MIRA INFORM REPORT
|
Report Date : |
24.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
CANARA BANK |
|
|
|
|
Registered
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 |
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|
|
|
Line of Business
: |
Providing Banking Services |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (74) |
|
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 : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
Comments : |
Subject is a well established and reputed bank having a good track
record. Its derives its strength from its majority owner, the Government of
India. There appears slight dip in its profitability during 2011-2012.
However, financial position of the bank is strong. It has adequate assets
quality and capitalization. Trade relations are reported to be trustworthy. Business is active.
Payments are reported to be regular and as per commitment. The bank can be considered for normal 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
A1+ (Certificate of Deposit Programme) |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of financial
obligation it carry lowest credit risk. |
|
Date |
April 2013 |
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
|
Registered Office/ Head Office : |
Canara Bank Building, 112, J C Road, P B No.6648, Bangalore – 560002,
Karnataka |
|
Tel. No.: |
91-80-22100250 |
|
Fax No.: |
91-80-22248831 |
|
E-Mail : |
|
|
Website: |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. S Raman |
|
Designation : |
Chairman and 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 |
SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
300000000 |
67.72 |
|
|
300000000 |
67.72 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
300000000 |
67.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
22009299 |
4.97 |
|
|
5321265 |
1.20 |
|
|
31826845 |
7.18 |
|
|
53946925 |
12.18 |
|
|
113104334 |
25.53 |
|
|
|
|
|
|
8330143 |
1.88 |
|
|
|
|
|
|
19825312 |
4.48 |
|
|
813362 |
0.18 |
|
|
926849 |
0.21 |
|
|
70397 |
0.02 |
|
|
493895 |
0.11 |
|
|
362557 |
0.08 |
|
|
29895666 |
6.75 |
|
Total Public shareholding (B) |
143000000 |
32.28 |
|
Total (A)+(B) |
443000000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
443000000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Providing Banking Services |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
Reserve Bank of India |
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Facilities : |
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|
Banking
Relations : |
-- |
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|
|
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Auditors : |
Not Available |
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Parent : |
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Subsidiaries : |
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Joint Venture : |
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|
Associates : |
-
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 |
187519.623 |
|
|
Other Income |
29275.965 |
28114.621 |
28579.024 |
|
|
TOTAL |
337782.180 |
257515.310 |
216098.647 |
|
|
|
|
|
|
|
II.
|
EXPENDITURE |
|
|
|
|
|
Interest Expended |
231613.116 |
152407.357 |
130714.284 |
|
|
Operating Expenses |
46737.434 |
44193.156 |
34776.235 |
|
|
Provisions And Contingencies |
26604.500 |
20655.914 |
20393.824 |
|
|
TOTAL |
304955.050 |
217256.427 |
185884.343 |
|
|
|
|
|
|
|
III.
|
NET PROFIT FOR THE
YEAR |
32827.130 |
40258.883 |
30214.304 |
|
|
|
|
|
|
|
IV.
|
APPROPRIATIONS |
|
|
|
|
|
Transfers To |
|
|
|
|
|
Statutory Reserve |
8250.000 |
10200.000 |
7600.000 |
|
|
Capital Reserve |
51.500 |
452.864 |
705.577 |
|
|
Investment Reserve Account |
0.000 |
0.000 |
1457.876 |
|
|
Revenue Reserve |
11852.630 |
16933.018 |
8650.851 |
|
|
Special Reserve |
7000.000 |
7000.000 |
7000.000 |
|
|
Proposed Dividend |
4873.000 |
4873.000 |
4100.000 |
|
|
Dividend Tax |
800.000 |
800.000 |
700.000 |
|
|
TOTAL |
32827.130 |
40258.882 |
30214.304 |
|
|
|
|
|
|
|
|
Earnings per share (basic and diluted)-in RS. |
74.10 |
97.83 |
73.69 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd Quarter |
4th Quarter |
|
Interest Earned |
84728.600 |
85955.400 |
85444.800 |
84650.500 |
|
Income On Investments |
20398.900 |
23060.700 |
24595.700 |
23068.900 |
|
Interest On Balances With Rbi Other Inter Bank Funds |
2039.000 |
1688.200 |
1273.700 |
851.400 |
|
Interest / Discount On Advances / Bills |
62290.7000 |
61206.500 |
59575.400 |
60726.500 |
|
Others |
0.000 |
0.000 |
0.000 |
03.700 |
|
Other Income |
6926.100 |
6080.700 |
8458.100 |
10065.200 |
|
Total Income |
91654.700 |
92036.100 |
93902.900 |
94715.700 |
|
Interest Expended |
66293.200 |
66387.400 |
65564.500 |
63744.400 |
|
Operating Expenses |
11423.800 |
12827.800 |
13174.300 |
13994.000 |
|
Total Expenditure |
11423.800 |
12827.800 |
13174.300 |
13994..000 |
|
Operating Profit Before Provisions and Contingencies |
13937.700 |
12820.900 |
15164.100 |
16977.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
4185.300 |
4211.200 |
6259.000 |
7523.500 |
|
Profit Before Tax |
9752.400 |
8609.700 |
8905.100 |
9453.800 |
|
Tax |
2000.000 |
2000.000 |
1800.000 |
2200.000 |
|
Profit After Tax |
7752.400 |
6609.700 |
7105.100 |
7253.800 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
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
High Court of Karnataka - Principal Bench
at Bangalore
WP 15580/2013
|
Petitioner/Appnt.
Name |
M/S HULIYAR CEMENTS RRIVATE LIMITED |
|
Respondent/Defnt.
Name |
CANARA BANK |
|
Petnr./Appnt.
Advocate |
ANANDARAMA PRASHANTH AND VIKRAM |
|
Respnt./Defnt. Advocate |
|
|
Date Filed |
28.03.2013 |
|
Classification |
GM ( RES ) |
|
District |
Bangalore City |
Please Note down the
Group No : 15580 – 15582
|
Stage |
PENDING FOR ADMISSON |
|
Last Posted for |
PRELIMINARY HEARING |
|
Last Action Taken |
NOTICE |
|
Last Date of
Action |
03.04.2013 |
|
Next hearing |
|
|
Latest Order: |
I.O.EXT/3 MONTHS |
|
Before Hon'ble
Judge/s |
S.ABDUL NAZEER |
Details of the Daily Order
(Click on date of order to get full order)
|
Sl.No. |
Honble Judge |
Date of Order |
|
1 |
HONBLE SANJ |
03.04.2013 |
CHARGES:
|
ENTITY |
PERSON |
COMPETENT AUTHORITY |
REGULATORY
CHARGES |
|
REGULATORY
ACTION(S) / DATE OF ORDER |
|
CANARA BANK |
-- |
SEBI |
ACCEPTED SHARE APPLICATIONS AFTER CLOSURE OF PUBLIC ISSUE OF FINE AGROMATICS LIMITED. |
WARNED/DIRECTED TO BE MORE CAREFUL WHILE DEALING WITH
SECURITIES MARKET |
-- |
|
CANARA BANK |
-- |
RBI |
NETTED THE ITEMS REPRESENTING INTERNAL AND EXTERNAL LIABILITIES IN INTER-BRANCH ACCOUNTS,RESULTING IN UNDER-ESTIMATION OF OUTSIDE LIABILITIES |
IMPOSED PENALTY RS.5,00,000 |
-- |
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 (DGCIandS), 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 and 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.437.600 Millions 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. 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. 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, 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 |
REVIEWED FINANCIAL RESULTS FOR
THE QUARTER AND NINE MONTHS ENDED 31st
DECEMBER 2012
(Rs. in Millions)
|
SL. No. |
PARTICULARS |
QUARTER ENDED |
NINE MONTHS
ENDED |
|
|
(REVIEWED) |
(REVIEWED) |
|||
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
1 |
INTEREST EARNED (a)+(b)+(c)+(d) |
85444.800 |
85955.400 |
256128.800 |
|
|
(a) Interest/discount on advances/bills |
59575.400 |
61206.500 |
183072.600 |
|
|
(b) Income on Investments |
24595.700 |
23060.700 |
68055.300 |
|
|
(c) Interest on balances with Reserve Bank of India & Other
Inter-Bank Funds |
1273.700 |
1688.200 |
5000.900 |
|
|
(d) Others |
00.000 |
00.000 |
00.000 |
|
2 |
Other Income |
8458.100 |
6080.700 |
21464.900 |
|
3 |
TOTAL INCOME (1+2) |
93902.900 |
92036.100 |
277593.700 |
|
4 |
Interest Expended |
65564.500 |
66387.400 |
198245.000 |
|
5 |
Operating Expenses (i)+(ii) |
13174.300 |
12827.800 |
37425.900 |
|
|
(i) Employees Cost |
8310.800 |
7910.900 |
23651.400 |
|
|
(ii) Other Operating Expenses |
4863.500 |
4916.900 |
13774.500 |
|
6 |
TOTAL EXPENSES ((4+5) excluding Provisions & Contingencies) |
78738.800 |
79215.200 |
235670.900 |
|
7 |
Operating Profit before Provisions and Contingencies (3-6) |
15164.100 |
12820.900 |
41922.800 |
|
8 |
Provisions (Other than Tax) and Contingencies |
6259.000 |
4211.200 |
14655.600 |
|
9 |
Exceptional items |
00.000 |
00.000 |
00.000 |
|
10 |
Profit (+) / Loss (-) from Ordinary Activities before tax (7-8-9) |
8905.100 |
8609.700 |
27267.200 |
|
11 |
Tax expense |
1800.000 |
2000.000 |
5800.000 |
|
12 |
Net Profit (+) / Loss (-) from Ordinary Activities after tax (10-11) |
7105.100 |
6609.700 |
21467.200 |
|
13 |
Extraordinary items (net of tax expense) |
00.000 |
00.000 |
00.000 |
|
14 |
Net Profit (+) / Loss (-) for the period (12-13) |
7105.100 |
6609.700 |
21467.200 |
|
15 |
Paid up Equity Share Capital (Face Value of each share-Rs.10/-) |
4430.000 |
4430.000 |
4430.000 |
|
16 |
Reserves excluding Revaluation Reserves |
|
|
|
|
17 |
Analytical Ratios |
|
|
|
|
|
(i) Percentage of shares held by Government of India |
67.72% |
67.72% |
67.72% |
|
|
(ii) Capital Adequacy Ratio |
12.64% |
13.07% |
12.64% |
|
|
(iii) Earnings per Share (EPS) (Not Annualised) |
|
|
|
|
|
a) Basic and diluted EPS before
Extraordinary items (net of tax expense) for the period, for the year to date
and for the previous year |
16.04 |
14.92 |
48.46 |
|
|
b) Basic and diluted EPS after
Extraordinary items for the period, for the year to date and for the previous
year |
16.04 |
14.92 |
48.46 |
|
|
(iv) NPA Ratios |
|
|
|
|
|
(a) Amount of Gross Non
Performing Assets |
6090.08 |
5609.53 |
6090.08 |
|
|
(b) Amount of Net Non
Performing Assets |
5134.40 |
4568.57 |
5134.40 |
|
|
(c) Percentage of Gross
Non Performing Assets |
2.77% |
2.58% |
2.77% |
|
|
(d) Percentage of Net Non
Performing Assets |
2.35% |
2.12% |
2.35% |
|
|
(v) Return on Assets (Annualised) |
0.82% |
0.71% |
0.78% |
|
18 |
Public shareholding |
|
|
|
|
|
- Number of Shares |
143000000 |
143000000 |
143000000 |
|
|
- Percentage of shareholding |
32.28% |
32.28% |
32.28% |
|
19 |
Promoters and promoter group shareholding |
NIL |
||
|
|
a) Pledged / Encumbered |
|||
|
|
- Number of shares |
|||
|
|
- Percentage of
shares (as a % of the total shareholding of promoter and promoter group) |
|||
|
|
- Percentage of shares (as a % of the
total share capital of the Company) |
|||
|
|
b) Non-encumbered |
|||
|
|
- Number of shares |
300000000 |
300000000 |
300000000 |
|
|
- Percentage of shares
(as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of
shares (as a % of the total share capital of the Company) |
67.72% |
67.72% |
67.72% |
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
|
As on 31.12.2012 |
|
|
(REVIEWED) |
|
CAPITAL AND LIABILITIES |
|
|
CAPITAL |
4430.000 |
|
RESERVES AND SURPLUS |
244200.500 |
|
DEPOSITS |
3239633.600 |
|
BORROWINGS |
197462.800 |
|
OTHER LIABILITIES AND PROVISIONS |
110095.100 |
|
TOTAL |
3795822.000 |
|
|
|
|
ASSETS |
|
|
CASH & BALANCES WITH RESERVE BANK OF INDIA |
146346.600 |
|
BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE |
126714.300 |
|
INVESTMENTS |
1188345.300 |
|
ADVANCES |
2182423.900 |
|
FIXED ASSETS |
28732.000 |
|
OTHER ASSETS |
123259.900 |
|
TOTAL |
3795822.000 |
|
|
|
STATEMENT OF ASSETS AND LIABILITIES
(Rs. in Millions)
|
|
As on 31.03.2013 |
|
|
(AUDITED) |
|
CAPITAL AND
LIABILITIES |
|
|
CAPITAL |
4430.000 |
|
RESERVES AND SURPLUS |
244347.900 |
|
DEPOSITS |
3558559.900 |
|
BORROWINGS |
202833.700 |
|
OTHER LIABILITIES AND PROVISIONS |
113254.500 |
|
TOTAL |
4123426.000 |
|
|
|
|
ASSETS |
|
|
CASH & BALANCES WITH RESERVE BANK OF
INDIA |
154059.300 |
|
BALANCES WITH BANKS AND MONEY AT CALL
& SHORT NOTICE |
193087.700 |
|
INVESTMENTS |
1211328.300 |
|
ADVANCES |
2421766.200 |
|
FIXED ASSETS |
28627.200 |
|
OTHER ASSETS |
114557.300 |
|
TOTAL |
4123426.000 |
Notes:
- The above Financial Results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 2nd May 2013. The same have been audited by the Statutory Central Auditors of the Bank.
- There has been no change in the accounting policies and practices followed during the quarter / year ended 31st March 2013 as compared to those followed in the preceding financial year ended 31st March 2012.
- The working results for the quarter / year ended 31st March 2013 have been arrived at after considering provision for Loan Losses, Standard Assets, Depreciation on Investments, Fixed Assets, other usual and necessary provisions.
- In accordance with the RBI Circular No.DBOD.BP.BC.80/21.04.018/2010-11 dated 09.02.2011:
- a sum of Rs.3707.100 Millions has been charged to Profit and Loss Account during the year ended 31st March 2013 on proportionate basis towards unamortised liability of Rs.14828.600 Millions (being amortized over 5 years beginning from 31st March 2011) on account of reopening of pension option for existing employees who had not opted for Pension earlier. The balance amount of Rs.7414.400 Millions will be dealt with as per guidelines of Reserve Bank of India.
- a sum of Rs.1359.000 Millions has been charged to Profit and Loss Account during the year ended March 2013 on proportionate basis towards unamortised liability of Rs.5436.200 Millions (being amortized over 5 years beginning from 31st March 2011) on account of the enhancement of gratuity limit. The balance amount of Rs.2718.200 Millions will be dealt with as per guidelines of Reserve Bank of India.
- The Board has recommended a dividend of 20% on Published Profit which works out to Rs.13/- per Share for the year ended 31st March 2013.
- Number of Investors Complaints received and disposed off during the quarter ended 31.03.2013.
- Pending at the beginning of the quarter - Nil
- Received during the quarter - 364
- Disposed off during the quarter - 364
- Lying unresolved at the end of the quarter - Nil
- Figures of the corresponding previous period have been regrouped/ restated wherever considered necessary.
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
- To remove
Superstition and ignorance.
- To spread
education among all to sub-serve the first principle.
- To inculcate
the habit of thrift and savings.
- To transform
the financial institution not only as the financial heart of the community
but the social heart as well.
- To assist the
needy.
- To work with
sense of service and dedication.
- 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.
AS PER WEBSITE DETAILS
PRESS RELEASE
CANARA BANK:
AMALGAMATION OF SPONSORED REGIONAL RURAL BANK
Canara Bank has informed BSE that The Ministry of Finance, Government of India, has envisaged amalgamation geographically contiguous RRBs sponsored by different banks within a state, with single sponsor bank which will help in optimizing the use of modern technology.Accordingly, the Ministry of Finance, Government of India, vide its letter dated April 01, 2013 after consulting NABARD, concerned sponsor banks and State Government of Uttar Pradesh has notified that Aryavart Kshetriya Gramin Bank and Shreyas Gramin Bank sponsored by Bank of India and Canara Bank respectively in the state of Uttar Pradesh are hereby amalgamated into a single Regional Rural Bank, which shall be called as Gramin Bank of Aryavart with its Head Office at Lucknow under the sponsorship of Bank of India with effect from April 01, 2013.Source : BSE
CANARA BANK SANCTIONS
MC RS 100-CR LOAN
While proposal was presented by F&CC last year, documentation for keeping two zonal offices as security is still not complete.
Although the Ludhiana Municipal Corporation has got successful in getting the loan of Rs 1000.000 Millions passed from Canara Bank, the long-pending developmental projects waiting for the infusion of funds still have to wait a little more as the funds will be transferred to the civic agency in small instalments as the documentation of keeping its two zonal offices as security is still incomplete.
Sources from MC said the loan had been sanctioned but the paperwork and other formalities to keep Zone B and Zone D office as security for the loan was still pending and thus the amount would not be instantly credited to the MC but in small instalments.
In the documents accessed by Ludhiana Newsline, the MC says, "MC is more or less self-sufficient to manage its day-to-day expenses but when it comes to development works, which require huge investment, MC faces extreme shortage of funds."
The proposal and need for this Rs 1000.000 Millions loan was felt by the Finance and Contract Committee (F&CC) at a meeting held on November 1, 2012. Thereafter, the MC approached 11 banks for getting the loan.
The banks approached were State Bank of Patiala, State Bank of India, UCO Bank, ICICI Bank, HDFC Bank, Canara Bank, Dena Bank, Axis Bank, Indian Overseas Bank, Bank of Baroda and Punjab National Bank.
At a meeting held by the MC for bank officials to discuss the interest quotations on November 8, 2011, seven banks — Bank of India, Axis Bank, HDFC Bank, UCO Bank, State Bank of Patiala, ICICI Bank and State Bank of India — responded and attended the meeting.
While the MC was considering the quotations of Bank of India which offered loan at proposed 12.50% without government guarantee and 11.50% with government guarantee, the deal was finally struck with Canara Bank which later through its letter dated February 5, 2013 offered loan at 10.25% interest on base rate.
AGM OF CANARA BANK
SENTENCED TO UNDERGO TWO YEARS IMPRISONMENT FOR CAUSING LOSS OF RS.17.400 CRORE
TO BANK.
New Delhi, 25-08-2011
The Special Judge for CBI Cases, Bangalore convicted Shri L.S.Dinamani, the then AGM, Canara Bank, Mysore; Shri Ganesh D.Hegde, the then Manager, Canara Bank, Hunsur Branch, Mysore and 3 others and sentenced them to undergo 2-years Simple Imprisonment with a fine of Rs.85,000/-.
The investigation revealed that Shri L.S.Dinamani while working as AGM, Canara Bank, Mysore had entered into criminal conspiracy with other accused persons during 2003-06 in the matter of sanction and disbursal of 3-credit limits against third party collateral security having existing liabilities by submitting fabricated documents and used the same as genuine. A loss of Rs.174.44 lakhs was caused to Canara Bank and corresponding wrongful gain to accused persons.
After thorough investigation, CBI had filed a charge sheet against Shri L.S.Dinamani and 4-others U/s 120-B r/w 420, 468, 471 IPC and 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988. The Trial Court found the accused persons guilty and convicted them.
Canara Bank, BoI
merge RRBs in Uttar Pradesh
BANGALORE, MAY 20:
Canara Bank has informed the exchanges that it has amalgamated regional rural banks - Shreyas Gramin Bank sponsored by it with Aryavart Kshetriya Gramin Bank sponsored by Bank of India. Both the RRBs are located in Uttar Pradesh.
The ministry of finance (MoF) had envisaged amalgamation geographically contiguous RRBs sponsored by different bank within a state with single sponsor bank which will help in optimising the use of modern technology.
After the merger, the RRB is called Gramin Bank of Aryavart with its head office at Lucknow under the sponsorship of Bank of India.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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 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.55.99 |
|
|
1 |
Rs.84.19 |
|
Euro |
1 |
Rs.71.86 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
74 |
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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.