Canara Bank

DIRECTORS' REPORT: 2024-25

The Board of Directors have pleasure in presenting the 56th Annual Report together with the Balance Sheet as on 31st March, 2025 and Profit & Loss Account for the2025 .financial year ended March 31,

A snapshot of Bank's financial performance is given below:

(Rs. in Crore)

The global business of the Bank increased to Rs.25,30,215 Crore, up by 11.32% y-o-y, out of which domestic business grew by 10.21% y-o-y to Rs.23,39,808 Crore as at March 2025. Domestic CASA deposits stood at Rs.4,14,976 Crore with Savings Account of Rs.3,37,135 Crore and Current Account of Rs.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 of the 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 atRs.31,391 Crore and net profit at Rs.17,027 Crore.

Dividend

The Board of Directors of the Bank has recommended a dividend of Rs.4 per equity share (i.e., 200%) of face value of Rs.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 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 9th 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 Rs.89,400 Crore. at the end of March 2025, compared to the deficit ofRs.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 Rs.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 reflectingthe 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 Rs.17,027 Crore in FY 2024-25 with operating profit growing by 6.72% y-o-y to Rs.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.

Our Bank has a comfortable capital cushioning with Capital Adequacy Ratio, under Basel III at 16.33% as at March 2025 against the regulatory requirement of 11.5%.

During the Financial Year 2024-25, Bank has raised capital via Basel III compliant Additional Tier 1 Bond and Tier 2 Bond amounting to Rs.3,000 Crore at a coupon of 8.27% and Rs.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 Rs.10,000 Crore at a rate of 7.40%

BUSINESS PERFORMANCE

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

A snapshot of business growth in FY 2024-25

(Rs. in Crore)

Deposits

Total Deposits grew by 11.01% y-o-y from Rs.13,12,366 Crore as on March 2024 to Rs. 14,56,883 Crore as on March 2025. Domestic CASA deposits of the Bank are at Rs.4,14,976 Crore as on March 2025 with Savings deposits at Rs. 3,37,135 Crore and Current deposits at Rs.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 31st 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 Rs.10,73,332 Crore as at March 2025. The RAM (Retail, Agriculture & allied activities, MSME) portfolio grew by 13.23% y-o-y to Rs.6,10,127 Crore as at March 2025 with retail advances recording a growth of 42.80% y-o-y to Rs.2,23,366 Crore, credit to Agriculture & allied activities recording a growth of (2.50)% y-o-y to Rs.2,46,888 Crore and credit to MSMEs grew by 8.23% to Rs.1,39,857 Crore. Within RAM portfolio, Bank's gold loan portfolio increased to Rs.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 Rs.25,30,215 Crore for the year ended March 2025.

FINANCIAL PERFORMANCE

Operating profit of the Bank stood at Rs. 31,391 Crore for FY 2024-25. Bank reported a Net Profit of Rs.17,027 Crore for FY 2024-25. Net Interest income of the Bank stood at Rs. 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 Rs.1,42,208 Crore for the FY 2024-25, comprising Rs.87,789 Crore interest from advances, Rs.24,596 Crore interest from investments, Rs.22,453 Crore from non-interest income and Rs.7,370 Crore from other interest income.

Operating performance of the Bank

(Rs. in Crore)

In line with the thrust areas for the Bank, non-interest income (Excl. Trading profit) is at Rs.19,787 Crore. Apart from trading profit, other major sources of non-interest income, like, service charges (Rs.3,561 Crore), commission and exchange (Rs.1,699 Crore), recovery from written off accounts (Rs.8,534 Crore) and Profit from exchange transaction (Rs.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 Rs.1,10,818 Crore in FY 2024-25. Interest expenses of the Bank is at Rs.82,683 Crore. Operating expenses is at Rs.28,134 Crore, comprising staff cost of Rs.17,856 Crore and other operating expenses of Rs.10,278 Crore.

The net interest income, the difference between interest paid and interest earned by the Bank stood atRs.37,072 Crore.

Capital and Reserves:

Net worth of the Bank, as at March 2025 stood at Rs.88,241 Crore. While the total paid-up capital of the Bank stood at Rs.1,814.13 Crore, the reserves and surplus stood at Rs.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 Rs.3,000 Crore and Tier II amounting to Rs.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 Rs.2,23,366 Crore as on March 31, 2025 with Housing Loans at Rs.1,06,167 Crore and Rs.20,637 Crore under Vehicle Loans. The share of Retail Loans stood at 22.14% as of March 31, 2025 of Domestic Advances (Rs.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.

(Rs. in Crore)

HOUSING LOAN

The Bank's Housing Loan Portfolio increased to Rs.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 Rs.24,833 Crore and sanctioned 74630 number of accounts amounting to Rs.28,178 Crore. Overall growth in housing loan portfolio is Rs.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 Rs.20,637 Crore as at March 2025. The Bank has financed around Rs.3.61 lakh vehicles as at March 2025. During FY 2024-25, the Bank has disbursed Vehicle loans worth Rs.9,282 Crore and sanctioned 95059 number of accounts amounting to Rs.9,565 Crore. Overall growth in vehicle loan portfolio is Rs. 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 Rs.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 Rs.4,338 Crore and sanctioned 52847 number of accounts amounting to Rs.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 (QHEIs) 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 Rs.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 Rs.59,002 Crore and sanctioned 32.21 lakh number of accounts amounting to Rs.59,124 Crore. Overall growth in this portfolio is Rs.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 Rs.6.00 lakh including subsidy).

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 Rs.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 Rs.2,39,977 Crore and achieved 20.05% to Adjusted

Net Bank Credit (ANBC) against 18% mandated norm.

Priority Sector Advances data:

(Amount Rs. in Crore)

Bank's advances under agriculture portfolio decreased by 2.50% to Rs.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 Rs.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 Rs.37,664 Crore.

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

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

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

The Bank actively participated in various Government 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 Rs.61,156 Crore, involving around 24.43 Lakh beneficiaries.

(Accounts in actuals & Amount Rs. in Crore)

Advances to DRI stood at Rs.55 Crore, consisting of 0.69 Lakh beneficiaries.

In support of the underprivileged sections of the society, the Bank's Advances to SCs / STs beneficiaries amounted to Rs.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 Rs.2,33,811 Crore, constituting 19.29% to ANBC against mandated norm of 12.00%.

Performance of Bank under ATMANIRBHAR BHARAT ABHIYAN Schemes:

(Accounts in actuals & Amount in Rs. Crore)

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

(Accounts in actuals & Amount in Rs. Crore)

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

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 Rs.1,123 Crore, since inception till 31.03.2025. Outstanding under the PMSVANidhi as on 31.03.2025 is Rs.255 cr.

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

FY 2024-25 (Rs. in Crore)

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 Rs.35,497 Crore, (101%) against the mandatory disbursement target of Rs.35,000 Crore under PMMY.

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

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 30th November 2024 at New Delhi.

Our Bank has received Finnoviti Award for ‘CANARA

Digital Rupee' on 19th June 2024.

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.

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.

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 Rs.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.

Digital Lending Platform: Digital Lending Platform is successfully integrated in Net

Banking page.

Integration of Canara Heal, Merchant QR 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 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 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 Verifying beneficiaries' name while adding beneficiary 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.

UPI Tap & Pay: Users can make payment by tapping the UPI app installed device on the beneficiary's smart QR / 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.

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 ai1 app / SAS BHIM QR portal / SMS.

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 Rs.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 Rs.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 Rs.10 lakhs under PMMY through DLP.

E-Udyam: Financing for TL / WC limit up to Rs.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 Rs.2 lakhs: Disbursement of KCC loan above Rs.2 Lakh through DLP has been implemented.

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

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.

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 QR 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-QR 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.

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 Rs.7.50 lakhs for intra & interbank transactions.

International Mobile Numbers on UPI: NonResident 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.

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.

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 Rs.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.

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.

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.

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

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

BBPS Platform.

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).

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 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

• Aadhaar seeding

• 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

(Rs. in Crore)

Gold loan business has crossed Rs.1,81,000 Crore as at 31.03.2025

Number of gold loan accounts crossed 1.03 Crore. Business has grown by Rs.29,714 Crore during FY 2024-25 Net NPA maintained at same level during entire FY2024-25

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 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 Rs.14,231 Crore in those accounts with average balance of Rs. 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

Rs.119.68 Crore, and 1914 cases under PMSBY, amounting to Rs.38.28 Crore. Since its inception, the bank has settled 43,063 death claims under the PMJJBY scheme, totaling Rs.861.12 Crore, and 10667 cases under PMSBY, amounting to Rs. 213.34 Crore.

Scheme Enrolments including Renewals as at March 2025

(Rs. 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 Rs.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 Rs.1,90,407 Crore (USD 22,276.34 Mn) comprising deposits to the tune of Rs.1,25,746 Crore (USD 14,711.44 Mn) and advances to the tune of Rs.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 Rs.31,530 Crore as of March 2025 from Rs.40,605 Crore in March 2024 and Net NPA declined to Rs.7,353 Crore as of March 2025 from Rs.11,823 Crore in March 2024. The cumulative Cash

Recovery including Recovery in written off accounts stood at Rs.11,131 Crore and upgradation at Rs.672 Crore during FY 2024-25. Bank has recovered Rs.8,534 Crore under recovery in written off accounts during FY 2024-25. Slippage during the year has contained to Rs.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 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 Rs.1,900 Crore and 5168 accounts were settled / closed / upgraded amounting to Rs.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 Rs.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 Rs.34,508 Crore. Out of which, 305 cases admitted by NCLT with our Bank's aggregate admitted claim of Rs.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 Rs.2,600 Crore through cases referred to NCLT. As on March 2025, the outstanding Stressed Assets Portfolio (including restructured Standard Accounts) stood at Rs.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 brief overview of various risk management processes of the Bank is furnished as under:

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 Rs.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 31st March 2025. The trading profit under domestic treasury operations during financial year is Rs.2,664.45 Crore including revaluation gain of Rs.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 Rs.2,10,569 Crore out of which the underwriting commitment accepted by RBI was Rs.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 of Financial Year 2024-25.

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

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 Rs.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 Rs.740.12 Crore and earned a commission of Rs.79.04 Lakh.

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

During the year we have earned Rs.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 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.

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.

PERSONNEL PROFILE

As at 31st 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 31st March 2025 is as under:

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

Our Bank has nominated Executives in the rank of CGM/GM as Chief Liaison Officers for SCs/STs/PwBDs/ Ex-servicemen and for OBCs / EWS respectively who ensure compliance of various Government guidelines pertaining to implementation of Reservation Policy in the Bank. Our Bank has also set up a Reservation Cell under the direct control of Chief Liaison Officers for monitoring Reservation and other matters related to SC / ST / OBC/EWS / PwBDs / Ex-Servicemen employees.

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.

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.

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 12th 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 20th February, 2025 by ‘Global Excellence Award' in the respective category in the 32nd 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 18th 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 04th 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 4th All India Official Language Conference on 14th 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 32nd 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.

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 checkup, 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.

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 31st 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 queries in shortest possible time and redressal of customer complaints within the timelines stipulated.

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.

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.

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. QR code, SMS, Email, WhatsApp, KIOSK.

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.

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

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.

Chat-bot Banking Service has also been introduced for General Public use. As of now 16 service are available in five languages 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 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 Rs.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 Rs.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, 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 11th 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).

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-today 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 QPR 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. Our Bank's Head Office is the Convenor of Town Official Language Implementation Committee (Banks) meetings at Bengaluru. Our Bank is also the Convener of 21 TOLICs at various Cities / Towns across the Country. Bank has secured numerous Shields and Certificates Pan India, awarded by various TOLIC committees for the best implementation of OL. TOLIC (Bank) Bengaluru has been adjudged best performing TOLIC in the country Further, TOLIC (Bank) Bengaluru has also won the 1st prize under Southern Region for commendable performance in implementing the OL policy of the Union.

Our Bank has secured prizes from Regional Implementation Office for commendable performance in implementation of Official Language during the year.

In order to accelerate OL implementation, Shields are being awarded to Offices and Branches under ‘Rajbhasha Akshay Yojana'. ‘Rajbhasha Puraskar Yojana' has also been conceptualized and put in place to motivate the employees towards effective OL implementation.

Canara bank has been awarded with "Rajbhasha Sammaan" Shield for outstanding performance in the field of Official Language by Rajbhasha Academy, New Delhi.

Banking related news in Hindi under the title "Aaj Ke Samachar" are included in Today's Tidings, a daily news brief. ‘HRD(e) light's, ‘NRI Bulletin' & ‘Staff Meeting Literature' are being brought out in Hindi as well on a monthly basis. Canara Jyoti, a quarterly Hindi house magazine to showcase the literary talent of our staff members in Hindi has received many accolades. Canara Bank's in-house magazines ‘Shreyas' and ‘Canara Jyoti' has been awarded the Global Brand Excellence Award by the World Brand Congress on 20.02.2025 for the year 2023-24.

Regional Language Cells i.e., Kannada cell, Tamil cell, Telugu cell, Marathi cell etc., are formed in Circle Offices located in Region ‘B' & ‘C'. Regional Language Cell under OL Section, HR Wing has been formed as the Nodal Cell for coordinating the usage of Regional Languages. "Hindi Mein Paricharcha", an innovative Discussion Programme in Hindi on contemporary banking subjects is being organized by all Administrative Units of the bank on a quarterly basis.

Bank has established Hindi library at HO, COs & ROs for motivating employees to read books in Hindi. A Digital Library portal has also been initiated and made available to all the employees.

VIGILANCE SETUP

The Vigilance administration in the Bank constitutes Vigilance Wing at Head Office, Bengaluru, functioning under the Chief Vigilance Officer (CVO), assisted by an Additional Chief Vigilance Officer (ACVO) and two vigilance units at Delhi and Mumbai, functioning under two ACVOs. This apart, all the three ACVOs also undertake vigilance administration in the 4 Regional Rural Banks

(RRBs) and 9 subsidiaries of the Bank.

The Vigilance Administration in the Bank extends to the different verticals of the Bank, viz., Circle Offices and Regional Offices, through the Vigilance Officers posted at the Circles and Regions.

The said Vigilance set-up in the Bank ensures carrying out of the three major Vigilance functions in the Bank, viz., Preventive, Participative (Surveillance & Detection) and Punitive Vigilance.

As a Preventive Vigilance measure, the Vigilance set-up in the Bank ensure conduct of Surprise visits by Circle Vigilance Officers to Branches, conduct of Monthly Preventive Vigilance Meetings in the branches, preparation and maintenance of agreed List and Officers of Doubtful Integrity, Periodic review of Sensitive Postings in Bank & timely rotation of officials in sensitive posts, etc. Further, the Vigilance Wing at Head Office, is publishing a Quarterly Magazine in the name of "Canara Vigil" covering all the vigilance related activities conducted in the Bank and a Monthly Bulletin on Preventive Vigilance, for the benefit of employees of the Bank.

During the financial year, the Vigilance Wing at Head Office, has conducted Capacity Building Programmes under the aegis of Central Vigilance Commission (CVC) at Trivandrum and Bengaluru for the benefit of the Chief Vigilance Officers & Vigilance Officers of PSUs / PSBs. Further, the Wing also extended necessary support for the said programme conducted by Kerala Gramin Bank (one of the RRB sponsored by the Bank) at Trivandrum, again under the aegis of Central Vigilance

Commission.

The Vigilance Wing at Head Office and the two Vigilance Units at Delhi and Mumbai, respectively ensure timely processing of various disciplinary matters referred by the Internal Advisory Committee (IAC) and Disciplinary Authorities (DAs) and conveying of the decisions of the CVO / ACVO in such matters. Also, complaints received from various quarters including CVC / RBI / DFS / CBI, are examined thoroughly and dealt appropriately in line with the CVC guidelines and Staff Accountability Policy of the Bank.

During the financial year, the Wing as per the directions of the Central Vigilance Commission had observed, "Vigilance Awareness Week" from 28.10.2024 to 03.11.2024 with the theme, "Culture of Integrity for Nation's Prosperity" and various activities such as Walkathon, Quiz contest, Seminars, Essay writing competition & several outreach programmes were conducted during the week to create awareness among the general public.

For monitoring the functions of Vigilance Officers in the Circle Offices / Regional Offices, the Vigilance Wing has developed an exclusive package, "Preventive Vigilance Management System (PVMS)", where the Branch visits by the Vigilance Officers, their observations and rectification of observations are followed up and the data on the same are generated on a real time basis.

The Wing during the financial year has implemented "Vigilance Risk Perception Index (VRPI)", for evaluating level of compliance at Circles and Regions based on various Vigilance Risk Parameters.

The Wing is continuously suggesting the Management on possible improvements in the existing systems & procedures by way of suggesting Systemic Improvements. As many as 10 systemic improvements suggested by the Wing has been implemented by the Bank during the financial year 2024-25.

Implementation of Indian Accounting Standards

As per RBI guidelines, the Bank is in the process of implementing the Indian Accounting Standards (Ind

AS). A Project Steering Committee headed by Executive Director has been formed to take the required steps on a continuous basis for smooth convergence. RBI, vide its communication ref: DBR.BP.BC.No.29/21.07.001/ 2018-19 dated 22nd March, 2019 has deferred implementation of Ind AS for all Scheduled Commercial

Banks till further notice. Bank is submitting pro-forma financial Statements to RBI on half-yearly basis as per the guidelines of RBI.

FINANCIAL SUPERMARKET

Canara Bank, with an objective of offering ‘One Stop Banking' facilities for the customers, forayed into diversified business activities by opening subsidiaries during late 1980s. Today, the Bank functions as a ‘Financial Supermarket', with eight Domestic Subsidiaries, five associates and one joint venture. All the Domestic Subsidiaries / Associate / Joint Venture of the Bank recorded satisfactory performance during the year 2024-25. CRMF Trustee Private Limited is yet to commence it's operations. RBI has identified Canara Group as a bank led Financial Conglomerate and Canara Bank as the designated entity for the group.

CAN FIN HOMES LIMITED (CFHL):

M/s Can Fin Homes Limited, a sponsored entity of Canara Bank is one of the premier housing finance entities in the country. The bank holds 29.99% stake with the company. The loans outstanding of the Company as at March 2025 were Rs.38,217 Crore. The Company earned a Net Profit of Rs. 857.16 Crore as against Rs.750.69 Crore in the previous year, with y-o-y growth of 14.18%. Gross NPAs of the Company was Rs.333 Crore (0.87%) and Net NPA was Rs.174 Crore (0.46%) as on 31.03.2025. The Company has provided an interim dividend of 300% and also declared final dividend of 300% for FY 2024-25.

CANARA HSBC LIFE INSURANCE COMPANY LIMITED:

M/s Canara HSBC Life Insurance Company Ltd (CHLIC) is a Life Insurance Joint Venture floated by the Bank in association with HSBC Insurance (Asia Pacific) Holding Limited and Punjab National Bank in the year 2007. The JV commenced its business operations with effect from 16.06.2008, with majority shareholding of 51% by Canara Bank, followed by HSBC (26%) and Punjab National Bank (23%). The Company recorded net premium of Rs.7,850.24 Crore during the year.

The Company registered Net Profit of Rs.116.98 Crore for FY 2024-25. The company has declared final 4% for the year 2024-25.

CANARA ROBECO ASSET MANAGEMENT COMPANY LIMITED (CRAMC):

M/s Canara Robeco Asset Management Company Limited is a joint venture (JV) of Canara Bank and M/s Orix Corporation, Japan with Canara Bank holding 51% Stake. The Company is currently managing 25 Mutual Fund Schemes with a mix of equity, balanced and debt schemes. The Company has registered a net profit of Rs.182.68 Crore and has provided an interim dividend of 10% and also declared final dividend of 15% for FY 2024-25.

CANARA BANK SECURITIES LIMITED (CBSL):

M/s Canara Bank Securities Limited is a wholly owned subsidiary of the Bank. CBSL has taken over the Depository participant services from Canara Bank w.e.f. 01.04.2017. M/s Canara Bank Securities Ltd. is extending Demat Services (Depository Participant), Online Trading, e-Insurance and distribution of Financial products. The Company offers stock broking services to both institutional and retail clients. The Company has registered a net profit ofRs.7.90 Crore for the year 2024-25. The Company has declared finaldividend of 12.5% for FY 2024-25.

CANBANK FACTORS LIMITED (CFL):

M/s Canbank Factors Limited is a factoring subsidiary of the Bank with 70% stake held by the Bank. During 2024-25, the Company had a total business turnover of Rs.1,196.25 Crore, registering net profit of Rs.2.72 Crore.

CANBANK VENTURE CAPITAL FUND LIMITED (CVCFL):

M/s Canbank Venture Capital Fund Limited is a wholly owned subsidiary of the Bank and the Trustee and Manager of Canbank Venture Capital Fund Trust. The company presently managing 3 funds including Fund of Fund with present total AUM of Rs.252.00 Crore.

The Company recorded a net profit of Rs.0.28 Crore during the year 2024-2025. The Company has provided interim dividend of 400% for FY 2024-25.

CANBANK COMPUTER SERVICES LIMITED (CCSL):

M/s Canbank Computer Services Limited is the only Software Company promoted by a Public Sector Bank in the country, with a 69.14% shareholding by the Bank. CCSL is mainly engaged in IT and Software development services, BPO services, ATM / Any Time Payment services, Training, Consultancy and R&T agent. The Company has posted net profit of Rs.14.98 Crore for FY 2024-25.

The Company has provided an interim dividend of 50% FY 2024-25.

CANBANK FINANCIAL SERVICES LIMITED (CANFINA):

M/s Canbank Financial Services Limited is confining its activities to legal matter arising out of past transactions in securities and recovery of dues under decreed accounts. Company has posted a profit ofRs.21.75 Crore for the year 2024-25 by way of receipt of dividends, interest received on Bank deposits and amount pertaining to pending litigations. The Company has provided an interim dividend of 36.67% for FY 2024-25.

HIGHER EDUCATION FINANCING AGENCY (HEFA):

Higher Education Financing Agency (HEFA), is a not-for-profit organization, set up by the Bank under a joint venture share holder agreement with the Ministry of Education (MoE), Government of India.

HEFA has been set up for developing the educational infrastructure, including R&D infrastructure thereby enabling the institutions to reach top rankings globally. As on 31.03.2025, MoE has infused Capital of Rs.4,812.50 Crore and Canara Bank has contributed Rs.481.25 Crore respectively. The total loans sanctioned till 31.03.2025 is Rs.43,437.58 Crore and disbursement stood at Rs. 22,600.83 Crore.

HEFA has disbursed Rs.2,632.58 Crore of loans to different institutions during FY 2024-25 and Bank has received Rs.19.82 Crore of Management Fee from HEFA.

REGIONAL RURAL BANKS (RRBs)

As at March 2025, the Bank had four sponsored RRBs, viz., Andhra Pragathi Grameena Bank (APGB) in Andhra

Pradesh, Kerala Gramin Bank (KeGB) in Kerala, Karnataka

Gramin Bank (KaGB) and Karnataka Vikas Grameena Bank (KVGB) in Karnataka.

Andhra Pragathi Grameena Bank (APGB) operates in

10 districts of Andhra Pradesh with 551 branches and 98 ATMs. Total business of the Bank as at March 2025 is Rs.50,757 Crore (Unaudited). (Deposits: Rs.23,667 Crore Advances: Rs.27,090 Crore).

Kerala Gramin Bank (KeGB) operates in all 14 districts of Kerala with 634 branches & 269 ATMs. The total business of the Bank as at March 2025 is Rs.54,989 Crore (Unaudited). (Deposits: Rs.27,427 Crore, Advances: Rs.27,562 Crore).

Karnataka Gramin Bank (KaGB) operates in 22 districts of Karnataka with 1122 branches & 172 ATMs. The total business of the Bank as at March 2025 is Rs.66,137 Crore (Unaudited). (Deposits: Rs.35,129 Crore, Advances: Rs.31,008 Crore).

Karnataka Vikas Grameena Bank (KVGB) operates in 9 districts of Karnataka with 629 branches & 50 ATMs. The total business of the Bank as at March 2025 is Rs.38,514 Crore (Unaudited). (Deposits: Rs.20,941 Crore, Advances: Rs.17,573 Crore).

Aggregate business of the RRBs increased to Rs.2,10,395 Crore as at March 2025 comprising of Deposits of Rs.1,07,162 Crore and Advances of Rs.1,03,233 Crore.

Through the Bank's infrastructure support, the RRBs are extending facilities, like, ATM cum Debit Card services. The sponsored RRBs are 100% CBS compliant and are ahead of their peer RRBs under technology front by extending IT based products, like Internet Banking, Mobile Banking, RuPay Debit Card services, Account Aggregator and also Aadhaar enabled services and remittance facilities through NEFT / RTGS to their customers.

CORPORATE SOCIAL RESPONSIBILITY

Our Bank remains committed to Corporate Social

Responsibility (CSR), towards betterment of the society at large through various activities like training unemployed rural youth, scholarship to meritorious SC / ST Girl students, renovation of schools and providing of other infrastructural facilities to needy educational institutes, providing primary health care, drinking water, community development, empowerment of women, environment protection, Swatch Bharat and other social initiatives.

Major initiatives of the Canara Bank under CSR have been the setting up of Trusts and Institutions which have created an impact in serving the people and society at large. Bank has also been partnering with like-minded organizations for CSR activities in the area of livelihood creation, education, health and environment and participated in meaningful activities.

Under Corporate Social Responsibility (CSR), Canara Bank has undertaken various social initiatives and have spent a total outlay of Rs.9,181.78 lakhs. A few social initiatives are outlined below.

Education: Bank has taken up initiatives to promote education and skill development in the country. Our Bank has contributed towards providing infrastructure to schools, books and school essentials for students, setting up of Digital classrooms, computer labs, libraries etc. especially in the rural areas of our country.

Canara Bank Dr.Ambedkar Vidya Jyothi Scholarship Scheme to meritorious SC / ST Girl Students. During FY 2024-25, 43290 students have been provided with scholarships to the tune of Rs.1,769.48 Lakhs.

The details of major CSR projects under education sector sanctioned in the financial year 2024-25 are mentioned below:

Health: Bank has undertaken various initiatives to support the health sector including hospitals, health centres, clinics, laboratories etc., The details of major

CSR projects under health sector sanctioned in the financial year 2024-25 are mentioned below:

Poverty and Nutrition: Bank has undertaken various initiatives to alleviate poverty and improve nutrition in the country. Bank has taken initiatives to provide food & nutrition to underprivileged people through temples, orphanages, old age homes etc. Details of Major CSR initiatives taken under Poverty and Nutrition sector are given below:

Environmental Protection: Bank has undertaken initiatives to protect the environment and promote sustainability. Bank has implemented green initiatives, such as installation of solar panels, solar power plants, grids, water harvesting systems, bio gas plants in Govt schools, Universities, Panchayats etc. to promote environment protection. Details of

Major CSR initiatives taken under Environmental Protection sector are given below:

Swachh Bharat: Bank has taken up initiatives to support the Swachh Bharat Mission, and various other activities have been supported under the sector. The major CSR activities under Swachh Bharat sector are mentioned below:

Assistance to Divyangjan: Bank has taken various initiatives to empower Divyangjan and some of the major activities during the year are as under:

Skill Development: The Bank has sponsored / co-sponsored 67 RSETIs & RUDSETIs, 5 CBIITs, 3 ATIs and 4 joint ventures which have trained more than 12.68 lakh unemployed youth so far, with a settlement rate of 74%.

Rural Development: Bank has taken up various initiatives to support the Rural Areas. The major activities are given below:

Sports initiatives were undertaken to support the sports sector. The Major activities are mentioned below:

Total sector wise assistance under CSR activities for the FY 2024-2025 is as under:

** The amount includes the reimbursement received from MoRD towards previous year BPL training claims in case of RSETIs & RUDSETI & other income which is also spend in the FY 2024 - 25.

Canara Bank has received award with second top runner-up in the top improvers category of the Ease 6.0 Banking Reform Citation Award 2024 on dated March 17, 2025.

Canara Bank has received The Golden Globe Tiger Award for "Excellence in Training" initiated by World HRD Congress held at Kuala Lumpur, Malaysia on 08.05.2024.

Canara Bank has received Green Warrior award for Execution of Digital & Paperless documentation in Gold Loans organized by the NeSL (National e-Governance Services Limited) at IIM Bangalore on 19th April 2024

Canara Bank has received runner-up award under the category "IT Risk & Cyber Security Initiatives" under IBEX Awards 2025 on dated 13th February 2025.

Canara Bank In-House Magazine "Shreyas" and Hindi Magazine "Canara Jyoti" won award under the Best In-House Magazine category in the 32nd Edition of Global Brand Excellence Awards conducted by World Brand Congress. The award ceremony was held on 20.02.2025 at Taj Lands' End, Mumbai.

Canara Bank is proud to announce that it has been conferred with the "PSU Data Quality Champion - FY 25" and won the Award for overall Best Data Quality amongst all Public Sector Banks in the conference organized by TransUnion CIBIL at Mumbai on 12/02/2025. The Award was accepted on behalf of the Bank by DGM Shri R V R S Subbarao.

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

Canara Bank has been awarded at the 18th Global communication conclave of Public relation Council of India for Inhouse magazine "Shreyas" - bilingual publications and "Canara Jyothi" - Hindi publication for excellence in Communication on 9th November 2024.

Canara Bank has received "IBSi Global Fintech Innovation Awards - Mule Detection using ML" at the 6th Global FinTech Innovation Awards 2024 on 22.11.2024 at Mumbai.

The Indian Green Building Council felicitated Canara Bank with IGBC Green Champion Award 2024 in the category of leading Financial Sector with large-scale adoption of Green Bank Branches during World GBC on 14-16 November 2024 at the 22nd Green Building Congress 2024 in Bangalore.

Canara Bank was conferred with the prestigious

Rajbhasha Kirti Puraskar in region ‘C' for the bank's quarterly in-house magazine ‘Canara Jyoti' by Hon'ble Union Minister of Home Affairs & Cooperation Shri. Amit Shah during the 4th All India Official Language Conference held on 14th September 2024, during Hindi Diwas celebrations.

Canara Bank has received the third prize in Region ‘C' for excellent official language implementation in the 2-day seminar organized by the Department of Financial Services, Ministry of Finance, Government of

India on 22.08.2024 and 23.08.2024.

Canara Bank has been awarded for ‘Excellent Practices and Adoption of ESG Initiatives' at the 2nd ICC Emerging Asia Banking Conclave 2024, organized by the Indian Chamber of Commerce (ICC) on 23rd August 2024.

Canara Bank was awarded First Prize under category of Best Lenders (both Public & Private sector) for outstanding achievement under PM SVANidhi

2023-24.

Canara Bank has been felicitated with the prestigious "2nd Rank" in Public Sector Banks under PM SVANidhi ‘PRAISE" Awards 2023-24" in Karnataka State.

Canara Bank has received Finnoviti Award for ‘CANARA

Digital Rupee' application on 19th June 2024.

CHANGE IN DIRECTORS, INCLUDING MANAGING DIRECTOR / WHOLE-TIME DIRECTOR

#Ms Nalini Padmanabhan has been re-nominated by Central Government as Part-Time Non-Official Director of the Bank w.e.f 11.04.2025.

Cessations:

1. Ms. Nalini Padmanabhan, was appointed as Part-Time Non-Official Director w.e.f. 21.12.2021, by the Central Government under Clause (h) of Sub-Section (3) and Sub section (3A) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of three years with effect from the date of assumption of office or until further orders, whichever is earlier. She was cessated on 20.12.2024.

2. Shri. R Kesavan, was appointed as RBI Nominee Director w.e.f. 26.04.2019, by the Central Government under clause (c) of sub-section (3) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, to hold the post until further orders. He was cessated on 04.08.2024.

3. Shri. Dibakar Prasad Harichandan was appointed as Part-Time Non-Official Director w.e.f. 21.03.2022, by the Central Government under Clause (h) of Sub-Section (3) and Sub section (3A) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of three years with effect from the date of assumption of office or until further orders, whichever is earlier. He was cessated on 20.03.2025.

4. Shri. Karunakara Shetty was elected as Shareholder Director w.e.f 30.11.2021, under clause (i) of Sub

Section (3) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 / 1980, read with Sub clause (1) of Clause 3 of the Nationalised Banks (Management Miscellaneous Provisions) Scheme 1970 / 1980, Canara Bank (Shares and Meetings) Regulations, 2000 for a period of three years. He was cessated on 29.11.2024.

Appointments:

1. Shri. Rohit Das was appointed as RBI Nominee

Director w.e.f. 05.08.2024, by the Central Government under clause (c) of sub-section (3) of

Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 to hold the post until further orders.

2. Shri. Hemant Buch was elected as Shareholder

Director of the Bank w.e.f. 30.11.2024 u/s 9 (3) (i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of 3 years. i.e. upto 29.11.2027.

3. Shri. S K Majumdar was appointed as Executive Director w.e.f 24.03.2025, by the Central Government under clause (a) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of three years, with effect from the date of assumption of charge of the post or until further orders, whichever is earlier.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors, in preparation of the annual accounts for the year ended March 31, 2025, confirm the following:

• That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures.

That they had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the

Bank at the end of the financial year and of the profit or loss of the Bank for the period.

That they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities.

That they had prepared the annual accounts on a going concern basis.

Internal financial controls followed by the Bank are in accordance with guidelines and that such internal financial controls are adequate and were operating effectively.

The directors had devised proper systems to ensure compliance with the provision of all applicable laws and that such systems were adequate and operating effectively.

SECRETARIAL AUDIT FOR FINANCIAL YEAR 2024-25

Pursuant to the requirements of Regulation 24A of the SEBI (LODR) Regulations, 2015 & SEBI Circular CIR / CFD/ CMD1 / 27 / 2019 dated February 08, 2019, the Bank has appointed Kedarnath & Karthik, Practicing Company Secretaries (ICSI FRN: P2023KR098600) as the Secretarial

Auditor for the financial year 2024-25 and their report addressed to the members of the Bank which forms part of this Annual Report is attached as an annexure to the Board's report.

ACKNOWLEDGEMENT

The Board wishes to place on record its sincere appreciation to the customers for their patronage, to the shareholders for their support, to the Government authorities and the Reserve Bank of India for their valuable guidance and support, to the Directors who completed their tenure during the financial year under review, to the Bank's Correspondents in India and abroad for their co-operation and goodwill and to all the Staff Members for their full support in the pursuit of organizational growth and excellence.