A BANKING MANAGEMENT REPORT ON CANARA BANK

Submitted To: Mr. Ujjal Mehta Faculty: BM

Submitted by: Chaudhary Mukesh J. Roll No: 46 Div: A

V.M. Patel Institute of Management Ganpat University Kherva.

2009

History of Banking
The first banks were probably the religious temples of the ancient world, and were probably established sometime during the third millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended and well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests/monks to merchants. By the time of Hammurabi's Code, banking was well enough developed to justify the promulgation of laws governing banking operations. Ancient Greece holds further evidence of banking. Greek temples, as well as private and civic entities, conducted financial transactions such as loans, deposits, currency exchange, and validation of coinage. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could "cash" the note in another city, saving the client the danger of carting coinage with him on his journey. Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th century B.C., is the first individual banker of whom we have records. Many of the early bankers in Greek city-states were metics or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest and most famous Greek banker, gaining his freedom and Athenian citizenship in the process. The fourth century B.C. saw increased use of credit-based banking in the Mediterranean world. In Egypt, from early times, grain had been used as a form of money in addition to precious metals, and state granaries functioned as banks. When Egypt fell under the rule of a Greek dynasty, the Ptolemies (332-30 B.C.), the numerous scattered government granaries were transformed into a network of grain banks, centralized in Alexandria where the main accounts from all the state granary banks were recorded. This banking network functioned as a trade credit system in which payments were affected by transfer from one account to another without money passing. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. As in Egypt, cash transactions were replaced by real credit receipts and payments were made based on simple instructions with accounts kept for each client. With the defeat of its main rivals, Carthage and Corinth, by the Romans, the importance of Delos increased. Consequently it was natural that the bank of Delos should become the model most closely imitated by the banks of Rome. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The development of Roman banks was limited, however, by the Roman preference for cash transactions.

During the reign of the Roman emperor Gallienus (260-268 AD), there was a temporary breakdown of the Roman banking system after the banks rejected the flakes of copper produced by his mints. With the ascent of Christianity, banking became subject to additional restrictions, as the charging of interest was seen as immoral. After the fall of Rome, banking was abandoned in Western Europe and did not revive until the time of the crusades.

Religious restrictions on interest Most early religious systems in the ancient Near East, and the secular codes arising from them, did not forbid usury. These societies regarded inanimate matter as alive, like plants, animals and people, and capable of reproducing itself. Hence if you lent 'food money', or monetary tokens of any kind, it was legitimate to charge interest. [3] Food money in the shape of olives, dates, seeds or animals was lent out as early as c. 5000 BC, if not earlier. Among the Mesopotamians, Hittites, Phoenicians and Egyptians, interest was legal and often fixed by the state. But the Jews took a different view of the matter. The Torah and later sections of the Hebrew Bible criticize interest-taking, but interpretations of the Biblical prohibition vary. One common understanding is that Jews are forbidden to charge interest upon loans made to other Jews, but allowed to charge interest on transactions with non-Jews, or Gentiles. However, the Hebrew Bible itself gives numerous examples where this provision was evaded.

During Late Antiquity and Middle Ages Jews were ostracized from most professions by local rulers, the Church and the guilds and so were pushed into marginal occupations considered socially inferior, such as tax and rent collecting and moneylending, while the provision of financial services was increasingly demanded by the expansion of European trade and commerce. Medieval trade fairs, such as the one in Hamburg, contributed to the growth of banking in a curious way: moneychangers issued documents redeemable at other fairs, in exchange for hard currency. These documents could be cashed at another fair in a different country or at a future fair in the same location. If redeemable at a future date, they would often be discounted by an amount comparable to a rate of interest. Eventually, these documents evolved into bills of exchange, which could be redeemed at any office of the issuing banker. These bills made it possible to transfer large sums of money without the complications of hauling large chests of gold and hiring armed guards to protect the gold from thieves. Beginning around 1100s, the need to transfer large sums of money to finance the Crusades stimulated the re-emergence of banking in Western Europe. In 1156, in Genoa, 3

occurred the earliest known foreign exchange contract. Two brothers borrowed 115 Genoese pounds and agreed to reimburse the bank's agents in Constantinople the sum of 460 bezants one month after their arrival in that city. In the following century the use of such contracts grew rapidly, particularly since profits from time differences were seen as not infringing canon laws against usury. In 1162, King Henry the II levied a tax to support the crusades -- the first of a series of taxes levied by Henry over the years with the same objective. The Templars and Hospitallers acted as Henry's bankers in the Holy Land. The Templars' wide flung, large land holdings across Europe also emerged in the 1100-1300 time frame as the beginning of Europe-wide banking, as their practice was to take in local currency, for which a demand note would be given that would be good at any of their castles across Europe, allowing movement of money without the usual risk of robbery while traveling. By 1200 there was a large and growing volume of long-distance and international trade in a number of agricultural commodities and manufactured goods in western Europe; some of the goods traded during that period included wool, finished cloth, wine, salt, wax and tallow, leather and leather goods, and weapons and armour. Individual trading concerns and combines often specialized in one or more of these, as did individual producers; because a large amount of capital was required to establish, e.g., a cloth manufacturing business, only the largest firms could diversify. As a result, businesses and clusters of businesses tended to market fairly narrow product lines. Big firms like the Medici bank could and did specialize; the Medicis manufacturing division had a number of manufacturing facilities producing many different types of cloth. Perhaps the best example of product policy comes from the Cistercian monastic order, where individual monasteries and granges tended to specialize in particular agricultural products or types of industrial production, usually with an eye to meeting particular local or regional market needs. Ironically, the Papal bankers were the most successful of the Western world, though often goods taken in pawn were substituted for interest in the institution termed the Monte di Piet. When Pope John XXII (born Jacques d'Euse (1249 - 1334) was crowned in Lyon in 1316, he set up residency in Avignon. Civil war in Florence between the rival Guelph and Ghibelline factions resulted in victory for a group of Guelph merchant families in the city. They took over papal banking monopolies from rivals in nearby Siena and became tax collectors for the Pope throughout Europe. In 1306, Philip IV expelled Jews from France. In 1307 Philip had the Knights Templar arrested and had gotten hold of their wealth, which had become to serve as the unofficial treasury of France. In 1311 he expelled Italian bankers and collected their outstanding credit. In 1327, Avignon had 43 branches of Italian banking houses. In 1347, Edward III of England defaulted on loans. Later there was the bankruptcy of the Peruzzi (1374) and Bardi (1353). The accompanying growth of Italian banking in France was the start of the Lombard moneychangers in Europe, who moved from city to city along the busy pilgrim routes important for trade. Key cities in this period were Cahors, the birthplace of Pope John XXII, and Figeac. Perhaps it was because of these origins that the term Lombard is synonymous with Cahorsin in medieval Europe, and means 'pawnbroker'. Banca Monte dei Paschi di Siena SPA (MPS) Italy is the oldest surviving bank in the world.

After 1400, political forces turned against the methods of the Italian free enterprise bankers. In 1401, King Martin I of Aragon expelled them. In 1403, Henry IV of England prohibited them from taking profits in any way in his kingdom. In 1409, Flanders imprisoned and then expelled Genoese bankers. In 1410, all Italian merchants were expelled from Paris. In 1401, the Bank of Barcelona was founded. In 1407, the Bank of Saint George was founded in Genoa. This bank dominated business in the Mediterranean. In 1403 charging interest on loans was ruled legal in Florence despite the traditional Christian prohibition of usury. Italian banks such as the Lombards, who had agents in the main economic centres of Europe, had been making charges for loans. The lawyer and theologian Lorenzo di Antonio Ridolfi won a case which legalised interest payments by the Florentine government. In 1413, Giovanni di Bicci deMedici appointed banker to the pope. In 1440, Gutenberg invents the modern printing press although Europe already knew of the use of paper money in China. The printing press design was subsequently modified, by Leonardo da Vinci among others, for use in minting coins nearly two centuries before printed banknotes were produced in the West. By the 1390s silver was short all over Europe, except in Venice. The silver mines at Kutn Hora had begun to decline in the 1370s, and finally closed down after being sacked by King Sigismund in 1422. By 1450 almost all of the mints of northwest Europe had closed down for lack of silver. The last money-changer in the major French port of Dieppe went out of business in 1446. In 1455 the Turks overran the Serbian silver mines, and in 1460 captured the last Bosnian mine. The last Venetian silver grosso was minted in 1462. Several Venetian banks failed, and so did the Strozzi bank of Florence, the second largest in the city. Even the smallest of small change became scarce.

Western banking history Modern Western economic and financial history is usually traced back to the coffee houses of London. The London Royal Exchange was established in 1565. At that time moneychangers were already called bankers, though the term "bank" usually referred to their offices, and did not carry the meaning it does today. There was also a hierarchical order among professionals; at the top were the bankers who did business with heads of state, next were the city exchanges, and at the bottom were the pawn shops or "Lombard"'s. Some European cities today have a Lombard street where the pawn shop was located. After the siege of Antwerp, trade moved to Amsterdam. In 1609 the Amsterdamsche Wisselbank (Amsterdam Exchange Bank) was founded which made Amsterdam the financial centre of the world until the Industrial Revolution. Banking offices were usually located near centers of trade, and in the late 17th century, the largest centers for commerce were the ports of Amsterdam, London, and Hamburg. Individuals could participate in the lucrative East India trade by purchasing bills of credit from these banks, but the price they received for commodities was dependent on the ships

returning (which often didn't happen on time) and on the cargo they carried (which often wasn't according to plan). The commodities market was very volatile for this reason, and also because of the many wars that led to cargo seizures and loss of ships.

History of Banking in India

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III. Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in india as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders. Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas. It formed State Bank of india to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 crore. After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.

Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

A Brief Profile of the Bank

Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangalore, then a small port in Karnataka. The Bank has gone through the various phases of its growth trajectory over hundred years of its existence. Growth of Canara Bank 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, Canara Bank occupies a premier position in the comity of Indian banks. With an unbroken record of profits since its inception, Canara Bank has several firsts to its credit. These include:

Launching of Inter-City ATM Network Obtaining ISO Certification for a Branch Articulation of Good Banking Banks 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 2009, the Bank has further expanded its domestic presence, with 2729 branches spread across all geographical segments. Keeping customer convenience at the forefront, the Bank provides a wide array of alternative delivery channels that include over 2000 ATMs- one of the highest among nationalized banks- covering 705 centres, 1362 branches providing Internet and Mobile Banking (IMB) services and 2062 branches offering 'Anywhere Banking' services. Under advanced payment and settlement system, all branches of the Bank have been enabled to offer Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) facilities.

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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 our founder continue to resonate even today in serving the society with a purpose. The growth story of Canara Bank 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. We 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.

Late Sri Ammembal Subbarao Pai Founded as 'Canara Bank Hindu Permanent Fund' in 1906, by late Sri. Ammembal Subba Rao Pai, a philanthropist, this small seed blossomed into a limited company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalization. "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" - A. Subba Rao Pai. Founding Principles 1. 2. 3. 4. 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. 5. To assist the needy. 6. To work with sense of service and dedication. 7. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes/remove hardships and sufferings.

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Sound founding principles, enlightened leadership, unique work culture and remarkable adaptability to changing banking environment have enabled Canara Bank to be a frontline banking institution of global standards. Significant Milestones Year 1st July 1906 1910 1969 1976 1983 1984 1985 1987 1989 1989-90 1992-93 1995-96 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000 shares of Rs.50/- each, with 4 employees. Canara Hindu Permanent Fund renamed as Canara Bank Limited 14 major banks in the country, including Canara Bank, nationalized on July 19 1000th branch inaugurated Overseas branch at London inaugurated Cancard (the Banks credit card) launched Merger with the Laksmi Commercial Bank Limited Commissioning of Indo Hong Kong International Finance Limited Canbank Mutual Fund & Canfin Homes launched Canbank Venture Capital Fund started Canbank Factors Limited, the factoring subsidiary launched Became the first Bank to articulate and adopt the directive principles of Good Banking. Became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore Opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering exclusively to the financial requirements of women clientele. Maiden IPO of the Bank Launched Internet & Mobile Banking Services 100% Branch computerization Entered 100th Year in Banking Service Launched Core Banking Solution in select branches Number One Position in Aggregate Business among Nationalized Banks 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 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 The Bank crossed the coveted Rs. 3 lakh crore in aggregate business The Banks 3rd foreign branch at Shanghai commissioned

2007-08

2008-09

As at March 2009, the total business of the Bank stood at Rs. 3,25,112 crore. 12

Vision To emerge as a Best Practices Bank by pursuing global benchmarks in profitability, operational efficiency, asset quality, risk management and expanding the global reach.

Mission To provide quality banking services with enhanced customer orientation, higher value creation for stakeholders and to continue as a responsive corporate social citizen by effectively blending commercial pursuits with social banking.

Awards/Accolades Received during 2007-08

First National Award, instituted by the Ministry of Micro, Small & Medium Enterprises, Govt. of India for 'Excellence in Micro & Small Enterprises (MSE) Lending' for 2006-07. 'Golden Peacock Award for Corporate Social Responsibility' for the year 2007. Canara Bank is the first PSB to receive the award since its institution in the year 1991. Golden Peacock National Training Award-2007, instituted by the Institute of Directors, New Delhi, a pioneer in Quality Revolution. Conferred the Business Superbrands Status for 2008. 'The Organization of the Year Award- for PR Excellence', instituted by Public Relations Council of India. Excellence in the field of Khadi & Village Industries in South Zone for the year 2006-07, instituted by Khadi & Village Industries Commission, Ministry of Micro, Small & Medium Enterprises, Government of India.

Received during 2008-09

Conferred 'First Rank' in India's Best Banks awards under the category 'Strength and Soundness' for 2006-07 by a survey conducted by Ernst & Young. Best Performing Bank under Rural Employment Generation Programme, (REGP) of Khadi and Village Industries Commission (KVIC), in South Zone for the year 2007-08, instituted by the Ministry of MSME, Government of India. 13

Golden Peacock National Training Award 2008 for excellence in training. Global HR excellence in Training, an award conferred by the Asia Pacific HR Congress, the largest rendezvous of HR Professionals, at its Employer Branding Talent Management Congress held on 22nd and 23rd August 2008, Delhi. Best Corporate Social Responsibility Practice Award, instituted by BSE, NASSCOM and Times Foundation.

The Bank won two Silver Corporate Collateral Awards for Best Corporate Ad in the Print Media and Best Corporate Film on Corporate Social Responsibility at the Public Relations Council of India Awards 2009. Canara bank helps you in planning to own a home by buying a flat or building a house. The bank offers you loan for constructing a new house or for doing additions or renovation in the existing house. Anyone from salaried individual to self-employed persons can take the home loan by fulfilling certain criteria and documentation for the entitlement of the loan. Even NRIs can apply for home loan offered by Canara Bank. Canara bank has a wide array of network opened in the country to help people in banking. As at December 2007 bank has network of 2641 branches spread all over India. Bank has over 1900 ATMs, covering 680 centers, over 1100 branches providing Internet and Mobile Banking (IMB) services and more than 1833 branches offering 'Anywhere Banking' services. Now more than 1693 branches of the Bank offer advanced payment and settlement system under Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT).

Institution Information
Head Office Canara Bank 112, J C Road BANGALORE Bangalore - 560 002 Karnataka India Website http://canarabank.com/ No. of branches 2641 No. of ATMs 1900 Customer Care Numbers

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BANGALORE: 080-25586087, CHENNAI: 044 - 24344638, DELHI: 011 - 26415331, KOLKATA: 033-22807899

Products / Services
Credit Cards Canara Bank offers a credit card named CANCARD that provides both convenience and quality services to the cardholders. It is a widely accepted card under the principal membership of Visa International and Master card International. The bank offers free insurance cover under the card. The bank has set a liberal credit limit of minimum gross income of Rs 60,000 per annum to avail the card. There is no maximum amount for accumulation and you earn bonus points on using the card. CANCARD VISA CLASSIC

Liberal Card limit Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing up of the limit is at the sole discretion of Canara Bank. Cash withdrawal facility at designated 450 branches all over India Cash withdrawal at Canara Bank ATMs. No Interest on cash withdrawal if paid by the due date. If not paid by the DUE DATE, interest is charged from DUE DATE only and not from the DATE OF CASH WITHDRAWAL. Opt for Revolving Payment system and pay only 5% of the billed amount and defer the payment. No financial charges! i.e., interest on other transactions subsequent to cash withdrawal till the cash withdrawal is repaid.

CANCARD VISA CORPORATE

Liberal Card limit Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing up of the limit is at the sole discretion of Canara Bank. Cash withdrawal facility at designated 450 branches all over India Cash withdrawal at Canara Bank ATMs. 15

No Interest on cash withdrawal if paid by the due date. If not paid by the DUE DATE, interest is charged from DUE DATE only and not from the DATE OF CASH WITHDRAWAL. Opt for Revolving Payment system and pay only 5% of the billed amount and defer the payment

CANCARD MASTERCARD

Liberal Card limit Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing up of the limit is at the sole discretion of Canara Bank. Cash withdrawal facility at designated 450 branches all over India . Cash withdrawal at Canara Bank ATMs. No Interest on cash withdrawal if paid by the due date. If not paid by the DUE DATE, interest is charged from DUE DATE only and not from the DATE OF CASH WITHDRAWAL. Opt for Revolving Payment system and pay only 5% of the billed amount and defer the payment. No financial charges! i.e., interest on other transactions subsequent to cash withdrawal till the cash withdrawal is repaid. Date of Billing: Last day of every calendar month Payment due date : 20 th of every calendar month.

CANCARD VISA INTERNATIONAL GOLD

Liberal Card limit Get 30% of your gross annual income with a maximum of Rs.3.00 lakhs. Fixing up of the limit is at the sole discretion of Canara Bank. Cash withdrawal facility at designated 450 branches all over India. Cash withdrawal at Canara Bank ATMs. No Interest on cash withdrawal if paid by the due date. If not paid by the DUE DATE, interest is charged from DUE DATE only and not from the DATE OF CASH WITHDRAWAL. Opt for Revolving Payment system and pay only 5% of the billed amount and defer the payment

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Saving Accounts
Canara Bank savings account can be opened singly / jointly, as minor account, by noncorporate bodies, societies, associations, etc. The minimum balance required to open an account is Rs 500/- without cheque book and Rs 1000/- with cheque book in Metro/Urban whereas in Semi-urban/Rural Branches the account can be opened with Rs 100/- without cheque book and Rs 500/- with cheque book. You have to fulfill documentation criteria laid down by the bank for opening an account. Bank gives an interest which is compounded half-yearly on the minimum balance in the account between the10th and the last day of the month. SAVINGS BANK ACCOUNT

NATURE OF DEPOSIT: Running (Operating) account. PERIODICITY OF INTEREST PAYMENT: Interest is payable half-yearly, every February and August on the minimum balance in the account, between the 10th and last day of the month. SPECIAL RATE FOR SENIOR CITIZEN-Not applicable SPECIAL RATE FOR BULK DEPOSITS- Not applicable TDS- Not applicable Highlights

Bank Category Minimum AQB (Average Quarterly Balance) Interest Rate Card Offered

Canara Bank Regular Metro/Urban - Rs.500/- without cheque book & Rs.1000/with cheque book Semi-urban/Rural Branches - Rs.100/- without cheque book & Rs.500/- with cheque book 3.5% ATM cum Debit Card

CANSARAL SAVINGS ACCOUNT

An SB product designed for the common man to provide a basic banking facility as part of the financial inclusion objective of RBI. MINIMUM DEPOSIT The account can be maintained even with zero balance. WITHDRAWAL/ DEPOSIT: o Permitted through withdrawal order form, cheque and ATM cum Debit Card o Maximum 6 withdrawals per month including drawings through ATM free of charge. For withdrawals exceeding 6 per month would be levied a service charge at the rate not exceeding Rs.5/- per withdrawal at the discretion of the branch.

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The minimum amount that may be deposited/ withdrawn IN CASH in an account is as prescribed by the bank from time to time. Currently minimum deposit or withdrawal IN CASH is Rs.10/-. In case of withdrawal through ATM, the minimum amount is Rs.100/- (Currently). TDS- Exempted
o

Highlights Bank Category Canara Bank Regular

Minimum AQB An account can be opened with an initial deposit of Rs. 25/-. The (Average account can be maintained even with zero balance. Quarterly Balance) Metro/Urban - Rs.500/- without cheque book & Rs.1000/- with cheque book Semi-urban/Rural Branches - Rs.100/- without cheque book & Rs.500/- with cheque book Interest Rate Card Offered 3.5% None

SB GOLD SCHEME (CBS branches only)

NATURE OF DEPOSIT Running (Operating)account PERIODICITY OF INTEREST PAYMENT Interest is payable half yearly, every February and August on the minimum balance in the account, between the 10th and last day of the month. SPECIAL RATE FOR SENIOR CITIZEN Not applicable SPECIAL RATE FOR BULK DEPOSITS Not applicable TDS Not applicable LOAN AGAINST DEPOSIT Not permitted VALUE ADDED FACILITIES: o DD facility at 50% concession i.e. Re.1/- per Rs.1000/- or part thereof o Funds transfer under NEFT and RTGS(Canspeed) at 50% concession o Free Debit Card (as per Bank's rules for issue of Debit Cards) o Issue of free Credit Card to the 1st account holder (for others as per existing rules of the Bank) o Waiver of demat account opening charges. o Free Anywhere Banking (AWB) facility. o Sweep-in Sweep-out facility: Sweep-in into term deposit of amounts beyond Rs.1,00,000/- at the request(one time) of the customer mentioning the tenor of the term deposit. o Name printed cheque book. o Free funds transfer facility through our Internet Banking o Free Telebanking facility.

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No ledger folio charges. Highlights Canara Bank Privileged Account Initial Balance Minimum Rs. 1,00,000/-

Bank Category Minimum AQB

(Average Quarterly Balance) Interest Rate Card Offered

Minimum average monthly balance of Rs.1,00,000/3.50% ATM cum Debit Card

Fixed Deposits Canara bank fixed deposit can be opened individually or jointly and on behalf of minor a guardian can open an account. The account can be opened with Rs 1000/- and there is no maximum ceiling for investment. Loan can be taken up to 90% of the deposit amount. There is no penalty on pre-mature closure.

7 days to 14 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 7 days to 14 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 15 days to 30 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 15 - 30 Days 1 - 1500000 Rs 3.00 / annually 7 - 14 Days 1 - 1500000 Rs 2.50 / annually

Senior Citizen 7 - 14 Days 1 - 1500000 Rs 3.00 / annually

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15 days to 30 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 31 days to 45 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 31 days to 45 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 46 days to 90 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 46 days to 90 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 91 days to 179 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 91 days to 179 days

Senior Citizen 15 - 30 Days 1 - 1500000 Rs 3.50 / annually

31 - 45 Days 1 - 1500000 Rs 3.50 / annually Senior Citizen 31 - 45 Days 1 - 1500000 Rs 4.00 / annually

46 - 90 Days 1 - 1500000 Rs 4.50 / annually

Senior Citizen 46 - 90 Days 1 - 1500000 Rs 5.00 / annually

91 - 179 Days 1 - 1500000 Rs 5.25 / annually

20

Effective From: Jul 2, 2009 Tenure Amount Interest Rate 180 days to 269 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate

Senior Citizen 91 - 179 Days 1 - 1500000 Rs 5.75 / annually

180 - 269 Days 1 - 1500000 Rs 6.25 / annually

180 days to 269 days Effective From: Jul 2, 2009 Tenure Amount Interest Rate 270 days to less than 1 year Effective From: Jul 2, 2009 Tenure Amount Interest Rate 270 days to less than 1 year Effective From: Jul 2, 2009 Tenure Amount Interest Rate 1 year & above to less than 2 years Effective From: Jul 2, 2009 Tenure Amount Interest Rate 1 year & above to less than 2 years Effective From: Jul 2, 2009 Tenure

Senior Citizen 180 - 269 Days 1 - 1500000 Rs 6.75 / annually

270 - 365 Days 1 - 1500000 Rs 6.50 / annually

Senior Citizen 270 - 365 Days 1 - 1500000 Rs 7.00 / annually

365 - 730 Days 1 - 1500000 Rs 7.00 / annually

Senior Citizen 365 - 730 Days 21

Amount Interest Rate 2 years & above to less than 3 years Effective From: Jul 2, 2009 Tenure Amount Interest Rate 2 years & above to less than 3 years Effective From: Jul 2, 2009 Tenure Amount Interest Rate 3 years & above to less than 5 years Effective From: Jul 2, 2009 Tenure Amount Interest Rate 3 years & above to less than 5 years Effective From: Jul 2, 2009 Tenure Amount Interest Rate 5 years & above Effective From: Jul 2, 2009 Tenure Amount Interest Rate 5 years & above Effective From: Jul 2, 2009 Tenure Amount Interest Rate

1 - 1500000 Rs 7.50 / annually

730 - 1095 Days 1 - 1500000 Rs 7.25 / annually

Senior Citizen 730 - 1095 Days 1 - 1500000 Rs 7.75 / annually

1095 - 1825 Days 1 - 1500000 Rs 7.50 / annually

Senior Citizen 1095 - 1825 Days 1 - 1500000 Rs 8.00 / annually

1825 - 1825 Days 1 - 1500000 Rs 7.50 / annually

Senior Citizen 1825 - 1825 Days 1 - 1500000 Rs 8.00 / annually

22

Loans
Personal Loan Canara bank has a range of personal loan to help you meeting the cost of various personal needs. The various categories of personal loan are Can Mahila exclusive scheme for women, Doctors Choice designed for medical practitioners to help them in meeting their professional needs, Can Cash (Loan against Shares) you can take instant cash against shares/ debentures / bonds / units, Can Budget loan scheme for the benefit of employees of Corporates, PSUs, Government Departments, Institutions, etc., Can Pension loan scheme for senior citizens, Teachers loan to meet their needs, Swarna loan (Gold loan) loan against gold jewellery / ornaments, Can Rent loan for owners of the property to meet their business needs and / or genuine personal needs, against rents receivable, Can Tech loan for professionals working in reputed information technology and biotechnology companies, Home improvement loan for furnishing house / flat with household furniture items, air conditioners, etc. Highlights Salaried Loan Type Loan Amount Tenure Interest Rate Time to Process Loan Term Loan Min. - Rs 50000 Max. - Rs 1500000 Min. - 12 Yrs. Min. - 14.5 % Max. - 14.5 % 5 days

Self Employed Term Loan Min. - Rs 50000 Max. - Rs 1500000 Min. - 12 Yrs. Min. - 14.5 % Max. - 14.5 % 5 days

Education Loan Canara bank offers education loan under Vidyasagar to needy and meritorious Indian students. High school students can also avail education loan. Loan can be taken for job oriented courses at degree level and advanced studies for post graduation for study in abroad. Highlights Study Abroad Course Loan Type Loan Purpose Graduation Term Loan

Study India Post Graduation Term Loan

Loans are also provided Loans are provided for for studying abroad for studying abroad for job job oriented courses at oriented courses at degree degree level and level and advanced advanced studies in all studies in all areas for

23

areas for post-graduation. For payment of fees to school/college and for purchase of books, hostel fees, examination fees, etc. Loan Amount Margin Money Tenure Interest Rate Time to Process Loan Min. - Rs 50000 Max. - Rs 400000 15 % Min. - 1 Yrs. - Upto Rs.4 lakhs 12.50% 7 days

post-graduation.

Min. - Rs 50000 Max. - Rs 400000 5% Min. - 1 Yrs. - Upto Rs.4 lakhs 12.50% 7 days

Car Loan Canara Bank offers loan to buy your own luxury car. The bank provides loan upto 90% of the on road price and there is no ceiling on the maximum loan amount. For used cars, which are not older than 5 years, bank finance 75% of the agreed price or 75% of the value of the car, as assessed by an automobile engineer or Rs.6 lakh whichever is lower. Highlights New Car Loan Type Ex-Showroom/On Road Loan Amount Tenure Interest Rate Time to Process Loan Preferred Manufacturers Term Loan On Road Min. - Rs 50000 Min. - 12 Yrs. 12 % 7 days Chevrolet, FIAT, Ford, GENERAL MOTORS INDIA, HINDUSTAN MOTORS, Honda, Hyundai, Mahindra, Maruti, Mercedes-Benz, Mitsubishi, Nissan, Reva, SAN Engineering, Skoda, Tata Motors, Toyota Used Car Term Loan On Road Min. - Rs 50000 Min. - 12 Yrs. 12.5 % 7 days Chevrolet, FIAT, Ford, GENERAL MOTORS INDIA, HINDUSTAN MOTORS, Honda, Hyundai, Mahindra, Maruti, Mercedes-Benz, Mitsubishi, Nissan, Reva, SAN Engineering, Skoda, Tata Motors, Toyota

24

Home Loan Canara bank helps you in planning to own a home or you want to build your home / buy a flat. You name it and bank has offer for you whether you want to construct a new house or you want to do additions in your existing house. Moreover you can take loan for renovation of your house /flat, etc. Salaried individual, self-employed persons, running your own business, etc, anyone can take home loan by fulfilling certain criteria for the entitlement and the documentation formalities for the loan. Even NRIs can apply for home loan. Highlights Loan Amount Time to Process Loan Interest Rates Tenure 20 - 25 Yrs. 15 - 20 Yrs. 10 - 15 Yrs. 5 - 10 Yrs. 1 - 5 Yrs. 15 - 20 Yrs. 10 - 15 Yrs. 5 - 10 Yrs. 1 - 5 Yrs. Interest Type Fixed Fixed Fixed Fixed Fixed Floating Floating Floating Floating Interest Rate 12% 12% 12% 12% 12% 10.75% 10.75% 10.50% 11.25% Offer Min. - Rs 100000 Max. - Rs 10000000 7 days

25

SERVICE CHARGES
Lockers Type of Locker Type A B C D H-1 E F G H L

Population group wise Base Rate Rupees per annum Metro 700 800 900 900 1200 1300 1900 2200 2800 Urban 600 700 800 800 1200 1200 1750 2000 2500 Semi-Urban 550 600 700 700 1100 1100 1500 1800 2000 Rural 550 600 700 700 1100 1100 1500 1800 2000

Locker Size in inches 5 x 6 x 21 6 x 7 x 21 5 x 13 x 21 7 x 9 x 21 13 x 7 x 21 6 x 16 x 21 11 x 13 x 21 7 x 20 x 21 12 x 16 x 21

16 x 20 x 21 3500 3000 2500 2500 The above are base rates and may vary from place to place. The rent indicated are per annum rates.

DEMAND DRAFT / TT/ PAY ORDER / LOCAL DD / BANKERS' CHEQUE (a) Drafts/TT Issue - OUTSTATION Amount ranging From - To Upto and inclusive of Rs. 1000/Above Rs.1000/upto Rs. 10000/Rs. 50/OTHER THAN INDIVIDUAL Rs. 30/INDIVIDUALS OTHER THAN RURAL Rs. 25/RURAL Rs. 20/-

Rs. 40/-

Rs. 30/-

Rs. 3.25 per Rs. 1000/- Rs. 3/-per Rs. 1000/Rs. 3.50 per Rs. 1000/- or or part thereof or part thereof Above Rs. part thereof minimum of minimum of Rs. 40/- minimum of Rs.30/10000/Rs. 50/- Maximum Rs. Maximum Rs. 12000/- Maximum Rs. 10000/12000/- per DD per DD per DD Note: 1. For TTs, in addition to DD charges as above, actual OPEs / telegram charges subject to a minimum of Rs. 50/- shall be collected. 2. For multiple DDs issued in lieu of single DD, commission as applicable for the aggregate amount alone shall be collected.

26

(b) Drafts/TT Issue - LOCAL (Local DD / Pay Order / Banker's Cheque Issue) Amount ranging From - To Upto and inclusive of Rs. 1000/Above Rs.1000/upto Rs. 10000/Above Rs. 10000/Upto Rs. 1.00 lakh OTHER THAN INDIVIDUAL Rs. 30/INDIVIDUALS OTHER THAN RURAL Rs. 25/RURAL Rs. 20/-

Rs. 40/-

Rs. 35/-

Rs. 30/-

Rs. 3/- per Rs. 1000/- or Rs. 2.75 per Rs. 1000/- Rs. 2.50 per Rs. 1000/part thereof minimum of or part thereof or part thereof Rs. 40/minimum of Rs. 35/- minimum of Rs.30/-

Rs. 1.75 per Rs. 1000/- Re. 1.50 per Rs. 1000/Rs. 2.00 per Rs. 1000/- or or part thereof with or part thereof with Above Rs. 1 part thereof with minimum minimum of Rs. 275/- minimum of Rs. 250/lakh of Rs. 300/- Maximum Rs. Maximum Rs. 10000/- Maximum Rs. 7500/10000/- per DD per DD per DD (c) Issue of DD / TT / PO / BC against tender of cash (both for local / Outstation) (applicable to all branches rural and other than rural, individuals and non individuals) Up to Rs. 1000/- no additional charges. Above Rs. 1000/additional charges at 20% (extra) on applicable charges, rounded off to next Re. For denominations below Rs. 100/50% extra on normal charges.

Note : (i) The above charges for remittance against tender of cash are only indicative rates. However, the bank has the discretion to levy higher rates depending on the circumstances, subject to maximum of 200% of applicable normal charges. (ii)For retirement of bills against tender of cash, additional charges of Rs. 100/- flat per bill shall be collected in addition to bills collection charges.

(d) Cancellation of Demand Draft / Pay Order / Local DD / Banker's Cheque Amount ranging From - To Up to Rs. 10 lakh Above Rs. 10 lakh (other OTHER THAN INDIVIDUAL Rs. 100/- per DD Rs. 1000/- per DD INDIVIDUALS OTHER THAN RURAL Rs. 75/- per DD Rs. 750/- per DD RURAL Rs. 50/- per DD Rs. 500/- per

27

than Local)

DD

Note : For DDs cancelled, charges may be recovered to the extent of their value, if the amount is less than or equal to Rs. 100/75/50 as the case may be ATM Replacement Charges Transaction Charges for Partner banks Transaction Charge for Non-Partner banks

ATM cum Debit Card Rs.50/NIL Rs. 50/-

Credit Cards Charges / Fees applicable as on 30.09.2008 (Service Tax as applicable extra) S/No 1 2 3 4 5 6 7 Fees / Charges Entrance Fees Annual Fees Add on Cardm (card inactivity fees *) Card inactivity fees * (Main Card) Service charges on outstanding balances Cash withdrawal charges Hot listing charges Other charges 8 9 10 11 12 Mark up in case of transaction in foreign currency Duplicate Statement Upto 3% of the amount Rs. 10 per page Canara Visa Classic/ Master Card Standard Cards Nil Nil Rs. 300 Rs. 400 Canara Visa /Master Card Gold Cards Nil Nil Rs.750 Rs. 750 CanaraVisa Corporate Cards Rs. 250 Rs. 400 Nil Nil

2.5% p.m. (30% p.a.) from the due date Rs. 30 per thousand or part thereof Rs. 150.00

Cheque dishonour charges or unsuccessful payment Rs. 50 per occasion instructions Copy of the Charge slip Original Charge Slip Domestic transaction Rs. 100/International transaction USD 10 or equivalent

28

if processed by our Bank Procured from other Bank 13 14 Collection charges for outstation cheques

USD 2 or equivalent USD 6 or equivalent Rs. 100 per instrument + other bank charges if any

Charges in respect of notices / reminders sent to Rs. 50/- per notice cardholders having overdues. Delayed payment beyond due date

15 For cards with revolving credit facility Non revolver cards 16

2% of the amount with minimum of Rs. 10.00 and maximum of Rs. 150.00 2% of the amount with minimum of Rs. 20.00 and maximum of Rs. 300.00 Rs. 300.00

Return of FTV - First Return Rs. 100.00 Each subsequent return

* Card inactivity fee is applicable only if the Card turnover during a Card year (a period of one year from the date of issuance of card) is less than Rs. 12000/- for Visa Classic / Master Card Standard and less than Rs. 25000 for Visa / MasterCard Gold. ** For all Cards issued on or after 01.09.2008, No annual, entrance, inactivity fees is applicable for the next five years. Debit Cards Charges / Fees applicable as on 30.09.2008 (Service Tax as applicable extra) S/No 1 2 3 4 Entrance Fees Annual Fees Cash withdrawal charges Hot listing charges Other charges 5 6 7 Mark up in case of transaction Upto 3% of the amount in foreign currency Copy of the Charge slip Original Charge Slip if processed by our Bank Procured from other Bank Domestic transaction Rs. 100/- International transaction USD 10 or equivalent USD 2 or equivalent USD 6 or equivalent Fees / Charges Nil Nil No charges for using our ATM . Use at other Banks ATM as levied by the respective Bank Rs. 150.00

29

CHEQUE COLLECTION Outstation Inward / Outward Collection of Outstation cheques / instruments such cheque as DDs/ Dividend / Interest Warrants, Refund Orders, Income Tax collection Refund orders etc. (other than bills) Amount ranging OTHER THAN INDIVIDUAL From - To Up to Rs. 10000/Rs.10,001/- to Rs. 1,00,000/Rs. 1,00,001 and above INDIVIDUALS OTHER THAN RURAL RURAL

Rs. 50/- per instrument Rs. 100/- per instrument Rs. 150/- per instrument

NOTE : 1.The above charges are per instrument fixed tariffs and all inclusive charges applicable to both individual and other than individual customers irrespective of the population group. No additional charges such as courier charges, out of pocket expenses etc., should be collected from the customers. 2. For instruments directly sent to other public sector banks, RRBs sponsored by our Bank for want of our branch at the drawee center, commission as mentioned above will be shared on 50:50 basis. 3. For instruments directly sent to Private Sector Banks/Foreign Banks/Co-operative Banks/RRBs sponsored by other Banks/any other Banks, for want of our branch at the drawee center, full commission as mentioned above will be levied, apart from charges levied by other banks. NEFT Money Inward = NIL transfer RTGS Money Inward = NIL transfer SFMS (IFN 100) ECS Inward = NIL Outward : Upto Rs 1 lac- Rs 5/- per transaction Above Rs 1 lac Rs 25/- per transaction Outward : Rs 1 lac to Rs 5 lac- Rs 25/- per transaction Above Rs 5lac - Rs 50/- per transaction Outward Rs 1/- per Rs 1000/- or part there of subject to a minimum of Rs20/- and a maximum of rs 2000/-.

Credit/Debit = NIL CHEQUE RETURN CHARGES A. Cheque return charges - LOCAL Outward Returns PARTI Return of Outward Instruments CULARS ( Outward Local Cheques / Inward Returns Return of Inward Instruments (Inward Local Cheques / instruments received

30

instruments including Local Clearing Cheques / LOSCs etc., lodged by customers for collection and returned to us by other Banks / Branches ) collected as handling charges. OTHER THAN INDIVI DUAL INDIVIDUALS OTHER THAN RURAL RURAL

for payment but returned to other Banks / Branches) Only in case of the cheque / instruments being returned for want of funds / similar reasons (to be debited from our drawer customer's account) OTHER THAN INDIVI DUAL INDIVIDUALS OTHER THAN RURAL RURAL

For Rs. 30/- per Rs. 25/- per Rs. 20/- per Rs. 75/- per Rs. 50/- per Rs. 40/- per Savings cheque / cheque / cheque / cheque / cheque / cheque / Accounts instrument instrument instrument instrument instrument instrument For Current, Rs. 60/- per Rs. 50/- per Rs. 40/- per Rs. 150/Rs. 100/Rs. 80/- per OD / cheque / cheque / cheque / per cheque / per cheque / cheque / OCC instrument instrument instrument instrument instrument instrument Accounts B, Dishonour of cheques - OUTSTATION Outward returns Return of Outward Instruments (Outward Outstation Cheques / Instruments including OSCs lodged by customers for collection and returned to us by other Banks / Branches INDIVIDUALS Both for SB & CA / For Cheques / Instruments Returned OD / Unpaid : 50% of applicable collection OCC charges, with a minimum of Rs. 25/-. For Bills returned Unpaid : 50% of applicable collection charges, with a minimum of Rs. 75/- + Postage OTHER THAN INDIVIDUAL OTHER THAN RURAL OTHER THAN RURAL INDIVIDUAL Inward returns Return of Inward Instruments (Inward Outstation Cheques / Instruments received for payment but returned to other Banks / Branches) INDIVIDUALS OTHER THAN RURAL RURAL

For Cheques / Instruments Returned Unpaid : 50% of applicable collection charges, with a minimum of Rs. 25/- + Postage For Bills returned Unpaid : 50% of applicable collection charges, with a minimum of Rs. 75/- + Postage If the instrument is returned for want of funds / similar reasons additional charges as applicable to local cheque return (para 8. A. above) is to be collected / debited from our drawer customer's Account

31

ISSUE OF CHEQUES BOOKS Cheque Book Issue : SB / CA / OD / OCC Accounts Particulars i) Where MICR is operational MICR Cheques ii) Where MICR is not operational MICR cheques - Non MICR Cheques Free Cheque leaves for SB Account in a calendar year OTHER THAN INDIVIDUAL Rs. 2.50 per cheque leaf Rs. 1.50 per cheque leaf Rs. 1.50 per cheque leaf 40 leaves free INDIVIDUALS OTHER THAN RURAL RURAL Rs. 2.50 per cheque leaf Rs. 1.50 per cheque leaf Rs. 1.50 per cheque leaf 40 leaves free Rs. 2.00 per cheque leaf Rs. 1.00 per cheque leaf Rs. 1.00 per cheque leaf 60 leave fre

Note: (1) The MICR / Non-MICR cheques charges for SB accounts are levied only for the additional leaves issued in excess of the free entitlement. (2) No concession in case of Current Accounts of Govt / Govt departments, Religious / Welfare / Charitable institutions etc. and SB Accounts other than individuals such as HUF, Associations, Societies, Clubs, Schools etc. NO DUE CERTIFICATE No Due Certificate Issue of No Due Certificate OTHER THAN INDIVIDUAL Rs. 100/- per certificate INDIVIDUALS OTHER THAN RURAL Rs. 50/- per certificate RURAL Rs. 30/- per certificate

For Individuals : Concessional tariff of Rs. 10/- for Agriculture and Priority Sector Advances. No charges for Govt Sponsored Schemes

OTHER CHARGES FOREIGN EXCHANGE TRANSACTIONS Service/Product/Account Particulars Remittance Outward Service Charges Individual Rs.100/For Others Rs.450/-

32

Remittance Inward TCs Selling TCs Encashing TCs - Foreign Currency (NOTES ) : Foreign Currency notes selling Foreign Currency notes encashing

Rs. 100/- per payment (waived, if the beneficiary is an individual) Inter bank rate plus 0.15% = TT selling plus 0.5% = TC selling rate is arrived. Additionally bank is collecting 1% on the Rupee equivalent payable by the customer as commission. Inter bank rate minus 0.08% = TT Buying rate minus 1% = TC Buying rate ( encashment ) Interbank rate plus 0.15% = TT Selling plus 0.5% = TC selling + 0.5% = Foreign currency selling. TC buying minus 1% is Currency Buying ( encashment )

SAVINGS BANK ACCOUNTS Service/Product/Account Charges for non-maintenance of Minimum Balance (applicable for both Operative and In-operative accounts) : When the balance falls below the applicable minimum for the respective branch / account category : Issue of Loose Cheque leaves : Service charges Flat Charge of Rs. 20/- per month ( to be collected once in a month on last working day) NIL

Mode of calculation of Minimum balance :Charges for non-maintenance of minimum balance on any day / any number of days during the month Note : For Senior Citizens (60 years and above), charges for non-maintenance of minimum balance in SB account is waived. Current Accounts : Charges for non-maintenance of Minimum Rs. 50/- per day. Maximum Rs. 250/- per Balance calendar month ( to be collected once in a (applicable for both Operative and Inmonth on last working day). operative accounts) : When the balance falls below the applicable

33

minimum for the respective branch / account category : Charges for In-operative Accounts (Half Yearly Service Charge) a. If balance in the account is above the applicable minimum (for particular branch category, for without cheque book slab), No charge. (i) In-operative SB Accounts b. If balance is below applicable minimum, service charge of Rs. 30/- or available balance whichever is lower, is to be collected half yearly (for inoperative accounts other than unclaimed deposits). a. If balance in the account is above the applicable minimum (for particular branch category), No charge. b. If balance is below applicable minimum, (ii ) In-operative Current Accounts service charge of Rs. 50/- or available balance whichever is lower, is to be collected half yearly (for inoperative accounts other than unclaimed deposits). Note: Service charges for in-operative SB / Current Accounts to be collected on halfyearly basis are in addition to the charges for non-maintenance of minimum balance (to be levied monthly) OUTWARD / INWARD COLLECTION OF BILLS :(Clean, Documentary, Demand / Usance including supply bills) Particulars Upto Rs. 10000/Charges Rs. 100.00 Rs. 8/- per Rs. 1,000/- or part there of with a Above Rs.10,000/- up to Rs.10.00 lakh minimum of Rs. 100/Rs. 7/- per Rs. 1,000/- or part thereof with a Above Rs.10.00 lakhs minimum of Rs. 8000/- and maximum of Rs. 15000/For Bills / Cheques returned unpaid, Charges the following charges will be levied: As given in para 8. A. under Cheque Return Local Bills charges As given in para 8. B. under Dishonour of Outstation Bills outstation cheques. RETAIL LOAN LOAN PROCESSING CHARGES 34

Sl/No SCHEMES 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Housing Loan Home Improvement Loan

ProcessingCharges 0.5% 0.5%

Minimum(Rs.) 500.00 500.00 250.00 100.00 100.00 NA NA

Maximum(Rs.) 10000.00 10000.00 500.00 250.00 500.00 NA NA

Can Mobile(four 0.1% wheelers) Can Mobile(two 0.1% wheelers) Can Budget Can Rent Can Mortgage Can Trade/Traders Scheme Can Cash Swarna Loan Can Mahila Can Travel Can Tech Can Jewel Can Tool Can Site Can Value Can Pension 0.5% 0.5% 0.5%

Workg Capital Rs.100/- per lac (Max Rs 1 lac) Term Loan 1% of the loan amt (No Max) 0.1% 1% 0.5% 0.5% 0.5% 0.5% NIL As applicable to Housing Loan Scheme No Processing Charges No Processing Charges 100.00 50.00 50.00 100.00 250.00 200.00 250.00 250.00 NA 500.00 500.00 500.00 1000.00 1000.00

Teachers Loan 1%

Up to Rs. 25000/- - NIL Above Rs. 25000/- Working Capital 0.1% of the loan Doctors Choice amount with a minimum of Rs. 250/-. Term Loan 1% of the loan amount Prepayment Charges 2% on the outstanding liability in case of take over of the loan by other bank / FI Commission on solvency certificate shall be at the rate of 0.10% with a minimum of Rs. 500/- and maximum of Rs. 10000/- per certificate. Solvency

RETAIL LOAN

35

Certificate Charges for late payment of EMI NIL - only penal interest collected.

CASH HANDLING CHARGES FOR CASH REMITTANCE TO CA / OD / OCC ACCOUNTS No charges for cash remittances of up to Rupees One Lakh per day per account. For cash deposits above Rs. 100000/-, cash handling charges @ Re. 1/- per Rs. 1000/- or part thereof shall be collected, subject to a minimum of Rs. 100/- and a maximum of Rs. 2500/- per transaction. Cash handling charges shall be collected from customers for remitting cash to the credit of their CA / OD / OCC accounts, at the base branch only. The charges are uniformly applicable to all branches. If a customer makes two or more remittances of cash in a day, cash handling charges shall be collected, if the total remittance during the day exceeds the exempted limit of Rupees One Lakh. Customers are exempted from cash handling charges for remitting cash to their SB accounts irrespective of the amount. Safe Custody charges (a) Sealed Cover / Packet (b) Scrips (c) Sealed Box 10x10x10cc 20x20x20cc 30x30x30cc Minimum Rs. 500 p.a. or its multiples Minimum Rs.1000 p.a. or its multiples Minimum Rs.1500 p.a. or its multiples

Rs.500/- min per cover p.a., or its multiples Rs.25/- per scrip with a minimum of Rs. 250/- p.a. or part there of

Note: The above charges are only indicative. Depending upon the size of the box/cover/packet Branch can charge higher in consultation with CO.

36

Standing instruction charges (SB / CA / OD / OCC Etc.) (a) For transfer of funds within the Rs. 30/ per debit (No charges for Standing same branch Instruction to loan / RD / Deposit Accounts of Self) Exemptions : The above charges of Rs 30/- per transaction for transfer of fund under standing instructions within the same branch is not applicable in the following cases : 1. Guardians a/c to minors a/c. 2. Between a/cs of parents and children. 3. Between the accounts of the spouses. 4. From Co-obligants account to the credit of Borrowers account (b) For transfer of funds to other branches and outside agencies Rs. 30/ per debit plus actual remittance charges + out of pocket expenses

LEDGER FOLIO CHARGES - CURRENT A/C / OD / OCC / KCC / PL/ KCCS Rs.100/- per ledger page (40 entries or part thereof shall be treated as one page) shall be collected on half yearly basis ( September & March) in case of current accounts and on quarterly basis in case of operating credit limit accounts like OD / OCC / KCC / PL / KCCS etc., (i.e. all credit limits other than single transaction limits and bills / cheque limits). Number of free folios per half year (in case of current account) / per quarter in case of operative credit limits (OD / OCC etc) available are as under: If Daily Average Credit Balance in the account is Upto Rs. 50000/Above Rs. 50000/- up to Rs. 100000/Above Rs.100000/- up to Rs. 200000/Above Rs.200000/- up to Rs. 500000/Above Rs.500000/Note: For SB accounts, no folio charges. Number of folios free NIL 3 ledger page 5 ledger page 10 ledger page No folio charges.

OTHER BASIC BANKING SERVICES FOR INDIVIDUAL PENSIONERS / SENIOR CITIZENS, IRRESPECTIVE OF POPULATION GROUP, CHARGES AS APPLICABLE TO RURAL SHALL APPLY INDIVIDUALS OTHER THAN OTHER THAN Particulars INDIVIDUAL RURAL RURAL (A) ISSUE OF PASS BOOK (OR STATEMENT)/ ISSUE OF BALANCE CERTIFICATE (Including Interest certificates) 37

(A) Issue of Pass Book/ Pass Sheets (a) SB Accounts (i) Pass Sheets : First set free of charges in a month for all categories Rs. 20/- per page. Rs. 10/- per page. Rs. 10/- per page. Minimum Rs. Minimum Rs. Minimum Rs. Additional set / copies 40/- per occasion 30/- per occasion 20/- per occasion (ii) Computerised Pass Books : No Charges (b) Current / OD / OCC Accounts Pass Sheets : First set free of charges in a month Rs. 30/- per page. Rs. 20/- per page. Rs. 20/- per page. Minimum Rs. Minimum Rs. Minimum Rs. 2nd Set / Additional set 80/- per occasion 60/- per occasion 60/- per occasion (B) ISSUE OF BALANCE CERTIFICATES / INTEREST CERTIFICATES Rs.50/- per Rs.25/- per Rs.15/- per Certificate. 2 nd Certificate. 2 nd Certificate.2 nd Copy Rs. 75/- per Copy Rs. 40/- per Copy Rs 30/- per a. Balance Certificates certificate certificate certificate 1st Certificate : 1st Certificate : 1st Certificate : b. Interest Certificates Free 2nd Copy : Free 2nd Copy : Free 2nd Copy : (Interest Paid / Interest Rs. 75/- per Rs. 40/- per Rs. 30/- per Collected Certificates) certificate certificate certificate ISSUE OF DUPLICATE PASS BOOK OR STATEMENT / PASS SHEET With latest entry / (a) Duplicate Pass With latest entry / With latest entry / balance Rs. 30/- per Book / Pass sheet / balance Rs. 75/- per balance Rs. 50/- per pass book / pass sheet Statement pass book / pass sheet pass book / pass sheet Rs. 40/- per additional Rs. 25/- per additional Rs. 10/- per additional (b) Additional page page or part thereof. page or part thereof. page or part thereof. / sheet Minimum Rs. 100/Minimum Rs. 50/Minimum Rs. 30/Note : 40 entries or part thereof is treated as one page / sheet STOP PAYMENT : (Stop payment instructions / revocation of instruction) a) For Instructions : ( Stop payment instructions including for range of Cheques / blank cheques / cheque book lost etc). (1) SB Accounts Rs. 75/- per cheque. (Maximum Rs. 500 per occasion) Rs. 200/- per cheque. (Maximum Rs. 600 per occasion) Rs. 50/- per cheque. Rs. 30/- per cheque. (Maximum Rs. 250 (Maximum Rs. 200 per occasion) per occasion) Rs. 100/- per Rs. 100/- per cheque. (Maximum cheque. (Maximum Rs. 500 per Rs. 500 per occasion) occasion)

(2) CA / OD / OCC

38

b) Cancellation / Revocation of Instruction

Rs. 30/- flat (SB / CA)

Rs. 20/- flat (SB / CA)

Rs. 10/- flat (SB / CA)

BALANCE ENQUIRY ( Including Inquiries for old records) a) Inquiries up to six months : SB / CA / OD (All type of Free of Charge Accounts) b) Entries above 6 months up to 1 yr old : (i) Savings Bank Accounts : Rs. 75/- per entry. Rs. 50/- per entry. Rs. 25/- per entry. Free of Charge Free of Charge

(ii) Current Account / OD Rs. 150/- per entry. Rs. 100/- per entry. Rs. 50/- per entry. / OCC A/cs (iii) Other type of accounts : Same as applicable Same as applicable Same as applicable to SB to SB to SB

Note: For entries above one year old, Branch manger has discretion to levy extra charges to (b) above, based on time spent / work involved. Copies of documents / cheques etc at customer's cost. ACCOUNT CLOSURE : (Closure of SB / CA before one year) a) SB Accounts (i) With Cheque Book facility (ii) Without Cheque Book facility b) Current Accounts Rs. 150/- per account Rs. 100/- per account Rs. 750/- per account Rs. 100/- per account Rs. 50/- per account Rs. 500/- per account Rs. 50/- per account Rs. 25/- per account Rs. 150/- per account

Exemptions: (1) Transfer from branch to branch. (2) Opening another account in joint names. (3) Death of the account holder

SIGNATURE VERIFICATION Signature Verification including Rs. 30/- per Rs. 100/- per Rs. 50/- per attestation of customer's signature attestation / attestation / case. attestation / case. / photos case..

DEMAND DRAFT A DEMAND DRAFT REVALIDATION : (both for local and outstation)

39

Revalidation of DD / Local DD

Rs. 75/- flat per Rs. 50/- flat per Rs. 25/- flat per DD DD DD Rs. 100/- per DD, upto Rs. 10000/50% of applicable commission subject to minimum of Rs. 100/- per DD

B DEMAND DRAFT DUPLICATE ISSUANCE (both for local and outstation) Issue of Duplicate DD Rs. 75/- per DD, Rs. 50/- per DD, upto upto Rs. 10000/- Rs. 10000/50% of applicable commission subject to minimum of Rs. 75/- per DD 50% of applicable commission subject to minimum of Rs. 50/- per DD

- For DDs above Rs. 10000/-

Collection of Dividend / Interest Warrants / Refund Orders Concession If value of instrument is up Concession to individual No concession to Rs. 500/-, No customers charges. Only OPE + Postage

for Individuals If value of instrument is up to Rs. 500/-, No charges. Only OPE + Postage

For instruments above Rs. 500/Normal Collection charges

TARIFF STRUCTURE FOR AWB / CBS CHARGES. i) INTRACITY TRANSACTIONS (Branches located in the same centre) Type of Transaction Revised charges for AWB / CBS branches SB Accounts CA / OD / OCC Accounts Up to Rs. 25000/- perday a) Remittance of Cash Above Rs. 25000/b) Cash withdrawal c) Funds transfer d) Clearing e) Issue of DDs Free Free Free Normal DD charges Free No Charges Re. 1/- per Rs. 1000/- or part thereof Minimum Rs. 25/Maximum Rs. 5000/-

ii) INTERCITY TRANSACTIONS : (Outstation Branches)

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Type of Transaction

Revised charges for AWB / CBS branches SB Accounts CA / OD / OCC Accounts Up to Rs. 25000/- per day Free No Charges Re. 1/- per Rs. 1000/- or part thereof Minimum Rs. 25/Maximum Rs. 12000/Free No Charges Re. 1/- per Rs. 1000/- or part thereof Minimum Rs. 25/Rs. 5/- per transaction Rs. 25/- per transaction Rs. 50/- per transaction Re.1/- per Rs. 1000/- or part thereof Minimum Rs. 25/Maximum Rs. 12000/-

(a) Remittance of Cash Above Rs. 25000/SB Accounts (b) Cash withdrawal CA / OD / OCC Accounts Up to Rs. 25000/- per day Above Rs. 25000/(c) Funds Transfer For all types of accounts ( SB / CA / OD / CC ) (d) Deposit of cheques at drawee centers (e) Issue of DDs (f) OSC Up to Rs. 1,00,000/Rs. 1,00,001/- to Rs. 5,00,000/Rs. 5,00,001/- and above All Accounts Normal DD charges Up to Rs. 10,000/Rs. 10,001/- to Rs. 1,00,000/Rs. 1,00,001 and above

Rs. 50/- per instrument Rs. 100/- per instrument Rs. 150/- per instrument

NOTE : The above Osc charges are per instrument fixed tariffs and all inclusive charges applicable to both individual and other than individual customers irrespective of the population group. No additional charges such as courier charges, out of pocket expenses etc., should be collected from the customers.

POSTAL TARIFF / OUT OF POCKET EXPENSES Postal Tariff should be collected in all cases wherever applicable, including where at par facilities are granted, as follows: a) Ordinary Post Actual Minimum Rs. 10/- per envelope b) Regd / Courier c) Telegram / Fax / Telephone $ $ Only at the request of customer Actual Minimum Rs. 30/- per envelope Actual Minimum Rs. 50/- per message

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Note :: 1) Postages / Out of Pocket expenses are in addition to service charges applicable. 2) If two or more instruments favouring a single party are sent to the same branch / office of a bank together, in common single cover by post, in such cases postal tariff mentioned above as applicable to single cover / instrument may be collected. 3) If a single instrument is collected and credited to number of accounts actual / minimum postage may be shared amongst beneficiaries subject to minimum of Re.1/- per credit / customer.

Ratio Analysis
EARNINGS RATIOS Ratio Income from Fund Advances as a % of Op Income Operating Income as a % of Working Funds Fund based income as a % of Op Income Fee based income as a % of Op Income PROFITABLITY RATIOS Ratio Mar ' 08 Mar ' 07 Mar ' 06 42 Mar ' 08 63.61 14.47 95.22 4.77 Mar ' 07 64.87 11.74 96.05 3.94 Mar ' 06 60.31 11.45 95.37 4.62

Yield on Fund Advances Break-Even Yield Ratio Cost of Funds Ratio Net Profit Margin Adjusted Return On Net Worth Reported Return On Net Worth BORROWING RATIOS Ratio Borrowings from RBI as % to Total Borrowings Borrowings from other banks as a % to Total Borrowings Borrowings from others as a % to Total Borrowings Borrowings within India as a % to Total Borrowings Borrowings from outside India as a % to Total Borrowings DEPOSIT RATIOS Ratio Demand Deposit of Total Deposits Saving Deposit of Total Deposits Time Deposit of Total Deposits Deposits within India as % to Total Deposits Deposits Outside India as % to Total Deposits

9.20 9.94 6.80 9.61 18.85 18.86

7.62 7.44 5.09 11.60 17.51 17.51

6.91 6.45 4.39 13.82 19.13 19.13

Mar ' 08 0.00 0.00 100.00 100.00 0.00

Mar ' 07 47.63 0.00 24.74 72.38 27.61

Mar ' 06 0.00 0.00 66.99 66.99 33.00

Mar ' 08 8.60 22.89 68.50 97.07 2.92

Mar ' 07 8.74 22.78 68.47 97.39 2.60

Mar ' 06 8.78 24.50 66.70 97.13 2.86

Balance sheet
Particular CAPITAL & LIABILITIES Owners' Fund Equity Share Capital Share Application Money Peference Share Capital Reserves & Surplus Loan Funds Deposits Borrowings made by the bank Mar ' 08 410.00 0.00 0.00 7,885.63 154,072.4 2 2,517.23 Mar ' 07 410.00 0.00 0.00 7,701.11 142,381.4 5 1,574.35 (Rs in Cr.) Mar ' 06 410.00 0.00 0.00 6,608.86 116,803.2 3 25.82

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Other Liabilities & Provisions Total ASSETS Cash & Balances with RBI Money at call and Short Notice Investments Advances Fixed Assets Gross Block Less: Revaluation Reserve Less: Accumulated Depreciation Net Block Capital Work-in-progress Other Assets Miscellaneous Expenses not written off Total

13,438.55 178,323.8 3

11,651.25 163,718.1 6

8,860.57 132,708.4 8

13,364.79 4,513.25 49,811.57 107,238.0 4 4,254.33 2,204.86 1,337.46 712.01 0.00 2,684.17 0.00 178,323.8 3

9,095.19 7,278.74 45,225.54 98,505.69 4,056.39 2,242.87 1,195.04 618.48 0.00 2,994.53 0.00 163,718.1 7

7,914.00 4,909.56 36,974.18 79,425.70 1,718.60 113.38 1,030.13 575.09 0.00 2,909.95 0.00 132,708.4 8

Profit & Loss Account

Particular Income : Operating Income Expenses Financial Expenses Personnel Expenses Selling Expenses 10,662.94 1,661.28 45.65 7,337.73 1,609.29 39.28 5,130.01 1,515.30 21.61 Mar ' 08 15,524.19 (Rs in Cr.) Mar ' 07 Mar ' 06 11,571.85 9,099.08

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Adminstrative Expenses Expenses Capitalised Operating Expenditure Operating Profit Other Recurring Income Adjusted PBDIT Provisions Made Depreciation Other Write offs Adjusted PBT Tax Charges Adjusted PAT Non Recurring Items Other Non Cash adjustments Reported Net Profit Earnigs Before Appropriation Equity Dividend Preference Dividend Dividend Tax Retained Earnings

1,789.39 0.00 14,159.26 1,364.93 750.34 2,115.27 41.38 169.97 0.00 1,903.92 340.00 1,563.92 1.09 0.00 1,565.01 1,565.01 328.00 0.00 56.00 1,181.01

1,226.51 0.00 10,212.81 1,359.04 668.65 2,027.69 209.19 148.18 0.00 1,670.32 250.00 1,420.32 0.49 0.00 1,420.81 1,420.81 287.00 0.00 48.78 1,085.03

1,300.38 0.00 7,967.30 1,131.78 619.13 1,750.91 63.05 145.03 0.00 1,542.83 200.00 1,342.83 0.39 0.00 1,343.22 1,343.22 270.60 0.00 38.00 1,034.62

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