PROJECT WORK

ON
CANARA BANK

SUBMITTED BY: OKRAM PREETI DEVI

COURSE: BCOM HONOURS (3RD SEMESTER)
SUBJECT: COMPANY LAW
SYSTEM ID: 2021346113
SECTION: A
 CONTENTS

1) About the Company

2) About the Financial Performance

3) About the AGM

4) Chairman’s Comment

5) Proceedings of AGM

6) Conclusion

7) Reference
ABOUT THE COMPANY

Canara Bank is an Indian public sector bank headquartered in Bangalore. Established in 1906
at Mangalore by Ammembal Subba Rao Pai, the bank also has offices in London, Hong Kong,
Dubai and New York.

History
Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent
Fund in Mangalore, India, on 1 July 1906.
Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. This had
been founded in September 1944 and at the time of its acquisition on 20 May 1961 had three
branches. The second bank that Canara Bank acquired was Seasia Midland Bank (Alleppey),
which had been established on 26 July 1930 and had seven branches at the time of its takeover.
In 1958, the Reserve Bank of India had ordered Canara Bank to acquire G. Raghumathmul
Bank, in Hyderabad. This bank had been established in 1870, and had converted to a limited
company in 1925. At the time of the acquisition G. Raghumathmul Bank had five branches. The
merger took effect in 1961. Later in 1961, Canara Bank acquired Trivandrum Permanent Bank.
This had been founded on 7 February 1899 and had 14 branches at the time of the merger.
Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam
Bank, Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin,and
Pandyan Bank, Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21
February 1923 and at the time of its acquisition it had 14 branches. Arnad Bank had been
established on 23 December 1942 and at the time of its acquisition had only one branch. Cochin
Commercial Bank had been established on 3 January 1936, and at the time of its acquisition had
13 branches.
The government of India nationalised Canara Bank, along with 13 other major commercial banks
of India, on 19 July 1969. In 1976, Canara Bank inaugurated its 1000th branch. In 1985, Canara
Bank acquired Lakshmi Commercial Bank in a rescue.
In 1996, Canara Bank became the first Indian Bank to get ISO certification for "Total Branch
Banking" for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting for
ISO certification of branches.
On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Syndicate Bank
would be merged with Canara Bank. The proposed merger would create the fourth largest public
sector bank in the country with total business of ₹15.20 lakh crore (US$190 billion) and 10,324
branches. The Board of Directors of Canara Bank approved the merger on 13 September. The
Union Cabinet approved the merger on 4 March 2020. The merger was completed on 1 April
2020 with Syndicate Bank shareholders receiving 158 equity shares in the former for every 1,000
shares they hold.

Overseas subsidiaries, branches and offices

Canara Bank established its international division in 1976. In 1983, Canara Bank opened its first
overseas office, a branch in London. Two years later, Canara Bank established a subsidiary
in Hong Kong, Indo Hong Kong International Finance. In 2008–9, Canara Bank opened its third
foreign operation, this one a branch in Shanghai. Later Canara Bank established a branch each
in Leicester and Bahrain, and converted its Hong Kong subsidiary into a branch.
Since 1983, Canara Bank has been responsible for the management of Eastern Exchange Co.
WLL, Doha, Qatar, which Abdul Rahman M.M. Al Muftah established in 1979.

Subsidiary companies
 Canfin Homes Limited (CFHL), with a network of 110 branches and 28 satellite
offices throughout India
 Canbank Factors Limited
 Canbank Venture Capital Fund Limited
 Canbank Computer Services Limited
 Canara Bank Securities Limited
 Canara Robeco Asset Management Company Limited
 Canbank Financial Services Limited
 Canara HSBC Oriental Life Insurance Company Limited

Regional rural banks

Canara Bank sponsors four regional rural banks (RRB):

 Andhra Pragathi Grameena Bank

 Kerala Gramin Bank – Its headquarters are at Malappuram and it operates in all
districts in Kerala. It was established in 1976 as a Scheduled Commercial Bank.
 Karnataka Gramin Bank has its headquarters at Bellary, Karnataka, and has 1119
branches spread over eleven districts.
 Karnataka Vikas Grameena Bank was constituted on 12 September 2005 after
amalgamation of four Regional Rural Banks (RRBs) – Malaprabha Grameena Bank,
Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Banks –
following the recommendations of the Narasimhan Committee.

Development projects
Canara Bank partnered with UNEP to initiate a solar plan program.
FINANCIAL PERFORMANCE OF CANARA BANK IN THE LAST 5 YEARS
(i.e. from march 2018 to march 2022)

Balance Sheet - Canara Bank

Rs (in Crores)

Particulars Mar'22 Mar'21 Mar'20 Mar'19 Mar'18

Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months

Share Capital 1814.13 1646.74 1030.23 753.24 733.24

Reserves & Surplus 55790.95 48953.96 31929.94 28975.81 28346.86

Net Worth 66111.31 58884.93 39292.96 36177.23 35604.84

Secured Loan 46284.96 49983.56 42761.77 40992.29 38808.51

Unsecured Loan 1086409.25 1010874.58 625351.17 599033.27 524771.86

TOTAL LIABILITIES 1198805.52 1119743.08 707405.91 676202.80 599185.21

Assets

Gross Block 11353.96 11204.19 8276.29 8410.23 8318.64

(-) Acc. Depreciation .00 .00 .00 .00 .00

Net Block 11353.96 11204.19 8276.29 8410.23 8318.64

Capital Work in Progress 2.34 2.34 .00 .00 .00

Investments 282012.90 261690.39 176244.94 152985.30 144053.67

Inventories .00 .00 .00 .00 .00

Sundry Debtors .00 .00 .00 .00 .00

Cash and Bank 182054.31 178408.04 68271.46 66152.69 49912.33

Loans and Advances 751556.16 702370.07 471082.05 467218.47 414601.46

Total Current Assets 933610.47 880778.11 539353.51 533371.16 464513.79

Current Liabilities 28174.15 33931.96 16468.84 18563.89 17700.90

Provisions .00 .00 .00 .00 .00

Total Current Liabilities 28174.15 33931.96 16468.84 18563.89 17700.90

NET CURRENT ASSETS 905436.32 846846.15 522884.67 514807.27 446812.90

Misc. Expenses .00 .00 .00 .00 .00

TOTAL ASSETS(A+B+C+D+E) (Rs in crores) 1207311.76 1128027.31 713738.70 682650.97 605709.94

ABOUT THE AGM (ANNUAL GENERAL
MEETING)

An annual general meeting (AGM) is a yearly gathering of a company's

interested shareholders. At an AGM, the directors of the company
present an annual report containing information for shareholders about
the company's performance and strategy.

Shareholders with voting rights vote on current issues, such as

appointments to the company's board of directors, executive
compensation, dividend payments, and the selection of auditors.

How an Annual General Meeting (AGM) Works

An annual general meeting, or annual shareholder meeting, is primarily
held to allow shareholders to vote on both company issues and the
selection of the company's board of directors. In large companies, this
meeting is typically the only time during the year when shareholders and
executives interact.

The exact rules governing an AGM vary according to jurisdiction. As

outlined by many states in their laws of incorporation, both public and
private companies must hold AGMs, though the rules tend to be more
stringent for publicly traded companies.

 
If a company needs to resolve a problem between annual general
meetings, it may call an extraordinary general meeting.

Public companies must file annual proxy statements, known as Form

DEF 14A, with the Securities and Exchange Commission (SEC). The
filing will specify the date, time, and location of the annual meeting, as
well as executive compensation and any material matters of the
company concerning shareholder voting and nominated directors.

Annual general meetings (AGMs) are important for the transparency

they provide, the ability to include shareholders, as well as bringing
management to accountability.
CHAIRMAN’S COMMENT
Dear Shareholders
Your Bank steps into its 117th fruitful year of service and rich legacy. Iextend my gratitude to
each one of you for your continued support. Your valuable partnership with Canara Bank
has helped this esteemed institution to remain resilient despite the challenges and record
robust business performance in FY 2021-22 with strengthened core fundamentals. I wish
each one of you good health and spirit.
The global macroeconomic scenario remained volatile in FY 2021-22 with
sporadicresurgence of the pandemic in several parts of the world spike in global commodity
prices supply bottlenecks an upward trajectory for inflation expectations and challenging
financial market conditions. The war between Russia and Ukraine has further increased the
downside risks to the growth momentum with spike in prices of fuel food and many other
commodities. IMF has projected global economic growth to slow down from an estimated
6.1% in 2021 to 3.6% in 2022 and 2023.
The challenges emanating from the global macro scenario has its reflections on the
domestic economy. Consequently the growth momentum of Indian economy slowed down
and asper second advance estimate of national income real GDP grew by 8.9% in FY 2021-22
as compared to earlier estimate of 9.2%. On the brighter side there are positive signals for
aggregate demand with consumer and business confidence picking up bank credit growth
indicating signs of a gradual recovery and improvement being observed in exports and
imports. Taking into consideration the domestic and global macroeconomic developments
RBI has projected real GDP growth for FY 2022-23 at 7.2% with 16.2% in Q1 6.2% in Q24.1%
in Q3 and 4.0% in Q4. Going forward credit growth is expected to gain traction in tandem
with economic growth.
Despite the challenges of FY 2021-22 your Bank has demonstrated robust business
performance with good growth in both deposits and advances and I am happy to announce
that the Bank has achieved record 122% y-o-y growth in net profit in FY 2021-22 to
Rs.5678crore as compared to Rs.2558 crore in FY 2020-21. The Board of Directors of the
Bank has recommended a dividend of Rs.6.50 per equity share (i.e. 65%) of face value of
Rs.10/-each to the Shareholders for the year 2021-22 subject to the approval of the
Shareholders at the AGM.
I am also happy to announce that as per the 11th bipartite settlement performance linked
incentive (PLI) of 15 days salary has been credited to staff accounts on 6th May 2022 as the
Bank has recorded operating profit of 17.27% y-o-y asper the mandatory criteria of above
15% with net profit of Rs.5678 crore for FY 2021-22.

KEY PERFORMANCE OF THE BANK BUSINESS

During FY 2021-22 the global business of the Bank increased to Rs.1827556 crore up
by8.39% y-o-y with global deposits growing at a pace of 7.47% y-o-y to Rs.1086409 crore and
global advances growing by 9.77% y-o-y to Rs.741147 crore. The enhanced thrust on
domestic business resulted in the growth of 7.6% y-o-y to Rs.1738813 crore with domestic
deposits growing by 6.69% y-o-y to Rs.1027767 crore and domestic advances growing by
8.96% y-o-y toRs.711046 crore.
CASA has been the thrust area for the Bank as it is the source of low cost deposits. The Bank
has always emphasized upon improving the CASA Ratio. The Bank's CASA performance has
improved further and increased from Rs.330656 crore as on March 2021 to Rs.368732crore
as on March 2022 i.e. a growth of 11.52% y-o-y with savings deposits growing by12.2% y-o-y
to Rs.315916 crore and current deposits growing by 7.5% y-o-y to Rs.52816crore.
Consequently the CASA ratio of the Bank has improved from 34.33% to 35.88%. The Bank
has a strong deposits clientele base of about 10.51 crore.
Retail Term deposits registered a growth of 5.1% y-o-y to Rs.441777 crore as at March2022.
The Bank is always keen on maintaining a well-balanced asset mix 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. This year your Bank's core retail portfolio grew by
9.51% y-o-y to Rs.126277 crore with Housing loans growing by 14.77% y-o-y to
Rs.73828crore Vehicle loans growing by 2.86% y-o-y to Rs.14105 crore and Education loan
growing by 4.31% y-o-y to Rs.12975 crore. The number of borrowal clientele is at 1.08 crore
as at March 2022.
Advances to MSME stood at Rs.119026 Crore with MSE advances of Rs.101716 crore as at
March 2022. In order to increase credit flow to this segment in FY 2021-22 the Bank has
launched various need-based Schemes and products catering to the needs of specific
segments.
FINANCIAL PERFORMANCE
For FY 2021-22 the total Income of the Bank increased by 2.02% y-o-y to Rs.85907 crore and
non-Interest Income increased by 10.54% y-o-y to Rs.16497 crore. The Bank's cost of
deposits decreased by 57 bps y-o-y to 3.95%. The net interest income the difference
between interest paid and interest earned by the Bank grew by 9.46% y-o-y to
Rs.26384crore as at March 2022. The Gross NPA ratio declined by 142 bps y-o-y to 7.51%
this year and Net NPA declined by 117 bps y-o-y to 2.65%. Provision Coverage Ratio (PCR)
improved by449 bps y-o-y to 84.17% as at March 2022.
PROFITABILITY
The Bank has recorded robust growth of 122% y-o-y in net profit to Rs.5678 crore in FY2021-
22 with operating profit growing by 17.27% y-o-y to Rs.23089 crore. NIM stood at2.82% and
Yield on Advances at 7.22%. Your Bank has a comfortable capital cushioning with Capital
Adequacy Ratio under Basel III at 14.90% as at March 2022 against the regulatory
requirement of 11.5%.
During the Financial Year 2021-22 Bank has raised capital via Basel III compliant additional
Tier 1 Bond amounting to Rs.4000 crore Tier 2 Bond amounting to Rs.2500 crore and equity
through QIP of Rs.2500 crore and thereby the Government of India shareholding in the
Bank is 62.93% as on 31.03.2022.
PRIORITY SECTOR AND FINANCIAL INCLUSION
Your Bank is committed towards re-orienting its strategies to meet various goals under
national priorities. Under various national priorities your Bank has credibly achieved the
mandated targets as follows:
• 49.68% of the adjusted net bank credit against 40% norm in total priority
• 22.47% of the adjusted net bank credit against 18% norm in lending to agriculture
• 16.26% of the adjusted net bank credit against 9% norm in lending to small and marginal
farmers
• 22.41% of the adjusted net bank credit against 11% norm in lending to weaker section
The Bank has sold PSLC to the tune of Rs.40000 crore in FY 2021-22 encompassing
160000units.
These achievements indeed speak of your Bank's commitment to the inclusive nation
building and supporting the revival of the critical sectors of the economy from the ravages
of the pandemic.
The highlights of your Bank's performance for the year FY 2021-22 have been given in the
Annual Report.

PROCEEDINGS
Twentieth Annual General Meeting of the Bank through VC/OAVM

► In accordance with our intimation dated 06.05.2022 and AGM Notice dated 18.05.2022, the
Twentieth Annual General Meeting of the Bank through VC / OAVM was held on Thursday, the 23rd
June 2022 at 11.00 a.m. 1ST at Head Office, Canara Bank, Bengaluru - 560 002 (the deemed venue of
the meeting) in compliance with MCA (Ministry of Corporate Affairs)/ SEBI / GOI guidelines.

► Pursuant to Regulation 59 of the Canara Bank (Shares and Meetings) Regulations, 2000, Shri L V
Prabhakar, MD & CEO of the Bank took the Chair (Chairman of the Meeting).

► At the request of the Chairman of the Meeting, Shri V Ramachandra, Chief General Manager of
the Bank informed the Chairman that Fifty One (51) shareholders are present, which satisfies the
Quorum requirement as per Regulation 58(i) of Canara Bank (Shares and Meetings) Regulations,
2000.

► The MD & CEO welcomed the shareholders to the Twentieth Annual General Meeting of the
Bank. The MD & CEO took note that Fifty One (51) shareholders are present at the Meeting. He
announced that in accordance with Regulation 58(i) of Canara Bank (Shares and Meetings)
Regulations, 2000 the requisite Quorum was present and called the meeting to Order.

► The MD & CEO then introduced the Directors present at the e-AGM to the shareholders. The
Chairman of the Audit Committee of the Board and the Chairman of Stakeholders' Relationship
Committee were also present at the meeting. With the permission of the shareholders present, the
Notice convening the meeting dated 18.05.2022 was taken as read.

► One authorized representative of GOI attended the meeting through VC / OAVM.

► The MD & CEO then addressed the shareholders on the Bank's robust business performance for
FY 2021-22 despite challenges emanating from the global macro scenario and its reflections on the
domestic economy. He informed that the Bank is always keen on maintaining a well-balanced asset
mix, 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. He also
emphasized the bank's commitment towards reorienting its strategies to meet various goals under
national priorities. He also informed that during FY 2021-22, the bank has undertaken multiple
initiatives to achieve the mission of providing quality banking services and creating value for all
stakeholders. He also informed that the bank is committed to champion in meeting all financial
needs of the customers and contribute to inclusive growth of the economy. He further informed that
going ahead, the bank aims at improving the bottom-line further with balanced thrust on retail,
MSME and corporate advances coupled with increased adoption of digitalization. He also informed
that the bank's management is highly confident about achieving.

CONCLUSION
I would like to conclude my project by saying that
Annual General Meeting provide members with an
opportunity to collectively discuss the affairs of the
company and to exercise their ultimate control
over the management of the company. Canara
Bank is one of the most reputed and trusted banks
in the Indian banking industry. It is one of the
largest Government of India (GOI) owned banking
entities in the country. Canara Bank has provided
good financial support for their account holders
and are offering loan at low interest rate. It is a
Public Sector Undertaking Bank at which the
employees of the organisation are treated with
dignity. Canara Bank has a strong offline presence
all over India but it can improve a lot digitally.
Using digital marketing to its maximum potential
can do wonders for the bank. Its PSU peers
especially Punjab National Bank and Bank of
Baroda can be outplayed as they are lacking on
the digital fronts as well.
REFERENCE

 https://canarabank.com
 https://www.business-standard.com
 https://groww.in
 https://cleartax.in