A STUDY ON FACTORS INFLUENCING CUSTOMER

PERCEPTION ON CANARA BANKS PRODUCT AND SERVICES

At
CANARA BANK

SUMMER INTERNSHIP

Submitted to

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

(Affiliated to Mahatma Gandhi University, KOTTAYAM)

In partial fulfillment of the requirements for the award

Of

MASTERS DEGREE IN BUSINESS ADMINISTRATION (MBA)

(2017-2019)

By
KARTHIK G S
Reg. No: 16210053

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

RAJAGIRI VALLEY P.O
KOCHI-682039
 DECLARATION

I, KARTHIK G S hereby declare that this internship report is a record of

work carried out by me at Canara Bank during the period from 1 st April to
31st May 2018 under the guidance of Dr. BALAKRISHNAN MENON,
Faculty, Rajagiri College of Social Sciences (Autonomous).

This study was undertaken in partial fulfillment of the requirement of the

award of the Masters in Business Administration in Rajagiri College of
Social Sciences (Autonomous).

I also declare that this report has not been submitted to any other
university/board for the award of any degree/diploma.

Place: Kochi Karthik G S

Date:
 ACKNOWLEDGEMENT

The gratification and elation of this project will be incomplete without mentioning
all the people who helped me to make it possible, whose guidance and
encouragement were valuable to me.

First of all, I thank the God Almighty for his immense grace and blessings at each
and every stage of the organizational internship.

I take this opportunity to extend my sincere gratitude to Dr. Binoy Joseph,

Principal, Rajagiri College of Social Sciences (Autonomous), for providing this
opportunity of practical learning experience in the Organization.

I am thankful to my Faculty Guide at Rajagiri College of Social Sciences

(Autonomous), Kochi, Kerala, Dr.Balakrishnan Menon for giving me his valuable
guidance to execute the Organization Study as per university requirements.

My sincere thanks to my project guide Mr. Sanil Kumar, Branch Manager for
giving me an opportunity to carry out my project study at Canara Bank and for
sparing their valuable time for the same. It was a learning experience to work with
them. I would like to record my deepest sense of gratitude to my friends who
encouraged me for making this Organisation Study a success.

-KARTHIK G S
 EXECUTIVE SUMMARY

Canara Bank is a leading public sector bank established on July 1, 1906 in the
town of Mangalore in Karnataka by Shri Ammembal Subba Rao Pai, an eminent
lawyer, educationist and social reformer. The bank has already completed 100
years of service. It provides all sorts of financial services ranging from loans to
insurance. Net profit for the year March 2017 was Rs 1122 Cores.

The report basically deals with the organization study of Canara bank. It mentions
about the brief introduction to banking industry, history of the bank, departments,
organization structure, and details about products & services. A brief view of the
HRD practices of the bank has been given in the report. The report also contains
the financial performance of the bank for last 2 years.

During the study a research was conducted to find out of Factors influencing
customer perception towards service and products of Canara Bank. Questionnaire
was used to collect data from respondents. Respondents were customers and other
people from locality of the bank. From this research we would be able to
understand what are the factor which influences the customer‟s perception about
the banks products and service and how satisfied are the customers towards the
product and services of the bank. This information may help the company to
change the existing policies or reframe them in order to stimulate the demand for
the product and service.

The open work culture, commitment and the co-operation among the employees
remarkable adaptability to changing banking environment have enabled Canara
Bank to be a “Frontline banking institution of global standards”.
 SECTION-I
PROFILE STUDY OF THE
ORGANIZATION
 1. INDUSTRY PROFILE

In the present scenario service sector plays an important role in the country.
Among service sector banking industry is one. Banking is one of the classical
economic functions and plays a vital role in economic development.

India has a well developed banking system. Most of the banks in India were
founded by Indian entrepreneurs and visionaries in the pre-independence era to
provide financial assistance to traders, agriculturists and budding Indian industries.
Indian banks have played a significant role in the development of Indian economy
by inculcating the habit of saving in Indians and by lending finance to Indian
Industry.

Indian Banks can be broadly classified in to Nationalized Banks, Private

Banks and Foreign Banks. Currently, India has 88 scheduled commercial banks 28
public sector banks (that is with the Government of India holding a stake), 29
private banks (these do not have government stake; they may be publicly listed and
traded on stock exchanges) and 31 foreign banks.

The commercial banking structure in India consists of scheduled commercial

banks and unscheduled Commercial Banks and unscheduled Banks. Schedule
Commercial Banks Constituted those banks. Which have been included in the
second schedule of Reserve Bank of India (RBI) Act 1934 RBI includes only those
banks in the schedule which satisfy the criteria laid down vide section 42(6)(a) of
the Act.

The government‟s policy for Indian bank since 1969 has paid rich dividends
with the nationalisation of 14 major private banks of India. Not long ago, an
account holder had to wait for hours at the bank counters for getting a draft or for
withdrawing his own money.
Today he has a choice. Gone are days when the most efficient banks transferred
money from one branch to other in two days. Now money transaction to any corner
of the country within a few minutes is possible by the advent of technology.

The milestones of Indian banking industry are:

The first bank in India, though conservative was established in 1786. From
1786 till today the journey of Indian Banking system can be segregated into three
distinct phase. They are as mentioned bellow.

 Early phase from 1786 to 1969 of Indian Banks

 Nationalisation of Indian Banks and up to 1991 prior to Indian Banking

sector reforms.

 New phase of Indian Banking system with advent of Indian Financial and
Banking sector reforms after 1991.

Phase 1

The General Bank of India was set up in the year 1786. Next was come
Bank of Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809). Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which started as
private share holders banks mostly Europeans Shareholders.

In 1865 Allahabad Bank was established and first time exclusively Indians,
Punjab national Bank Ltd, was set up in 1894 with head quarters at Lahore.
Between 1906 and 1913, Bank of India central, Bank of India, Bank of Borada,
Canara Bank, Indian Bank of Mysore were set up. Reserve Bank of India came in
1935.
During the first phase the growth was very slow and bank also experienced
periodic failures between 1913 and 1948. There were approximately 1100 Banks,
mostly small to streamline the functioning and activities of commercial Banks. The
Government of India came up with the banking companies Act, 1949 which was
later changed to Banking Regulation Act 2949 as per amending Act of 1965 (Act
No.23 of 1965).

Phase 2

Government took major steps in this Indian Banking sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive
Banking facilities on a large scale especially in rural and semi-urban areas. It
formedState Bank of India to act as the principal agent of RBI and to handle
Banking transactions of the Union and state Governments all over the country.

Seven Banks forming subsidiary of state Bank of India was nationalised in

1960 on 19th July, 1969, major process of nationalisation was carried out. It was
the effort of the then Prime Minister of India. Mrs. Indira Gandhi 14 major
commercial Banks in the country was nationalised. Second Phase of nationalisation
Indian banking sector reform was carried out in 1990 with seven more Banks. This
step bought 80% of the Banking segment in India under Government ownership.

The following are the steps taken by the Government of India to regulate Banking
Institutions in the country.

 1944: Enactment of Banking Regulation Act.

 1955: Nationalisation of State Bank of India

 1959: Nationalisation of SBI subsidiaries

 1961: Insurance cover extended to deposits.

 1969: Nationalisation of 14 major Bank.

 1971: Creation of credit guarantee corporation.

 1975: Creation of regional rural Banks

 1980: Nationalisation of seven Banks with deposits over 200 crore.

After the nationalisation of Banks, the branches of the public sector bank
India rose to approximately 800% in deposits and advances took a huge jump by
11,000%.

Banking in the sunshine of Government ownership gave the public implicit

faith and immense confidence about the sustainability of these institutions.

Phase3

This phase has introduced many more product and facilities in the Banking
sector in its reforms measure. In 1991, under the chairmanship of M. Narasimhann
a committee was set up by his name which worked for the liberalization of banking
practices.

The country is flooded with foreign Banks and their ATM stations. Efforts are
being put to give satisfactory service customers. Phone Banking and Net Banking
is introduced. The entire system became more convenient and swift. Time is given
more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East
Asian countries suffered. This is all due to a flexible exchange rate regime, the
foreign reserves are high, the capital account is not yet fully convertible, and banks
and their customer have limited foreign exchange exposure.
Core Banking System (CBS)

Every Bank is targeting in reduction of its transaction costs. All branches of

the Banks are switching for live transaction mode. This system integration of Core
Banking was implemented and supported by software companies like Infosys,
TCS, WIPRO people soft etc. Until now CBS is adopted by most of the Banks like
Canara Bank, SBI, HDFC, City Bank, UTI Bank etc.
 2. COMPANY PROFILE

2.1 ABOUT THE BANK

Canara bank is one of the leading commercial banks in India. The bank
celebrated its centenary in 2006 and has occupied a preeminent position among the
Indian banking majors both under business volumes and earnings. The bank has
led the Indian Public Sector Banks under aggregate business. Canara bank in
financial year 2011 surpassed yet another milestone of Rs. 5 lakh crore in total
business to attain the status of the „Systematically Important Financial Institution‟
in the country. The banks net profit crossed Rs. 4000 crore mark in 2011. As one
of the leading public sector banks in India, Canara Bank during 2016-17, further
expanded its network by adding 930 branches and 2221ATMs, taking the number
of branches to 5800 and ATMs to 8533 as at March 2017. The Bank is catering to
6.6 crore customer accounts. The Bank continues to invest in delivery channels, IT
infrastructure, customer service, business process reengineering, innovative
products/services and staff knowledge to strengthen market position.

2.2 HISTORY

Canara Bank was founded in 1906 by Sri, Ammembal Subba Rao Pai. The
bank was initially named as Canara Bank Hindu Permanent Fund. It blossomed in
to a limited company in 1910 and was renamed as Canara Bank Ltd, in 1969 the
bank was nationalised and thereafter came to be known as Canara Bank. The
Canara Bank has undergone various phases in its growth path over 106 years of its
existence. The Canara Bank, established in 1906, could open its first branch only
in the year 1933, i.e. after 28 years, but after that it started steadily spreading its
wings by establishing new branches across the country and could cross 100
numbers in 1961. The Canara Bank added new branches every year, taking the
total branch network to 5800 including 289 specialized branches as on 31st March
2017.

2.3 NATURE OF THE BUSINESS CARRIED

Canara Bank group‟s principal activities are to provide a full range of

Banking and other financial services through 2,578 Branch Offices in India and
Abroad. The service includes accepting deposits, commercial and institutional
credit, treasury, investment, risk management and other related financial services.
It operates through two segments. Banking operations consist of corporate
Banking. Retail Banking, personal and commercial Banking, Cash management
services, Deposits and other allied services. Treasury operations consist of dealing
in SLR and Non-SLR securities and Money Market operation.

2.4 VISION, MISSION AND QUALITY POLICY

"A good bank is not only the financial heart of the community, but also
one with an obligation of helping in every possible manner to improve the
economic conditions of the common people" - A. Subba Rao Pai

CORPORATE VISION:

To emerge as a world class Bank with best Practices in realms of asset

portfolio, Customer orientation, product innovation, Profitability and enhanced
value to stake holders.
 CORPORATE MISSION:

 Augmenting low cost Deposits

 Threat on Retail lending

 Toning up Asset Quality

 Assent on cost control

 Product innovation and marketing

 Customer Centric focus

 Leveraging IT for comprehensive MIS

 Maximizing stake Holders Value.

CORPORATE OBJECTIVES:

 Efficiency

 Profitability and Productivity

 Organizational Effectiveness.

 Customer Centric

 Hi-tech Banking
2.5 ORGANIZATION STRUCTURE

The board of the Canara Bank has been constituted under section 9(3) of the
banking companies (Acquisition and Transfer of undertaking) Act 1970 and the
Nationalized Bank (Management and Miscellaneous Provision) Scheme1970.

The Board of the Bank, i.e. the board of directors of the bank, which
manages the entire affairs of the Canara bank, consists of eminent personalities,
who through their rich and various experiences in banking and other related fields
have made significant contributions towards the progress of the bank. The
composition of members of the Board as on 31-03-2012 are the chairman and
managing director, two executive directors, four directors each representing the
government of India, Reserve Bank of India, workmen employee, officer
employee, one part-time non-official director under chartered account category and
two shareholder directors.

Apart from the board of directors, audit committee of the board,

remuneration committee, shareholders and investors grievances committee,
management committee of the board, risk management committee, and Asset
Liability Management Committee, with their directivity demarcated role and
adherence to ethical standards for effective management, discharge their duties for
sustainable development of all its stakeholders in particular and the society in
general.
Figure2.1 Organization Structure

Figure2.2 Branch Structure

2.6 ORGANISATION AND SUPPORT SERVICES

Branch Network

The Bank undertook branch expansion drive in 2016-17 and added 239 domestic
branches during the year. As at March 2017, the Bank had 6083 branches,
including 8 overseas branches.

Composition of Branch Network

No. of Branches

Category 31.03.2016 31.03.2017

Metropolitan 1019 1228

Urban 1142 1138

Semi-urban 1815 1936

Rural 1865 1773

Overseas 8 8

Total
Branches 5849 6083

Table2.1: Branch Network

Categories of Specialized
Branches 31.03.2017

SME 166

Mid Corporate 26

Micro Finance 18

Asset Recovery Management 19

Prime Corporate 12

Overseas 11

Agri-Finance 9

NRI 7

Savings 2

Industrial Finance 3

Stock Exchange 2

Capital Market 1

Mahila Banking 2

Branch for Physically

Challenged 1

Specialized Govt Business

Branch 6

TOTAL 285

Table2.2: Specialized Branches

Overall Branches

The bank has 07 overseas branches one each at London, Leicester, Hong

Kong and Shanghai, Manama, Johannesburg.

Specialized Branches

Canara bank has 285 specialized branches catering to the specific clientele

segment.

2.7 FUNCTIONAL DEPARTMENTS

Accounts Department

This department handles all the payments and receipts made by the
organization. It also manages the accounts which include the accounts of money
transfer. It also handles various expenses and monitoring the asset of the
organization.

Finance Department

Funding operations, funding control etc. are taken care of by the finance
department. At the end of the financial year the preparation of balance sheet to
ascertain the profit and tax done by this department.

Purchase Department

This department handles all the purchase operations, printing and stationary,
stock maintenance, interior design etc. taken care of.

Internal Audit, Department Audit inspection in the organization is handled by this

department. They plays an important role in mitigating various operating risks
associated with the company.
Human Resource Department

HR department deals with the recruitment process, training and development

process and have the authority in leave and transfer process. It also deals in bank
operation and employee emoluments.

Allied products Department

This department deals with allied products like general insurance, mutual
funds and health insurance.

Business Development Department

This department deals with all marketing, corporate sales and customer care
functions.

2.8 BANKS PRODUCTS AND SERVICES

Canara Bank, apart from carrying out general banking functions, offers

specialized products and services to suit different segment of customers. It

categorizes the major functions under four broad areas:

i. Personal Banking

ii. Corporate Banking

iii. NRI Banking

 iv. Priority and SME credit

1. Personal Banking

Under personal banking, Canara bank offers various deposit schemes,

loan products, technology products, mutual funds, insurance business,

international services, card services, consultancy services, depository services

and ancillary services for the benefit of the individuals, joint accounts, minor

accounts, HUF, non-corporate bodies, clubs, societies, associations, schools,

trusts, executives/ administrators, government bodies and semi-government

departments.

1.2. Deposit Schemes

Deposit schemes include savings bank accounts, current accounts, fixed

deposits, recurring deposits and special deposit schemes. Special deposits

schemes comprises of Canara champ deposit scheme, Canara saral savings

scheme, Ashraya deposit scheme for senior citizens, Canara tax saver scheme,

Canara auto renewal deposit and SB gold scheme.

Canara Champ Deposit Scheme is basically a saving bank deposit for

children upto the age of 12 years. The special feature of this scheme is the

provision of loan eligibility card for educational loans. Canara saral savings
scheme is a savings bank product designed for the common man to provide a

basic banking facility as part of the financial inclusion objective of the RBI.

Ashraya deposit scheme extended by the bank is for the benefit of senior

citizens. Canara tax saver scheme is designed for salaried class, businessmen,

professionals who come under the ambit of tax payers. The amount deposited

under this scheme can be deducted under section 80C of the Income Tax Act

1961. The Canara auto renewal deposit is a term deposit scheme which has

built in features for automatic renewal of the deposit and the SB gold scheme

is a special scheme under which value added facilities at free of cost can be

availed provided a prescribed minimum balance on an average is maintained

in the savings bank account.

1.3.Loan Products

Loan products include housing loan, can mobile vehicle loan, can

pension loan for senior citizens, can rent, Canara Jeevan – reverse mortgage

loan scheme for the senior citizens, home improvement loan, can site,

teachers loan, can mortgage, doctor‟s choice, can cash, can budget, swarna

loan and can guide.

Housing loan is provided for the construction, purchase, repairs,

additions, renovations of residential house or flat including the purchase of

land and construction thereon to salaried individuals, individuals engaged in

business, professionals, self-employed persons and NRIs. Can Mobile is a

vehicle loan given to the salaried persons, professionals and business people

with qualifying income and required repayment capacity for buying new or

used four wheeler or two wheeler. Can pension scheme is especially for the

pensioners who draw pension through the Canara Bank branches to meet the

cost of medical expenses and other genuine needs.

Home improvement loan is a scheme which provides a packaged

financial assistance to the individuals for furnishing their houses or flats. Can

Site loan scheme is available to the individuals for the purchase of housing

sites from the state development/town planning development authorities,

central and state governments, local authorities either exclusively or in

partnership with private sector entities provided such layouts are duly

approved by the concerned statutory authority.

Canmortgage loan can be availed by professionals, businessmen,

salaried persons and those customers having satisfactory dealings with the

Canara Bank for meeting genuine needs by mortgaging the property. Swarna

Loan is provided to credit worthy savings bank account holders with

satisfactory dealings against gold jewellary.

1.4. Technological Products

Information technology influences, activates and controls every action

of the business world. In the banking sector which is a customer-centric,

introduction of information technology has become inevitable not only for

providing quality timely service but for cost saving.

Core banking solution is a combination of application software and

network devices which facilitates anywhere banking and anytime banking.

Through core banking solution, a branch customer is converted into a bank

customer. With further advancements in information technology and

telecommunications, banks are able to offer e-banking services. Through

electronic delivery channel like computers, telephones, mobile phones, ATMs

etc., bankers could provide products and services directly to the customers.

Canara Bank issues ATM-cum-Debit cards to the individuals as well as

to the joint account holders. It facilitates the customers to transact through

bank ATMs and other bank ATMs, purchase of goods and services to the

limit of Rs.20,000/- per day, mobile top-up, VISA money transfer and e-

ticketing.

Read Time Gross Settlement (RTGS) is an electronic payment system

in which large value funds are transferred from one bank to another on a real
time basis.National Electronic Funds Transfer (NEFT) is another electronic

payment system in which a small value funds are also transferred from one

bank to another at fixed intervals.

Internet Banking involves the use of internet for the delivery of banking

products and services. It facilitates the customers to have 24 hours access to

the account and information regarding banking products and services. It

facilitates payment of the bills for the services such as telecom, electricity,

cable and internet service providers, insurance, donations and charity, mutual

funds, travel and ticketing, loan repayments, online tax, credit card and online

shopping.

1.5. Mutual Fund

Canara Bank entered into the field of mutual funds by establishing

Canbank Mutual Fund in December 1987. Subsequently in 2007, Canara

Bank partnered with Robeco, a global asset management company in

Netherlands and renamed its Mutual Fund as Canara Robeco Mutual Fund.

Since then it is consistently growing by offering a range of investment options

including diversified and thematic equity schemes, hybrid and monthly

income funds and a wide range of debt and treasury products. Canara bank

has also tie-up with the Housing Development Finance Corporation (HDFC)
for cross-selling of their mutual fund products through their branches.

1.6. Insurance Business

i. Bancassurance (Non-life)

Canara Bank has tied up with the United India Insurance Company

Limited as a corporate agent for the distribution of general insurance products

without any risk participation.

ii. Bancassurance (Life)

Canara Bank has started a joint-venture Insurance Company namely

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.

In the share capital, Canara Bank has a stake of 51%, HSBC Insurance (Asia

Pacific) Holdings Limited 26% and oriental Bank of Commerce 23%. Further,

Canara Bank acts as a corporate agent for this joint-venture company.

1.7. International Services

Canara Bank entered the forex area in 1953 with the opening of its first

foreign exchange department in Mumbai. The Canara Bank has an excellent

worldwide correspondent relationship and has the capability to handle any

export, import, remittance and related transactions anywhere in the world and

in any currency.
 Non-fund based transactions like adding confirmations to Letter of

Credit (LC), issuing inward and outward bid bonds and guarantees,

establishing letter of credit for import into India, arranging buyer‟s credit at

attractive terms etc. are also the part of the services offered by the Canara

Bank.

1.8. Card Services

Canara Bank is the principal member of VISA worldwide and

Mastercard Inc. Canara Global Credit Cards enjoy the privilege of worldwide

acceptance and free insurance coverage.

1.9. Consultancy Services

Canara Bank offers specialized services to its individual customers like

executor, trustee, personal tax assistance and investment counselling, taxation

and attorneyship and to the corporate sector like debenture trustee services

and security trustee services.

1.10. Ancillary Services

Canara Bank offers various other services which are non-banking in

nature and general utility services like retail sale of gold coins, safe deposit

lockers facility, safe custody services, provision of nomination facility, 7 days

banking at select branches, extended banking hours etc.

2. Corporate Banking

Under corporate banking, Canara Bank offers various products and

schemes especially for the traders, businessmen and corporate bodies, etc.

Accounts and Deposits, cash management services, Term Loans, Goldcard

Scheme for Exporters, working capital finance, infrastructure financing,

Export Finance Schemes, syndication services, IPO monitoring activity,

merchant banking services, Technology Upgradation Fund Schemes (TUF

Schemes), Canara e-Tax, etc., are the products and schemes designed to suit

the requirements of the traders, businessmen and corporate bodies.

2.1. Cash Management Services

It is an innovative service offered by Canara Bank for the speedy

collection of cheques and other instruments, places corporate on a faster-

track. Agents or offices of corporate can deposit their bulk instruments of

small value to be cleared in the local clearing and instruct the bank to post the

funds at any one designated branch under bulk collection service.

2.2. Term Loan

Canara Bank offers term loan for both the industrial and non-industrial

borrowers i.e. both for the projects/activities involved in manufacturing/

processing/repairing and business/trading activities etc. Term loan is extended

in different form such as all rupee loans, foreign currency loans and deferred

payment guarantees.

2.3. Gold Card Scheme for Exporters

Under this scheme, eligible exporters depending upon their track record

and credit worthiness are granted better terms of export credit.

2.4. Working Capital Finance

Working Capital finance is extended by the Canara Bank in different

forms based on the requirement in the form of inventory limits (pre-sales),

finance against receivables (post-sales), non-fund based limits and short term

lending products.

2.5. Infrastructure Fund

Canara Bank, under consortium arrangement with term lending

financial institutions and other banks extends finance to the various

infrastructure projects.

2.6. Export Finance Schemes

Canara Bank offers pre-shipment finance, post-shipment finance,

foreign bank guarantee and foreign letters of credit to the units which

undertake or desirous of undertaking export business.

2.7. Syndication Services

It is a new value added fee based service of the Canara Bank for the

corporate customers. The service shall be either on “best efforts” basis or on

“underwriting” basis.

2.8. Merchant Banking Services

Canara Bank is a SEBI registered category 1 merchant banker to render

issue management, underwriting, consultancy and corporate advisory services

etc. to the banks, PSUs, state owned corporations, local statutory bodies and

corporate sector.

2.9. Technology Upgradation Fund Schemes (TUF Schemes)

Canara Bank has been appointed as a nodal agency for implementation

of the technology up gradation scheme of

 i. Ministry of Textiles

ii. Ministry of Micro Small Medium Entrepreneurs

iii. Ministry of Food Processing Industries

iv. Ministry of Consumer Affairs, Food and Public Distribution

The scheme is available for modernization/expansion of existing units

and for setting up of new units with bench mark level of technology in textile

and jute industry.

2.10. Canara e-Tax

Canara Bank provides the facility to pay the Direct Taxes, the Excise

and Service Tax and the Customs payment through internet to its customers.

3. NRI Banking

Specialized products and services are provided to the non-resident

customers apart from NRI deposits, NRI loans and advances like NRI

remittance facilities, NRI consultancy and NRI other services including safe

custody, nomination facility, safe deposit lockers, attorneyship services, NRI

service centres and facilities for returning Indians.

4. Priority and SME Credit

Canara Bank takes special efforts to finance small scale industry, small

business, agricultural activities and export activities by providing various

schemes and products under Priority and SME credit. Priority and SME credit

comprises of various products and services particularly offered to suit the

requirements of each and every wing of priority sector. The various schemes

and products under Priority and SME credit are,

4.1. Priority Credit

(i) Agriculture and Rural Credit Scheme

Kissan credit card, loans for agri clinics/ agri business centre, minor

irrigation/ pump set loan, farm machinery loans, farm development loans,

vehicle loan for agriculturists, loan for plantation crops, loan for marine

fisheries, loan for sericulture, loan for poultry and duck rearing, loan for cold

storage and rural godown, drip/sprinkle irrigation loans, dairy loan and raising

cross breed heifers, loan for construction of farm structures, Kisan suvidha,

General Credit Card Scheme (GCCS), Canara Kisan OD, Krishi mitra card

scheme, Kisan tatkal and gold loans for agricultural purposes.

(ii) Education loan and other priority sector loans.

Education loan for the students, Laghu Udyami Credit Card Schemes
(for small business units, retail traders, artisans, village industries, SSIs and

tiny units, P&SE and small entrepreneurs), loan for solar water heating

systems, direct financing to SHGs, lending to Micro Credit Groups, Finance

to NGOs for on-lending to SHGs etc.

(iii) Government Sponsored Schemes

There are two government sponsored schemes namely Swarna Jayanthi

Shahari Rozgar Yojana (SJSRY) -Urban self employment programme and

Swarna Jayanthi Gran Swarnozgar Yojana (SGSY) -Rural self employment

venture.

4.2. SME Credit

Loan products to the Micro, Small and Medium enterprises under the

Government of India schemes, schemes for capital investment, working

capital, composite requirements etc., are provided.

4.3. SME Marketing

The Canara Bank SME Sulabh, a dedicated SME marketing team

spreading across 15 centres in the country, choosing the right product to

match the credit needs, facilitates the documentation procedures, assets in

project appraisal and helps in adding value to the supply chain.

 Canara Bank is the front runner in providing various products and

schemes aimed to uplift poor, educated unemployed / under employed people

in rural/semi-urban/ urban areas, agriculturalists, small and medium

entrepreneurs and weaker sections under priority sector thereby participating

in the process of economic development in India.

4.4. Agri-Business Marketing Unit

The Canara Bank with Agri-Business Marketing Managers (ABMMS)

spread across 15 major locations in India, catering to the needs of

farmers/agri-preneurs with specific attention on the agri-business growth

centres, by providing products and services to finance the entire supply chain

of the agri-business.

4.5. Agricultural Consultancy Services (ACS)

Agricultural Consultancy Services is an exclusive division of Canara

Bank and is the first ever consultancy cell for agriculture and allied activities

in the entire banking sector in India. It is today, one stop-shop for

entrepreneurslooking for investment in agriculture and related projects.

4.6. Centre for Entrepreneurs Development (CED) for Women

CED for women of Canara Bank caters to all training needs of women
to become an entrepreneur.

4.7. Mahila Banking Branch

An exclusive branch for women and exclusive division for women

within a branch are functioning in the Canara Bank, which is the first of its

kind in the banking industries.

2.9 INFO TECH PROGRESS OF CANARA BANK

The bank has covered all the branches/offices and Core Banking Solution

(CBS). With 100 percent CBS the bank offers technology banking services such as

internet banking, funds transfer through NEFT and RTGS, SMS alerts, VRS based

enquiry across all its branches. The bank also offers online trading facility to its

clients through its own subsidiary M/s. Canara Bank Securities Ltd.

As on March 2016-17 Canara Bank had 2221 taking total number of ATMs

to 8533 spread across 4021 centres. The Bank‟s ATMs strength was the highest

among nationalized banks. The debit card base of the Bank rose to 2.55 crore

compared to 1.51 crore as at March 2016. 132 hi-tech e-lounges were functional in

select branches with facilities, like, ATM, Cash Deposit Kiosk with voice guided

system, Cheque Deposit Kiosk, Self Printing Passbook Kiosk, Internet Banking

Terminal, Online Trading Terminal and Corporate Website Access. Interactive

Video Conference System was also made available at select e-lounges. As a result
of various alternate delivery measures adopted by the Bank, e-transaction ratio

increased to 50.21% as at March 2017 compared to 43.84% last year.

2.9 MAN POWER PROFILE OF CANARA BANK

As at March 2017, the Bank had 55,717 employees on its roll.

Cadre March 2016 March 2017

Officers 24174 26127

Clerks 20194 20549

Sub-Staff * 9640 9041

Total 54008 55717

Table2.3: Employees profile

Total staff of the Bank comprised 47% Officers, 37% Clerks and 16% Sub Staff.
Women staff of the Bank comprising 16,589, constituted 30% of the employees.
The total number of ex-service men staff as at March 2017 stood at 3,779. There
were 1337 Physically Challenged Employees on the rolls of the Bank.

2.10 ORGANISATIONAL DEVELOPMENT

Keeping in view the increased business complexities and the need for

imparting more focus on certain key functional areas, the re-organization/re-

aligning functions of Wings at Head Office and Circles was undertaken. Post-

reorganization, there are 23 Wings in Head Office. The organizational design and

structure are continuously revisited and studied for functional excellence. The
Bank launched Project „Shikhar‟ aimed at rejuvenating the Bank by focusing on

several themes, like, energizing branches and customer service, increasing sales

from branches, growing a robust asset base and revamping the operating model.

Global Management Consulting firm viz., M/s Boston Consulting Group (India)

Private Limited (BCG) is assisting the Bank in this transformation

2.11 CUSTOMER ORIENTATION

The bank has taken initiatives to remain customer focused through providing

fast service, bringing diversified products/services, responding to customers‟

queries and redressal of customers‟ complaints systems and procedures. Several

initiatives were taken to remain customer focused through providing fast service,

bringing in diversified products/services, responding to customers‟ queries and

redressal of customer complaints. The „Code of Commitment to Customers‟ issued

by the Banking Codes and Standards Board of India (BCSBI) and „Revised

Citizen‟s Charter‟ are available in the Bank‟s website. To assess the quality of

customer service rendered by the branches and to get the feedback, a „Customer

Satisfaction Survey Form‟ is available in the Bank‟s website. Customers‟ fortnight

was conducted from 15.11.2014 to 30.11.2014, inviting suggestions from

customers.

As per Damodaran Committee Recommendations, the Bank has appointed a

Chief Customer Service Officer (CCSO) on 31.08.2013, who shall act as an

Internal Ombudsman of the Bank. During the year, „Town Hall Customers Meet‟

was held at Kolar, Aligarh, Agra, Coimbatore, Dindigul, Sheikhpura, Madurai,

Theni, Calicut, Malappuram, Channarayapatna and Shikaripura in association with

the Banking Ombudsman, RBI and BCSBI. With the opening balance of 1265, the

Bank received 108836 complaints during the year (including 98214 ATM

complaints, 1553 Banking Ombudsman Cases, 86 Cases lodged at Consumer

Dispute Redressal Forum, 455 complaints through Government Portal CPGRAMS

and 8528 General Complaints), of which, 98.6% of the complaints were redressed.

2.12 ORGANISATIONAL POLICY

CSR ACTIVITIES

The Canara Bank, as a responsible corporate social citizen, has been

rendering varied corporate social responsibility programs since its inception.
Canara Bank has distinguished itself in terms of numerous community oriented
activities.

The Canara Bank established an education fund to help the deserving

students to pursue their studies in commemoration of the founder‟s birthday
centenary celebrations in the year 1952. The Bank associated with RBI in a couple
of joint survey to assess the spread of banking facilities in unbanked areas during
the year 1968. In 1970, a novel scheme of circulating library for rural branches was
started. In the same year, „Earn while you learn‟ scheme for graduating students
were introduced. In the year 1971, yet another novel scheme of community welfare
grant for rural branches were introduced with the aim of involving rural public in
the development of their respective areas and also in the deposit mobilization
programs of the bank. In the year 1978, Project Canara Village Programme was
launched for the adoption of villages by rural branches. Koushalya, a project for
fostering artistic skills among the youth was sponsored in Bangalore. Centre for
Entrepreneurship Development for Women were established by the bank, with the
objective of providing consultancy, training, entrepreneurial development,
marketing and various other empowerment support to the women clients. These
centres are working at 34 circle offices of the bank as on 31-03-2012 towards
economic empowerment of women. Rural Service Volunteers Scheme (RSV) was
launched in the year 1985, aiming the development of the rural side population of
the country. An agricultural consultancy services was set up to provide helping
hand to the farmers. Canara bank in the year 2001-2002, opened a Mahila Banking
Branch, first of its kind for catering exclusively to the financial requirements of
women clientele at Bangalore.
 3. ORGANISATION ANALYSIS

3.1 FINANCIAL ANALYSIS

Business Turnover and Profit/Loss Details:

As of 31 March (Rs.) 2017 (in crore) 2016 (in crore)

TOTAL INCOME 48,942.04 48,897.36

TOTAL EXPENSE 47,820.82 51,710.19

NET PROFIT/LOSS 1,121.92 -2,812.82

Table 3.1: Banks Turnover and Profit/Loss

From the above table we can see that the performance of the bank has been
increased as they were able to gain profit of 1120 crores compared to loss in
precious year. The bank was able to attain a profit percentage of 2.32 compared to
a loss of 5.75 percentage in 2016.

Dividend

The board of directors has recommended a profit percentage of 10% in the tear
2017, whereas no dividend was recommended in the year 2016.
3.2 CAPITAL STRUCTURE ANALYSIS

As of March 31 2017 (in crore) 2016 (in crore)

Equity 1,56,18,59,029 1,55,21,58,800

Debt 35,56,67,887 25,29,38,443

Debt-Equity Ratio 0.04 0.163

Total Capital 1,917,526,916 1,805,097,243

Debt-Capital Ratio 0.185 0.140

Table 3.2: Capital structure