Directors Report 2007-08

DIRECTORS REPORT: 2007-08

The Board of Directors have pleasure in presenting the 39
th
Annual
Report together with the Balance Sheet as on 31
st
March, 2! and
"ro#t and $oss Account for the #nancial %ear ended March 31, 2!&
MANAGEMENT DISCUSSION AND ANALSIS
I! ECONOMIC EN"IRONMENT
'ndian econo(% entered into a higher growth tra)ector% during the
1th *ive +ear "lan, cloc,ing an average growth of -&!. co(pared to
an average growth of /&/. recorded during the previous *ive +ear "lan&
After growing at the rate of a0ove 9. during last two #nancials, growth
(o(entu( of the 'ndian econo(% is e1pected to (oderate during
2-2!& As per the advanced esti(ates released 0% the 3entral
Statistical 4rgani5ation 63S47, the econo(% has grown at !&-. for
2-2! as co(pared to 9&8. recorded during 282-, with slowdown
in agriculture and industr%&
The growth in agriculture and allied activities is esti(ated at 2&8.
during the %ear as against 3&!. recorded in the previous %ear& 9hile
industr%, as a whole, is esti(ated to record a growth of !&8. co(pared
to 1&8. a %ear ago, growth in the (anufacturing sector is esti(ated
at 9&:. 612&.7, electricit%, gas and water suppl% at -&!. 68&.7 and
(ining and ;uarr%ing at 3&:. 6/&-.7&
Services sector, which continued to post dou0le2digit growth of 1&8.,
slightl% (oderated co(pared to 11&2. a %ear ago& 'n the services
seg(ents, construction sector growth is e1pected to have (oderated
to 9&8. fro( 12. in 282-, while trade, hotels, transport and
co((unication registered a growth of 12&1. as against 11&!. in
282-& *inance, insurance, real estate and 0usiness services growth
is esti(ated at 11&-. as against 13&9. in the previous %ear&

'ndia<s e1ternal trade continued its uptrend during 2-2! as well& As
per the provisional data released 0% the Directorate =eneral of
3o((ercial 'ntelligence and Statistics 6D=3'>S7, during 2-2!
(erchandise e1ports increased to ?S @1//&/ 0illion, recording a growth
of 23&. as co(pared with 23&9. posted during the sa(e period a %ear
ago& The total value of i(ports increased to ?S@ 23/&9 0illion registering
a growth of 2-&. which was lower than 29&3. recorded a %ear ago&
Aon2oil i(ports recorded an increase of 23&:., while oil i(ports showed
a growth of 3/&3. during the #nancial& Merchandise trade de#cit during
Page 2 of 37
2-2! widened to ?S @!&: 0illion fro( ?S @/9&3 0illion a %ear ago&
*oreign B1change Reserves recorded an increase of ?S@ 11&/ 0illion
during 2-2! to reach a level of ?S @39&- 0illion 0% end2March 2!&
As reported in the Economic Survey, Savings and 'nvest(ent rates as a
proportion to =D" are esti(ated at 3/&8. and 38&3. respectivel% for
2-2!& 9ith stronger (acroecono(ic funda(entals, the savings
and invest(ents rates are li,el% to provide further i(petus to sustain
the higher growth tra)ector% in the co(ing %ears&

Eco#o$ic E#%iro#$e#t i# &'r#'t'('
Carnata,a is of special signi#cance to 3anara Ban,& Besides 0eing the
State in which the Ban, was 0orn over a hundred %ears ago, it is also
the State in which the Ban,Ds Eead Fuarter is located&
Carnata,a econo(% has 0een growing at a rapid pace over the last few
%ears& Apart fro( its growing international recognition in the #elds of
'nfor(ation and 3o((unication Technolog% 6'3T7, 'nfor(ation
Technolog% Bna0led Services 6'TBS7 and Biotechnolog%, the State
provides ho(e to varied industrial activities, agro2processing
industries, sericulture and horticulture activities& As such, the Ban,
has 0een pla%ing a pro(inent role in the econo(ic develop(ent of the
State&
II! MONETAR AND )AN&ING DE"ELOPMENTS

Mone% Suppl% 6M37, on %ear2on2%ear 0asis, increased 0% 2&-. in 2-2
! as co(pared to 21&/. in 282-& Aggregate deposits of Scheduled
3o((ercial Ban,s 6S3Bs7, %2o2%, increased 0% 22&2. during 2-2!
as co(pared with the increase of 23&!., a %ear ago&
Accelerated growth during last three #nancials notwithstanding,
aggregate 0usiness of S3Bs, especiall% gross 0an, credit, (oderated
during 2-2!& S3BsD gross credit recorded a %2o2% growth of 21&8.
co(pared to 2!&1. growth recorded during 282-& Aon2food credit
e1tended 0% S3Bs increased 0% 22&3. in 2-2! co(pared to 2!&/. a
%ear ago& The incre(ental non2food credit2deposit ratio for the 0an,ing
s%ste( declined to -2&3. during 2-2! fro( !3&2. in 282-,
19&3. in 2/28& $i;uidit% conditions during 2-2! continued to
0e inGuenced 0% variation in cash 0alances of the =overn(ent and
capital Gows& Spurt in inGation, triggered 0% suppl% side de#ciencies,
was a (a)or concern during the %ear& The %ear2on2%ear 9"' inGation,
which was /&9. in end2March 2-, declined to a low of 2&9-. in end2
4cto0er 2- 0efore #r(ing up fro( (id2*e0ruar% onwards to reach
Page 3 of 37
-&:1. 0% end2March 2!& 3oncerns on li;uidit% and inGation continued
to draw attention fro( various ;uarters during the %ear&
The %ear 2-2! saw the following ,e% polic% (easures announced 0%
the Reserve Ban, of 'ndia 6RB'7&
To control the li;uidit% and the i(pending pressures of inGation,
RB' resorted to hi,es in 3ash Reserve Ratio 63RR7& 9hile Ban,
Rate was ,ept unchanged at 8., 3RR was hi,ed fro( 8&/. to
-&/. in two phases&
Repo rate and Reverse Repo rate was ,ept unchanged at -&-/.
and 8&. respectivel%&
The 0ench(ar, pri(e lending rates 6B"$Rs7 of the "u0lic Sector
Ban,s 6"SBs7 increased 0% -/ 0asis points fro( a range of
12&2/.212&-/. to 12&2/.213&/. during 2-2!&
'nterest rates oHered 0% the "SBs on deposits of a0ove one %ear
(aturit% (oved fro( a range of -&2/.29&/. in March 2- to
!&.29&2/. in March 2!&
The RB' withdrew the ceiling of Rs&3 crore on dail% reverse
repo under the $i;uidit% Ad)ust(ent *acilit% 6$A*7& The Reserve
Ban,, however, retains the discretion to re2i(pose a ceiling as
appropriate&
The Reserve Ban, has the Ge1i0ilit% to conduct repoIreverse repo
auctions at a #1ed rate or at varia0le rates as circu(stances
warrant&
The Reserve Ban, retained the option to conduct overnight or
longer ter( repoI reverse repo under the $A* depending on
(ar,et conditions and other relevant factors&

O*t+oo( ,or 2008-0-
=lo0al growth is pro)ected to drop to 3&-. in 2! co(pared to :&9.
recorded in 2-, as per the World Economic Outlook, released 0% the
'nternational Monetar% *und 6'M*7 during April 2!& The 4utloo,
foresees a 2/. chance of growth slowing to 3. or less in 2! and
29, e;uivalent to a glo0al recession due to unfolding events in
#nancial (ar,ets, triggered 0% the ?S su02pri(e i(0roglio& =lo0al
econo(ic situation was (ar,ed 0% three factors 2 rising inGation,
slower growth and tightening (onetar% conditions& The pro)ections for
the advanced econo(ies have 0een reduced signi#cantl%& "ro)ected
growth for the ?SA in 2! has 0een lowered to &/., down fro( 2&2.
in 2-& =rowth in e(erging (ar,et and developing econo(ies is also
e1pected to (oderate fro( -&9. in 2- to 8&-. in 2!& As per the
'M*Ds pro)ection, 'ndiaDs growth (a% shrin, 0% 1&3. to -&9. in the
sa(e period& *urther, #nancial ris,s have increased nota0l% as a result
Page 4 of 37
Net Profit at Rs. 1565 Crore
Highest Since Inception
of the continued volatilit% in oil prices, su02pri(e crisis, glo0al
i(0alances and large leveraged positions in #nancial (ar,ets&
Despite world econo(ic slowdown, the 'ndian econo(% is li,el% to post
a growth of !2!&/. for 2!29, as per the Annual "olic% State(ent for
2!29 released 0% the RB'& The (one% suppl% is pro)ected to grow at
18&/21-&. in 2!29 in consonance with the outloo, on growth and
inGation so as to ensure (acroecono(ic and #nancial sta0ilit% in the
period ahead& 3onsistent with the pro)ections of (one% suppl%, the
growth in aggregate deposits in 2!29 is placed at around
Rs&/,/, crore, translating into a growth of a0out 1-.& Based on an
overall assess(ent of the sources of funding and the overall credit
re;uire(ents of the various productive sectors of the econo(%, the
growth of non2food credit is pro)ected at around 2. in 2!29& 'n
view of the lagged and cu(ulative eHects of (onetar% polic% on
aggregate de(and and conducive suppl% (anage(ent, the annual
polic% endeavour would 0e to 0ring down inGation fro( the current
high level of a0ove -. to around /&/. in 2!29& The 3entral Ban,
targets an inGation rate of around 3. as part of the (ediu(2ter(
o0)ective&
III! CANARA )AN& IN 2007-08
.INANCIAL PER.ORMANCE
Pro/ts '#0 Pro/t'1i+it2
*inancial %ear 2-2
! was a %ear that saw (an% initiatives on varied fronts2 re0alancing
0usiness focus with a view to i(proving earnings pro#le, enhancing
deliver% channels and custo(er centricit%, repositioning 0rand identit%,
successful (igration to Basle '' new capital ade;uac% fra(ewor,,
unrelenting focus on asset ;ualit% and ris, (anage(ent, 0usiness
process reva(p and accent on hu(an capital develop(ent& The %ear
was also characteri5ed 0% introduction of several new products and
services, which have an i(portant 0earing on the pro#ta0ilit% of the
Ban,&
Page 5 of 37
All Time High Dividend of 80%
A two pronged 0usiness
re0alancing strateg%
was adopted with a
view to i(proving
earnings for the %ear
under review and for
the su0se;uent %ears&
The o0)ective was to
save cost on lia0ilities
and i(prove %ield on
assets& 9hile focus on
cost contain(ent has
led the Ban, to shed a
su0stantial a(ount of
high cost preferential
rate deposits, e(phasis
on i(proving and discovering 0etter %ield has pro(pted the Ban, to
cut down a si5ea0le a(ount of low %ielding corporate advances& All
these (easures and initiatives, which started showing results during
the %ear, would i(pact (ore percepti0l% during *+9 and su0se;uent
%ears&
9ith the operating pro#t for the %ear increasing to Rs&29/9 crore, net
pro#t reached an all ti(e high of Rs&1/8/ crore, su0stantiall% higher
than Rs&1:21 crore recorded for 282-&
Return on average assets 6RoAA7 for the %ear stood at &92.&
3ontain(ent of operating e1penses was reGected in the ratio of
operating e1penses to Average 9or,ing *unds 6A9*7, which was 1&--.
as at March 2-, declining to 1&83. as at March 2!& 3onse;uentl%,
pro#t per e(plo%ee, (oved up to Rs&3&8/ la,h co(pared to Rs&3&2:
la,h in 282-&
E#3'#ci#4
S3're3o+0er "'+*eJ
3o((itted to enhance
value for shareholders,
the Ban, has shown
stead% i(prove(ent in
earnings per share 6B"S7,
dividend pa%out ratio
and 0oo, value& 9hile
0oo, value increased to
Page 6 of 37
Rs&22&33 as at March 2! as co(pared with Rs&19-&!3 recorded for
the previous #nancial, B"S rose to Rs&3!&1- for the %ear ended March
2! co(pared to Rs&3:&8/ a %ear ago& A dividend of !., a(ounting
to Rs&32! crore, was declared 0% the Board of Directors of the Ban,, as
against -. 6Rs&2!- crore7 paid in the preceding %ear&
&e2 .i#'#ci'+ R'tios 567 March&2- M'rc3!2008
+ield on Advances 8!-8 90!22
+ield on 'nvest(ents 7!78 7!8-
3ost of Deposits 8!:; ;!80
Spread as a . to A9* 2!78 2!07
Aet 'nterest Margin 6A'M7 <!98 2!:2
4perating B1penses to A9* 9!77 9!;<
Return on Avg& Assets 6RoAA7 0!-8 0!-2
Return on Aetworth 98!78 9-!08
Business per B(plo%ee 6Rs& in
3rore7
8!:- ;!90
"ro#t per B(plo%ee 6Rs& in $a,h7 <!2: <!;8
Boo, Kalue 6Rs&7 9-7!8< 202!<<
Barning per Share 6Rs&7 <:!;8 <8!97
Page 7 of 37
I#co$e '#0
E=pe#0it*re
A#'+2sis
Resulting fro(
0uo%anc% in
the core
operations
and lending
to productive
seg(ents, the
Ban,<s
interest
inco(e
recorded a %2
o2% growth of
2/. to reach Rs&1:21 crore co(pared to Rs&1138/ crore
recorded during the previous #nancial& 'nterest inco(e was
driven 0% a 31&/. growth in inco(e fro( loansIadvances,
which accounted for over 8. of the total inco(e& Aota0l%,
non2interest inco(e registered a growth of /2&/., with a 2.
growth in fee20ased inco(e, well a0ove the 1&3. growth in
non2interest inco(e during the previous %ear&
'nterest rates on
deposits re(ained at a
pea, level during *+!,
resulting in higher outgo
on interest pa%(ent on
lia0ilities than interest
inco(e& 't had also a
0earing on the average
cost of deposits and
average %ield on
loansIadvances& 9hile
%ield on advances rose
0% 12- 0asis points to
1&22., cost of deposits
increased higher 0% 13: 0asis points to 8&!.& 'ncrease in cost of
funds resulted in further narrowing down of interest spread to 2&-.
for the #nancial %ear ended March 2!& 9hile interest e1penditure,
co(prising over -9. of the total e1penditure, increased to Rs&1883
crore, the Ban, reasona0l% contained its non2interest e1penditure&
'nvest(ents in lower %ielding securities on account of statutor% reserve
(aintenance hit the Aet 'nterest Margin 6A'M7& The Ban, has not
earned an% interest on 3RR 0alances fro( 31&3&2-& The Ban, has
Page 8 of 37
ta,en a prudent ris, contain(ent (easure 0% reducing the (odi#ed
duration of the invest(ents in the Availa0le for Sale 6A*S7 categor% to
1&29 fro( 2&31 a %ear ago 0% concentrating incre(ental invest(ent in
short duration securities where the %ields are lower& Eowever, this
helped the Ban, in reducing the interest rate ris, and conse;uentl%
lowered the provisioning re;uire(ents&
C'pit'+ '#0 Reser%es
Aetworth of the Ban,, as at March 2!, stood at Rs&!298 crore
co(pared to Rs&!111 crore as at March 2-& 9ith the paid2up capital
at Rs&:1 crore, reserves and surplus increased to Rs&191 crore&

6Rs& in 3rore7


During the %ear, the Ban, raised Tier '' 0onds worth Rs&- crore so as
to aug(ent capital 0ase& As at March 2!, 3apital to Ris, 9eighted
Assets Ratio 63RAR7 of the Ban, under Basle '' stood at 13&2/., well
a0ove the 9. regulator% 0ench(ar,& The (ediu( ter( o0)ective of
the Ban, is to (aintain the 3RAR ratio a0ove 12.&
'(ple(entation of the Basle '' nor(s with eHect fro( March 2! has
0een an i(portant develop(ent during the %ear& 3anara 0an, is at
present Basle '' co(pliant, with due adherence to all nor(s speci#ed
0% the RB' and certi#ed 0% the Auditors&
)USINESS GRO>T?
Page 9 of 37
Co$positio# o,
C'pit'+
M'rc3 2007
)'s+e I
M'rc3 2008
)'s+e II
Ris, 9eighted Assets 90-:78 99;220
Tier ' 3apital 7880 89:8
3RAR 6.76Tier '7 7!97 7!09
Tier '' 3apital ;-28 7280
3RAR 6.76Tier ''7 ;!<< ;!2:
Total 3apital 9:778 98<-8
3RAR 6.7 9<!80 9<!28
Business Volumes Cross Rs.2.6 lakh Crore
Deposit
s
'n s%nc with the
strategic focus, the
Ban,Ds core deposits
grew 0% a ro0ust 2/.&
9ith the strategic
o0)ective of
re0alancing 0usiness
portfolio, the Ban,
shed a su0stantial
a(ount of preferential
rate deposits and
concentrated on
(o0ili5ing higher core
deposits during the
%ear under review& The
Ban,Ds conscious
decision to shed preferential rate deposits 0% a0out 2:. had a
(oderating i(pact on its aggregate deposits, which grew 0% Rs&11891
crore to reach Rs&1/:-2 crore&
Responding to a clear focus on aug(enting 3ASA 6current and savings
0an, deposits7, after several %ears, the Ban,Ds share of 3ASA deposits
in aggregate do(estic deposits (oved up 0% : 0asis points to
32&39.& 9ith a 3ASA per 0ranch at Rs&1!&12 crore, the Ban,
continues to 0e one of the 0est a(ong the peers& "ursuing a strateg%
of 0road 0asing deposit clientele, all the 0ranches together added
nearl% 2&! (illion accounts, ta,ing the total tall% under deposit
accounts to 2!&3 (illion&
A0%'#ces 5#et7
The Ban,Ds advances 6net7 (oved up 0% Rs&!-32 crore to reach
Rs&1-23! crore& The shedding of preferential rate deposits was
acco(panied 0% a corresponding re0alancing in advances portfolio
with a clear focus on productive sectors& 4n the assets side too, the
Ban, consciousl% pruned a su0stantial low2%ielding loans during the
%ear& The Ban, ensured that the credit growth to productive sectors
li,e agriculture, s(all and (ediu( enterprises, education and
infrastructure grew at a fast clip& The nu(0er of 0orrowal accounts, as
at March 2!, rose to :&/ (illion& The Ban,<s credit to deposit ratio
stood at 89&8. as at March 2!&
Page 10 of 37
Clientele Base Rose to 32.35 Million-
3 Million cco!nts ""e"
Aggregate 0usiness (oved up fro( Rs&2:!!- crore as at March 2-
to Rs&28131 crore as at the end of March 2!& "roductivit%,
as (easured 0% 0usiness per e(plo%ee, increased to Rs&8&1
crore fro( Rs&/&:9 crore a %ear ago, continuing to 0e one of
the 0est a(ong the peers& 9ith several enterprise2wide
initiatives and (easures, the Ban, added 3 (illion clientele
during the %ear&
Ret'i+ Le#0i#4 Oper'tio#s
The Ban,Ds retail lending
operations (oderated during
the %ear following
re0alancing of the credit
portfolio& Dis0ursals (ade
under retail lending during
2-2! a(ounted to
Rs&:/! crore, ta,ing the
outstanding retail portfolio to
Rs&1-88/ crore& Retail
portfolio as a proportion of
net credit was 0rought down
to 18&2.&
?nder retail seg(ents, advances to housing #nance 6direct7 reached
Rs&88/! crore& Direct housing loan for(ed 3-&-. of retail portfolio,
with a (a)or proportion co(ing under the priorit% a(0it, reGecting the
Ban,<s continued align(ent with national priorities& 9hile advances to
retail trade increased to Rs&3-9! crore, loans to other personal
seg(ents stood at Rs&-29 crore&
TREASUR AND INTERNATIONAL OPERATIONS

A44re4'te i#%est$e#ts of the Ban,, as at March 2!, were of the
order of Rs& :9!12 crore& 'n tune with the o0)ective of 0ringing
down the portfolio (ar,et ris,, the (odi#ed duration of the Availa0le
for Sale 6A*S7 seg(ent has 0een 0rought down signi#cantl% to 1&29 as
at March 2! fro( 2&31 a %ear ago 0% concentrating incre(ental
Page 11 of 37
invest(ent in short duration papers& The trading pro#t during the %ear
stood at Rs&:3/ crore, as against Rs&13: crore of previous %ear&
'n the wa,e of rising credit spreads and glo0al uncertainties, Ban,
reduced the e1posure to Aon2S$R securities 0% 2-. to Rs&/23 crore
as at March 2!& The Ban, also continued to 0e an active pla%er in
the capital (ar,et 0% participating in 'nitial "u0lic 4Hers 6'"4s7 and
capturing 0etter part of the (ar,et (ove(ents to i(prove its 0otto(2
line&
The Ban, continued to 0e one of the (a)or pla%ers in the countr% for
#nancing and facilitating the foreign trade through its 18 foreign
depart(ents and 139 designated 0ranches across the countr%&
.orei4# )*si#ess
T*r#o%er of the Ban,,
as at 31
st
March 2!,
aggregated to
Rs&138-/- crore&
*oreign 0usiness
turnover co(prised
Rs&:3-/9 crore under
e1ports, Rs&:1-8/ crore
under i(ports and
Rs&/1233 crore under
re(ittances&
4utstanding e1port
credit rose to Rs&9182
crore fro( Rs&-!98
crore recorded at the end of the previous %ear&
Across the 0orders, the Ban,<s presence covered one 0ranch each at
$ondon and Eong Cong, a representative oLce at Shanghai and a )oint
venture 0an,, na(el%, 3o((ercial Ban, of 'ndia $$3 in association
with State Ban, of 'ndia in Moscow& 3anara Ban, has also an 4Hshore
Ban,ing ?nit at Special Bcono(ic Mone 6SBM7 A4'DA, ?ttar "radesh&
The Ban, has drawn up a (ediu( ter( road(ap to e1pand glo0al
footprints in 21 internationall% pro(inent #nancial centres& The %ear
witnessed the Ban, (oving a step closer in its glo0al e1pansion
aspiration& The Ban, has o0tained per(ission fro( the Reserve Ban,
of 'ndia to open 0ranches at Nohannes0urg 6South Africa7, *ran,furt
6=er(an%7, Muscat 64(an7, Mana(a 6Bahrain7 and Fatar& The Ban, is
in the process of o0taining regulator% approvals fro( the host
countries for opening 0ranches in the a0ove centres& The Ban,
o0tained, during the %ear, preli(inar% approval fro( 3hina Ban,ing
Page 12 of 37
Regulator% 3o((ission to convert its representative oLce at Shanghai
into a full2Gedged 0ranch&
The Ban,Ds international operations are supported 0% a wide networ, of
/39 correspondent 0an,s, spread across 9: countries& The Ban, has
rupee drawing arrange(ents with 19 e1change houses and 19 0an,s in
the Middle Bast for channelising the re(ittances of e1patriates& 3anara
Ban, has 0een (anaging two e1change houses vi5&, Al Ra5ou,i
'nternational B1change 3o, Du0ai and Bastern B1change Bst&, Fatar,
under second(ent agree(ent& During the %ear, Blectronic *unds
Transfer 6B*T7 was e1tended to additional #ve e1change co(paniesI
0an,s for faster credit of re(ittances, ta,ing the tall% to 11 e1change
co(paniesI 0an,s& The Ban, also introduced D9e0 BasedD re(ittance
facilit% to facilitate ;uic,er re(ittance of funds&
OT?ER SER"ICES
The Ban,Ds Merc3'#t )'#(i#4 Di%isio# handled diverse assign(ents
as 3o2Boo, Running $ead Manager and AdvisorI $ead
ManagerIManagerIArrangers& The Ban, also fora%ed into speciali5ed
areas of DKaluation of SharesD for various usages, acting as 'ssuing and
"a%ing agent for 3o((ercial "aper "lace(ents, supple(enting fee
0ased inco(e&
The %ear 2-2! was the #rst %ear of operations of the S2#0ic'tio#
Gro*p& The =roup has s%ndicated total de0t of Rs&2-! crore with
pro)ect cost a(ounting to Rs&39/9 crore& The =roup generated a
su0stantial increase in the fee 0ased inco(e& The de0t co(ponent of
the current pro)ects under place(ent is to the tune of Rs&2:: crore&
The =roup is also having pro)ects to the e1tent of de0t co(ponent of
Rs& 121: crore under various stages of s%ndication& The =roup has
s%ndicated diverse pro)ects fro( Manufacturing, 'nfrastructure,
Services and Real Bstate Sector&
The Ban, has tie2up arrange(ents in 0oth life and non2life insurance
seg(ents under its @1'#c'ss*r'#ce ar(& The Ban, has a corporate
agenc% agree(ent with MIs Aviva $ife 'nsurance 3o(pan% 6'ndia7 "vt&
$td& The Ban, will 0e entering into corporate agenc% agree(ent with
its new Noint Kenture, vi5&, MIs 3anara ESB3 4riental Ban, of
3o((erce $ife 'nsurance 3o(pan% $td& The Ban, has also a tie2up
arrange(ent with MIs ?nited 'ndia 'nsurance 3o(pan% $td for general
insurance 0usiness&
?nder Cross Se++i#4A the Ban, has co((enced selling of Mutual *und
products of its own su0sidiar%, na(el%, MIs 3anara Ro0eco Asset
Manage(ent 3o(pan% $td and ED*3 Asset Manage(ent 3o(pan%
under the tie2up agree(ents& To (a,e the (ar,eting eHorts (ore
Page 13 of 37
eHective and result oriented, a nu(0er of (easures were ta,en during
the %ear, which are e1pected to result in su0stantial earnings fro(
cross2selling of insurance, (utual funds and other products&
Corpor'te C's3 M'#'4e$e#t Ser%ices 633MS7 networ, of the
Ban,, covering 9: 4perating 3entres and /9/ "ooling Branches,
provides services related to local and upcountr% che;ue collection,
0ul, che;ues collection and 5ero 0alance account facilit%& The
aggregate turnover under 33MS a(ounted to Rs&221/ crore&
?nder C'r0 )*si#ess, the Ban, too, several initiatives to e1pand its
credit card and De0it2cu(2ATM card 0ase& The Ban,Ds de0it and credit
cards were ena0led for glo0al use, with a host of facilities and
custo(er friendl% features& The total card 0ase rose to 33&- la,hs as at
March 2!&
The Ban, increased the nu(0er of NSDL 0epositor2 ser%ice
ce#tres fro( 9 to 31 during the #nancial %ear ending March 2!&
E=ec*torA Tr*stee '#0 T'='tio# Ser%ices out#t of the Ban,
provides services li,e De0entureISecurit% Trusteeship, 9ill and
B1ecutorship, Trusteeship, "ersonal Ta1 Assistance and "ower of
Attorne% Services& During the %ear under review, it secured 12 new
0ondsIsecurit% trusteeship issues, a(ounting to Rs&38- crore and
generated su0stantial fee20ased inco(e&
?nder Go%er#$e#t )*si#ess, co(prising Direct Ta1es 6'nco(e Ta17
etc& and 'ndirect Ta1es 6B1cise and 3usto(s7, Depart(entali5ed
Ministr% Accounts, "ostal Transactions and Treasur%, the Ban, achieved
a total turnover of Rs&33,13: crore& The Ban, has introduced 'nternet
"a%(ent 6e2pa%(ent7 of B1cise and Service Ta1, 3usto(s Dut% and
Direct Ta1es during the period&
The Ban, has 0een authori5ed to handle accounts of Depart(ent of
Bducation, Depart(ent of 3ulture, Depart(ent of Arts and Depart(ent
of +outh AHairs and Sports under Ministr% of Eu(an Resources
Develop(ent 6ERD7, =overn(ent of 'ndia& The Ban, has developed a
9e02"ortal for Ministr% of ERD for e2trac,ing the funds under the Sarva
Shi,sha A0hi%an Sche(e& The 9e02"ortal has 0een i(ple(ented in
Andhra "radesh, Carnata,a, Ta(il Aadu and ?nion Territor% of
"uducherr%& The total turnover in the accounts of the Ministr% of ERD
for the %ear 2-2! was Rs&22,2: crore&
A4ric*+t*r'+ Co#s*+t'#c2 Ser%ices 6A3S7 out#t of the Ban, handled
(ore than ! assign(ents during the %ear under review& The
assign(ents include pro)ect appraisalI for(ulations in :- pro)ects with
Page 14 of 37
e! "A Ra!io #rough! do$n !o 0.8%%
All Time High Cash Re&over' a! Rs.(0)0 &rore
S#ooth $ransition to the Basle II Capital "e%!ac& 'ra#e(or)
an outla% of Rs&3/ crore& '(portant assign(ents handled during the
%ear include appraisalIvia0ilit% studies in areas of agriculture and allied
activities li,e Goriculture, dair%, poultr%, food processing, culinar%
her0s, a;uaculture, cold storages and food par,s&
ASSET BUALIT AND RIS& MANAGEMENT
Asset B*'+it2
?nrelenting focus on 'ssets C*'+it2, stringent credit review and
(onitoring (echanis( 0rought a0out a reduction in the Ban,<s A"A in
a0solute as well as ratio ter(s&

The gross A"A level
declined during the %ear
and stood at Rs&1:18
crore& 9ith a gross A"A
ratio of 1&31., the Ban,
continues to 0e the
lowest a(ong the peers&
9ith a net A"A level of
Rs&!99 crore, net A"A to
net advances ratio also
ca(e down to &!:. as
at March 2! fro(
&9:. a %ear ago&
The perfor(ance under
settle(ents and recover% was ;uite noteworth%& 81:2 Recover% Meets
were conducted during the %ear, resulting in the recover% of Rs&/:/
crore& 3ash recover% during the %ear aggregated to Rs&13 crore, well
e1ceeding the internal target of Rs&!/ crore&
Ris( M'#'4e$e#t
Ris( M'#'4e$e#t I#iti'ti%es
Page 15 of 37
The Ban, has put in place a uni#ed ris, (anage(ent architecture to
(ove towards glo0al 0est practices for eHective i(ple(entation of ris,
(anage(ent initiatives in confor(it% with the Basle '' fra(ewor, and
RB' guidelines& The Board of Directors drive the Ris, Manage(ent
initiatives in the Ban,& The Ris, Manage(ent 3o((ittee of the Board
is constituted and operational& Top B1ecutive 3o((ittees for 3redit
Ris,, 4perational Ris, and Mar,et Ris, (anage(ent supervise and
(onitor the respective ris, (anage(ent processes and procedures&
Asset $ia0ilit% 3o((ittee 6A$347 (eets periodicall% for eHective and
pro2active A$M in the Ban,&
An e1clusive Ris, Manage(ent 9ing at the Eead oLce is functioning
as a nodal point for overall i(ple(entation of various ris,
(anage(ent initiatives across the Ban,& 'ntegrated Mid 4Lce of 0oth
do(estic as well as fore1 treasur% is functioning under Ris,
Manage(ent 9ing for eHective and independent supervision and
(onitoring of (ar,et ris, in invest(ent and fore1 functions& Ris,
Manage(ent Sections are functioning in all the 3 3ircle 4Lces of the
Ban, as e1tended ar(s of the Ris, Manage(ent 9ing at the 3orporate
4Lce&
Mi4r'tio# to )'s+e II Nor$s
The Ban, has co(puted 3apital to Ris, 9eighted Assets Ratio 63RAR7
at 31st March 2!, as per "illar ' re;uire(ent of Basle '' nor(s,
adhering to the Aew 3apital Ade;uac% fra(ewor, guidelines stipulated
0% the RB'&
The Ban, has fra(ed polic% on 'nternal 3apital Ade;uac% Assess(ent
"rocess 6'3AA"7 to (eet the re;uire(ents of "illar 2 of Basle '' nor(s&
The Ban, has constituted a 3apital "lanning 3o((ittee to assess
capital re;uire(ent of the Ban,, ensure (aintenance of appropriate
level of 3RAR and evaluate various options for raising capital&
The Ban, has adhered to the Disclosure nor(s as stipulated in the
guidelines of RB' to (eet "illar 3 re;uire(ents of Basle '' nor(s& The
Ban, has fra(ed a polic% of Disclosures and for(ed a Disclosure
3o((ittee consisting of Top B1ecutives to ensure adherence to the
polic% guidelines&
'(prove(ent in awareness of Basle '' nor(s a(ong staH is
continuousl% 0eing enhanced through training, periodical pu0lications
of Ris, Manage(ent 9ing, such as DRis, *ocusD and D'ndustr% *ocusD&
Cnowledge and s,ill levels of core staH at 3orporate 4Lce assigned
with the responsi0ilit% of i(ple(entation of Basle '' nor(s are 0eing
constantl% upgraded through participation in e1ternal trainings,
wor,shops and se(inars&
Page 16 of 37
Cre0it Ris( M'#'4e$e#t
The Ban, has adopted DStandardi5ed ApproachD to arrive at credit Ris,
9eighted Assets 6R9A7 for co(puting 3apital to Ris, 9eighted Assets
Ratio 63RAR7& The data for arriving at R9A is 0eing collected fro( the
0ranches (anuall%, which is validated 0% internalIe1ternal auditors&
The Ban, has e(0ar,ed upon a software solution, vi5&, 3o(prehensive
Data and S%ste( Architecture on 3redit Ris, Manage(ent 63D3RM7 to
get the s%ste( support for the M'S re;uire(ents to co(pute R9A,
generate various credit related state(ents and conducting various
anal%ses of credit portfolio for real ti(e (onitoring& The
i(ple(entation of 3D3RM pro)ect is in the #nal phase&
The Ban, has eHective ris, (anage(ent s%ste(s for (anaging credit
ris,& The various initiatives ta,en 0% the Ban, are as followsJ
2 "utting in place a co(prehensive 3redit ris, (anage(ent polic%
in tune with regulator% guidelines and 0est practices in the
industr%& This polic% is reviewed annuall%&
2 Ban, has put in place four diHerent rating (odels, according to
the asset class and si5e of 0orrower, for assigning internal ratings
to the Ban,Ds new and e1isting loan e1posures&
2 Rating of eligi0le accounts has 0een (ade (andator% as a pre2
sanction e1ercise& Migration anal%sis of rated accounts is 0eing
done periodicall% for Eead 4Lce power accounts& Bac,
testingIstress testing of rating (odels is 0eing done&
2 "ricing lin,ed to rating has 0een initiated&
2 *i1ation of various e1posure ceilingIprudential nor(s to avert
concentration ris,, such as, single and group 0orrowers,
su0stantial e1posures, ter( loans, unsecured advances,
e1posure to various industries, AB*3s, real estate, capital (ar,et
and software sectors&
2 BHective loan review (echanis( through various credit
(onitoring tools, such as, credit (onitoring for(ats, (id2ter(
reviews, stoc, audits, ;uarterl% infor(ation s%ste(Ihalf2%earl%
operating s%ste(s, special watch list accounts, intense
(onitoring of ;uic, (ortalit% accounts and review of sanctions
0% higher authorities&
The Ban, (aps the ratings assigned 0% recogni5ed e1ternal credit
rating agencies to the e1posures of the concerned 0orrowers strictl% in
ter(s of RB' guidelines to o0tain capital leverage availa0le under
Standardi5ed Approach& The Ban, has initiated steps to encourage the
0orrowers to get the facilities rated in order to (ini(i5e unrated
e1posures&
Page 17 of 37
The Ban, has drawn a road (ap for (oving to 'nternal Rating Based
approaches& The process of identif%ing suita0le software solution to
adopt (ultiple approaches has 0een #nali5ed&
Oper'tio#'+ Ris( M'#'4e$e#t
The Ban, has co(puted capital charge for operational ris, 0% adopting
DBasic 'ndicator ApproachD as stipulated 0% RB'!
The Ban, has initiated steps for strengthening internal operational loss
data 0ase through incident reporting s%ste( 0% all 0ranchesIoLces to
capture lossInear (iss operational loss incidents& DRis, "ro#leD of the
Ban, is co(piled on a ;uarterl% 0asis 0ased on the ris, te(plates
provided 0% RB', to anal%5e the level and direction of various ris,s
across the Ban,&
"roper organi5ational structure is in place as a #rst step to i(ple(ent
co(pliance of Regulator%IStatutor% and internal guidelines across the
Ban,&
As an initiative to (ove towards Advanced Approaches for operational
ris, (anage(ent, the Ban, has put in place Business $ine "olic%,
4utsourcing "olic%, $egal Ris, Manage(ent "olic% and "olic% on
'nsurance& The (apping of loss events into 0usiness lines is in
progress& The e1ercise of Ris, 3ontrol and Self2Assess(ent 6R3SA7 of
various products and processes has alread% co((enced&
M'r(et Ris( M'#'4e$e#t:
The Ban, has co(puted capital charge for (ar,et ris, on Availa0le for
Sale 6A*S7 and Eeld for Trading 6E*T7 portfolios under 'nvest(ents, 0%
adopting Standardised Modi#ed Duration Approach&
'ntegrated Mid 4Lce at Ris, Manage(ent 9ing (onitors (ar,et ris,
through on line connectivit% with the do(estic and fore1 treasur%&
B1posure li(its, such as stop loss li(its on trading 0oo,s, Dealer wise
li(its, li(its on (one% (ar,et operations, M2duration li(its for A*S
categor%, Aggregate gap li(it, 'ntra da% and overnight li(it for various
currenc% position are #1ed to act as ris, (itigants and on line
(onitoring is 0eing done 0% Ris, Manage(ent 9ing& Karious ris,
reports for(ats are custo(i5ed for eHective (ar,et ris, (anage(ent&
The Ban, has initiated steps for putting in place KaR 0ased (odel for
esti(ating future volatilit% under trading 0oo, and for (oving towards
'nternal Model approach for co(putation of capital charge for (ar,et
ris,& "ilot test of C2KaR (odel has 0een underta,en&
Page 18 of 37

Asset Li'1i+it2 M'#'4e$e#t
The Ban, has put in place an eHective Asset $ia0ilit% Manage(ent
s%ste(& The Board of Directors of the Ban, has constituted an Asset
$ia0ilit% 3o((ittee 6A$347 to oversee A$M functions, including #1ation
of interest rates for various co(ponents of assets and lia0ilities, its
co(position and (aturit%& A co(prehensive software solution has 0een
installed for ;uantif%ing ris,s and to anal%5e Maturit% =ap, Duration
and Sensitivit% of assets and lia0ilities&
Studies have 0een underta,en to anal%5e the 0ehavioural patterns of
various co(ponents of assets and lia0ilities& Anal%sis of Barnings at
Ris, 6BAR7 and sectoral lending are 0eing done on an ongoing 0asis&
Stress testing e1ercises on various scenarios of li;uidit% and interest
rates are 0eing underta,en to esti(ate the stress cost as also the
Bcono(ic Kalue of B;uit% 6BKB7& The change in the co(position and
residual (aturit% of assets and lia0ilities is evaluated 0% the Traditional
=ap Anal%sis 6T=A7 as also 0% the Duration =ap Anal%sis 6D=A7&
9ith the issuance of the a(ended =uidelines on Asset $ia0ilit%
Manage(ent 0% the Reserve Ban, of 'ndia, the li;uidit% position of the
Ban, is trac,ed on a dail% 0asis 0% (eans of residual (aturit% of assets
and lia0ilities&
The A$34 (eets regularl% to discuss various issues pertaining to the
li;uidit% position 0% considering the residual (aturit% pro#le of various
assets and lia0ilities, ta,es stoc, of the d%na(ic interest rate scenario,
discusses at length the changes ta,ing place in econo(ic and #nancial
para(eters which have a direct or indirect 0earing on the 0an,ing
industr% and focuses on the i(pact of all these factors on the 0usiness
pro#le of the Ban,&
NATIONAL PRIORITIES
Priorit2 Sector A0%'#ces
As a responsi0le 0an,ing (a)or of the countr%, 3anara Ban, has 0een
relentlessl% pursuing varied goals under national priorities& The
perfor(ance during 2-2! has further reaLr(ed the Ban,<s
co((it(ent to the large and growing productive seg(ents of the
econo(% including agriculture, s(all enterprises, education, wea,er
sections, S3ISTs and (inorities&
Page 19 of 37
4utstanding Priorit2 Sector A0%'#ces of the Ban, as at March 2!
rose 0% Rs&/3/9 crore to Rs&:323 crore, covering 32 la,h 0orrowers&
"riorit% Sector Advances for(ed ::&1/. of the Ban,<s Ad)usted Aet
Ban, 3redit 6AAB37, well a0ove the :. stipulated nor(& The
incre(ental growth under priorit% sector credit 6Rs&/3/9 crore7
constituted al(ost 82. of the incre(ental growth in gross credit
6Rs&!8!2 crore7 of the Ban,&
9ith a focus on credit deliver% to '4ric*+t*re, the Ban, has (ore than
dou0led the credit Gow to agriculture in last three %ears in tune with
=overn(ent polic%& During the %ear 2-2!, the Ban, dis0ursed
Rs&11::3 crore, an increase of 22. over the previous %ear& The Ban,<s
outstanding advances under agriculture reached Rs&1-998 crore,
registering a 18. %2o2% growth during the #nancial %ear under review&
4utstanding agriculture credit as a proportion of AAB3 rose to 1!&39.,
surpassing the (andator% targeted level of 1!. after a gap of eleven
%ears&
3onse;uent to i(ple(entation of the revised guidelines on priorit%
sector advances, advances under priorit% credit seg(ent were
reclassi#ed, leading to (oving out of a su0stantial a(ount of advances
fro( the priorit% sector& *actoring in the a(ount (oved out of the
priorit% sector, the %2o2% growth in advances would wor, out to 1-. for
the entire priorit% sector and 22. for agriculture during the %ear&
Fuite nota0l%, the Ban,<s Rural and Se(i ?r0an 0ranches have
#nanced 3&:1 la,h new far(ers at an average of 2:! far(ers per
0ranch as against the stipulated (ini(u( of 1 new far(ers per
0ranch&
?nder &is'# Cre0it C'r0 Sc3e$e, the Ban, issued 3&3- $a,h cards
during the %ear, with credit coverage of Rs&2221 crore& As at March
2!, the cu(ulative nu(0er of Cisan 3redit 3ards reached 2:&:8
la,hs, involving a credit coverage of Rs&12/- crore&
The Ban, continues to
support hu(an capital
for(ation in the countr%
through #nancing higher
education, sustaining the
highest education loan
portfolio a(ong
nationali5ed 0an,s in
'ndia& The Ban,Ds
outstanding advances
under Kid%asagar
Page 20 of 37
E0*c'tio# Lo'# Sc3e$e recorded a growth of 39. to reach Rs&1-3-
crore, covering (ore than 1,19, students as at March 2!&
The Ban, has also e1tended #nancial assistance to other priorit%
sectors, such as retail traders, housing and (icro credit& As at March
2!, outstanding advances to these sectors reached a level of
Rs&1132 crore&
During the %ear, the Ban, activel% participated in various =overn(ent
Sponsored Sche(es, such as, "MR+, S=S+, SNSR+ and S$RS& As at 31
st
March 2!, the outstanding advances under these sche(es
aggregated to Rs&/-1 crore, involving 1&3 la,h 0ene#ciaries&
Per,or$'#ce *#0er "'rio*s Go%er#$e#t Spo#sore0 Sc3e$es
Aa(e of the
Sche(es
Ao& of
Accounts
A(t& in
Rs&
3rore
"MR+ !22:: 3-:
S=S+ 31:28 1/-
SNSR+ 1:-:! 3!
S$RS 123 2
Total 1298:! /-1
'n support of the underprivileged sections of the societ%, the Ban,<s
outstanding advances to S3IST 0ene#ciaries reached Rs&2// crore as
at March 2!& The recover% percentage of lending to S3IST 0orrowers
was -2. as co(pared with !3&8. for the Ban,<s entire priorit% sector
advances& 9hile outstanding advances to wea,er sections aggregated
to Rs&-/2! crore, with a %2o2% growth of 3:., advances under DR'
sche(e stood at Rs&: crore as at March 2!&
During the %ear, the Ban, has for(ed 8,383 Self2Eelp =roups 6SE=s7&
The cu(ulative nu(0er of SE=s for(ed was 2,1,::1 as at March
2! with a credit lin,age of 1,-2,29 SE=s& 4utstanding advances to
SE=s (ore than dou0led to reach Rs&/28 crore as at March 2!&
Advances outstanding to
S$'++ '#0 Me0i*$
E#terprises 6SMBs7
recorded an increase of
Rs&:3// crore during the
#nancial to reach
Rs&1!8 crore,
registering a %2o2%
growth of 3&8.&
Page 21 of 37
Rea&hing *u! Through +inan&ial ,n&lusion
3onsidering the i(portance of SMB sector in the national econo(%, the
Ban, introduced several sche(es to (eet the diverse re;uire(ents of
entrepreneurs in SMB seg(ent& During the %ear, the Ban, entered into
agree(ent with 3redit Rating 'nfor(ation Services of 'ndia $td 63R'S'$7,
SMB Rating Agenc% of 'ndia $td 6SMBRA7 and '3RA $td for SMBs ratings&
The Ban, has created SMB "rocessing ?nits at select 3ircles ena0ling
faster processing and sanction& 't has also set up a dedicated
(ar,eting on a pilot 0asis& 4n enact(ent of The Micro, S(all and
Mediu( Bnterprises Develop(ent Act 6MSMBD Act7, 28, the Ban,
adopted the revised de#nitions of the SMB sector and rationali5ed rate
of interest on advances to (anufacturing as well as services seg(ents&
The Ban, received an a(ount of Rs&3&3 crore fro( the Ministr% of
Micro, S(all > Mediu( Bnterprises, =overn(ent of 'ndia during the
%ear as a Aodal Agenc% for Technolog% ?pgradation of SS' units under
3redit $in,ed 3apital Su0sid% Sche(e 63$3SS7 and a(ount utili5ed for
the sa(e was Rs&9&3 la,h&
.i#'#ci'+ I#c+*sio#
"ursuing its thrust on #nancial inclusion, the Ban, continued to put its
ar(s around the people outside the a(0it of 0an,ing& The Ban,
(o0ili5ed 1&2 (illion no2frill accounts 63anSaral7 during *+!,
e1ceeding the target of one (illion& The Ban, has ta,en several
technolog% initiatives to further #nancial inclusion process& The
initiatives include introduction of (ulti2lingual 0io(etric ATMs, voice2
ena0led (o0ile 0io2(etric ATM and launching of S(art 3ard pro)ect&
'ntroducing technolog% in the #nancial inclusion process, the Ban,
launched (ultilingual 1io$etric-%oice e#'1+e0 ATMs during the
%ear& The Ban, has co(pleted the Total *inancial 'nclusion in 19 out of
2: lead districts, na(el%, Bangalore Rural, Bangalore ?r0an,
3hitradurga, Colar, Shi(oga, Eassan, 3hi,,a0allapur and Davanagere
in Carnata,a, "ala,,ad, Trissur, 9a%nad, 3alicut and Malappura( in
Cerala, Shei,pura in Bihar, 3oi(0atore, Brode, Madurai, Ailgiris and
Theni in Ta(il Aadu& The State of Cerala, where 3anara Ban, is the
3onvenor of State $evel Ban,ers 3o((ittee, was the #rst (a)or State
to achieve total #nancial inclusion during Dece(0er 2-&
The Ban, has also sanctioned 81,-93 general purpose credit cards
during the %ear as a (eans of enlarging the scope of #nancial inclusion
services& 3anara Ban, is the #rst 0an, in the countr% to launch (o0ile
Bio(etric2voice ena0led ATM in Bangalore Rural& 'n a novel initiative,
Page 22 of 37
A Res-onsi#le Cor-ora!e Ci!i.en
the Ban, has launched D=ra(in Ki,as KahiniD2 vehicles to spread
/#'#ci'+ +iter'c2& ?nder the initiative, / vans have 0een operational
in / districts across 'ndia& The Ban, started Cre0it Co*#se+i#4
Ce#tre in three districts in Carnata,a&

Le'0 )'#( Sc3e$e
3anara Ban, has lead 0an, responsi0ilities in 2: districts in the
countr%, vi5&, eight in Carnata,a, si1 in Ta(il Aadu, #ve in Cerala, four
in ?ttar "radesh and one in Bihar& The Ban, is also acting as the
convenor of the State $evel Ban,ers< 3o((ittee 6S$B37 in the State of
Cerala&
E#trepre#e*rs3ip De%e+op$e#t '$o#4 >o$e#
The 3entre for Bntrepreneurship Develop(ent for 9o(en was
esta0lished during 19!! at Eead 4Lce, Bangalore& At present 3 such
3entres are functional at various 3ircles across the countr%& These
3entres cater to the needs of the wo(en 0% providing counselling
services, conducting entrepreneurship develop(entIs,ill training
progra((es, conducting se(inars and providing (ar,eting support 0%
organi5ing e1hi0itions li,e 3anutsavI3an(elaI3an0a5ar& Towards
providing e1clusive 0an,ing services to wo(en, 3 Mahila Ban,ing
Branches and 8 Mahila Ban,ing Divisions have 0een set up 0% the Ban,
at diHerent parts of the countr%& During 2-2!, 13 s,ill
develop(ent and -!/ awareness progra((es were conducted
0ene#ting /:,!- and //,1! wo(en, respectivel%& 1,-,12 wo(en
were counseled in the area of entrepreneurship develop(ent
progra((e& During the last one %ear as (an% as -8
3an0a5aarsI3anutsavs - an e1hi0ition2cu(2sale of products
(anufactured 0% wo(en were conducted through these
0ranchesIdivisions& As at March 2!, the total a(ount of outstanding
advances to wo(en stood at a level of Rs&!9!2 crore, constituting
9&1-. of the Ban,<s net credit, well a0ove the /. stipulation 0% the
=overn(ent of 'ndia&
CORPORATE SOCIAL RESPONSI)ILIT
The Ban,, as a responsi0le corporate social citi5en, has 0een pa%ing
due attention to varied corporate social responsi0ilities since inception&
Through a )udicious (i1 of co((erciall% sound 0an,ing practices with
social 0an,ing initiatives, 3anara Ban, has distinguished itself in ter(s
Page 23 of 37
of nu(erous co((unit% oriented activities& The Ban, has 0een ta,ing
a slew of initiatives over the %ears for societal develop(ent concerning
underprivileged, especiall% in the countr%side& *ollowing the principles
of corporate philanthrop%, the Ban, has set up (an% self2e(plo%(ent
training institutes to counter povert% and une(plo%(ent a(ong rural
%outh& The Ban, has 0een addressing the need for 0asic a(enities in
the rural areas through encouraging setting up of rural clinics,
providing drin,ing water facilities and engaging rural volunteers for
0etter(ent of the societ%&
R*r'+ De%e+op$e#t
The Ban, through its 3anara Ban, 3entenar% Rural Develop(ent Trust,
has esta0lished 1: e1clusive training institutes to pro(ote
entrepreneurship develop(ent a(ong rural %outh and encourage the(
ta,ing up self2e(plo%(ent activities& These institutes have so far
trained 8/,181 une(plo%ed %outh, co(prising /!. wo(en and
recording an i(pressive settle(ent rate of -3.& The Trust is also
supporting the activities of Societ% for the Bducational and Bcono(ic
Develop(ent 6SBBD7, a voluntar% organi5ation 0ased in Sriperu(0adur
which wor,s for the welfare of the sociall% (arginali5ed children and
A0ha%a(, an A=4 in "ulasser%, "ala,,ad district of Cerala which
provides 0asic necessities li,e food, shelter, clothing and (edicines to
the poor and destitute&
The Ban,, under the Rural Develop(ent and Self B(plo%(ent Training
'nstitutes 6R?DSBT's7, have 0een engaged in the training of rural
%outh for ta,ing up self2e(plo%(ent progra((es& 23 R?DSBT's, co2
sponsored 0% the Ban,, have trained (ore than 2,3, une(plo%ed
%outh, with a settle(ent rate of 8!.& During the %ear 2-2!, 3 new
R?DSBT's have 0een opened at Baran in Ra)asthan, Berha(pore in
9est Bengal and Ea)ipur in Bihar&
3anara Ban,Ds Rural 3linic Service Sche(e provides 0asic health care
services in re(ote areas, lac,ing 0asic (edical infrastructure facilities&
?nder the Sche(e, the Ban, encourages doctors to set up clinics in
identi#ed rural areas& As at March 2!, the total nu(0er of such
clinics rose to /3&
The Ban, under DNala%ogaD, a sche(e to provide safe drin,ing water,
has so far i(ple(ented 3/ pro)ects in its lead districts& The Ban, has
also donated a hitech, custo( 0uilt, solar powered DMo0ile Sales KanD
to assist wo(en entrepreneurs, SE= groups and artisans to (ar,et
their products&
The Ban, has conducted (ore than 2 social 0an,ing activities
across the countr% 0ene#ting (ore than 3 la,h poor and need%
Page 24 of 37
*ver a Thousand e$ Deliver' Channels Added
people& The service activities conducted 0% the Ban, include 0lood
donation ca(ps, assistance to ph%sicall% and (entall% challenged
people, cultural co(petition for visuall% challenged, assistance to
A=4s wor,ing for the welfare of the societ%, poor students for their
studies, honouring teachers and assisting 0est =overn(ent
schools&The Ban, has provided infrastructure facilities in 23 villages
across the countr% at an outla% of Rs& :&8 crore&
During centenar% cele0rations, the Ban, proposed to ta,e up
infrastructural develop(ent in 1 rural govern(ent schools& As at
March 2!, 91 rural govern(ent schools were identi#ed and provided
with re;uisite infrastructure at a cost of Rs&1 la,h per school&
"isits 12 P'r+i'$e#t'r2 Co$$ittees
During *+!, "arlia(entar% Standing 3o((ittees on "ersonnel, "u0lic
=rievances, $aw and Nustice and Ra)%a Sa0ha Secretariat reviewed the
i(ple(entation of Right to 'nfor(ation Act, 2/ in the Ban, and
e1pressed their satisfaction a0out the i(ple(entation of RT' Act in the
Ban,& The "arlia(entar% 3o((ittee on the Bsti(ates, =overn(ent
Assurances and Aational 3o((ission for Scheduled Tri0es also visited
the Ban,&
ORGANISATION AND SUPPORT SER"ICES
)r'#c3 NetDor(
Deliver% channels, including 0ranches and ATMs, have 0een further
e1panded for closer custo(er pro1i(it% and increasing 0usiness
potentialit%& Branch networ, of the Ban, is well spread across 'ndia&
B1panding its networ, further, the Ban, added 1 new 0ranches, the
highest in the last two decades& As at March 2!, the nu(0er of
0ranches in 'ndia (oved up to 28-/, covering -33 in rural, 8! in
se(i2ur0an, 8/ in ur0an and 812 in (etro locations& The Ban, has
19/ B1tension 3ounters functioning in pro(inent institutes and
institutions across the countr%& The nu(0er of 0ranches oHering
speciali5ed services stood at 111, co(prising 3! SMBs, 1- 4verseas,
1 Agri2*inance, ! 'ndustrial *inance, - 0ranches each for AR's and
Asset Recover% Manage(ent, 8 Savings, / Stoc, B1change, :
3orporate Service, 3 3apital Mar,et, 3 Mahila Ban,ing, one each in
3onsu(er *inance and Eousing *inance and a 0ranch for ph%sicall%
challenged persons&
Page 25 of 37
Bnhancing reach and custo(er convenience, the Ban, signi#cantl%
e1panded its ATM stre#4t3 to 28, 0% adding !-: ATMs during the
%ear, spread across 89: centres& 'n ter(s of the nu(0er of ATMs,
3anara Ban, now stands #rst a(ong the nationali5ed 0an,s& 9ith ATM
sharing agree(ent with other 0an,s, custo(ers of 3anara Ban, have
access to over 2-, networ,ed ATMs across the countr%& The Ban,
has installed 829 oHsite ATMs and 1-! ATMs in railwa% stations& 't has
also set up 19 e2,ios,s for 0oo,ing railwa% tic,ets! The Ban, also
introduced glo0al De0it 3ard under K'SA and MASTBR franchise& The
Ban, had a De0it2cu(2ATM card 0ase of 3&29 (illion as at March 2!&
I#,oTec3 Pro4ress
Several initiatives were underta,en 0% the Ban, in the 'nfoTech arena
during the %ear& The tall% of 3ore Ban,ing Solution 63BS7 0ranches
reached -81 Branches, !: B1tension 3ounters, 13 3urrenc% 3hests and
3 Accounts Section, covering all the 3 3ircles& 3BS co(es with a lot of
add2ons li,e 'nteractive Koice Response S%ste( 6'KRS7, 'nternet >
Mo0ile Ban,ing 6'MB7 and 3entrali5ed 3redit Appraisal& $ending
Auto(ation "rocessing S%ste( 6$A"S7 Retail and 3orporate (odules
are also i(ple(ented in all 3BS 0ranches&
The Ban, i(ple(ented 3entrali5ed 4nline Ta1 Accounting S%ste(
6=overn(ent Business (odule7 in 1/3 0ranches and B1cise and
Service Ta1 (odules in -2 0ranches, under 3BS setup& Sales Ta1
(odule has 0een i(ple(ented in several 3BS Branches& The Ban, has
a well2designed and secured 3orporate Aetwor,, covering all the
BranchesI4Lces for rolling out networ,20ased deliver% channels&
The Ban, e1panded its nu(0er of An%where Ban,ing 6A9B7 0ranches
to 1911 and 'nternet and Mo0ile Ban,ing 6'MB7 0ranches to 12& The
nu(0er of 3usto(er Ter(inals increased to 1-/2 as at March 2!&
?nder the advanced pa%(ent and settle(ent s%ste(, all 0ranches of
the Ban, have 0een covered under RT=S and AB*T facilities& B2
pa%(ent of e1cise and service ta1, direct ta1 and custo( dut% has also
0een i(ple(ented in a nu(0er of 0ranches under 3BS setup&

M'#poDer Pro/+e
As at March 31, 2!, the Ban, had :/,28 e(plo%ees on its rolls,
co(prising 1!,1!8 4Lcers, 18,--8 3ler,s and 129! under Su02StaH
categor%& A total of 233 personnel were recruited in various cadres
during the %ear&
Page 26 of 37
9o(en e(plo%ees constituted over 21. of the Ban,Ds total staH with
9,/!2 wo(en e(plo%ees featuring on the rolls of the Ban,&
During the %ear, the Ban, recruited :9 persons and pro(oted 8/
e(plo%ees to various cadres 0elonging to the Scheduled 3aste 6S37
and Scheduled Tri0e 6ST7 categories& The total nu(0er of e12
service(en as at the end of March 2! stood at 2,8: and 98 of the(
were recruited in various cadres during the %ear& There were !18
"h%sicall% 3hallenged B(plo%ees on the rolls of the Ban,&
Tr'i#i#4 E ?*$'# Reso*rce De%e+op$e#t
An intensel% co(petitive industr% structure and the resultant new
(ar,et d%na(ics call for leveraging hu(an resources through
constantl% upgrading ,nowledge in 0oth soft and hard s,ills& The Ban,
has ta,en several initiatives in the hu(an resources front during *+!&
TrainingIre2s,illing tall% during 2-2! (oved up further to 1,1:,,
surpassing the target of 1,, and covering a wide range of
functional areas, including so(e of the new training progra((es li,e
3BS 6*337 3orporate, 3BS 6M'S7, 3D3RM and C+3 Aor(s& 4ut of the
trained staH, 2:,8- personnel 0elonged to Scheduled 3aste categor%
and -,2/8 personnel received training under Scheduled Tri0e categor%&
The Ban, i(ple(ented various innovative ER sche(es li,e D"RAT'BEAD
for groo(ing in2house talents in varied speciali5ed areas and
DS"AADAAD for 0ringing a0out an attitudinal change a(ong frontline
staH&
The Ban, has also adopted (erit 0ased pro(otion and perfor(ance
lin,ed incentives and assess(ent develop(ent eHorts received added
e(phasis& 9ith the for(ation of D3lu0 22D, #rst of its ,ind in the
industr%, the Ban, also focused on leadership develop(ent 0%
regularl% training its senior (anage(ent personnel in reputed
institutes li,e 'SB, ''Ms, O$R' and A'BM&
'n another noteworth% step, the Ban, has ta,en initiative to i(ple(ent
the concept of ERMS 6Eu(an Resource Manage(ent Solution7, an
eLcient centrali5ed glo0al solution, covering all ER activities&
4ther ERD concepts li,e Fualit% 3ircles, Brain Stor(ing Sessions, StaH
Meetings and Stud% 3ircles have also 0een invigorated for eHective
tea( 0uilding and achieving collective e1cellence&
C3'#4es i# t3e Or4'#iF'tio#'+ Set*p
Page 27 of 37
*ollowing a (a)or organi5ational restructuring 0% carving 3 3ircles out
of 13 3ircles for greater 0usiness focus and e1peditious decision
(a,ing in 282-, the Ban,Ds (a)or focus in 2-2! was to
decentrali5e operational activities& The Ban, further 0rought a0out
changes in its organi5ationalIoperational setup to facilitate s(ooth
functioning li,e creation of a 3o(pliance Depart(ent under Ris,
Manage(ent 9ing, for(ation of Micro *inance Division under "riorit%
3redit 9ing and need 0ased reshuPing of depart(ents at the 3orporate
4Lce&
C*sto$er Orie#t'tio#
Several new (easures were introduced 0% the Ban, towards further
i(proving custo(er centricit% and service ;ualit%& Most i(portantl%,
the 3usto(er Satisfaction Surve% 0% MIs& AI3& Aielsen 4rg Marg
covering 1 custo(ers fro( 2/ 0ranches each at Bangalore, Delhi,
3hennai, Col,ata and E%dera0ad was co(pleted& The overall rating 0%
the Surve% has 0een highl% satisfactor%& 'nfor(ative 0oo,lets
containing all the relevant infor(ation on D*re;uentl% As,ed FuestionsD
0% custo(ers was (ade availa0le at all the 0ranches towards 0etter
custo(er service& An educative infor(ation 0oo,let on DSetting
Standards on 3usto(er Service 2 3entenar% SeriesD was 0rought out to
(otivate the staH for greater involve(ent in custo(er service& The
Ban, also (ade arrange(ents for providing copies of the Q3ode of
Ban,<s 3o((it(ent to 3usto(ers< to custo(ers through 0ranches&
The "olic% guidelines relating to 3ollection of 3he;uesI'nstru(ents,
=rievance Redressal Mechanis(, 3o(pensation "olic% and Revision of
operational procedure on settle(ent of death clai(s were put on the
Ban,Ds 9e0site for the use of custo(ers&
S2ste$s '#0 Proce0*res
During the %ear under review, 1!12 0ranchesI units were su0)ected to
Ris, Based 'nternal Audit 6RB'A7 and 'S Audit, with nearl% 99. of the
0ranchesI units co(ing under Dsatisfactor% gradeD& 3oncurrentI
3ontinuous Audit was conducted in all the 2/1 identi#ed
0ranchesIunits, covering /2. of deposits, 8/. of advances and 92. of
non2fund 0ased 0usiness of the Ban,& /!9 0ranches were su0)ected to
inco(e I revenue audit& 'n addition to RB'AI3oncurrentI3ontinuous
audit, Dsnap auditD was conducted on (onthl% 0asis in 2I3 0ranches in
each 3ircle at rando(, to verif% adherence to C+3 nor(s& More
i(portantl%, the Ban, started the process of developing a we020ased
pac,age for concurrent audit of 0ranches&

Page 28 of 37
'n addition to the a0ove, the Ban, ensured 1. su0(ission of 3ash
Transaction Reports 63TRs7 and Suspicious Transaction Reports 6STRs7
to *inancial 'ntelligence ?nit 'ndia&
"i4i+'#ce Set*p
The Ban,Ds Kigilance 9ing at its 3orporate 4Lce is headed 0% 3hief
Kigilance 4Lcer in the ran, of =eneral Manager and supported 0%
Kigilance 4Lcers at all 3ircles and RRBs, 'nternational Division and the
Ban,Ds Su0sidiaries& During the %ear under review, =uidelines on
review, reporting and (onitoring of frauds were issued and all the
reported cases of frauds were reviewed fro( ade;uac% of e1isting
s%ste(s and procedures angle and necessar% preventive (easures
ta,en to prevent frauds& *raud awareness 3irculars were issued to
create awareness on prevention of frauds& The DKigilance Awareness
9ee,D was o0served during the 2
nd
9ee, of Aove(0er 2- as
directed 0% the 3entral Kigilance 3o((ission& 'n *e0ruar% 2!, the
Ban, hosted the DSouthern Mone Annual 3K4sD 3onferenceD on 0ehalf of
the 3entral Kigilance 3o((ission& 3K4s of all South Mone
Ban,sI'nsurance 3o(panies and "u0lic Sector ?nderta,ings attended
the (eeting chaired 0% the 3entral Kigilance 3o((issioner&
Sec*rit2 Arr'#4e$e#ts
The securit% environ(ent in the Ban, re(ained 0% and large nor(al
during 2-2!& As against :9 incidents of cri(e in 282- involving a
loss of Rs& 18&- la,h, there were :! incidents of cri(e this %ear
involving a loss of Rs& 13&3: la,h& There were three (a)or #re incidents
during the %ear& 33TK s%ste(s and ti(e loc,s were provided in all
3urrenc% 3hests& *ire ris, audit of all the 0ranchesIoLces was also
underta,en&
Ri43t to I#,or$'tio#
During 2/28, under the Right to 'nfor(ation Act, 2/, the Ban, set
up an e1clusive Right to 'nfor(ation Act out#t to provide infor(ation
and 0ring transparenc%& During the %ear under review, the Ban, dealt
with all the applications received as per the provisions of the Act&
I$p+e$e#t'tio# o, OGci'+ L'#4*'4e
The Ban, (ade noteworth% progress under the i(ple(entation of
oLcial language and won (an% pri5es at various levels during the %ear
Page 29 of 37
under review& The Town 4Lcial $anguage '(ple(entation 3o((ittees
at 3oi(0atore and Trivandru(, have 0een honoured with Second and
Third pri5e respectivel% 0% the =overn(ent of 'ndia& Apart fro( this,
(an% 3irclesIRegional 4Lces and 0ranches have received awards fro(
4Lcial $anguage Depart(ent, =overn(ent of 'ndia and the respective
Town 4Lcial $anguage 3o((ittees&
'n addition to the i(pressive percentage of trained e(plo%ees as at
March 2!, the Ban, has noti#ed 19!/ of its 0ranches under Rule
16:7 of 4Lcial $anguages Act, 19-8& 4Lcial $anguage
'(ple(entation 3o((ittees have 0een constituted at 2:3 0ranches
to (otivate and guide the e(plo%ees towards eHective
i(ple(entation of 4Lcial $anguage "olic% of the =overn(ent of 'ndia&
'n the sphere of using 'nfor(ation Technolog% in the 4Lcial $anguage,
the Ban, has furthered the use of Sha0daratna and A,ruthi pac,ages
for word processing, usage of Ban,script pac,age for Data processing
and also (ade provision in ATM screens of the Ban, for carr%ing
transaction in 1 'ndian languages& Tele0an,ing facilit% has also 0een
provided in Eindi and Bnglish and other 8 (a)or regional languages&
The Ban,Ds corporate we0site is full% in 0ilingual&
Pro$otio# o, Sports
3o((itted to the cause of pro(oting sports, the Ban, has in its roll !:
sports persons of outstanding cali0re in various disciplines& During the
%ear, (an% of the sports persons have participated in the events
organi5ed at the national and international levels& The Ban,<s 3ric,et
Tea( won the DThe Eindu Troph%D and secured 3rd "osition in CS3A
$eague 3ha(pionships in 2-& S(t& E M N%othi represented 'ndia at
the South Asian *ederation =a(es held at Cochi 6'ndia7& Shri Bharat
3hetri represented 'ndia in various 'nternational Eoc,e% Tourna(ents&
Shri Ken,atesh "rasad is currentl% serving as the Bowling coach of the
'ndian 3ric,et Tea(&
.INANCIAL SUPERMAR&ET
S*1si0i'riesA Spo#sore0 E#tities '#0 Hoi#t "e#t*res
3anara Ban, functions as a Q.i#'#ci'+ S*per$'r(et< with as (an% as
nine su0sidiaries, sponsored institutions and )oint ventures in
diversi#ed areas& The Ban, has ta,en signi#cant steps towards
strengthening funda(entals of these entities so as to e(erge as a
strong D*inancial Super(ar,etD in 'ndia& 9ith incorporation of two new
)oint ventures, na(el%, 3anara Ro0eco Asset Manage(ent 3o(pan%
$td and 3anara ESB3 4riental Ban, of 3o((erce $ife 'nsurance
3o(pan% $td, the Ban, is all set to tap the growing asset (anage(ent
Page 30 of 37
and insurance seg(ents& The perfor(ance of the Ban,<s su0sidiaries,
sponsored entit% and )oint ventures was satisfactor% during the
#nancial&
Co$$erci'+ )'#( o, I#0i' LLC 5C)IL7
3B'$, a )oint venture of 3anara Ban, and State Ban, of 'ndia, has 0een
operational since April 2: at Moscow, Russia& The 3o(pan% earned a
pro#t after ta1 of ?SD 1&:2 (illion as 31st March 2!&
C'#1'#( "e#t*re C'pit'+ .*#0 Li$ite0 5C"C.L7
3K3*$, the Trustee and Manager of 3an0an, Kenture 3apital *und
63K3*7, is a wholl% owned Su0sidiar% of the Ban,& 3urrentl%, it
(anages three *unds with a corpus of Rs&8/&!/ crore& During the
#nancial %ear 2-2!, 3K3*$ has assisted 1 Kentures and dis0ursed
Rs&2:&91 crore& Till March 2!, 3K3*$ has assisted 9: ventures,
involving #nancial assistance to the tune of Rs&99 crore& The 3o(pan%
recorded a pro#t after ta1 of Rs&9-&:! la,h for the %ear 2-2!& The
*ifth *und of 3K3* is planned to 0e launched during 2!29, with a
corpus of Rs&/ crore&
C'# .i# ?o$es Li$ite0 5C.?L7
3*E$, a sponsored entit% of 3anara Ban,, is one of the pre(ier housing
#nance entities in the countr%& The 3o(pan% sanctioned and dis0ursed
loans a(ounting to Rs&28: crore and Rs&2:- crore respectivel%, ta,ing
cu(ulative sanctions to Rs&/182 crore and dis0urse(ent to Rs&::!2
crore as at March 2!& The 3o(pan% posted a pro#t after ta1 of
Rs&2!&: crore, and proposed a dividend of 1/.22. for the #nancial
%ear 2-2!&
C'#1'#( .'ctors Li$ite0 5C.L7
3an0an, *actors $i(ited, which is a factoring su0sidiar% of the Ban,, is
a (e(0er of *actors 3hain 'nternational& *actors 3hain 'nternational is
an u(0rella organi5ation for factoring co(panies across the world&
The 3o(pan% achieved a total 0usiness turnover of Rs& 3:!3 crore as
at March 2! and posted a pro#t after ta1 of Rs&2&19 crore& 9ith
sound funda(entals, the 3o(pan% achieved a A'$ Aet A"A position as
at March 2!& The 3o(pan% proposed a dividend of 1/. for the %ear&
3an0an, *actors has plans to provide consultanc% services to SMBs&
C'#1'#( Co$p*ter Ser%ices Li$ite0 5CCSL7
33S$ is the onl% Software Su0sidiar% of a "u0lic Sector Ban, in the
countr%& 33S$ is pri(aril% engaged in 'T and software develop(ent
services, trainingIconsultanc% and Registrar and Share Transfer Agenc%
Services& The 3o(pan% is a (e(0er of the AASS34M and registered
Page 31 of 37
as a Software Solution "rovider for 9orld Ban, pro)ects& The 3o(pan%
0agged several ,e% contracts during the %ear and posted a pro#t after
ta1 of Rs&1-&92 la,h& During the %ear, 33S$ has ta,en up ATM related
services and 3all 3entre (anage(ent of the 3anara Ban,&
Gi+t Sec*rities Tr'0i#4 Corpor'tio# Li$ite0 5GSTCL7
=ST3$, which was esta0lished as "ri(ar% Dealer Su0sidiar% of the
Ban,, had hived oH "ri(ar% Dealer 0usiness to the parent 0an,& During
the %ear, the 3o(pan% diversi#ed and fora%ed into Stoc, Bro,ing, 4n2
$ine Trading and other e;uit% related activities& 9ith the diversi#cation
of =ST3$ into e;uit% 0ro,ing and online trading, 3anara Ban, 0eca(e
one of the few 0an,s in the countr% to have in2house stoc, 0ro,ing
activit%& The 3o(pan% has posted a gross pro#t of Rs&2&// crore and
pro#t after ta1 of Rs&1-&9: crore during the reviewed period&
C'#1'#( .i#'#ci'+ Ser%ices Li$ite0 5C'#/#'7
3an#na con#ned its activities to legal (atters arising out of past
transactions in securities, 0esides concentrating on collection of lease
rentals and recover% of dues under decreed accounts& During the %ear,
3an#na recorded a pro#t after ta1 of Rs&18&-1 crore&
C'#'r' Ro1eco Asset M'#'4e$e#t Co$p'#2 Li$ite0
A )oint venture Goated 0% the 3anara Ban, in association with
international (a)or Ro0eco =roep A&K& of Aetherlands, for (anage(ent
of assets of Mutual *unds& This 3o(pan% was incorporated during
Septe(0er 2-& 9ith a (a)orit% share of /1. held 0% the Ban,,
Assets ?nder Manage(ent 6A?M7 of the 3o(pan% i(proved to Rs&2/!3
crore as at March 2!& 3orpus funds increased to Rs&1!:9 crore
during the %ear, with investor 0ase of 2&!/ la,hs as at March 2!&
The 3o(pan% recorded an ad)usted pro#t of Rs&13&!3 crore for the
#nancial under review&
C'#'r' ?S)C Orie#t'+ )'#( o, Co$$erce I#s*r'#ce Co$p'#2
Li$ite0
An insurance )oint venture Goated 0% the Ban, in association with
internationall% reputed ESB3 6Asia "aci#c7 Eoldings and 4riental Ban,
of 3o((erce& The 3o(pan%, incorporated during Septe(0er 2-, has
alread% o0tained 'nsurance Regulator% Develop(ent Authorit% 6'RDA7
nod for co((encing insurance 0usiness& The 3o(pan% is e1pected to
rollout its products during the second ;uarter of *+9& 9ith a (a)orit%
shareholding of /1. in the 3o(pan%, the Ban, has ventured into niche
seg(ent, with a #ne 0lend of international e1pertise and its own
do(estic outreach&
Page 32 of 37
Re4io#'+ R*r'+ )'#(s 5RR)s7
3anara Ban, sponsored 3 RRBs in three States, vi5&, "ragathi =ra(in
Ban, in the State of Carnata,a, Shre%as =ra(in Ban, in the State of
?ttar "radesh and South Mala0ar =ra(in Ban, in the State of Cerala&
All RRBs sponsored 0% 3anara Ban, are pro#t (a,ing as at March 2!
with a co(0ined operating pro#t level at Rs&128&/ crore and pro#t after
ta1 of Rs& 13 crore& Aggregate 0usiness level of these RRBs crossed
the Rs&1, crore (ar, to reach Rs&11:!1 crore, co(prising deposits
of Rs&/9!/ crore and advances of Rs&/:98 crore as at March 2!&
ReGecting #nancial soundness and asset ;ualit%, all these RRBs
recorded a decline in their A"As in 0oth a0solute and ratio ter(s&
9hile gross A"A ratio further ca(e down to 2&!/. as at March 2!,
net A"A ratio decreased to 1&3. fro( 2&:8. a %ear ago& 'n tune with
polic% focus to dou0le the credit Gow to agriculture sector, these RRBs
dis0ursed an a(ount of Rs&3: crore, recording a %2o2% growth of 2/.
during the %ear under review&
SPECIAL INITIATI"ES
3anara Ban, has changed its $ogo four ti(es in the last 1 %ears, to
re(ain conte(porar% and reorient itself to the changing ti(es& Sei5ing
the opportunit%, 3anara Ban, launched a NeD )r'#0 I0e#tit2 on
29th Dece(0er 2-& Shri " 3hida(0ara(, EonD0le ?nion *inance
Minister inaugurated the Ban,Ds new 0rand identit%& The new logo for
3anara Ban, is 0ased on the idea of a 0ond and is a representation of
the close ties 0etween the Ban, and its varied sta,eholders2
custo(ers, investors, e(plo%ees, institutions and societ% at large, with
a tagline DTo4et3er >e C'#D& The colour palette and t%pograph% have
0een carefull% chosen& The rich 0lue represents sta0ilit%, scale and
depth& This contrasts with accents of 0right %ellow that evo,e
opti(is(, war(th and energ%& The 3anara Ban, logot%pe has 0een
hand2crafted& 'ts classic, serif letter for(s co((unicate heritage and
stature&
The new 0rand identit% is an atte(pt to position 3anara Ban, as the
value creator and further reinforce its i(age as a custo(er centric
0an,& The new 0rand identit% is not )ust a change in the e1ternal
outloo,R it has 0een supple(ented 0% (uch needed changes in the
internal structure and reorientation in ter(s of people, technolog% and
0usiness process (anage(ent in ,eeping up with the new 0rand
pro(ise& Ao wonder, within a short ti(e, the new 0rand has 0een
recogni5ed as a DS*per1r'#0D&
Page 33 of 37
A series of special initiatives were underta,en during 2-2!& 3anara
Ro0eco Asset Manage(ent 3o(pan% $td and 3anara ESB3 4riental
Ban, of 3o((erce $ife 'nsurance 3o(pan% $td, are the two )oint
ventures incorporated during the %ear, with a (a)orit% /1.
shareholding& To give a thrust on aug(enting non2interest inco(e
sources and avenues, the Ban, has entered into a 3orporate Agenc%
agree(ent with B1port 3redit =uarantee 3orporation of 'ndia $td&
6B3=37 for soliciting and procuring e1port credit insurance 0usiness&
Another ,e% initiative relates to engaging the services of a world
renowned consultant2 MIs Boston 3onsulting =roup for a
co(prehensive stud% on D3orporate Business Strateg%D& The pro)ect
ai(s at ta,ing the Ban, on a well2designed transfor(ational )ourne% to
ta,e on e(erging glo0al challenges&
NE> PRODUCTSESER"ICES
3anara Ban,, ,nown for its c*sto$er ce#tricit2, has 0een 0ringing
various i(prove(ents in the real( of custo(er service& The Ban, has
started a C'++ Ce#tre for providing infor(ation on various
productsIservices& The Ban,Ds 3BS 0ranches have 0een ena0led so
that custo(ers get account related infor(ation and place re;uests for
state(ent of accounts, interest certi#cates and the li,e& The Ban, also
introduced 2:O- ATM che;ue deposit facilit% for the Ban,Ds De0it card
holders&
The Ban, launched several new products during the %ear&
O#+i#e Tr'0i#4 portal2 Dc'#$o#e2!i#DJ 3anara Ban, 0eca(e
the #rst (a)or "SB to launch the product in association with its
wholl% owned su0sidiar%2 MIs =ilt Securities Trading 3orporation
$td& The facilit% is now availa0le in 2: (a)or centres across the
countr%&
SB Gold: A Savings Ban, Account, with value added services for
Eigh Aetworth 'ndividuals 6EA's7&
Can Premium Current Account Scheme: A 3urrent Account
with added features for EA's&
Canara Super Saving Salary Account SchemeJ A 5ero
0alance savings account sche(e designed for
e(plo%eesIsalaried class at the Ban,Ds 3BS 0ranches&
Canara Guide: A loan sche(e for ta1 return preparers&
Canara JeevanJ A reverse (ortgage sche(e for senior citi5ens&
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Krishi Mitra Card '#0 Joint Liability Group inance
Scheme: *or hassle2free lending to tenant far(ers with si(ple
procedures&
Canara Kisan !": A co(prehensive far(er friendl% sche(e for
(ultiple purposes including repa%(ent of private de0t&
SM# !": A hassle2free wor,ing capital facilit% for SMBs against
the securit% of i((ova0le propert%&
SM# Joint Liability Group: A (icro2#nance product launched
for )oint lia0ilit% group in the handloo( and Dagara0athiD sectors&
Bio$Metric A%M: 3o((issioned (ulti2lingual 0io2(etric ATMs
and voice2ena0led (o0ile 0io2(etric ATM&
&Canara 'i(as&: A S(art 3ard pro)ect launched for facilitating
#nancial inclusion and ta,ing #nancial services to the (asses at
an aHorda0le cost!
Multi$city Che)ue: A custo(er2friendl% initiative 0% the Ban,&
A>ARDSEACCOLADES
'n recognition of the varied initiatives, the Ban, was conferred with
several 'D'r0s '#0 'cco+'0es during the %ear& So(e pro(inent
awards received are as underJ
*irst Aational Award, instituted 0% the Ministr% of Micro, S(all >
Mediu( Bnterprises, =ovt& of 'ndia for DE=ce++e#ce i# Micro I
S$'++ E#terprises 5MSE7 Le#0i#4D for 282-&
DGo+0e# Pe'coc( AD'r0 ,or Corpor'te Soci'+
Respo#si1i+it2D for the %ear 2-& 3anara Ban, is the #rst "SB
to receive the award since its institution in the %ear 1991&
QGo+0e# Pe'coc( N'tio#'+ Tr'i#i#4 AD'r0-2007<, instituted
0% the 'nstitute of Directors, Aew Delhi, a pioneer in Fualit%
Revolution&
3onferred the )*si#ess S*per1r'#0s Status for 2!&
JT3e Or4'#iF'tio# o, t3e e'r AD'r0- ,or PR E=ce++e#ceJ,
instituted 0% "u0lic Relations 3ouncil of 'ndia&
B1cellence in the #eld of &3'0i I "i++'4e I#0*stries in South
Mone for the %ear 282-, instituted 0% Chadi > Killage
'ndustries 3o((ission, Ministr% of Micro, S(all > Mediu(
Bnterprises, =overn(ent of 'ndia
"ARIOUS POLICIES O. T?E )AN&
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There is a s%ste( of well2de#ned policies and procedures of the Ban,&
During the %ear, concerted eHorts were (ade to strea(line the policies
and procedures of the Ban, in the light of regulator% re;uire(ents of
the RB', the directions of the =overn(ent of 'ndia and the e(ergent
re;uire(ents of the Ban, in the present da% conte1t& Accordingl%,
there has 0een a sharper focus on policies relating to, a(ong others,
such as, 3redit Ris, Manage(ent, Mar,et Ris, Manage(ent,
4perational Ris, Manage(ent, Asset $ia0ilit% Manage(ent, $i;uidit%
Ris, Manage(ent, 3ountr% Ris,, 3ounterpart% Ban, Ris,, 3orporate
=overnance, Disclosures, 3ollateral Manage(ent, Stress Testing,
3o(pliance *unctions, Disaster Recover% > Business 3ontinuit%
"lanning, Business $ines, 4utsourcing and 'nternal 3apital Ade;uac%
Assess(ent "rocess 6'3AA"7, Cnow +our 3usto(ers 6C+37, Anti2Mone%
$aundering 6AM$7, Recover% and 'nvest(ents&
C?ANGES IN T?E )OARD O. DIRECTORS
+ear 2-2! saw changes in the co(position of the Board of Directors
of the Ban,&
Shri D&$ Rawal was appointed as B1ecutive Director of the Ban, on 8th
Nune 2-, as Shri Alo, Cu(ar Misra, the then e1ecutive director of the
Ban,, was elevated as the 3hair(an > Managing Director of 4riental
Ban, of 3o((erce on 3rd Nune 2-&
Shri =&S& Kedi was appointed as B1ecutive Director of the Ban, on -th
Aove(0er 2-&
9ith the co(pletion of tenure of Shri S&3 =upta and Shri ?&A& Capoor
as Shareholder Directors on the Board of the Ban, on !th Nune 2-,
Shri "&K& Mai%a and Shri B& B& Tandon were elected as Shareholder
Directors on the Board of the Ban, on 2-th Nul% 2-&
Shri Sunil =upta and Dr& +ogendra "ati Tripathi were no(inated as part
ti(e Aon24Lcial Directors on the Board of the Ban,&
DIRECTORS RESPONSI)ILIT STATEMENT
The Directors, in preparation of the annual accounts for the %ear ended
March 31, 2!, con#r( the followingJ
That in the preparation of the annual accounts, the applica0le
accounting standards had 0een followed along with proper
e1planation relating to (aterial departures&
That the% had selected such accounting policies and applied
the( consistentl% and (ade )udg(ents and esti(ates that are
Page 36 of 37
reasona0le and prudent so as to give a true and fair view of the
state of aHairs of the Ban, at the end of the #nancial %ear and of
the pro#t or loss of the Ban, for the period&
That the% had ta,en proper and suLcient care for the
(aintenance of ade;uate accounting records in accordance with
the provisions of applica0le laws governing 0an,s in 'ndia for
safeguarding the assets of the Ban, and for preventing and
detecting fraud and other irregularities&
That the% had prepared the annual accounts on a going concern
0asis&

AC&NO>LEDGEMENT
The Ban, is (a,ing concerted eHorts to (a1i(i5e its latent potential
to the 0ene#t of all its sta,eholders, vi5&, shareholders, custo(ers,
investors, =overn(ent, RB', e(plo%ees and the pu0lic at large&
The Board sincerel% appreciates the signi#cant contri0ution (ade 0%
the Directors on the Ban,<s Board who co(pleted their tenure during
the #nancial %ear under review, to custo(ers for their patronage, to
the shareholders for their support, to the =overn(ent and the RB' for
their valua0le guidance and support, to the Ban,Ds correspondents
inland and a0road for their cooperation and goodwill and to all the staH
(e(0ers, who rendered whole2hearted support& At this critical )uncture
of growth and structural transfor(ation, the Ban, received unstinted
support fro( all sections and gratefull% ac,nowledges their un;uali#ed
help and support, which facilitated the stead% upward cli(0 of the
Ban, in *+ !&
M! )! N! RAO
C?AIRMAN I MANAGING
DIRECTOR
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