.3764.500 Millions given by the Bank and proposes to clear the entire liability of Rs.250.000 Millions outstanding during the current fiscal year.

Canara Robeco Asset Management Company Limited (CRAMC)

To manage assets of Canbank Mutual Fund, M/s Canbank Investment Management Services Limited (CIMS) was established in 1993. In the year 2007, Canara Bank divested 49% stake of Asset Management Company in favour of M/s Robeco Groep N V forming a joint venture for managing the assets of Canbank Mutual Fund. The Company has since been renamed as Canara Robeco Asset Management Company Limited. The JV aims to capture a worthwhile market share of Mutual Fund industry by bringing best international practices and expertise supported by the vast network of the Bank. With a majority share of 51% held by the Bank, the Assets under Management (AUM) of the Company increased to Rs.57710.000 Millions, with an investor base of 5.33 lakh. The Company is currently managing 24 Mutual Fund Schemes. The Company posted a net profit of Rs.42.000 Millions for the year 2011-12. The Economic Times has given highest rating for four funds of CRMF namely, Canara Robeco Equity Tax Saver, Canara Robeco Equity Diversified, Canara Robeco Emerging Equities and Canara Robeco Income Plan. Canara Robeco Income Fund and Canara Robeco Floating Rate was awarded the Best Fund in Intermediate Bond Category and Ultra Short Term Bond Category by Morning Star at the Morningstar India Awards 2012 ceremony held in February 2012. Shri. Ritesh Jain (Head-Fixed Income) was accorded as the "Debt Fund Manager of theYear"attheCNBCTV18CRISIL Mutual Fund Awards 2012.

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

An Insurance Joint Venture floated by the Bank in association with internationally reputed HSBC Insurance (Asia Pacific) Holding Limited and Oriental Bank of Commerce. The Company was incorporated during September 2007, with a majority shareholding of 51% held by the Bank.

The Company commenced its business operations from 16.06.2008. During the year, the Company has registered an Annualized Premium Equivalent (APE) of Rs.18510.000 Millions crore. Out of the 27 private players in the insurance field in India, the Company ranked 10th position.

Regional Rural Banks (RRBs)

Canara Bank has sponsored 3 RRBs in 3 States with a network of 886 branches, which include Pragathi Gramin Bank in the State of Karnataka, Shreyas Gramin Bank in the State of Uttar Pradesh, South Malabar Gramin Bank in the State of Kerala. All RRBs sponsored by Canara Bank were profit making as at March 2012 with a combined profit after tax of Rs.369.700 Millions. Aggregate Business level of these RRBs crossed the milestone mark of Rs.200000.000 Millions and stood at Rs.214860.000 Millions crore, comprising Rs.115610.000 Millions under deposits and Rs.99250.000 Millions under advances as on 31.03.2012. Gross NPA ratio of these RRBs was 6.77% and net NPA ratio was 4.67% as at March 2012. All the RRBs have implemented system based recognition of Non-Performing Assets as on 31.03.2012. Priority Sector Advances constituted 85%. Agricultural Credit outstanding stood at Rs.62840.000 Millions as at March 2012. All the sponsored RRBs migrated to CBS platform during the year. ATM and NEFT facilities have been extended to the customers of the RRBs.

Awards and Accolades

In recognition of the varied initiatives, the Bank was conferred with the following awards-

· Under the implementation of Rajbhasha, the Bank received Indira Gandhi Rajbhasha Puraskar Yojna-2009-10 Encouragement Prize.

· National Award - 2011 for excellence in the field of Khadi and Village Industries - Best Bank, South Zone forPMEGP.

· Corporate Social Responsibility Award for the year 2010-11 conferred by Institute of Public Enterprises and Subir Raha Centre for Corporate Governance, Hyderabad.

· The prestigious 'SKOCH Award' for outstanding progress under financial inclusion.

· NABARD's Best Performance Award, 2010-11, for SHG Credit Linkage and Best Performing Farmers' Club

· Award of NABARD, 2010-11, in Karnataka.

· The Bank was conferred 5 Awards by the Public Relations Council of India (PRCI), in the following categories

- Silver Award for Corporate Advertisement-Single Language

- Bronze Award for Annual Report

- Bronze Award for Corporate Brochure on CSR activities

- Bronze Award for Corporate Single Advertisement - English.

- Bronze Award for Shreyas ln-house Magazine -English

CONTINGENT LIABILITY:

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011
Claims against the bank not acknowledged as debts	18108.100	17389.323
Liability for partly paid investments	0.000	0.000
Liability on account of outstanding forward exchange contracts	1387060.142	839917.604
Guarantees given on behalf of constituents - In India - Outside India	233012.202 331.885	239142.421 480.133
Acceptances, endorsements and other obligations	236364.007	178485.672
Other items for which the bank is contingently liable - Bills of exchange rediscounted - Others	0.000 25687.272	0.000 21127.777

AS PER WEBSITE DETAILS:

PROFILE

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

· Launching of Inter-City ATM Network

· Obtaining ISO Certification for a Branch

· Articulation of ‘Good Banking’ – Bank’s Citizen Charter

· Commissioning of Exclusive Mahila Banking Branch

· Launching of Exclusive Subsidiary for IT Consultancy

· Issuing credit card for farmers

· Providing Agricultural Consultancy Services

Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India and abroad. As at March 2012, the Bank has further expanded its domestic presence, with 3595 branches spread across all geographical segments. Keeping customer convenience at the forefront, the Bank provides a wide array of alternative delivery channels that include 2858 ATMs, covering 1139 centres. Several IT initiatives have been undertaken during the year, which include Funds Transfer through Interbank Mobile Payment Services (IMPS) in ATMs, ASBA facility to net banking users, E-filing of tax returns and facility for viewing details of tax deducted at source, Terminal at 223 branches for customers to use net banking, SMS/e-mail alerts for all transactions done through ATM, net banking, POS, mobile banking, online payments irrespective of amounts, online loan applications and tracking facility, generation of automatic pass sheets through e-mail and automatic renewal of term deposits. Under Government business, the Bank has implemented internet based application for UGC Maulana Azad National Fellowship Scheme, Web portal for National Scheme for Girl Child Secondary Education, Electronic Accounting Systems of e-Receipts-Customs (EASeR-C) for collection of customs duty and e-payment of commercial taxes module for UP, Karnataka, Delhi and Tamil Nadu.

Not just in commercial banking, the Bank has also carved a distinctive mark, in various corporate social responsibilities, namely, serving national priorities, promoting rural development, enhancing rural self-employment through several training institutes and spearheading financial inclusion objective. Promoting an inclusive growth strategy, which has been formed as the basic plank of national policy agenda today, is in fact deeply rooted in the Bank's founding principles. "A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people". These insightful words of their founder continue to resonate even today in serving the society with a purpose. The growth story of Subject in its first century was due, among others, to the continued patronage of its valued customers, stakeholders, committed staff and uncanny leadership ability demonstrated by its leaders at the helm of affairs. They strongly believe that the next century is going to be equally rewarding and eventful not only in service of the nation but also in helping the Bank emerge as a "Global Bank with Best Practices". This justifiable belief is founded on strong fundamentals, customer centricity, enlightened leadership and a family like work culture.

HISTORY

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

Founding Principles

1. To remove Superstition and ignorance.
2. To spread education among all to sub-serve the first principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial heart of the community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.
7. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.

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

Significant Milestones

1st July 1906

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

1910

Canara Hindu Permanent Fund renamed as Subject Limited

1969

14 major banks in the country, including Subject, nationalized on July 19

1976

1000th branch inaugurated

1983

Overseas branch at London inaugurated

Cancard (the Bank’s credit card) launched

1984

Merger with the Laksmi Commercial Bank Limited

1985

Commissioning of Indo Hong Kong International Finance Limited

1987

Canbank Mutual Fund and 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.

PRESS RELEASE

GLOBAL BUSINESS AT RS.5600000.000 MILLIONS

NET PROFIT FOR Q1 AT RS.7750.000 MILLIONS

Major Highlights –Q1FY13

è Total business reached Rs.5602030.000 Millions

è Total Deposits at Rs.3346190.000 Millions

è Advances (net) at Rs.2255840.000 Millions

è Net Profit at Rs.7750.000 Millions

è NIM at 2.40%

è Capital Adequacy Ratio at 13.22%

…Tier I Capital Ratio at 10.06%

è Cash Recovery at 5940.000 Millions

è 9 New Branches and 249 ATMs added during Q1

HEAD OFFICE, BANGALORE

JULY 24, 2012

· General economic slowdown has been impacting business growth, which is continuing to be sluggish at the industry level.

· Total business of the Bank rose to a level of Rs.5602030.000 Millions as at June 2012 compared to Rs.5151650.000 Millions a year ago.

· While total deposits reached Rs.3346190.000 Millions, advances (net) of the Bank increased to Rs.2255840.000 Millions as at June 2012.

· The Bank’s domestic business constituted 96% of the total business.

· CASA deposits reached a level of Rs.779020.000 Millions as at June 2012. CASA deposits to domestic deposits constituted 24.07%.

· Savings deposits increased to Rs.665040.000 Millions as at June 2012.

· Total Clientele rose to 4.3 crore, with an addition of 38 lakhs clientele y.o.y.

· Business per Employee increased to Rs.140.000 Millions and Business per Branch was at Rs.1552.200 Millions as at June 2012.

· Operating Profit for the quarter stood at Rs.13940.000 Millions.

· Net Profit for the Q1FY13 stood at Rs.7750.000 Millions compared to Rs.7260.000 Millions Q1FY12.

· Total provisions were at Rs.6190.000 Millions, including provisions on NPAs at Rs.4770.000 Millions.

· Return on Average Assets (RoAA) for Q1 FY13 was at 0.83%.

· While Earnings Per Share (EPS) for the quarter was at Rs.17.50, Book Value rose to Rs.452.75 compared to Rs.378.08 as at June 2011.

Income and Expenses

· The Bank’s total income for Q1FY13 increased by 18.9% to reach Rs.91650.000 Millions, including Rs.62290.000 Millions income from loans/advances, which grew by 13.6% y.o.y.

· Non-interest income of the Bank increased to Rs.6930.000 Millions, with growth of 25.7%.

· Increase in operating expenses was contained at 8.8%.

· With a Net interest income of Rs.18440.000 Millions, Net Interest Margin (NIM) was 2.40% as at June 2012 compared to 2.39% a year ago.

Capital Adequacy

· Capital Adequacy Ratio at 13.22% compared to 13.37% as at June 2011. Tier I capital ratio rose to 10.06% as against 9.59% as at June 2011.

· Adequate headroom available under both Tier-I and Tier-II options to raise capital to support business growth momentum.

· The Bank has strong Common Equity Capital to meet the stringent Basel III norms during the current year and onwards.

Asset Quality

· The Bank’s gross NPA stood at Rs.44970.000 Millions as at June 2012 compared to Rs.40320.000 Millions as at March 2012. The gross NPA ratio works out to 1.98% as at June 2012.

· Net NPA ratio stood at 1.66% (Rs.37560.000 Millions) as at June 2012.

· Cash recovery during the first quarter of FY13 aggregated to Rs.5940.000 Millions.

Diversified Credit Portfolio

· The Bank’s credit growth was broad based across major segments, such as, Retail, Priority, MSMEs, industries and infrastructure.

· Outstanding Priority Sector Credit reached a level of Rs.652490.000 Millions in June 2012, covering 41.69 lakh borrowers

· Agricultural credit reached Rs.313670.000 Millions, covering 33.92 lakh farmers

· During the first quarter, an amount of Rs.69490.000 Millions has been disbursed under agriculture, higher by Rs.17060.000 Millions compared to the same quarter a year ago.

· Credit outstanding under Kisan Credit Cards (KCC) stood at Rs.49280.000 Millions, covering 5.77 lakh accounts.

· The Bank has launched new technology enabled Kisan Credit Card with NPCI-Rupay logo for farmers’ convenience and use at ATMs.

· While advances to weaker sections stood at Rs.215870.000 Millions, advances to specified minorities reached a level of Rs.128750.000 Millions.

· Educational loan outstanding increased to Rs.40000.000 Millions, covering 2.07 lakh students.

· The Bank has formulated a new Education Loan Scheme for Vocational Education and Training Courses.

· During the quarter, 58 Self Employment Institutes trained 10920 candidates in 342 batches taking the total tally of trained candidates to 4.47 lakh candidates. Further, the share of women and SC/ST beneficiaries stood at 72% and 31% respectively.

· Credit to various Micro, Small and Medium Enterprises (MSME) reached 320480.000 Millions.

· Outstanding advances under retail lending portfolio stood at Rs.228480.000 Millions, including housing loan of 13747 crore. Housing loan constituted 60.2% of the total retail lending portfolio.

A Holistic Approach to Financial Inclusion

· The Bank covered all the 1618 allotted villages in 23 states, under Brick and Mortar Branch Model (206 villages) and Business Correspondent Model (1412 villages).

· Customer Service Providers appointed by Corporate BCs (M/s i25 Rural Mobile Commerce Services and M/s Bartronics India limited) in 1426 allotted villages as at June 2012.

· 179 Ultra Small Branches (USB) opened in FI villages during the first quarter, taking the total number of USBs to 209.

· 3.19 lakh No-frill Accounts mobilized during Q1FY13, taking the tally of such accounts to 47.92 lakh as at June 2012, with deposits level reaching Rs.8440.000 Millions.

· The Bank has issued 2.49 lakh Smart Cards as at June 2012. 28000 transactions amounting to Rs.18.300 Millions recorded during the first quarter.

· The Bank formed 3.72 lakh Self Help Groups (SHGs) as at June 2012, with credit linking of 3.65 lakh SHGs.

· Credit outstanding under 86276 SHGs accounts amounted to Rs.13300.000 Millions.

· The Bank disbursed credit amounting to Rs.1113.600 Millions in 5580 SHGs during the first quarter.

· The Bank has so far issued 4.44 lakh General Credit Cards (GCCs), amounting to Rs.7830.000 Millions.

· Credit to the extent of Rs.14390.000 Millions provided to 6.30 lakh no-frill account holders under various credit products.

· The Bank covered 2562 SHG members under Micro Insurance Policy during the quarter.

· 10 Canara Gramin Vikas Vahini (Vehicles) added in Q1, taking the total number of such vehicles to 45 in 45 districts.

· 19 micro-finance branches contributed a total business of Rs.1500.000 Millions.

· 167 brick and mortar branches opened in FI villages have garnered a business of Rs.5560.000 Millions through 4.8 lakh accounts, with per branch business of Rs.3330.000 Millions.

· Electronic Benefit Transfer (EBT) for payment of MGNREGA wages and Social Security Pension implemented in Chitradurga district of Karnataka, with Rs.8.380.000 Millions released to 52000 social security pensioners.

· In Tamil Nadu, 75000 beneficiaries have been covered, out of 80000 beneficiaries allotted to the Bank under Social Security Pension.

· The Bank is participating in the pilot project on direct credit of subsidy for LPG consumers in Mysore district, Karnataka in association with Oil Marketing Companies.

· The Bank is also participating in the pilot project on Inter-operability of BC transaction in Mewat district in Haryana State. The pilot project has been successfully tested.

· Under Canara Financial Advisory Trust, the Bank is managing 26 Financial Literacy and Credit Counseling Centres (FLCCs) in the lead districts.

· 19 Biometric ATMs are functioning for easy usage by the rural customers.

· All 3 sponsored Regional Rural Banks (RRBs) of the Bank covered all 967 allotted villages through 30 brick & mortar branches, 189 USBs and 744 customer service providers.

Enhanced Delivery Channels & New InfoTech Initiatives

During the first quarter, the Bank added 9 domestic branches, taking the total number of branches to 3609, including 5 overseas branches one each at London, Leicester, Hong Kong, Shanghai and Manama. The Bank opened 4 Specialized SME branches during the quarter, taking the total tally to 57 branches across the country. With addition of 249 ATMs during the quarter, number of ATMs further increased to 3107 as at June 2012. Debit Card base rose to 73.77 lakh as at June 2012.

New InfoTech Initiatives

· Public Grievances Redressal System for online registration of grievances.

· Online Loan Application and Status Tracking System is in place for Retail, Education and MSME borrowers.

· 400 Machines for generation of counterfoils for cash deposits transactions rolled out in 400 branches, covering 4 Metros.

· Alert messages for HNI customers in CBS system for better customer service.

· Government e-Payment Gateway (GePG) implemented for automated payment mechanism though digitally signed messages.

· Internet web portal for education loan subsidy.

· Facility of Inter Bank Payments through IMPS (Inter Bank Mobile Payment Services) and facility for merchant payments introduced.

· Common USSD platform through NPCI for accessing Canmobile services introduced.

Goals for FY13

· Thrust on Retail Business, especially retail deposits and retail advances.

· Expanding the delivery channels, the Bank plans

o To open 325 branches.

o To take ATM strength to 4000.

· Thrust on technology and business process reengineering to enhance business.

· The Project on Enterprise-wide Data Warehousing and Business Analytics is under progress.

· Expanding global footprints, the Bank plans to open branches/ offices in Johannesburg, Qatar, Frankfurt, New York and Tokyo.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.73
UK Pound	1	Rs.88.61
Euro	1	Rs.71.34

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		76

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.