The Board of Directors have pleasure in presenting the 56^th Annual Report together with the Balance Sheet as on
31^st March, 2025 and Profit & Loss Account for the financial year ended March 31, 2025.

A snapshot of Bank’s financial performance is given below:    (' in Crore)

The global business of the Bank increased to '25,30,215
Crore, up by 11.32% y-o-y, out of which domestic business
grew by 10.21% y-o-y to '23,39,808 Crore as at March

2025.    Domestic CASA deposits stood at '4,14,976 Crore
with Savings Account of '3,37,135 Crore and Current
Account of '77,841 Crore. Thus, domestic CASA stood at
31.17% as at March 2025.

Bank took various steps in respect of monitoring, control
and maintaining asset quality. The sustained efforts ofthe
Bank has yielded results on the asset quality front which
showed a commendable fall in Gross NPA by 129 bps to
2.94% and Net NPA to 0.70% down by 57 bps. Further the
provision coverage ratio has improved to 92.70% from
89.10% in the previous year. The healthy CRAR of 16.33%,
highlights that the bank is well cushioned for an organic
growth in the coming quarters. In FY 2024-25, operating
profit of the Bank stood at '31,391 Crore and net profit
at '17,027 Crore.

Dividend

The Board of Directors of the Bank has recommended a
dividend of '4 per equity share (i.e., 200%) of face value
of '2/- each to the Shareholders for the year 2024-25,
subject to the approval of the Shareholders at the AGM.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

The global economy has been resilient in 2024, but
some signs of weakness are appearing against a
backdrop of slower growth, lingering inflation and an
uncertain policy environment (OECD Interim Economic
Outlook, March 2025). The Outlook projects global
growth slowing to 3.1% in 2025 and 3.0% in 2026, with
important differences across countries and regions. GDP
growth in the United States is projected at 2.2% in 2025
before slowing to 1.6% in 2026. In the euro area, growth
is projected to be 1.0% in 2025 and 1.2% in 2026. China's
growth is projected to slow from 4.8% this year to 4.4% in

2026.    Inflation is projected to be higher than previously
expected, although still moderating as economic growth
softens. Services price inflation is still elevated amidst
tight labour markets and goods price inflation has begun
picking up in some countries, although from low levels.
Annual headline inflation in G20 economies is projected
at 3.8% in 2025 and 3.2% in 2026.

As per IMF's World Economic Outlook Report (April 2025),
global growth is projected at 2.8% in 2025 and 3.0%
in 2026, below the historical (2009-19) average of 3.7
percent. Global inflation is expected to decline to 4.3% in
2025 and to 3.6% in 2026, although at a slower pace than
previously anticipated, and downside risks such as trade
tensions and volatile financial markets continue to weigh
on the outlook.

INDIAN ECONOMY

The past financial year has been quite eventful on the
economic front. Amidst a myriad of challenges posed by
this volatile external environment, the Indian economy
has exhibited marked resilience, with growth poised
to recover from the blip witnessed during H1:2024-25.
Although the weakening of global economic outlook could
impact overall growth through weaker external demand,
India's domestic growth engines, viz., consumption and
investment, are relatively less susceptible to external
headwinds.

India also has a low external vulnerability as reflected
in its modest external debt-GDP ratio of 19 per cent
and substantial forex reserves (close to 11 months of
imports cover). India's position as the fastest growing
major economy, coupled with macroeconomic stability,
makes it a preferable investment destination in a
world characterised by growth slowdown and macro
vulnerabilities.

The Reserve Bank has been proactively deploying a
slew of measures, including open market operations
(OMOs), daily variable rate repo (VRR) auctions, and
dollar / rupee buy-sell swap auctions, to augment system
liquidity. These measures, undertaken since mid-January
2025, have helped to maintain orderly conditions in the
money market with softening rates.

Headline CPI inflation declined to a 67-month low of
3.3 per cent in March 2025, mainly due to the continued
moderation in food prices. Core inflation (CPI excluding
food and fuel), however, remained steady at 4.1
per cent, with gold contributing 22.8 per cent. Recent
decline in global commodity prices on account of an
expected slowdown in global growth has eased some
of the pressures from imported inflation. Prospects for
the farm sector have been boosted by the forecast of an
above normal southwest monsoon for 2025, which could
augment farm incomes and keep food prices under check.

OUTLOOK FOR 2025-26

India is projected to remain the fastest-growing large
economy for 2025 and 2026, reaffirming its dominance
in the global economic landscape. The country's economy
is expected to expand by 6.5 per cent in 2026 outpacing
many of its global counterparts. In contrast, the IMF
projects global economic growth to be much lower, at
2.8 percent in 2025 and 3.0 per cent in 2026, highlighting
India's exceptional outperformance.

RBI in its MPC announcement on 9^th April, 2025, has
also projected real GDP growth at 6.5 per cent for
2025-26, maintaining the same rate as estimated for
2024-25, following a strong expansion of 9.2 per cent
in the preceding year. The quarterly projections stand at
6.5 per cent in Q1, 6.7 per cent in Q2, 6.6 per cent in Q3,
and 6.3 per cent in Q4. This marks a downward revision
of 20 basis points from the February estimate, reflecting
heightened global volatility. Agriculture remains on a
positive footing, supported by healthy reservoir levels
and robust crop production, which is expected to sustain
rural demand. Manufacturing is showing early signs
of revival amid improved business sentiment, and the
services sector continues to demonstrate resilience.

Meanwhile, the RBI also cut the repo rate for the second
consecutive time by 25 bps to 6 per cent, changing the
stance from 'neutral' to 'accommodative' and the rate
cutting cycle is likely to continue, with a 25bps cut each
in June & August in this FY. Following RBI's repo rate
cut, bank credit growth is expected to rise, potentially
reaching 11-13% this fiscal year, compared to 11-11.5%
in the previous fiscal. However, repo rate cut us expected
to lead to lower fixed deposit rates, as banks adjust their
rates to align with the lower cost of borrowing.

Inflation estimate was also cut from 4.2% to 4% which
is outcome of softening in food prices, correction in
inflation expectation as well as decline in crude oil
prices simultaneously ended FY2025 with the highest
open market operation in four years, underscoring its
active role in managing liquidity. The Indian banking
system had a liquidity surplus of '89,400 Crore. at the
end of March 2025, compared to the deficit of '3.3 lakh
Crore in January, 2025. Further, RBI has announced OMO
(Open Market Operation) purchase auction of Govt. of
India Securities, with a total value of '1.25 Crore. in four
phases between May 6 and May 19, 2025.

As of April 4, 2025, India's foreign exchange reserves
stood at USD 676.3 billion, offering an import cover of
nearly 11 months and reflecting the strength of the
external sector.

Our Bank will continue to focus on enhancing the
low-cost deposits base by providing innovative and
customized products and best-in-class customer services
to all our customers. On the advances front, Bank
focuses on a proper mix of retail, agriculture, MSME and
corporate credit, with a view to achieve greater growth
in business along with profitability. Strategic focus will
also be on strengthening risk management framework
with focus on compliance & proper implementation of
systems and procedures.

The Bank takes adequate efforts for NPA management
with ardent credit monitoring, containing fresh slippages
and strengthening recovery efforts. The Bank will
continue to strive for process and product improvements
in view of evolving customers' and industry requirements.
The Bank envisions to be the "Best Bank to Bank with" in
the Banking sector, both in terms of optimum business
growth and excellent customer service by leveraging
technology and creating value for all stakeholders
through inclusive growth.

CANARA BANK IN 2024-25

The Bank has growth of 16.99% y-o-y in net profit to
'17,027 Crore in FY 2024-25 with operating profit
growing by 6.72% y-o-y to '31,391 Crore. Net Interest
Margin (NIM) of the Bank decline by 25 bps at 2.80% in
March 2025 from 3.05% in March 2024. Return on Assets
(RoA) of the Bank improved by 8 bps to 1.09% in March
2025 from 1.01% in March 2024.

During the Financial Year 2024-25, Bank has raised
capital via Basel III compliant Additional Tier 1 Bond and
Tier 2 Bond amounting to '3,000 Crore at a coupon of
8.27% and '4,000 Crore at a coupon of 7.46% respectively.
The Government of India shareholding in the Bank is
62.93% as on 31.03.2025. In FY 2024-25, Bank has raised
infrastructure Bonds for '10,000 Crore at a rate of 7.40%

BUSINESS PERFORMANCE

During FY 2024-25, the global business of the Bank stood
at '25,30,215 Crore with a growth of 11.32% y-o-y from
'22,72,968 Crore, with global deposits at '14,56,883
Crore with a growth of 11.01% y-o-y and global advances
at '10,73,332 Crore with a growth rate of 11.74%.

A snapshot of business growth in FY 2024-25

(' in Crore’

Deposits

Total Deposits grew by 11.01% y-o-y from '13,12,366
Crore as on March 2024 to '14,56,883 Crore as on
March 2025. Domestic CASA deposits of the Bank are
at '4,14,976 Crore as on March 2025 with Savings
deposits at '3,37,135 Crore and Current deposits at
'77,841 Crore. The Bank's domestic CASA deposits
share to domestic deposits stood at 31.17%. Total
deposit clientele of the Bank stood at 11.17 Crore as at
31^st March 2025.

Advances

The Bank expanded its asset base in a well-diversified
manner encompassing sectors such as Agriculture and
Micro, Small and Medium Enterprises (MSMEs) as well
as keeping a focus on retail assets, including Housing,
Education, and Vehicle loans.

Advances (Gross) of the Bank reached '10,73,332 Crore
as at March 2025. The RAM (Retail, Agriculture & allied
activities, MSME) portfolio grew by 13.23% y-o-y to
'6,10,127 Crore as at March 2025 with retail advances
recording a growth of 42.80% y-o-y to '2,23,366 Crore,
credit to Agriculture & allied activities recording a
growth of (2.50)% y-o-y to '2,46,888 Crore and credit
to MSMEs grew by 8.23% to '1,39,857 Crore. Within
RAM portfolio, Bank's gold loan portfolio increased
to '1,81,351.26 Crore with a y-o-y growth of 19.60%.
During the year, digital documentation (eSign &
e-Stamping) has been enabled for Gold loans in tie-up
with National E-Governance Services Limited (NeSL)
and total 10,77,987 Gold loan documents have been
digitally signed in FY 2024-25.

The number of borrowal clientele stood at 1.17 Crore
as at March 2025. Total business of the Bank increased
to '25,30,215 Crore for the year ended March 2025.

FINANCIAL PERFORMANCE

Operating profit of the Bank stood at '31,391 Crore
for FY 2024-25. Bank reported a Net Profit of '17,027
Crore for FY 2024-25. Net Interest income of the Bank
stood at '37,072 Crore. NIM stood at 2.80% and Yield
on Advances at 8.83%.

Income and Expenditure Analysis:

Total income of the Bank stood at '1,42,208 Crore for
the FY 2024-25, comprising '87,789 Crore interest from
advances, '24,596 Crore interest from investments,
'22,453 Crore from non-interest income and '7,370 Crore
from other interest income.

Operating performance of the Bank    (' in Crore)

In line with the thrust areas for the Bank, non-interest
income (Excl. Trading profit) is at '19,787 Crore. Apart from
trading profit, other major sources of non-interest income,
like, service charges ('3,561 Crore), commission and
exchange ('1,699 Crore), recovery from written off accounts
('8,534 Crore) and Profit from exchange transaction
('828 Crore) contributed to the non-interest income of the
Bank. The share of non-interest income to total income
stood at 15.78%.

Total expenditure of the Bank stood at '1,10,818 Crore in
FY 2024-25. Interest expenses of the Bank is at '82,683
Crore. Operating expenses is at '28,134 Crore, comprising
staff cost of '17,856 Crore and other operating expenses of
'10,278 Crore.

The net interest income, the difference between interest
paid and interest earned by the Bank stood at '37,072 Crore.
Capital and Reserves:

Net worth of the Bank, as at March 2025 stood at '88,241
Crore. While the total paid-up capital of the Bank stood
at '1,814.13 Crore, the reserves and surplus stood at
'91,636 Crore (excl. Revaluation Reserve and FCTR).

Capital Adequacy Ratio, under Basel III was 16.33% as
at March 2025 against the regulatory requirement of
11.50%, including capital conservation buffer of 2.50%.
Within the capital adequacy ratio, CET I ratio was at
12.03% and Tier I capital ratio was at 14.37%.

During the Financial Year 2024-25, Bank has raised capital
via Basel III compliant additional Tier 1 Bond amounting
to '3,000 Crore and Tier II amounting to '4,000 Crore.
Government of India shareholding in the Bank is 62.93%
as on 31.03.2025.

RETAIL LENDING OPERATIONS

For the FY 2024-25, Retail Lending as one of the thrust
areas of the Bank had shown a considerable growth of
42.80% compared to FY 2023-24. The Core Retail Portfolio
of the Bank increased to '2,23,366 Crore as on March
31, 2025 with Housing Loans at '1,06,167 Crore and
'20,637 Crore under Vehicle Loans. The share of Retail
Loans stood at 22.14% as of March 31, 2025 of Domestic
Advances ('10,08,671 Crore). The initiatives taken in the
hassle free credit delivery of Retail Portfolio resulted in
the growth of 42.80% over the previous year.

(' in Crore)

HOUSING LOAN

The Bank's Housing Loan Portfolio increased to '1,06,167
Crore as at March 2025. The Bank has financed around
6.03 lakh home loans as at March 2025. During

FY 2024-25, the Bank has disbursed housing loans
worth '24,833 Crore and sanctioned 74630 number of
accounts amounting to '28,178 Crore. Overall growth
in housing loan portfolio is '12,685 Crore, growth of
13.57% compared to FY 2023-24.

Housing Loans on Direct Assignment basis through
Co-Lending Model-II under tie-up arrangements with
M/s Indiabulls Housing Finance Limited & M/s IIFL Home
Finance Limited is introduced.

For implementation of Government Directives, an exclusive
housing loan product to the targeted segments for catering
the housing loan applications under PMAY-U (2.0) Scheme
under Retail Segment - "Pradhan Mantri Awas Yojana -
Urban 2.0 (PMAY-U 2.0)" is introduced to augment fresh
Housing Loan business under Retail Portfolio.

VEHICLE LOAN

The Bank's vehicle loan portfolio increased to '20,637
Crore as at March 2025. The Bank has financed around
'3.61 lakh vehicles as at March 2025. During FY 2024-25,
the Bank has disbursed Vehicle loans worth '9,282 Crore
and sanctioned 95059 number of accounts amounting
to '9,565 Crore. Overall growth in vehicle loan portfolio is
' 3,386 Crore, growth of 19.63% compared to FY 2023-24.

Tie-up arrangement with Corporate Vehicle Direct Selling
Agents (CVDSA) is introduced to route Canara Vehicle
(4-Wheeler-all variants) loan leads / business in Metro /
Urban Centres to our Bank. M/s. Giranar Software Private
Limited (GSPL) (Business Name: CarDekho) is empanelled
under the tie-up arrangement as Corporate Direct Selling
Agent (C-VDSA) to route Canara Vehicle (4-Wheeler) loan
leads / business.

EDUCATION LOAN

Over the years, the Bank has assisted substantial number
of promising students to pursue higher education in
India and abroad. The Bank's education loan portfolio
increased to '17,423 Crore as at March 2025. The Bank
has financed around 3.70 lakh students as at March 2025.
During FY 2024-25, the Bank has disbursed education
loans worth '4,338 Crore and sanctioned 52847 number
of accounts amounting to '5,731 Crore through online
Vidya Lakshmi portal.

Among all Nationalized Banks, our Bank is in the forefront
in extending education loans. Further, considering
the huge thrust on skill development in recent years,
"IBA Skill Loan Scheme" has been implemented to
support skill development initiatives of Department of
Financial Services (DFS).

A New Education Loan Product - "Pradhan Mantri
Vidyalaxmi (PM-Vidyalaxmi) Scheme" has been
introduced- for pursuing higher education in India in
selected top 860 Quality Higher Educational Institutions
(OHEIs) identified by MOE.

Our bank has integrated Jan Samarth (National) portal
with our loan origination system as a part of DFS
initiative for sourcing the credit subsidy linked education
loan applications under Central Sector Interest Subsidy
Scheme (CSIS).

OTHER PERSONAL LOANS

The Bank's Other Personal Loan Portfolio (Including
Retail Swarna Loan) increased to '79,139 Crore as
at March 2025. The Bank has financed around 36.98
lakh other personal loans as at March 2025. During
FY 2024-25, the Bank has disbursed other personal loans
worth '59,002 Crore and sanctioned 32.21 lakh number
of accounts amounting to '59,124 Crore. Overall growth
in this portfolio is '49,185 Crore, growth of 164.20%
compared to FY 2023-24.

Bank has introduced three new Retail Digital products
i.e. Canara Ready Cash, Canara My Money and Canara
Heal and to enhance the customer's digital experience
and lower Turn Around Time Bank has migrated Canara
Budget & Canara Pension Loans to the Digital Lending
Platform (DLP).

Further, to augment fresh retail business under PM Surya
Ghar Muft Bijli Yojana, a Government of India initiative
a new rooftop solar schemes was introduced for
installation of On-Grid Residential Rooftop Solar System
under Retail Segment.

Canara Rooftop Solar (CRTS) - PM Surya Ghar Yojana
(PMSGY) (Loan quantum: Maximum upto '6.00 lakh
including subsidy).

PRIORITY SECTOR ADVANCES

The Bank continues to accord importance to varied goals
under national priorities, including agriculture, micro,
small and medium enterprises, education, housing, social
infrastructure, renewable energy, micro credit, credit to
weaker sections and specified minority communities.

Priority Sector Advances of the Bank as at March 2025
reached '4,22,761 Crore and achieved 42.35% to Adjusted
Net Bank Credit (ANBC) against 40% mandated norm.

Agriculture priority advances of the Bank as at March 2025
reached '2,39,977 Crore and achieved 20.05% to Adjusted
Net Bank Credit (ANBC) against 18% mandated norm.

Priority Sector Advances data:

(Amount ' in Crore)

^ Bank's advances under agriculture portfolio
decreased by 2.50% to '2,46,888 Crore on Y-O-Y
basis, covering over 1.11 Crore farmers.

^ During FY 2024-25, the Bank's Agriculture Credit
Disbursal is '2,42,764 Crore.

^ Advances to Small & Marginal Farmers achieved
13.47% to ANBC as against the mandatory Target of
10.00% (Net of PSLC-SF / MF sale) as at March 2025.

^ During the year 2024-25 Bank has issued 24.87 Lakh
Kisan Credit Cards (KCCs), amounting to '37,664
Crore.

^ The credit outstanding under KCCs reached '49,606
Crore as at March 2025.

^ Advances to Micro Enterprises stood at '79,764
Crore achieving 9.73% to ANBC as against the
mandatory Target of 7.5%.

^ Bank has earned '1,546.60 Crore fee based income
by way of selling PSLCs (under SF / MF) to the tune
of '75,700 Crore during FY 2024-25 till March 2025.

^ The Bank actively participated in variousGovernment
Sponsored Schemes, such as, Prime Minister's
Employment Generation Programme (PMEGP),
National Rural Livelihood Mission (NRLM), National
Urban Livelihood Mission (NULM), Differential Rate
of Interest (DRI) Scheme, Stand Up India, Pradhan
Mantri Mudra Yojana (PMMY).

^ As at March 2025, the outstanding advances under
the following Government Schemes aggregated
to '61,156 Crore, involving around 24.43 Lakh
beneficiaries.

Performance under various Government Sponsored

Schemes:

(Accounts in actuals & Amount ' in Crore)

^ In support of the underprivileged sections of the
society, the Bank's Advances to SCs / STs beneficiaries
amounted to '22,179 Crore as at March 2025,
covering 10.49 Lakh borrowers.

^ The advances to SCs / STs comprised 5.24% of total
priority sector advances.

^ Advances to weaker sections reached '2,33,811
Crore, constituting 19.29% to ANBC against
mandated norm of 12.00%.

Performance of Bank under ATMANIRBHAR BHARAT

ABHIYAN Schemes:

Various components of advances to Weaker Sections
as at March 2025:

As at March 2025, advances to specified minority
communities aggregated to '63,330 Crore, accounting
for 14.98% of the actual priority sector advances.

MICRO, SMALL & MEDIUM ENTERPRISES
(MSMEs)

^ PM SVANidhi - This scheme has been introduced
during July 2020 for all street vendors engaged in
vending in urban areas as on or before 24.03.2020
as per identification criteria stipulated in scheme
guidelines of MoHUA. Small Industries Development
Bank of India (SIDBI) is the implementation partner
of the MoHUA. Under PM SVANidhi, the Bank
sanctioned 697938 accounts amounting to '1,123
Crore, since inception till 31.03.2025. Outstanding
under the PMSVANidhi as on 31.03.2025 is '255 cr.

^ Under Pradhan Mantri Mudra Yojana (PMMY), the
Bank has disbursed an amount of '22,755 Crore
against the Disbursement target of '21,300 Crore
during FY 2024-25. Sanctions and disbursals under
different categories of Mudra Yojana are as under:

Major Highlights:

Under Stand Up India scheme, Bank has sanctioned
18281 accounts under Women category of
Stand of India scheme since inception till 31.03.2025
and has achieved 199% against the allotted target
of 9208. Further, Bank Sanctioned 7260 accounts
under SC / ST category against sanction target of
9208 since inception till 31.03.2025 i.e. 79%
achievement under SC / ST category as on 31.03.2025
as against 74% achievement under SC / ST category as
on 31.03.2024.

Bank including sponsored RRBs has achieved '35,497 Crore,
(101%) against the mandatory disbursement target of
'35,000 Crore under PMMY.

During FY 2024-25, under PMEGP the Bank sanctioned
8730 proposal amounting to '1,030 Crore, with Total
Margin Money claimed stood at '186 Crore, as against
sanction of 15049 accounts, sanction amount of '1,722
Crore and Margin Money claim of '538 Crore during
FY 2023-24.

DIGITAL BANKING &

ALTERNATE DELIVERY CHANNELS

DIGITAL BANKING & ALTERNATE DELIVERY CHANNELS:

Total number of ATM's and Cash Recyclers as on

31.03.2025    is 8,824 and 2,320 respectively. Average
overall uptime of our ATMs & Cash Recyclers during Q4,
FY 2024-25 stood at 90.92%.

The Bank's Debit Card base has increased to 599.79 lakhs
as on March 2025 from 573.85 lakhs as on March 2024
with Y-o-Y growth of 4.52%.

Mobile Banking Registration has reached 275.48 lakhs
as on 31.03.2025, there by achieving the Y-o-Y growth of
24.62%, from 221.05 lakhs as on 31.03.2024.

Internet Banking (Retail & Corporate) Registration has
reached 270.37 lakhs as on 31.03.2025 from 266.47 lakhs
as on 31.03.2024, registering Y-o-Y growth of 1.46%.

UPI registration has reached 338.83 lakhs as on

31.03.2025    from 280.17 lakhs as at 31.03.2024, there by
registering the Y-o-Y growth of 20.94%.

Total cumulative on-boarding under all Merchant
channels has reached to 38.07 lakhs as on 31.03.2025
and total cumulative PoS terminal deployment is at 0.75
lakhs as on 31.03.2025.

435 APIs made live in new API gateway (APIGEE) and 154
clients are live.

Our Bank is among the selected banks showcasing our
CBDC app to Indian / foreign delegates during multiple
global events conducted by RBI.

Awards:

Our Bank has been ranked Number ONE under Digital
Payment Transactions and Merchant Acquisition by
MEITY for the third consecutive year (FY 2021-22,
FY 2022-23 & FY 2023-24).

Our Bank has received Silver Award for ‘API Banking’
under BFSI Category at Skoch Award ceremony on
30^th November 2024 at New Delhi.

Our Bank has received Finnoviti Award for ‘CANARA
Digital Rupee’ on 19^th June 2024.

Major functionalities introduced in Debit cards:

>    Introduction of Rupay Women Platinum (Angel)
Cards variants under Rupay.

>    Eight-digit BIN for Debit card has been
implemented in our Bank with all card networks.

>    Introduction of new procedure for the
management of Undelivered Debit Cards in
branches.

>    E-mandates for recurring transactions through
debit card is completed with NPCI and Bill desk
on 24.10.2024.

>    Launching of Canara MasterCard World Crest
and Canara MasterCard World Crest Plus.

Compliance of RBI guidelines for Cards during
FY 2024-25:

Customers are intimated about renewal of debit cards
through SMS. If there is any change in address, customers
can contact the branch for address updation. In case
customer do not want to renew the card, they can block
the card permanently either through mobile banking or
internet banking.

Security measures taken for Card transaction security for
avoiding online frauds:

>    To enhance the security of debit card transactions
and to protect the cardholders against misuse
of their personal information our bank has
complied with the Payment Card Industry Data
Security Standard (PCI DSS) procedures.

>    As per RBI guideline, Enhancing Security of
Card transactions for Debit Card enabling and
disabling card for online and international
transactions is enabled in all channels like
Internet Banking, Mobile Banking, ATM, EMAIL
and branch channel. EFRM rules for mitigation
of online frauds have been modified as per
industry best practice.

Security features to arrest ATM frauds & Compliance of
RBI guidelines::

>    Safety measures mandated by RBI (i.e. Terminal
Security Solution, Anti-skimming Devices,
EMV compliance) have been successfully
implemented in all our operational ATM's within
the timelines.

>    Implementation of Transport Layer Security
(TLS) to mitigate risk arising from Man in The
Middle attack in ATM ecosystem is completed in
ATMs & Cash Recyclers.

>    LAN / Power Cable connections are concealed
and not accessible to public to avoid Cyber¬
attack on ATMs.

>    Cassette swap for Cash replenishment is under
implementation in ATMs & Cash Recyclers.

>    All ATMs are migrated for centralized
reconciliation.

>    Implemented Card-less Cash Withdrawal and
OTP for cash withdrawal above '10,000.

>    Bank has taken several measures to comply with
the directives of RBI on Monitoring of availability
of cash in ATMs and ensuring availability of cash
at all times to avoid penalty.

Major features added in Internet Banking in FY 2024-25:

>    Digital Lending Platform: Digital Lending
Platform is successfully integrated in Net
Banking page.

>    Integration of Canara Heal, Merchant OR
and Sales force (Lead generation) in internet
banking.

>    Chat Bot Integration: Chatbot option is
implemented in Login page.

>    Aadhaar Data Vault: Facility to fetch and store
Aadhaar details through Aadhaar Data vault is
implemented.

>    Internet Banking facility for Gift city IBU
customers: Financial Rights for IBU Net Banking
customers introduced.

>    Account product portability has been enabled in
Internet Banking.

>    Beneficiary name look up facility for NEFT /
RTGS / IMPS has been enabled in Internet Banking.

>    Public Key infrastructure integration in internet
banking for high value transactions.

>    CVV validation has been introduced for Debit
Card / Credit Card PIN reset through Internet
Banking as an additional security measure.

>    I-SIP, a paperless and secure method of setting
up an online SIP in Mutual Fund schemes in
internet banking platform.

>    Display of Customer Relationship Manager
detail in internet banking for selected HNI
customers.

>    MT 940 pass sheet (Forex Transactions) is
successfully integrated in Net Banking page.

>    Enabling AePS is successfully integrated in Net
Banking page.

>    Train Ticket Booking: Customers can enjoy the
facilities of seat booking, enquiry, PNR status,
cancelling ticket, change in boarding Point,
booking history and File TDR of unavailed
booked in Train Tickets option of Canara ai1
Mobile Banking application.

>    Mobile Banking Facility for Minor (10-18 yrs)
customer: Mobile banking facility for individual
Minor customers enabled with limited access.

>    Scratch Cards: Customers can collect points/
coupons through scratch cards on performing
IMPS, NEFT, RTGS and Intra Bank transactions.
These coupons can be redeemed in relevant
applications while the points can be accumulated
to avail offers available in Stores and Offers tab
of the application.

>    Target based financial planning (Options to set
Goal / targets): Personal Finance Management
for tracking of expenditure pattern.

>    Average Monthly Balance: Customer can now
view and maintain Average Balances based on
the information provided in this implementation
thus saving service charge expenses.

>    New Green Term Deposit made available in
Canara ai1.

>    Sweep-in & Sweep-out: Customers can view
the sweep-in and Sweep-out balance details in
Mobile Banking application.

>    ChatBot: Customers can make enquiries such as
account balance, EMI calculator, Loan Interest
Rated etc from Pre-login page of the application.

>    FX4U beneficiary: Customers can modify their
FX4U Beneficiary details.

>    Implementation of warning alert / Pop-up
message at the time of first transaction for
newly added beneficiary.

>    Beneficiary Account Name Lookup: Verifying
beneficiaries' name while adding beneficiary to
ensure that funds are remitted to the intended
recipient.

>    Restriction on International Cash Withdrawal:

Preventing any modification in International
Cash withdrawal through Mobile Banking in
case passport details of the customer are not
maintained in CBS.

Major features added in UPI in FY 2024-25:

>    UPI Tap & Pay: Users can make payment by
tapping the UPI app installed device on the
beneficiary's smart OR / sound-box / UPI Tag /
mobile device.

>    Credit Line on UPI (Issuer): Users can on-board
Pre-approved credit line accounts (Canara
Heal) to UPI to perform Merchant transactions
(Hospitals) in other UPI apps.

>    UI / UX Enhancements for UPI Scan & Pay in
Post login screen on Canara ai1 app-Providing an
option to enter the mobile number on UPI Scan
and pay screen to perform UPI transactions.

>    Enabling credit to PPF / SSY Accounts through
UPI: Providing an option to pay PPF / SSY
subscription payments through UPI channel.

>    Pan validation for UPI Global transactions: Pan

availability check for UPI Global transactions.

>    Block / Un-block RuPay CC on UPI: Enabling
Block / Un-block feature of RuPay CC for UPI
users through Canara ail app / SAS BHIM OR
portal / SMS.

Major features added in CBDC Application in FY 2024-25:

>    Programable CBDC (PCBDC) can be
programmed by tying the money to undertake a
specific end use.

>    Integration of Payment Gateway in CBDC app
and also changes in Password Policy of CBDC.

>    PM Vidyalaxmi App: Android and iOS production
builds have been made live and the disbursement
to 74 eligible students who are having CBDC
wallet was completed as on 26.03.2025.

>    Financial assistance to beneficiaries under
Subhadra Yojana of Odisha State Government
disbursed through our CBDC app.

>    Canara Ready Cash: Pre-Approved Personal Loan
product up to '10.00 Lakh to existing customers
(Canara SB Premium Payroll Customers) of our
Bank through Straight-through-Processing (STP)
Mode under Digital Lending Platform.

>    Canara My Money: Loan up to '10.00 Lakhs
through Straight-through-Processing (STP) Mode
under Digital Lending Platform against the
online deposits opened through internet /
mobile banking.

>    Gold Loan (Retail & Agriculture) successfully live
on Digital Lending Platform on 17.09.2024.

>    Canara Heal: A special scheme for funding
the shortfall of hospital expenditure while
settling the claims of self and / or dependents
through TPAs by way of Straight-through-
Processing (STP).

>    Staff Loan: DPN and OD Loan for our staff.

>    Pre-Approved business loan: Business loan to
existing customers of our bank based on their
transactions.

>    E-Mudra: Financing of loans up to '10 lakhs
under PMMY through DLP.

>    E-Udyam: Financing for TL / WC limit up to '25
lakhs under Digi Credit loan facility as directed
by DFS.

>    OD Against Deposits: Overdraft facility against
own term deposits for Retail, Agricultural
& MSME purpose through DLP has been
implemented.

>    KCC above '2 lakhs: Disbursement of KCC loan
above '2 Lakh through DLP has been implemented.

>    KCC Review & Renewal: Renewal & Review of
KCC loans through DLP.

Major features added in ATMs in FY 2024-25:

>    Aadhaar Data vault feature has been successfully
implemented in all ATMs and Cash Recyclers.

>    ICD functionality in Pilot Hyosung Machines:

service enables cardholders to use NFS
networked Cash Recyclers / Cash Deposit
Machines of participating member banks for
depositing cash in their own account or third
party account. Bank has implemented the
subject ICD functionality in 3 pilot Hyosung
Cash Recyclers.

>    Disabling PowerShell in ATMs: Disabling
PowerShell in Bank ATMs leads to enhanced
security.

>    Masking of card number in Cash Recyclers for
deposit transactions.

>    Whenever an ATM / Cash Recycler goes down
or non-functional, a SMS is triggered to the
concerned branch head, RO head and CO head
for timely action.

>    Mobile number and e-mail validation through
OTP has been introduced in the account opening
kiosk to enhance security and accuracy.

>    New API Key generation used for biometric
authentication of staff validation has been
enabled for secure login in the account
opening Kiosk.

Major features added in Merchant on-boarding in FY
2024-25:

>    New variant of PoS (Point of Sale) launched
namely “Soft PoS”, a mobile application that
facilitates MEs (Merchant Establishment) to
accept digital payment through NFC enabled
android mobiles from Rupay, VISA & MasterCard
contactless cards, UPI, Wallets etc.

>    Integration of Dynamic OR Code with MESCOM
and HP OIL Gas Private Limited completed.

>    A new retail variant of low cost & new age Point-
of-Sale (PoS) named “Hybrid PoS” is introduced
to serve Merchant Establishments (MEs) with
an all-new Digital Payment acceptance facility
that allows MEs to accept digital payments
by just tapping / inserting the Card on / into
the device or by scanning the Dynamic BHIM-
OR and generates on-display alerts with voice
notification for successful transactions.

>    API Banking has successfully developed and
Implemented Connected Banking Solution to
corporate customers who do not have a proper
ERP solution or do not have any ERP solution
to connect with Bank's API Gateway to access
various services through API Banking Services.
The Connected Banking will help customers
using ERP like Accounting Applications such
as Tally, Zohobooks, Marg Erp etc. to connect
with Bank's system through the technical
platform provided by the Bank's Connected
Banking Partner. The connected Banking
Services will help in customer addition through
the Bank's Connected Banking partner and
garner fresh CASA.

>    Fintech companies like M/s Cashfree Payments
India Pvt. Ltd., M/s Viyona Fintech India Pvt.
Ltd. & M/s Mayakrishna Sales Pvt. Ltd. have
successfully tested and integrated their
technical Platform with our Connected Banking
Services and customer on-boarding through
these partners are in final stage.

List of Major Upcoming Projects:

Mobile Banking & UPI:

>    Creation / View / Deletion of Mandate for
recharging of NCMC Balance.

>    Mobile Banking Login Validation for Users
marked as Deceased or illiterate in CBS.

>    In our Mobile banking activation journey as
an additional layer of security, authentication
based on biometrics (face recognition) in
addition to OTP verification will be included
thus ensuring that the activation mandatorily
involves the User. The face authentication will
be based on biometrics available with UIDAI.

>    Deposit revamp: The deposit module is being
revamped to declutter the options and provide
a more interacting journey for Users while
creating a new deposit and exploring other
related options.

>    Limit enhancement in Mobile Banking: Limit
enhancement to '7.50 lakhs for intra &
interbank transactions.

>    International Mobile Numbers on UPI: Non¬
Resident accounts can avail UPI services through
International mobile numbers.

>    Credit Line on UPI (Acquirer): Pre-approved
credit line facility has been extended to accounts
on-boarded to UPI in Canara ai1 app.

>    Single Block Multiple Debits: Users will create
mandate with funds blocked shall be debited
multiple times which can be used in Secondary
market and Online goods and delivery.

>    Rupay CC on UPI limit setting: Users are been
provided with an option to set the usage limits
of Rupay CC on UPI transactions.

>    UPI Lite Auto Top Up: This feature will allow
users to automatically top up their UPI Lite
account based on pre-defined conditions.

PoS (Point of Sale):

>    DTC-10,000 PoS: Pilot deployment has been
started from 10.09.2024 and 345 PoS has
been deployed so far. NCMC acceptance also
implemented on 26.02.2025 as pilot on 10
buses of 2 depots, as per DTC requirements.
Revised PO to be issued to Worldline and MOU
to be signed with DTC and Bank shall go ahead
for deployment of remaining PoS terminals post
confirmation received from DTC.

> Lakshadweep - 250 PoS: PO issued to
M/s Pentavibes on 06.11.2024 for starting
the integration & IS Audit of Payment App
developed by M/s Pentavibes has also been
completed. Total 74 PoS deployed till date and
remaining will be deployed post confirmation
received from the department.

Digital lending platform:

> Loan Against Mutual Fund: Credit Facility
against Mutual Fund through DLP.

>    Staff OD Renewal: STP journey for Renewal of
staff OD facility in DLP.

>    Heal Phase 2 (NTB): Introduction of Canara Heal
Phase 2 for NTB customers on DLP and currently
it is under development.

>    Housing Loan / Home Loan Secure: Introduction
of Home Loan / Home loan secure (personal
loan to housing loan customers) on DLP under
development.

>    Education Loan: Introduction of Education loan
in DLP and the product development is under
process.

>    Renewal of Working Capital loan up to '10.00
lakhs: Product Configuration is under process
in consultation with user wing in the existing
e-Mudra flow.

>    Staff VL: Introduction of Staff Vehicle loan in
DLP and the product SRS finalized by user wing
and development is under process.

CBDC:

>    The migration from fixed denomination
environment to value based UTXO environment
is under progress for implementation.

>    As RBI is planning to disburse the subsidies
through CBDC platform in other states similar
to Subhadra Yojana, bulk upload facility has
been enabled in CBDC.

>    Implementation of User Level Programmability
in the CBDC app enabling enhanced
customization, allowing users to define rules
and conditions for transactions within the
digital currency ecosystem and the project is
currently under CUG stage.

API banking:

>    The focus will be on clients on boarding through
Connected Banking & Tally platform for
garnering fresh CASA to the Bank's business.

>    The focus will be on ESB API migration to APIGEE
platform as per RBI CSITE -2024 observation.

>    500 APIs will be configured in APIGEE by
30.06.2025.

>    To focus on the production movement of 31
UAT clients.

Debit Cards:

>    Pre authorization functionality in all the RuPay
Debit Card Variants will be introduced and
regarding the same already approval taken from
the ORMC committee.

BBPS:

>    Punjab State Power Corporation Limited (PSPCL),
HPA-Madhuban, Pemiya School & Anand Vilas
are the four billers initiated to integrate in our
BBPS Platform.

ATMs and CRs:

>    Displaying of CKYC reference ID in ATMs.

>    SMS will be sent to the customers informing
number of transactions done in Metro and Non¬
Metro cities for ON US transactions as per the
suggestion received from Employee Suggestion
Scheme (ESS).

TECHNOLOGY OPERATION

>    Nodal Bank for PM Vidyalaxmi Scheme
implementation: PM Vidyalaxmi is a portal for
students seeking Education Loan. This portal has
been developed under the guidance of DoHE,
Ministry of Education. The portal has been
developed and being maintained by Canara
Bank as the Nodal Bank for implementation and
support of PM Vidyalaxmi scheme. This portal
acts as an end-to-end digital system for students
to apply for education loan to the banks of their
choice as well as for interest subvention process.

>    Credit Card / Debit Card & UPI integration under
GSTN: We have enabled GST payment using
Credit Card, Debit Card and UPI for all the Bank
customers who choose to make payment through
Canara Bank UPI / payment Gateway, in addition
to existing options of Internet Banking and Over
the Counter (OTC).

>    NACH E-Mandate: We have launched Sponsor
Debit E-mandate application Customer can
easily register mandates to debit other bank
accounts and credit Canara bank account for
various purposes such as Loan instalment, RD
instalment etc.

>    SHG Dual Authentication enabled at BC Terminals
through which SHG Customers can initiate cash
deposit, cash withdrawal and fund transfer
transactions.

>    AePS OFF US Cash Deposit has been enabled
which facilitates Customers to perform interbank
cash deposit transactions through BC Terminals.

>    Face authentication has been enabled as an
additional mode of authentication for AePS
transactions and eKYC account opening. Face
authentication with liveliness detection can be
used as an additional factor to increase security.

>    Bank has provided customers with the facility
of Enabling / Disabling of Aadhaar Enabled
Payment System (AePS) through mobile banking,
WhatsApp, IVRS, SMS Banking, call centre and
branch channels. This enables customer with
additional control on account activities.

>    BASE Integration: To ensure that the benefits of
DBT schemes are credited to the beneficiary in
a hassle free manner, NPCI has launched Bharat
Aadhaar Seeding Enabler (BASE) platform to
facilitate the citizens to carry out Aadhaar seeding/
deseeding in digital modes. Bank is integrated
with the BASE platform of NPCI, to facilitate the
below options :

•    Checking the Aadhaar seeding status

•    Aadhaarseeding

•    Aadhaar de-seeding

•    Move Aadhaar from one bank to another

In addition, the facility has also been enabled to all our
bank customer through bank website.

Gold Loan Progress

Performance highlights for FY2024-25

(' in Crore

>    Gold loan business has crossed '1,81,000 Crore as
at 31.03.2025

>    Number of gold loan accounts crossed 1.03 Crore.

>    Business has grown by '29,714 Crore during
FY 2024-25

>    Net NPA maintained at same level during entire
FY2024-25

Key Initiatives during FY 2024-25

>    New gold loan product -Swarna Monthly Interest
(Product code - 3027) under retail segment
launched.

>    Revamped Gold loan sanction cum pass card
introduced and KFS (Key Fact Statement) made
available for customers.

>    Sequence number introduced for gold loan packets
to ease the balancing and arrangement process.

>    Introduction of Consolidated processing charges
for retail gold loans.

FINANCIAL INCLUSION

As a part of financial inclusion drive, the Bank makes its
products and services available to financially excluded
and marginalized sections of the society. As per the
Government of India and the Reserve Bank of India
directions, the Bank has been proactive in financial
inclusion efforts, with key interventions, viz., expanding
banking infrastructure, offering appropriate financial
products, making extensive & intensive use of technology
and advocacy of financial literacy.

>    Bank has made significant efforts to empower
underserved communities through the
implementation of the Pradhan Mantri Jan Dhan
Yojana (PMJDY). We have opened 2.16 Crore of
PMJDY accounts. Additionally, we have been
enrolled in schemes like PMJJBY (71.89 Lakh),
PMSBY (231.96 lakh), and APY (49.68 lakh), further
enhancing their financial security. Canara Bank's
initiatives demonstrate their strong commitment
to underserved communities, financial inclusion
and socio-economic empowerment.

>    Bank has opened 2.16 Crore accounts under
PMJDY, having total outstanding balance of
'14,231 Crore in those accounts with average
balance of ' 6,588 per account.

>    Bank has 15000 Business Correspondent locations
out of which 5483 are Sub Service Area (SSA) and
9517 are NON SSA locations.

>    Bank formed 'Canara Financial Advisory Trust'
managed by Managing Trustee and Deputy
Managing Trustee to take care of the affairs of
the Financial Literacy Centres (FLCs) of the Bank as
well as the FLCs promoted by the Regional Rural
Banks (RRBs) sponsored by the Bank. The Bank
has total 152 FLCs (115 FLCs sponsored by Canara
Bank and 37 FLCs sponsored by RRBs) in districts
& blocks level across the country, managed by the
Counsellors and Asst. Counsellors. Counsellors
should have sound knowledge of banking, law,
finance, requisite communication and team
building skills, etc. Individuals such as retired Bank
officers, with domain knowledge in agriculture,
ex-servicemen, etc. may be engaged as credit
counselors. The broad objective of the FLCs will
be to provide free financial literacy / education
and credit counseling. During FY 2024-25, 22,660
FLC camps were conducted wherein 19,41,966
persons were educated and 1,36,773 persons
were counselled.

>    As per RBI directions, 243 CFLs are running across
8 States and one Union Territory with funding
from DEAF of RBI and FIF of NABARD collaboration
with NGOs. Funding Agency is providing 90% of

OPEX and 100% of CAPEX to NGOs for running
CFLs smoothly to spread financial education to
financial excluded persons in remote areas.

> During financial year 2024-25, the bank settled
5984 death claims under the PMJJBY, totalling
'119.68 Crore, and 1914 cases under PMSBY,
amounting to '38.28 Crore. Since its inception,
the bank has settled 43,063 death claims
under the PMJJBY scheme, totaling '861.12 Crore,
and 10667 cases under PMSBY, amounting to
' 213.34 Crore.

Scheme Enrolments including Renewals as at March 2025

(' In Lakhs)

AADHAAR ENROLMENTS UPDATION CENTRES:

The Bank is a Registrar and Enrolment Agency for Aadhaar
Enrolment. As per UIDAI guidelines Bank has established
796 ASKs, comprising of 500 centres for the Bank and
296 centres for the 4 sponsored RRBs (KAGB 116, KGB 62,
KVGB 63 & APGB 55).

EMPOWERING WOMEN:

Women Empowerment Section at Head office and Centre
for Entrepreneurship Development for Women (CEDW)
at 26 Circle Offices and 177 Regional offices across the
country are working relentlessly towards economic
empowerment of women. These CEDWs have reached
potential entrepreneurs, undertaken counselling,
supported their training needs, provided finance and
arranged marketing facilities. A total of 283 Programmes
were organized by the CEDWs during FY 2024-25.

Flow of Credit to Women Beneficiaries:

As against RBI's requirement of 5% of Net Credit to
women beneficiaries, the Bank has advanced 26.39%
of Net Bank Credit as at March, 2025. Over 79,26,869
Women are assisted to the tune of '2,06,652.12 Crore.

Lead Bank Responsibility:

As on 31.03.2025, Our Bank has been assigned with:

>    State Level Bankers Committee (SLBC) convenorship
in two states i.e., Karnataka & Kerala and Union
Territory Level Banker's Committee (UTLBC)
convenorship in Lakshadweep.

>    Lead Bank Responsibility in 61 Districts across 8
states and 2 Union Territories viz. Andhra Pradesh
(6), Bihar (1), Delhi (3), Haryana (3), Lakshadweep (1),
Karnataka (15), Kerala (7), Tamil Nadu (7), Telangana
(4) & Uttar Pradesh (14).

INTERNATIONAL OPERATIONS AND BUSINESS

The Bank has 4 overseas branches, viz., London (UK), New
York (USA), Dubai International Financial Center - DIFC
(UAE) and IBU GIFT CITY Gandhinagar, Gujarat. Besides
the above 4 branches, the Bank has a Representative
Office at Sharjah (UAE) and a wholly owned subsidiary;
Viz Canara Bank (Tanzania) Limited at Dar Es Salam
(Tanzania).

Total Business of the overseas branches aggregates to
'1,90,407 Crore (USD 22,276.34 Mn) comprising deposits
to the tune of '1,25,746 Crore (USD 14,711.44 Mn) and
advances to the tune of '64,661 Crore (USD 7,564.90
Mn) as at March 2025. Overseas business constituted
7.53% of the Bank's global business.

Canara Bank (Tanzania) Limited, a wholly owned subsidiary
in Tanzania, has transferred its assets and liabilities to
Exim Bank Tanzania Limited and ceased its operations with
effect from 21.12.2024. The license has been surrendered
to Bank of Tanzania on 23.12.2024. Bank of Tanzania had
acknowledged the receipt of surrender of banking license
to defunct CBTL Further, the divestment process of said
entity is under progress and is expected to be completed
by the end of this year.

ASSET QUALITY

The sustained focus to contain risk, well supported by
broad-based recovery in economic growth, kept the asset
quality robust in FY2025. Gross NPA of your Bank stood
at 2.94%, an improvement of 129 bps YoY while the net
NPA stood at 0.70%, an improvement of 57 bps YoY.
The improvement in asset quality was seen across all
sectors. Overall Gross NPA declined to '31,530 Crore as
of March 2025 from '40,605 Crore in March 2024 and
Net NPA declined to '7,353 Crore as of March 2025
from '11,823 Crore in March 2024. The cumulative Cash
Recovery including Recovery in written off accounts stood
at '11,131 Crore and upgradation at '672 Crore during
FY 2024-25. Bank has recovered '8,534 Crore under
recovery in written off accounts during FY 2024-25.
Slippage during the year has contained to '8,196 Crore.
Provision Coverage Ratio (PCR) improved by 360 bps and
stood at 92.70 % as at March 2025 against 89.10% as at
March 2024.

The Bank believes that continuous day-to-day monitoring
is the first step towards reduction in non-performing
loans and in ensuring good recovery. For this, the Bank
undertook various steps and formulated strategies to
augment recoveries and reduce slippages. Bank has
strategies to touch each and every NPA account in a
scientific manner.

Bank has centralised actions under SARFAESI Act 2002
at 177 Regional Offices and 37 ARM & SAM Branches
resulting Bank sales as well as resolution through
SARFAESI actions increased manifold. During FY 2024-25,
2684 properties were sold amounting to '1,900 Crore
and 5168 accounts were settled / closed / upgraded
amounting to '1,522 Crore on account of initiating
actions under the SARFAESI Act. Being a member of
BAANKNET (Bank Asset Auction Network) Portal, an
e-auction site for putting properties under Securitization
and Reconstruction of Financial Assets and Enforcement
of Security Interest (SARFAESI) Act 2002, Bank has put
highest number of properties on auction and highest
sales among PSBs during FY 2024-25.

Further, Bank had conducted 5454 Recovery Meets
during FY 2024-25 that has resulted in settlement of
401909 accounts covering book liability of '5,475 Crore.

Simultaneously, Bank has developed and deployed
automated "Electronic One Time Settlement (e-OTS)"
Package in our Bank's website for Small Value NPA
accounts under Non-Discretionary Non-Discriminatory
Scheme.

Bank has also adopted the following strategies for
recoveries and reduce slippages:

1.    To have a proper monitoring of the portfolio of
Agriculture, MSME and Retail Loans we have taken
a cluster / area approach with dedicated recovery
officers.

2.    Proper allocation of small NPA accounts to Recovery
Agents.

3.    Bank has formulated various special OTS Schemes
for settlement of Small Value Agriculture, Education
Loan, MSME Loans etc.

4.    Active participation in all National Lok-Adalats &
regular Weekly Can-Adalats at all Regional Offices
and Monthly Mega Can-Adalats at all Circle Offices.

5.    Bank has initiated the SARFAESI action in all eligible
NPA accounts and continued the action till conclusion/
disposal of asset & recovery in the account. We are
also listing/ publishing the auction property details
on Bank's website, Newspaper etc.

As on 31.03.2025, 363 cases have referred to NCLT
under IBC for resolution wherein our Bank is having
Book liability exposure of around '34,508 Crore. Out
of which, 305 cases admitted by NCLT with our Bank's
aggregate admitted claim of '29,219 Crore. Our Bank
is expecting substantial recovery during FY 2025-26
through resolution/liquidation in these NCLT referred
cases. During FY 2024-25, Bank has recovered '2,600
Crore through cases referred to NCLT. As on March 2025,
the outstanding Stressed Assets Portfolio (including
restructured Standard Accounts) stood at '56,602 Crore,
accounting for 5.27 % of Gross Advances.

RISK MANAGEMENT

Bank has a dedicated Risk Management Department
which ensures proper identification, measurement,
monitoring and mitigation of all pertinent risks and
promotes compliance culture with an effective reporting
system. Risk Management serves as a key enabler
in decision making by facilitating effective resource
allocation in line with the bank's risk appetite, ensuring
that strategic decisions are made with thorough
consideration of both risks and opportunities. The guiding
principles to manage risk in the Bank is compliance of
regulatory & legal requirements and achieving balance
between risk and return, while ensuring independence
of risk and business functions.

The Bank has put in place an independent Risk
Governance Structure, in line with industry best
practices, which clearly delineates roles and
responsibilities of its members. Board of Directors is
the highest governing body and is duly assisted by the
Risk Management Committee of the Board (RMCB) and
various executive level risk management committees
viz., Enterprise Risk Management Committee (ERMC),
Credit Risk Management Committee (CRMC), Market
Risk Management Committee (MRMC), Operational
Risk Management Committee (ORMC), Asset
Liability Management Committee (ALCO), Group Risk
Management Committee (GRMC) etc. To make risk
governance and culture more pervasive across the Bank,
risk management & compliance committees are also
formed at administrative units throughout the country
with active involvement of field functionaries.

Responsibility for the effectiveness of overall risk
management throughout the Bank and its group entities
lies with Group Chief Risk Officer (GCRO), who is directly
reporting to Managing Director & Chief Executive Officer
(MD & CEO). GCRO monitors the overall effectiveness
of risk management throughout the bank vide various
risk reports. In this regard, the Bank utilizes Integrated
Risk Management Solution for integrated overview of all
the risks.

Further, the Bank has also set-up an Assurance
Committee (Solo and Group Level) which comprises
of Risk, Compliance & Inspection units (a trio of all the
three lines of defense) to bolster collaboration across
different lines of defense and to institutionalize effective
risk culture and governance structure. The Bank has also
aligned Key Performance Indicators of all the functional
units with Key Risk Indicators for inclusive and risk
oriented approach towards managing business.

a)    Credit Risk Management:

Bank has put in place a comprehensive Board
approved Credit Policy and Credit Risk Management
Policy which articulates Bank's approach to identify,
measure, monitor & control / mitigate and actively
manage Credit risk. Bank has in place a robust system
for internal credit ratings, appraisal, approval and
monitoring process. Bank utilizes robust internal
Credit Risk assessment models and scorecards to
assess credit worthiness of the borrowers. These are
internally developed models and undergo multiple
rounds of rigorous validation and back testing,
which include both internal assessments & external
reviews. The entire process of the Loan review
and monitoring is duly administered by the Credit
Administration & Monitoring Wing. Moreover,
the Bank's risk based pricing framework ensure
adequate pricing of credit risks.

b)    Market Risk Management:

Market risk is managed through a well-defined
Board approved Market Risk Management Policy
and Integrated Treasury Policy, which governs the
management of market risk captured through
various limits / triggers. Mid Office Unit, Risk
Management Wing monitors these limits on a daily
basis for timely mitigation. A reporting framework
has been put in place for effective and timely
monitoring of market risk limits and triggers which
are being reviewed periodically based on the risk
appetite of Bank.

c)    Operational Risk Management:

Operational Risk Management framework in the
Bank is based on ethics, organization culture and
strong operating procedures, involving corporate
values, internal control culture, effective internal
reporting and contingency planning. The Bank has
adopted policy for management of Operational

Risk, which covers aspects, such as, Operational Risk
Management framework, Outsourcing Activities and
Business Continuity Plan, Key Risk Indicators (KRI),
Risk Control & Self-Assessment (RCSA) workshops
to measure and manage Operational Risks. Further
the Bank conducts various Risk Culture & Risk
Awareness Assessment programs for employees to
support effective risk management, which promotes
sound risk-taking and ensure that emerging risks or
risk-taking activities beyond the risk appetite are
recognized, assessed, escalated and addressed in a
timely manner.

d)    Assets Liability and Liquidity Risk Management:

The Bank endeavors to maintain adequate liquidity
in the system while maintaining NIM at optimum
level with given balance-sheet profile of the
Bank. In the long run, the Bank aims to maximize
shareholders' wealth by improving Return on Asset
(RoA) and Return on Equity (RoE).

Bank deploys various standard tools viz., Structural
Liquidity Statement (SLS), liquidity ratios, Basel
defined stress liquidity ratios viz., Liquidity Coverage
Ratio (LCR) and Net Stable Funding Ratio (NSFR) to
measure and manage liquidity risk. Interest Rate
Sensitivity (IRS) Statements are used to measure
repricing gaps of assets and liabilities and its
consequent impact on Bank's earning (i.e., Earning
at Risk) under different rate cycle movement.
A long term impact of change in market interest rate
on shareholder's net-worth is measured through
change in economic value of equity approach.

Different stress test scenarios are further used
to evaluate the resilience of the Bank under
severe liquidity run-off and adverse interest rate
movement. Based on the probable adverse
movement of market variables - the Bank develops
Contingency Funding Plan (CFP) with inbuilt trigger
points and defined actionable across different
business and admin units.

e)    Cyber / Information Security Risk Management

Bank has a comprehensive "Cyber Security Policy"
to provide guidance and direction to combat cyber
threats given the level of complexity of business and
levels of risk, specific to the Bank. Cyber Security &
Information Security of the Bank is managed by a
separate division which is headed by Group Chief

Information Security Officer (GCISO), with state
of the art cyber security tools and 24x7 Security
Operation Centre (SOC).

f)    Enterprise Risk Management:

Enterprise Risk Management (ERM) is the process of
managing all of Bank's risks within an integrated and
centralized framework. It is an on-going, proactive
and dynamic process to identify, assess, manage and
communicate risks that may impact objectives to
meet the overall strategic goals of the organization.
In this regard, Bank has constituted an Enterprise
Risk Management Committee (ERMC) committee
comprising of senior management formed with
primary objective of management and monitoring
of risk at an enterprise level.

Therefore, as a part of holistic approach towards
managing risks, the Bank conducts a comprehensive
assessment of all material risks under Internal
Capital Adequacy Assessment Process, driven by the
core guiding principles of proportionality, continuity,
materiality, stress testing, sound governance, capital
quality, etc.

Recognizing that advanced risk management
practices rely on seamless data flow and integrity,
the Bank has leveraged technology to automate
its core risk management system and processes,
enabling timely and effective management actions.

g)    Group Risk Management:

The Bank has put in place a Board approved Policy
on Group Risk Management to manage the risks
involved in the functioning of the Group Entities and
ensure that adequate risk management systems are
in place in all the Group Entities. The Group Chief
Risk Officer (GCRO) of the Bank is supervising the risk
management activities of the Group Entities.

h)    ESG & Climate Risk Management:

Environmental, Social and Governance (ESG) is one
of the emerging concern areas for Banks. Envisaging
the importance, Bank has formed a ESG Committee
(CGM / GM level) & ESG Working Group (DGM / AGM
level) for overall implementation of ESG practices
and Board Level Sub Committee oversees the same.

Bank has in place the Board approved ESG Policy &
publishes Sustainability Report on an annual basis,
which outlines the Bank's commitment, initiatives &
actions that are built around its founding principles,
in alignment with the United Nation's Sustainable
Development Goals (SDGs).

i)    Disclosures

To promote transparency, trust and accountability,
Bank discloses all the relevant risks and mitigation
plan to its stakeholders for meaningful insight into
the functioning of the Bank. In this regard, the Bank
has a board approved Disclosure Policy in place,
which is being reviewed on an annual basis.

j)    Basel Norms Implementation:

The Bank complies with RBI Guidelines on Basel
III Capital Regulations and remains adequately
capitalized as per the current requirements. Further,
the Bank is comfortably placed and remains well
above the regulatory requirements in terms of LCR,
NSFR and Leverage Ratio as well.

COMPLIANCE TO INTERNATIONAL STANDARDS

Bank is certified with ISO 27001:2013 for Data Centre,
Near Data Centre, Disaster Recovery Site, Information
Technology Wing and Technology Operations Wing.

Bank has undergone upgradation of ISO 27001:2013
certification to ISO 27001:2022 certification. Audit
has been completed and Bank is certified with ISO
27001:2022. The certification is valid till 11/04/2026.

It is certified that the Information Security management
system of the organization has been assessed and found
to be in accordance with the requirements of the ISO
27001:2022 standard.

INTEGRATED TREASURY

Aggregate investments Domestic (net) of the Bank
stood at '3,76,969.77 Crore as at March 2025. Modified
duration of the investment portfolio and Available for
Sale (AFS) portfolio stood at 4.60 and 5.72 as at March
2025 respectively. The yield on investments stood at
6.96% as at 31^st March 2025. The trading profit under
domestic treasury operations during financial year is
'2,664.45 Crore including revaluation gain of '399.65
Crore for HFT&FVTPL as on 31.03.2025.

The Bank continues to be an active player in Government
securities market as a Primary Dealer. The total amount
of bids submitted for underwriting was '2,10,569 Crore
out of which the underwriting commitment accepted by
RBI was '76,044 Crore. With regard to treasury bills under
PD business as against minimum success ratio of 40%
to be achieved in each half year, the Bank has achieved
45.19% during the first half and 43.18 % for second half
of Financial Year 2024-25.

Foreign Business Turnover of the Bank aggregated to
'2,09,921 Crore, comprising '78,611 Crore under exports,
'47,209 Crore under imports and '84,101 Crore under
remittances during the year ended March 2025.

OTHER SERVICES

Merchant Banking

During the Financial year 2024-25 Merchant Banking
Division of the Bank

>    Monitored 317 Equity Issues, 48 Debt Issues and 166
Rights and Bank got float fund benefit for 4-5 days
through ASBA. The Bank collected commission of
'1.51 Crore in respect of ASBA.

>    Rural Electrification Corporation Ltd (REC),
Indian Railway Finance Corporation Ltd (IRFC) and
Power Finance Corporation (PFC) have entrusted the
Bank to act as "Arrangers and Collecting Bankers"
for the Private Placement of 54EC Capital Gain
Bond Issues.

>    During the year, funds mobilized / Collected by
our Bank as arranger for 54EC Capital Gain Bonds
is '740.12 Crore and earned a commission of
'79.04 Lakh.

>    During the year, Section has prepared Share
valuation report of M/s Fossil India PVT Ltd. and
earned commission of '3.25 Lakh.

> During the year we have earned '53.66 Lakh for
acting as Arranger for Bond issuance of Companies
(Under taken by Treasury Wing).

Centralization of Trade and Forex Operations under GTPC

To enhance operational efficiency, manage regulatory
risks effectively, and promote Ease of Doing Business,
the Bank has centralized all foreign exchange (forex)
and domestic trade transactions under the Global Trade
Processing Centre (GTPC).

GTPC functions as a centralized back-office hub,
processing all trade finance activities - both forex and
inland - originating from branches across the Bank. While
GTPC handles the processing operations, Bank branches
will continue to serve as the primary point of contact
for customers, providing services such as new business
acquisition, credit-related matters, advisory support and
documentation.

Scope of Services under GTPC

GTPC manages a wide range of trade and forex
operations, including:

•    Foreign inward and outward remittances

•    Foreign cheque collection and foreign currency
transactions

•    Import and export trade transactions

•    Trade credit and foreign bank guarantees

•    Inland (domestic) Letters of Credit and Bank
Guarantees, including electronic Bank
Guarantees (e-BG)

•    Bill discounting services
Digital Transformation Initiatives

1. FX4U Platform

The Bank has launched FX4U, a digital
document management system for forex
transactions. This platform enables customers
to submit online requests for export / import
transactions and forex remittances, with the
ability to upload required documents digitally.

2. Electronic Bank Guarantee (e-BG)

The Bank has implemented a fully digital
e-BG platform, replacing traditional physical
guarantees with a seamless digital process.
Integrated with National E-Governance Services
Ltd (NeSL), the system allows for e-stamping,
e-signing, and real-time hosting of guarantees
This enables instant issuance - within
minutes - compared to the 3-4 days required for
physical BGs. Beneficiaries can access the e-BG
immediately, eliminating the need for separate
authentication and significantly accelerating
transaction turnaround times.

ORGANISATION AND SUPPORT SERVICES

Branch Network - Expanding Pan India Presence

In a bid to expand the reach, the Bank added 270 domestic
branches during the year. As at March 2025, the Bank had
9849 domestic branches, including Specialized Branches.
Composition of Branch Network

Note: Domestic branches were merged during the year: 25
The total Specialized Branches of the Bank stood at
625 as at March 2025.

HUMAN RESOUSES

PERSONNEL PROFILE

As at 31^st March 2025, the Bank had 81260 employees on
its roll. The cadre-wise break-up of manpower for the last
3 years are as under:

Total staff strength of the Bank comprised of 65%
Officers, 24% Clerks and 11% Sub Staff / PTE. The Women
staff strength of the Bank was 26006 constituting 32% of
the total employees. The total number of ex-servicemen
staff as at March 2025 stood at 5081. There were 2481
Differently abled persons (DAPs) on the rolls of the Bank.

RESERVATION POLICY

The Bank has been adhering to the Reservation Policy in
respect of Scheduled Castes (SC), Scheduled Tribes (ST),
Other Backward Classes (OBC), Economically Weaker
Sections (EWS) and Persons with Benchmark Disabilities
(PwBD), as per the Government of India guidelines.

The representation of SCs / STs / OBCs / EWS / PwBD
employees as on 31^st March 2025 is as under:

RECRUITMENT

During the FY 2024-25, Bank recruited 1547 persons
in various cadres. Out of which, 629 were women
employees, consisting of 40.66% of total recruitment.
The category wise representation of newly recruited
employees is as under:

* Also belongs to SC / ST / OBC / EWS / UR category.

HR INITIATIVES

>    Engagement of graduate apprentices - In compliance
with the Apprentices Act, 1961, our Bank has
initiated the engagement of Apprentices for the
FY 2024-25. At present 2,797 Apprentices are
undergoing Apprenticeship training in various
Branches across India for a period of one year.

>    Project Aarohan - HR Transformation Project
is ongoing for reimagining and redesigning HR
functions to align with Bank's strategic goals and
objectives.

>    Monthly sessions on Work Life balance for employees.

>    Canara Resume - Monthly Webinar Session for
Employees joining post Maternity / Sabbatical Leave.

>    FOCUS (Fostering Outstanding Customer Service) -
High impact Sales Leadership Training Programme
for Frontline Staff has been launched aiming at
enhancing Customer Service at Branches.

>    Know Your Circular (KYC) Quiz: KYC Quizzes
were conducted for all the employees and made
mandatory for the eligible officers to get four marks
in APAS this year.

>    Conducted Pre-promotion training to eligible
employees from Sub-staff to Scale VI.

>    Circular Synopsis: The details of circulars issued in
a day are being shared with the employees through
e-mail on the subsequent day.

>    Collaborations: CIBM Manipal has also taken
the Membership of Indian Society for Training &
Development. Collaboration with SBI Foundation for
the training of PwD (Visually Impaired and Speech
and Hearing Impaired) employees has also been
entered into.

>    AR / VR (Augmented Reality & Virtual Reality)
Training: Bank developed an innovative training
methodology using Augmented Reality (AR) and
Virtual Reality (VR) technologies to enhance the on
boarding experience for new staff, equipping them
with necessary skills and confidence from day one.

>    WITI (WhatsApp Interactive Training Initiative):

A new-age technology initiative by the Bank, wherein
the Bot generates responses for the queries / doubts
of the employees using Gen-AI technology through
WhatsApp 24x7.

>    Radio CIBM: This is a new initiative by the Bank,
where episodes in the form of podcasts are being
released periodically through which the employees
of the Bank are educated on Banking news, policies
& regulatory guidelines, circulars and Do's & Don'ts
on various procedures at workplace, etc.,

>    T-SAT (Technical Skill Assessment Test): As per the

EASE 7.0 reforms, Bank has conducted T-SAT to all
the employees from CSA to Scale-V based on their
job-roles.

>    Introduced scheme of Transportation of Mortal
remains of the deceased employees to native place /
place of domicile.

>    Introduced scheme of Absorption of Tax on
Perquisites of employees from FY 2024-25.

>    Opened Canara Care Home at Delhi in addition to
Vellore and Mumbai.

>    Extended relief loan to staff members affected due
to unprecedented floods in 9 districts in the state of
Andhra Pradesh and in the state of Tripura.

>    Replicated the following staff benefits pages
available in HRMS / SAS package to Mobile Banking /
Internet as under:

•    Child Care Allowance

•    Bereavement Leave

•    Canarites Grievance Redressal System Package

>    Enabled Auto approval (without authorization) of
certain staff benefits such as - Festival Advance,
Lunch Allowance & Cleaning Expenses.

>    Implemented all the benefits / provisions of 12^th
Bipartite Settlements within 6 months from the date
of Bipartite Settlement (for workmen employees).

>    Our Bank's Hindi in-house magazine 'Canara Jyoti'
and bilingual in-house magazine 'Shreyas' were
awarded with the Best in house magazine award for
the year 2024-25 on 20^th February, 2025 by 'Global
Excellence Award' in the respective category in the
32^nd edition of World Congress Brand.

>    Canara Bank's in-house magazine 'Canara Jyoti'
has been awarded the Silver Award in the category
of Magazine of Excellence in the 18^th Global
Communication Programme by PRCI on 09.11.2024.

>    During the Joint Regional Official Language
conference of South and South West regions held at
Mysore on 04^th January 2025, the Honorable Governor
of Bihar Shri. Arif Mohammad Khan & Union Minister
of State for Home Affairs Shri. Nityanand Rai honored
the Town Official Language Implementation
Committee (Bank & Insurance), Bengaluru with the
"First" prize of the Regional Official Language Award
for excellent implementation.

>    Canara Bank was awarded with the Rajbhasha Kirti
'First' Puraskar in Region 'C' for its quarterly in-house
magazine 'Canara Jyoti' by Hon'ble Union Minister
of Home Affairs and Co-operation Shri. Amit Shah
during Hindi Diwas and 4^th All India Official Language
Conference on 14^th September 2024 at Bharat
Mandapam, Pragati Maidan, New Delhi.

>    Under the aegis of Department of Financial Services,
Ministry of Finance, Government of India, a two-
day seminar / review meeting was organized by
Punjab National Bank, Chandigarh (TOLIC Bank) on
22.08.2024 and 23.08.2024 for all banks / insurance
companies / financial institutions. Canara Bank
received the Third prize in 'C' Region for excellent
official language implementation by the Department
of Financial Services.

>    Canara Bank's in-house magazine "Canara Jyoti" was
awarded the Best Magazine Award at the 32^nd edition
of World Brand Congress & Awards on 20.02.2025.

>    Conducted Shreyas contest for kids of Staff in the
category "Painting and Sketching" in 2024 (First of
its Kind).

>    Shreyas Magazine won the best in house magazine
conducted by Public Relations Council of India,
Mangalore and Global Excellence Awards at Mumbai
for the year 2024-25.

>    Conducted an Awareness campaign for Indian Organ
Donation Day.

>    Conduction of Library Day at Head Office, Circles and
Regional Offices.

>    Encouraging Sporting Activities: Facilities are
provided to Sportspersons to participate in
competitions at District / State / Zone / National/
International level competitions.

>    Employees who are taking up sports activities are
provided with 75 Days of Special Leave in a calendar
year. Sportspersons are provided necessary leave
without any restrictions towards preparations/
participation in competitions.

>    Sportspersons recruited under sports category are
rewarded with Five Special Increments & Three Out
of Turn Promotions for having secured Medals in
National / International level competitions.

>    Sportspersons are provided with 100% medical
reimbursement for sports injury & rehabilitation
including physiotherapy for faster recovery.

>    Sportspersons are provided with Out-of-Pocket
Expenses (OPE) & Diet Allowance during their
training camps & competitions.

>    Gratuity calculator implemented in HRMS Package.

>    SPF pass sheet generation for all financial years from
2010 (From 2020 for e-Syndicate employees) made
available in HRMS Package.

>    Applying for SPF & Gratuity nomination made
available in Canarites Mobile App.

>    Introduced pension and commutation calculator in

HRMS package.

>    The following modules were developed / converted

from manual to online in HRMS package for FY

2024-2025.

•    Sabbatical leave module

•    JAIIB / CAIIB Module

•    HRA module

•    Air travel / taxi permissions module

•    Revamped transfer module

•    Executive feedback module

•    ODI agreed module

•    Mobile handset module

•    Festival advance auto approval

•    Dependent modification module

•    Staff DPN / OD module

•    Court summons module

•    Compensatory off module

•    Promotion appeal page

•    Experience certificate module

•    Salary extract page

•    Bereavement leave page

•    Shifting of quarters module

•    Bank sim maker / checker page

•    RC copy upload page

•    Mile stone award page

•    Automating of cleaning, lunch and mobile
call charges

•    Annual health and eye check-up page

•    Staff welfare measures viz., Birthday gift,
Marriage gift, Diwali gift, spouse health check¬
up, funeral expenses for ex staffs.

SKILL DEVELOPMENT & TALENT MANAGEMENT

•    Human Resources are the most valued assets
and success lies in developing, retaining
and transforming them to act as strategic
business partners. Treating people as resources,
rewarding them equitably and integrating
their goals with that of the organization
through suitable HR policies are the present
mantras to "Organizational Excellence". Also,
with a fast-changing banking landscape, skills
and qualifications acquired needs continued
upgradation and there is need for employee
training support at periodical intervals to keep
them abreast of the latest developments.
Accordingly, the HR functions of the Bank are
getting tuned in this direction and are moving
ahead to do this new transformational role.

•    Bank has adopted the new 52 / 26-week induction
training module as recommended by the CVC for
the newly recruited POs & SWOs respectively. In
addition to this, mentoring concept is in place
for the benefit of the newly recruited POs to help
them to get acclimatized with Bank's culture,
tradition and ethos.

•    Bank is imparting training in various functional
areas to build and upgrade competencies
through the one Apex Centre of Excellence at
Manipal (CIBM - Canara Institute of Banking &
Management) and two Centres of Excellence at
Bagaluru and Gurugram, supported by 26 Canara
Learning & Development Centres established
across the country.

•    Functional trainings are imparted to staff
members in various cadres by drawing training
calendars in consultation with Circle Offices. In
the Financial Year 2024-25, 4477 programmes
were conducted in which 144122 employees
were trained, a total of 80223 employees got
at least one training in the Financial year which
is almost 98.61 per cent of the total employee
strength of the Bank.

•    In order to acclimatize them with their new roles
and responsibilities, Executive Development
Programs (EDPs) is provided to Executives
upon their promotion at institutes of repute
like ASCI Hyderabad, MDI Gurugram. During FY
2024-25 around 351 executives have attended
EDP & Customised Leadership Development
Program was conducted for 411 Executives
(CGMs, GMs, DGMs & RO Heads). 54 Executives
have undergone the RBI mandated Certificate
program in IT & Cyber Security at IDRBT.

•    Bank is grooming its top leadership through
the Financial Services Institution Bureau (FSIB)
Flagship Leadership Development program. In
addition to this, around 44 officials were given
Foreign Training Programmes / Workshop during
FY 2024-25.

•    Bank is providing focused training programme
for the Business Outlet Heads so as to equip
them well to focus on future challenges. (First
Time CO / RO / MCB / LCB / RAH / ACC / Branch
Head). Further, Bank is constantly striving to
build effective Management and Leadership
traits among its Officers. In this regard, Bank is
conducting Officers' Development Program (ODP)
and Managerial Development Program (MDP) for
promotee Officers and Managers respectively.

•    During the current FY following training
programmes were conducted covering effective
management and Leadership Development
Programmes:

• Bank has a e-Learning portal - "CanDLE"
(Canara Digital Learning Experience) facilitating
effective and continuous online learning for
our employees for enhancing their knowledge
and skills.

“Welfare of SC / ST / OBC / EWS”

RESERVATION POLICY:

The Bank has been adhering to the Reservation Policy in
respect of Scheduled Castes (SC), Scheduled Tribes (ST),
Other Backward Classes (OBC), Economically Weaker
Sections (EWS) and Persons with Benchmark Disabilities
(PwBD), as per the Government of India guidelines.

Category-wise representation in the organization:

The representation of SCs / STs / OBC / EWS employees
in our Bank as on 31^st March 2025 is as under:

Details of the posts filled up by the candidates of SC /
ST / OBC / EWS during the FY 2024-25 at various levels:

During the FY 2024-25, our Bank recruited 1547
employees in various cadres. The category wise details
are as under:

ENGAGEMENT OF GRADUATE APPRENTICES:

In compliance with the Apprentices Act, 1961, our Bank
has initiated the engagement of Apprentices for the FY
2024-25. At present 2,797 Apprentices are undergoing
Apprenticeship training in various Branches across India
for a period of one year. The category wise details are
as under:

CUSTOMER ORIENTATION

Bank has taken several initiatives to remain customer
focused through provision of fast service, offering
diversified products & services, responding to customers'

> Bank has implemented a centralized grievance
redressal mechanism where all general customer
complaints, regardless of their origin, are handled at
Head Office centrally, and resolution is being provided
by subject experts. This centralized approach ensures
consistent quality complaint handling and resolution
across the Bank.

a)    The centralized grievance redressal mechanism,
a sophisticated complaint management module
has been implemented within Bank's CRM,
leveraging innovative functionalities designed
to significantly enhance the efficiency and with
enhanced features such as, automated escalation
to the Internal Ombudsman, complaint reopening
option to dissatisfied complainants, review by Top
Management, feedback collection etc.

b)    Periodically, conducting Root Cause Analysis
(RCA) on repetitive nature/ type of complaints in
coordination with stakeholders, identifying and
fixing the exact cause of concern across the Bank.

c)    Extending reliefs to the aggrieved customer as per
Bank and Regulator's guidelines

d)    Enabled customer 360⁰ view at Grievance portal
level for more precise & accurate redressal of
complaint.

e)    Enabled complaint re-open facility for customer
where complaints can be reopened within 7 days
from closure date, if complainant feels dissatisfied
with Bank's resolution. All re-open complaints are
placed before Internal Ombudsman for views
and closed only after receiving concurrence of
Customer Service Vertical head.

f)    Complaint review by top management and
Customer Service Vertical Head / executive -
Bank's top management and Vertical head reviews
closed complaints on a random selection basis to

verify the quality in resolution and issue necessary
direction for further improvement beside
re-opening of complaints if resolution is not upto
to the mark.

g)    All partially / fully rejected complaints are
auto-escalating to the Internal Ombudsman
for final decision and reply to the complainant
provided duly incorporating decision of the
Internal Ombudsman.

h)    Feedback collection from complainant: - To ensure
continuous improvement and enhance customer
satisfaction, Bank has implemented feedback
mechanism to collect customer feedback after
closing complaints. Apart from auto-triggering
SMS & email to complainant on closure of each
complaint requesting for their feedback on
grievance resolution, we also directly call to the
complainant through our Call Center and HO
officials to record their feedback responses, and
further analysing to identify & address the gaps,
if any.

S Customer Service Vertical has been revamped with a
strengthened with a team, focussing on timely and
quality resolution of public grievances within the
Bank's prescribed timeline.

S Comprehensive Employee Specific Feedback
Mechanism is implemented to gauze the level
of customer service at branches. Our bank is the
first in the banking industry to implement a such
a mechanism. This Feedback mechanism aims to
reach out to the customers for their employee wise
feedback on real time transactions done customers at
branches. A range of channels are introduced keeping
customer ease in view for capturing customer
feedback viz. OR code, SMS, Email, WhatsApp, KIOSK.

S CRM (Customer Relationship Management) - CANARA
RISHTEY is introduced in our bank for improving
service quality, and driving business growth. Bank
use CRM systems to track customer data, analyze
behavior, and offer personalized services, which
enhances customer satisfaction and loyalty. Bank has
launched 12 modules under CRM as of now.

S One Bank One Number (Toll-Free number 1800 1030)
has been introduced where customers can avail 43
services in 17 languages.

S WhatsApp banking facility has been introduced
allowing customers to avail banking services from
anywhere, at any time and get information at their
convenience. As of now 75 plus services are offered
through WhatsApp banking in five languages Viz.
English, Hindi, Marathi, Kannada & Telugu.

S Chat-bot Banking Service has also been introduced
for General Public use. As of now 16 service are
available in five languages viz., English, Hindi,
Marathi, Kannada & Telugu.

>    Executives from Customer Service Vertical are
conducting mystery shopping visits in branches
of selected Circles at quarterly intervals under
Incognito mode.

>    Our Bank is a partner in the PSB Alliance which
has floated Door Step Banking Services (DSB) and
extended Doorstep Banking Services 2572 Centres
covering 4154 branches for the benefit of all the
individual customers including Senior Citizens &
Differently abled persons. Customers can book many
of the banking services by downloading the DSB
Mobile App, or through DSB Website or Vendor's Call
Centres. Bank offers 3 Door Step Banking Services
per month absolutely free for customers aged above
75 years at all the select 1000 centres.

>    Training programmes with more emphasis on
customer service aspects are being conducted
regularly in coordination with Apex Centre of
Excellence, Manipal.

>    As per the directions issued by the Regulator a
year-long action plan has been devised to conduct
awareness programmes Pan India to augment
existing efforts undertaken for awareness initiatives,
covering three broad parameters viz. target group,
theme / focus area and appropriate delivery channel
for each target group.

>    A detailed Citizen Charter has been made available
in the Bank's corporate Website to make use of the
same for General Public encouraging good banking
practices.

>    Based on the Root cause analysis of complaints
received, with our suggestions various Banks has
adopted / made many systemic changes resulting
in improved customer services. Prominent systemic
reforms undertaken by the Bank are as follows:

(i)    Debit Card Green PIN generation through digital
channels.

(ii)    Reversal of failed UPI transaction amount within
T+1 days, & raising chargeback within Turn
Around Time.

(iii)    Introduced Offline OTP and enabled OTP through
email facility.

(iv)    Cooling period is implemented after addition of
beneficiary in Mobile and Internet Banking.

(v)    SMS to incipient inoperative status accounts,
further quarterly SMS for KYC documents
submission.

(vi)    Delivering TDS Certificate (Form 16A) to
customers on their registered email IDs.

(vii)    Key Fact Statement (KFS) Functionality has
been implemented which summarises the
critical aspects of a loan including the loan
amount, interest rate, repayment schedule, fees,
charges and the total repayment amount etc.
This level of detail provides borrowers with a
clear understanding of the financial obligations
associated with the loan and empowers them to
make informed financial decisions.

(viii)    Bank has Launched Documents Release Tracking
System (DRTS) for tracking release of movable/
immovable property documents on closure of
loan account as an enhanced monitoring tool
and better up keeping of records.

(ix)    Bank has integrated UDGAM Portal for easy
access of Customer's unclaimed deposits /
DEAF fund with RBI.

(x)    Introduction of intimation SMS facility for
customers for reaching threshold limit in their
FASTag balance.

INTERNAL OMBUDSMAN

In terms of the Reserve Bank of India guidelines, the
Bank has appointed an Internal Ombudsman (IO) as an
independent authority to review complaints that are
partly or wholly rejected by the Bank. The IO submits
periodical report on its functions & activities to
Customer Service Committee of the Board of the Bank,
analyzing the pattern of complaints for taking action to
address the root cause of complaints. Changes where
necessitated on the procedures / guidelines have also
been carried out based on the IO's recommendations.

Sri Unnam Raghavendra Rao has taken over as Internal
Ombudsman with effect from 17.02.2025 on expiry of
the term of the earlier IO.

INTERNAL CONTROL AND AUDIT

Details of audits conducted during the Financial Year
2024-25 are furnished below:

Risk Based Internal Audit (RBIA): RBIA was conducted
in 7018 branches / units.

Concurrent Audit: It collectively covers 70% of
advances and corresponding deposits, forming a
significant portion of the Bank's total business.
Monthly concurrent / continuous audits were carried
out in 1528 branches / service units, out of which, in
1139 branches the audit was conducted by external
auditors and in 389 branches audit was conducted by
internal auditors.

Income Audit: 4239 branches underwent income /
revenue audits on a quarterly basis

Key Initiatives and Enhancements in the Audit Process:

1. Pre-Audit Exercises: The procedure of pre-audit was
revamped in order to strengthen the objective of
pre-audit exercise i.e., reducing the number of
queries during RBIA and helping branches achieve
a lower risk grade. Inspection Wing shares the list
of branches due for RBIA in next 6 months during
the ZACE meetings. Accordingly, RO / CO shall send
Pilot letter to branches / units regarding conduct
of pre-audit exercise at least 3 months prior to
commencement of RBIA.

2.    Moderate-Risk Branches: Moderate-risk rated
branches are audited every 12 months and are
subjected to a Snap Audit within 6 to 9 months for
better control. Additionally, a training program
was initiated through CIBM to enhance the skills of
branch officials at moderate-risk branches, aimed at
improving their risk ratings in the ensuing RBIA.

3.    Special Moderate: Branches risk rated as Moderate
risk for three consecutive audit cycles are categorized
as Special Moderate branches, which will now
undergo RBIA every 9 months instead of the usual
12 months and will also be subjected to monthly
concurrent audits. Two ED level meetings were
conducted to guide the branches for improving
risk rating.

4.    First Handbook on Inspection Matters: Inspection
Wing has designed Handbook on Inspection Matters,
which is helpful to Inspecting Officials in enriching
their knowledge for performing various audits.

5.    Training Material for CIBM Faculties: Inspection Wing
designed training material for CIBM faculties to train
branch officials of moderate risk-rated branches,
named "Nurture," a guide on internal control matters
of the branch.

6.    Verification of Immovable Securities: Inspection
Wing initiated a one-time verification of immovable
securities mortgaged to the Bank for loans above
'1.00 Crore at RAHs and MSME Sulabhs from April
2024 to December 2024.

7.    Security Verification during Concurrent Audits:
On the basis of the findings of verification of
immovable properties, policy level changes have
been implemented for mitigating risks. Now, the
concurrent auditors are required to verify 25% of
loans sanctioned during the month, with a minimum
of 20 securities (mortgaged and non-mortgaged).
Furthermore, 100% verification of all mortgaged
immovable securities during review period, as well as
verification of all MSME loans of '10 lakh and above,
confirming the existence and functioning of units
and all loans with government subsidies.

8.    Automation of Legal Audit: To streamline the process,
the Wing developed a package in the SAS portal for
the automation of legal audits. This package aims to
improve the efficiency of legal audits and avoid the
recurrence of such issues.

9.    Formation of New Zonal Inspectorates and Units:
Formation of 2 new ZI (Patna & Vijayawada), 18 new
units and remapping of Circles for increasing the
efficiency, operational convenience and reduction of
cost to the bank.

10.    Increased Frequency of ACE Meetings: Frequency of
Audit Committee of Executives (ACE) Meeting has been
increased to ensure timely closure of audit reports and
effective monitoring of Action Taken Reports.

11.    Quality Assurance and Improvement Program (QAIP):
Quality Assurance and Improvement Program (QAIP)
was introduced for recommending improvement in
quality of audit closure of Branches.

12.    Management Audit Package for Regional Office:
Development of a comprehensive audit package
for the Management Audit of Regional Office by
capturing all the details of Audit Findings, Arrival of
scores and Reply by Auditee.

13.    Revamped RBIA and Concurrent Audit Packages:
Revamped the Queries & checklists of Risk-Based
Internal Audit (RBIA- Branches / RO / CO) and
Concurrent audit packages to enhance accuracy
of audit observations and implemented in Darpan
package with version control and effective date.

14.    Audit Module for Inoperative Account Reactivation:
Implemented an audit module for continuous
audit of Inoperative accounts which are
reactivated, through SAS module in adherence to RBI
guidelines.

15.    Centralized ZACE Meeting Package: Centralised
package for upload and maintenance of agenda,
minutes and ATR observations of bi-monthly ZACE
meetings which can be viewed by Regional Offices,
Circle Offices, Zonal Inspectorates.

16.    Inspection Wing has introduced concurrent audit for
the following:

a.    Re-activated Inoperative Accounts

b.    TAB Banking

c.    Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR) calculation at RM Wing

Bank has also introduced Half-yearly audit of Credit and
Prepaid Cards Wing.

RISK BASED SUPERVISION

The Bank was brought under Risk Based Supervision (RBS)
regime by RBI, in lieu of Annual Financial Inspection (AFI)
from FY 2013-14. Presently, the Bank has completed the
11^th cycle of RBS. RBS framework is named as Supervisory
Programme for Assessment of Risk and Capital (SPARC).
Under SPARC, a detailed qualitative and quantitative
assessment of the Bank's risks is made by RBI on an
on-going basis through a combination of offsite analysis
of the data and information furnished by the Bank as well
as the findings of the on-site Inspection for supervisory
Evaluation (ISE).

GRIEVANCE REDRESSAL MECHANISM FOR
PwD CUSTOMERS:

Status of Grievance redressal for PwD Customers
(from 08.08.2024 to 31.03.2025):

‘Mentioned 46 complaints are with in TAT of 21 days.

KNOW YOUR CUSTOMERS (KYC) / AML / CFT

The Bank is committed to implement the KYC / AML /
CFT norms in its completeness and has zero tolerance
towards non-compliance. To ensure this, the Bank has
put robust systems and processes in place. Advisories
issued by the regulators with respect to designated
individuals / entities are scrupulously followed. Regular
training is provided to staff members to increase their
awareness on matters regarding KYC / AML / CFT.

IMPLEMENTATION OF OFFICIAL LANGUAGE

Our Bank is ensuring compliance of Official Language
Implementation as per Official Language Act 1963,
Official Language Rules 1976, recommendations of
Parliamentary Committee on Official Language, Annual
programme of Department of Official Language,
Ministry of Home Affairs and also as per the guidelines
issued by Department of Financial Services, Ministry
of Finance, Government of India. OL Implementation
encompasses teaching & training of Employees to
learn and understand Hindi and its use in a day-to¬
day banking activities. Employees who do not possess
working knowledge in Hindi are nominated for Prabodh,
Praveen and Banking Pragya examinations conducted
by Hindi Teaching Scheme, New Delhi and they are also
incentivized on passing it. Incentives are also provided
to employees for passing Parangat examination who
aspires to obtain proficiency in Hindi. Bank provides cash
incentives to motivate employees for obtaining Hindi
Degrees like Graduation, Post-Graduation, M.Phil. and
Ph.D in Hindi and also for creative writing in Hindi whose
literary work is recognized by institutes of repute.

Bank has made available forms in Bilingual in Region
'A' and Trilingual in 'B' & 'C' Region branch counters for
the use of customers. Official Language Section, Human
Resources Wing provides translation from English to
Hindi and vice versa to meet the requirements of all the
Wings in Head Office. Official Language Cells established
at Circle Offices & Regional Offices are also providing
the requisite translations in Hindi & English apart from
ensuring implementation of OL in their respective areas.
Official Language Implementation Committees are
constituted at all levels, where quarterly meetings
are conducted promptly and review of status of OL
implementation is effectuated. A Hindi inter-translator
system has been introduced in CBS through which pass
book / pass sheets could be generated in Hindi, including
generation of Deposit receipts and DDs. CBS Screens
(in Hindi) have been created and a facility to generate
reports in Hindi are now made available. Provision has
been made in ATM Screen to view the transactions in 11
Regional Languages. Standard greetings and messages
to customers are being sent through SMS in Hindi &
Regional Languages also. Customers can now opt to
receive SMS in their opted language.

An online package has been made live (in SAS portal)
for submission of OPR i.e., STR 18 by all branches and
administrative offices. Hindi Workshops and Unicode
trainings are being organized for staff. Existing manual
branch visit report by OL Officers has been digitalised.
Branch visits by OL Officers is helpful for branches to
face visit / inspection by Govt. Depts. and Parliamentary
Committees, etc., Hindi workshop and conference for
Official Language Officers are conducted annually to
ensure effective implementation of Hindi.