The Board of Directors have pleasure in presenting the 57th Annual Report together with the Balance Sheet as on 31st March, 2026 and Profit & Loss Account for the financial year ended March 31, 2026.

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

The global business of the Bank increased to Rs. 28,06,226 Crores, up by 12.11% y-o-y, out of which domestic business grew by 11.04% y-o-y to Rs. 25,98,048 Crores as at March 2026. Domestic CASA deposits stood at Rs. 4,28,804 Crores with Savings Account of Rs. 3,66,581 Crores and Current Account of Rs. 62,223 Crores. Thus, domestic CASA stood at 29.84% as at March 2026.

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 110 bps Y-o-Y to 1.84% and Net NPA to 0.43% down by 27 bps Y-o-Y. Further the provision coverage ratio has improved to 94.21% from 92.70% in the previous year. The healthy CRAR of 17.04%, highlights that the Bank is well cushioned for an organic growth in the coming quarters In FY 2025-26, operating profit of the Bank stood at Rs. 33,019 Crores and net profit at Rs. 19,187 Crores.

Dividend

The Board of Directors of the Bank has recommended a dividend of Rs. 4.20 per equity share (i.e., 210%) of face value of Rs. 2/- each to the Shareholders for the year 2025-26, subject to the approval of the Shareholders at the AGM.

MANAGEMENT DISCUSSION AND ANALYSIS

GLOBAL ECONOMY

The global economy demonstrated resilience during FY 2025-26 despite heightened geopolitical tensions, trade policy uncertainties, and supply chain disruptions arising from the escalation of conflict in the Middle East. Global growth remained supported by strong domestic demand in major economies, continued investment in technology and artificial intelligence, accommodative financial conditions and adaptive corporate supply chains.

According to the International Monetary Fund (IMF) April 2026 World Economic Outlook, global GDP growth is estimated at approximately 3.4% in 2025, before moderating to 3.1% in 2026 and 3.2% in 2027 under the assumption of a contained geopolitical conflict. Inflationary pressures, which had eased through much of 2025, witnessed renewed upside risks due to higher energy prices and supply-side disruptions.

Advanced economies showed mixed performance, with the United States maintaining relatively stronger momentum supported by technology-led investments, while the Euro area remained constrained by energy- related vulnerabilities and weaker industrial activity. Emerging Market and Developing Economies (EMDEs), particularly Asian economies, continued to contribute significantly to global growth.

The OECD and other multilateral agencies have highlighted that while the global economy continues to adapt to trade fragmentation and geopolitical uncertainties, medium-term growth is expected to remain below pre-pandemic averages due to elevated debt levels, demographic pressures and persistent geopolitical risks.

Overall, the global outlook remains cautiously optimistic supported by technological advancements and resilient demand conditions, though downside risks linked to prolonged geopolitical tensions, commodity price volatility and trade disruptions continue to persist.

The Indian economy maintained strong growth momentum during FY 2025-26 and continued to remain the fastest-growing major economy globally despite challenging external conditions. Robust domestic demand, sustained government capital expenditure, healthy financial sector balance sheets, and resilient private consumption supported economic activity during the year.

As per available estimates from the Ministry of Statistics and Programme Implementation (MoSPI) and multilateral institutions, India's real GDP growth for FY 2025-26 is estimated in the range of 7.4%-7.6%, supported by broad-based expansion across services, manufacturing and investment activity.

Private consumption improved steadily during the year aided by moderating inflation, improved rural demand, and stable employment conditions. Gross Fixed Capital Formation remained strong, supported by continued infrastructure spending, manufacturing incentives and improving private sector investment intentions.

The services sector remained the primary growth driver, led by financial services, trade, hospitality, transportation, and digital services. Manufacturing activity also remained resilient, supported by public infrastructure spending and improving domestic demand conditions. Agricultural growth remained stable, aided by normal monsoon conditions and improved farm productivity.

Inflation moderated significantly during FY 2025-26 and largely remained within the Reserve Bank of India's target range, supported by easing food prices and stable core inflation trends. India's external sector also remained resilient, with manageable current account deficit levels, strong services exports and healthy foreign exchange reserves.

Fiscal consolidation remained on track, with continued emphasis on productive capital expenditure, infrastructure development, and revenue mobilization. The banking sector continued to witness improvement in asset quality, capital adequacy and credit growth, further strengthening macroeconomic stability.

Overall, India's macroeconomic fundamentals remained strong during FY 2025-26, positioning the economy favourably to navigate external uncertainties and sustain medium-term growth momentum.

The Indian economy is expected to maintain resilient growth momentum during FY 2026-27 despite ongoing geopolitical tensions, elevated commodity prices, and uncertainties in the global trade environment.

Major institutions including the Reserve Bank of India (RBI), IMF, World Bank, and Asian Development Bank have projected India's GDP growth in the range of 6.5%-6.9% for FY 2026-27, supported by robust domestic demand, continued public infrastructure spending, improving private investment, and healthy banking sector balance sheets.

Private consumption is expected to remain supportive, aided by improving income levels, rural recovery and stable inflation conditions. Investment activity is likely to remain healthy due to continued government focus on infrastructure, manufacturing incentives and digital economy expansion.

Inflation is expected to remain within the RBI's tolerance band, although risks from higher global energy prices, weather-related disruptions and geopolitical tensions may exert upward pressure on prices.

India's external sector is expected to remain manageable, supported by strong services export, remittance inflows and adequate foreign exchange reserves. However, risks arising from global trade fragmentation, volatile commodity prices and geopolitical developments continue to warrant close monitoring.

Overall, India's strong domestic fundamentals, ongoing structural reforms, digital transformation, and infrastructure investments are expected to support sustainable medium-term growth and reinforce its position as one of the fastest-growing major economies globally.

Canara Bank delivered a strong and resilient performance during FY 2025-26, marked by healthy business growth, improved profitability, and significant enhancement in asset quality. The Bank's Global Business stood at Rs. 28,06,226 Crores as on March 31, 2026, registering a robust year-on-year growth of 12.11%. The growth was driven by strong credit expansion, with Global Advances increasing by 15.30% to Rs. 12,37,548 Crores, while Global Deposits grew by 9.71% to Rs. 15,68,678 Crores. The Credit-Deposit Ratio improved to 78.89% from 75.07% in the previous year, reflecting improved credit traction.

Retail credit continued to be a key growth driver, growing by 32.93% year-on-year to Rs. 2,96,912 Crores. RAM (Retail, Agriculture & MSME) advances increased by 19.73% to Rs. 7,30,520 Crores and constituted 59% of the domestic loan portfolio. Within retail advances, Housing Loans grew by 17.55%, while Vehicle Loans recorded strong growth of 26.33%. MSME advances also registered healthy growth of 12.85% during the year. The Bank continued to exceed all Priority Sector Lending targets, reaffirming its commitment towards inclusive and sustainable growth.

On the profitability front, the Bank reported a Net Profit of Rs. 19,187 Crores for FY 2025-26, registering a growth of 12.69% over the previous year. Operating Profit stood at Rs. 33,019 Crores, while Total Income increased by 7.73% to Rs. 1,53,204 Crores, supported by a strong 19.53% growth in Non-Interest Income. Net Interest Income stood at Rs. 37,210 Crores. Profitability ratios remained healthy, with Return on Assets at 1.10% and Return on Net Worth at 19.61%. Earnings Per Share improved to Rs. 21.15, up 12.68% year-on-year. The Board recommended a dividend of 210% ( Rs. 4.20 per equity share of face value Rs. 2 each) for the financial year.

Asset quality witnessed further improvement during the year. Gross NPA declined by 110 basis points to 1.84%, while Net NPA improved to 0.43%, declining by 27 basis points year-on-year. The Provision Coverage

Ratio remained strong at 94.21%. Annualized slippage ratio remained contained at 0.69%, while Credit Cost stood at 0.59%. The Bank's Capital to Risk Weighted Assets Ratio (CRAR) improved to 17.04% as at March 31, 2026, providing a strong capital buffer to support future growth.

Overall, the Bank's performance during FY 2025-26 reflects successful execution of its strategy focused on retail expansion, digital transformation, operational efficiency, and prudent risk management. With a strengthened balance sheet, improved asset quality, healthy profitability, and robust capital position, the Bank remains well positioned to sustain growth momentum in the coming years.

BUSINESS PERFORMANCE

During FY 2025-26, the global business of the Bank stood at Rs. 28,06,226 Crores with a growth of 12.11% y-o-y from Rs. 25,03,194 Crores, with global deposits at Rs. 15,68,678 Crores with a growth of 9.71% y-o-y and global advances at Rs. 12,37,548 Crores with a growth rate of 15.30%.

A snapshot of business growth in FY 2025-26

Deposits

Total Global Deposits grew by 9.71% y-o-y from Rs. 14,29,862 Crores as on March 2025 to Rs. 15,68,678 Crores as on March 2026. Domestic CASA deposits of the Bank are at Rs. 4,28,804 Crores as on March 2026 with Savings deposits at Rs. 3,66,581 Crores and Current deposits at Rs. 62,223 Crores. The Bank's domestic CASA deposits share to domestic deposits stood at 29.84%. Total deposit clientele of the Bank stood at 12.15 Crores as at 31st March 2026.

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.

Global Advances (Gross) of the Bank reached Rs. 12,37,548 Crores as at March 2026. The RAM (Retail, Agriculture & allied activities, MSME) portfolio grew by 19.73% y-o-y to Rs. 7,30,520 Crores as at March 2026 with retail advances recording a growth of 32.93% y-o-y to Rs. 2,96,912 Crores, credit to Agriculture & allied activities recording a growth of 11.69% y-o-y to Rs. 2,75,777 Crores and credit to MSMEs grew by 12.85% to Rs. 1,57,831 Crores. Within RAM portfolio, Bank's gold loan portfolio increased to Rs. 2,45,448 Crores with a y-o-y growth of 35.3%.

The number of borrowal clientele stood at 1.20 Crores as at March 2026. Total business of the Bank increased to Rs. 28,06,226 Crores for the year ended March 2026.

FINANCIAL PERFORMANCE

Operating profit of the Bank stood at Rs. 33,019 Crores for FY 2025-26. Bank reported a Net Profit of Rs. 19,187 Crores for FY 2025-26. Net Interest income of the Bank stood at Rs. 37,210 Crores. NIM stood at 2.51% and Yield on Advances at 8.29%.

Income and Expenditure Analysis:

Total income of the Bank stood at Rs. 1,53,204 Crores for the FY 2025-26, comprising Rs. 93,247 Crores interest from advances, Rs. 25,122 Crores interest from investments, Rs. 26,838 Crores from non-interest income and Rs. 7,997 Crores from other interest income.

Operating performance of the Bank

In line with the thrust areas for the Bank, non-interest income (Excl. Trading profit) is at Rs. 21,517 Crores. Apart from trading profit, other major sources of non-interest income, like, service charges ( Rs. 3,914 Crores), commission and exchange ( Rs. 1,792 Crores), recovery from written off accounts ( Rs. 6,537 Crores) and Profit from exchange transaction ( Rs. 1,471 Crores) contributed to the non-interest income of the Bank. The share of non-interest income to total income stood at 19.53%.

Total expenditure of the Bank stood at Rs. 1,20,186 Crores in FY 2025-26. Interest expenses of the Bank is at Rs. 89,156 Crores. Operating expenses is at Rs. 31,030 Crores, comprising staff cost of Rs. 19,266 Crores and other operating expenses of Rs. 11,764 Crores.

The net interest income, the difference between interest paid and interest earned by the Bank stood at Rs. 37,210 Crores.

Capital and Reserves:

Net worth of the Bank, as at March 2026 stood at Rs. 1,03,454 Crores. While the total paid-up capital of the Bank stood at Rs. 1,814.13 Crores, the reserves and surplus stood at Rs. 1,05,145 Crores (excl. Revaluation Reserve and FCTR).

Capital Adequacy Ratio, under Basel III was 17.04% as at March 2026 against the regulatory requirement of 11.50%, including capital conservation buffer of 2.50%. Within the capital adequacy ratio, CET I ratio was at 12.44% and Tier I capital ratio was at 14.59%.

During the Financial Year 2025-26, Bank has raised capital via Basel III compliant additional Tier 1 Bond amounting to Rs. 3,500 Crores and Tier II amounting to Rs. 5,000 Crores. Government of India shareholding in the Bank is 62.93% as on 31.03.2026.

RETAIL LENDING OPERATIONS

For the FY 2025-26, Retail Lending as one of the thrust areas of the Bank had shown a considerable growth of 32.93% compared to FY 2024-25. The Retail Portfolio of the Bank increased to Rs. 2,96,912 Crores as on March 31, 2026 with Housing Loans at Rs. 1,24,799 Crores and Rs. 26,070 Crores under Vehicle Loans. The share of Retail Loans stood at 25.57% as of March 31, 2026 of Domestic Advances ( Rs. 11,61,578 Crores). The initiatives taken in the hassle-free credit delivery of Retail Portfolio resulted in the growth of 32.93% over the previous year.

HOUSING LOAN

During FY 2025-26, the Bank has sanctioned 82,956 number of housing loans amounting to Rs. 36,900 Crores and disbursed Rs. 30,749 Crores. Overall growth in housing loan portfolio in FY 2025-26 is Rs. 18,632 Crores, which is an increase of 17.55% compared to Mar Rs. 25. As of Mar Rs. 26 Housing Loan Portfolio outstanding of the Bank stands at Rs. 1,24,799 Crores consisting of 6.30 Lakh home loans.

Bank's average ticket size for Housing loans sanctioned during FY 25-26 has increased to Rs. 45 Lakh as compared to Rs. 38 Lakh during FY 24-25.

During FY 2025-26, the Bank has sanctioned 1,16,848 number of Vehicle loans amounting to Rs. 12,839 Crores and disbursed Rs. 12,469 Crores. Overall growth in Vehicle loan portfolio in FY 2025-26 is ' 5,433 Crores, which is an increase of 26.33% compared to Mar Rs. 25. As of Mar Rs. 26, Vehicle Loan Portfolio outstanding of Bank stands at Rs. 26,070 Crores consisting of 4.01 Lakh vehicle loans.

Bank has introduced simplified Processing and Sanctioning of Canara Vehicle Loans under the Digital Lending Platform (DLP), that facilitates customer to apply for loan, KYC validation, check eligibility based on the scheme guidelines, sanction, digital document execution (e-stamping & e-signing) and disbursement of the loan with minimum manual intervention.

During FY 2025-26, the Bank has sanctioned 66,764 number of Education loans amounting to Rs. 6,896 Crores and disbursed Rs. 4,770 Crores. Overall growth in Education loan portfolio in FY 2025-26 is Rs. 2,301 Crores, which is an increase of 13.20% compared to Mar Rs. 25. As of Mar Rs. 26, Education Loan Portfolio outstanding of the Bank stands at Rs. 19,724 Crores consisting of 3.91 Lakh education loans

Over the years, the Bank has assisted substantial number of promising students to pursue higher education in India and abroad. Among all Nationalized Banks, our Bank is in the forefront in extending education loans. We have sanctioned highest number of education loans among all the Nationalized Banks in India in FY 25-26 as per Vidyalaxmi portal.

During FY 2025-26, the Bank has sanctioned 69.83 Lakh number of other personal loans amounting to Rs. 1,37,368 Crores and disbursed Rs. 1,35,402 Crores. Overall growth in this portfolio in FY 2025-26 is Rs. 47,179 Crores, which is an increase of 59.62% compared to Mar Rs. 25. As of Mar Rs. 26, Other Personal Loan Portfolio (including Retail Swarna Loan & Loan Against Deposit) outstanding of the Bank stands at Rs. 1,26,318 Crores consisting of 55.03 Lakhs Other Personal Loans.

During the financial year 2025-26, Bank has introduced one new Retail Digital product i.e., Canara Insta Mutual Fund Loan to enhance the customer's digital experience. To lower Turn Around Time Bank has migrated Canara Vehicle Loans to the Digital Lending Platform (DLP).

^^^PRIORITY SECTOR ADVANCES

The Bank continues to accord importance to varied goals under national priorities, including agriculture, micro, small and medium enterprises, education, housing, social infrastructure, renewable energy, micro credit, credit to weaker sections and specified minority communities. Priority Sector Advances of the Bank as at March 2026 reached Rs. 4,87,514 Crores and achieved 43.62% to Adjusted Net Bank Credit (ANBC) against 40% mandated norm. Agriculture priority advances of the Bank as at March 2026 reached Rs. 2,66,118 Crores and achieved 19.52% to Adjusted Net Bank Credit (ANBC) against 18% mandated norm.

Priority Sector Advances data:

^ Bank's advances under agriculture portfolio increased by 11.69% to Rs. 2,75,777 Crores on Y-O-Y basis, covering over 0.92 Crores farmers.

^ During FY 2025-26, the Bank's Agriculture Credit Disbursal is Rs. 2,94,046 Crores.

^ Advances to Small & Marginal Farmers achieved 12.55% to ANBC as against the mandatory Target of 10.00% (Net of PSLC-SF / MF sale) as at March 2026.

^ During the year 2025-26, Bank has issued 24.75 Lakh Kisan Credit Cards (KCCs), amounting to Rs. 42,781 Crores.

^ The credit outstanding under KCCs reached Rs. 53,959 Crores as at March 2026.

^ Advances to Micro Enterprises stood at Rs. 86,052 Crores achieving 9.37% to ANBC as against the mandatory Target of 7.5%.

^ Bank has earned Rs. 2,326.68 Crores fee-based income by way of selling PSLCs (under SF / MF) to the tune of Rs. 86,885 Crores during FY 2025-26.

^ The Bank actively participatedin 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 2026, the outstanding advances under the following Government Schemes aggregated to Rs. 62,950 Crores, involving around 23.84 Lakh beneficiaries.

Performance under various Government Sponsored Schemes:

^ Advances to DRI stood at Rs. 51 Crores, consisting of 0.62 Lakh beneficiaries.

^ In support of the underprivileged sections of the society, the Bank's Advances to SCs / STs beneficiaries amounted to Rs. 24,078 Crores as at March 2026, covering 9.50 Lakh borrowers.

^ The advances to SCs / STs comprised 4.91% of total priority sector advances.

^ Advances to weaker sections reached Rs. 2,58,180 Crores, constituting 18.65% to ANBC against mandated norm of 12.00%.

Performance of Bank under ATMANIRBHAR BHARAT

ABHIYAN Schemes

Various components of advances to Weaker Sections as at March 2026

As at March 2026, advances to specified minority communities aggregated to Rs. 63,838 Crores, accounting for 13.08% of the actual priority sector advances.

MICRO, SMALL & MEDIUM ENTERPRISES (MSMEs)

^ PM SVANidhi - This scheme has been introduced during July 2020 for all street vendors engaged in vending in urban areas as on or before 24.03.2020 as per identification criteria stipulated in scheme guidelines of MoHUA. The Scheme has been revamped and it has been extended till 31.03.2030. Small Industries Development Bank of India (SIDBI) is the implementation partner of the MoHUA. Under PM SVANidhi, the Bank sanctioned 795,980 accounts amounting to Rs. 1,401 Crores, since inception till 31.03.2026. Outstanding under the PM SVANidhi as on 31.03.2026 is Rs. 336 cr.

^ Under Pradhan Mantri Mudra Yojana (PMMY), the

Bank has disbursed an amount of Rs. 23,876 Crores against the Disbursement target of Rs. 22,000 Crores during FY 2025-26. Sanctions and disbursals under different categories of Mudra Yojana are as under:

Major Highlights:

Bank including sponsored RRBs have achieved Rs. 29,145 Crores (109%) against the mandatory Disbursement target of Rs. 26,800 Crore under PMMY.

During FY 2025-26, under PMEGP the Bank sanctioned 4916 proposals amounting to Rs. 623Crores,withTotalMarginMoneyclaimedstoodat Rs. 70 Crores, as against sanction of 8730 accounts, sanction amount of Rs. 1,030 Crores and Margin Money claim of Rs. 186 Crores during FY 2024-25.

PM Vishwakarma: PM-Vishwakarma Scheme has been launched on 17th September 2023 to enable the recognition of artisans and craftspeople as Vishwakarma, making them eligible to avail the benefits under the Scheme. Following trades are initially covered under the scheme: i) Carpenter (Suthar); (ii) Boat Maker; (iii) Armourer; (iv) Blacksmith (Lohar); (v) Hammer and Tool Kit Maker; (vi) Locksmith; (vii) Goldsmith (Sonar); (viii) Potter (Kumhaar); (ix) Sculptor (Moortikar, Stone Carver), Stone Breaker; (x) Cobbler (Charmkar) / Shoesmith/Footwear Artisan; (xi) Mason (Rajmistri); (xii) Basket/Mat / Broom Maker / Coir Weaver; (xiii) Doll & Toy Maker (Traditional); (xiv) Barber (Naai); (xv) Garland Maker (Malakaar); (xvi) Washerman (Dhobi); (xvii) Tailor (Darzi); and (xviii) Fishing Net Maker.

Bank has sanctioned 59,394 accounts under PM Vishwakarma amounting to Rs. 464 cr since inception till 31.03.2026. Outstanding under the PM Vishwakarma as on 31.03.2026 is Rs. 107 cr.

DIGITAL BANKING & ALTERNATE DELIVERY CHANNELS

Performance Highlights FY 2025-26:

^ The Bank's Debit Card base has increased to 612.17 Lakhs as on March 2026 from 599.79 Lakhs as on March 2025 with Y-o-Y growth of 2.06%.

^ Mobile Banking Registration has reached 328.57 Lakhs as on 31.03.2026, there by achieving the Y-o-Y growth of 19.27%, compared to 275.48 Lakhs as on 31.03.2025.

^ Internet Banking (Retail & Corporate) Registration has reached 274.38 Lakhs as on 31.03.2026 compared to 270.38 Lakhs as on 31.03.2025, registering Y-o-Y growth of 1.48%.

^ UPI registration has reached 398.53 Lakhs as on 31.03.2026 compared to 338.83 Lakhs as at 31.03.2025, there by registering the Y-o-Y growth of 17.62%.

^ Total cumulative on-boarding of BHIM OR has reached to 41.46 Lakhs as on 31.03.2026 and total cumulative PoS terminal deployment is at 0.91 Lakhs as on 31.03.2026.

^ Total cumulative on-boarding of CDBC-Retail has reached to 9.91 Lakhs as on 31.03.2026.

^ Total cumulative on-boarding of EasyFee / Payment Gateway has reached to 1662 as on 31.03.2026

^ Total 835 APIs made live in new API gateway (APIGEE) and 311 clients are live as on 31.03.2026

^ Total cumulative on-boarding of BBPS Channel has reached to 172 as on 31.03.2026

^ Total number of ATMs as on 31.03.2026 is 11306.

^ Deployed 2500 ATMs to enhance customer convenience and ensure 24/7 cash availability.

Awards:

^ Bank has received Banking Frontiers FINNOVITI 2025 award for "ai1 for Minors" held at Mumbai on 12th June 2025.

^ Bank has received Gold Awards for below two services / products under BFSI Category at Skoch Award ceremony on 20th September 2025 at New Delhi.

o Gold award for "Mobile banking services for minor customers"

o Gold award for "Hybrid PoS"

Digital Banking Units (DBUs) - Performance Update (Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures), Directions, 2025)

Number of new clients onboarded digitally (During the Reporting Period)

Financial

Non-Financial (excluding Grievence Services)

Compliance of RBI guidelines for Cards:

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

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

- To enhance the security of debit card transactions and protect the cardholders against misuse of their personal information, bank has complied with the Payment Card Industry

Data Security Standard (PCI DSS) procedures. As per RBI guidelines, 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, e-mail and branch channel. EFRM (Enterprise Fraud Risk Management) rules for mitigation of online frauds have been modified as per industry best practice.

Security features to arrest ATM frauds & Compliance of

RBI guidelines:

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

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

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

- All ATMs 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.

Major functionalities introduced in Debit cards in FY 2025-26:

- Braille Debit Cards have been introduced to enhance usability for visually impaired customers.

Major features added in Internet Banking in FY 2025-26:

- Beneficiary Account Name Lookup

- Loan Partial Payoff functionality integration

- Re-KYC

- Multiple Nominee updation for CASA, Recurring & Fixed Deposit accounts.

- Apply and manage MPoS facility enabled

- Nominee updation for lockers facility enabled.

- Urdu, Konkani and Bengali languages have been implemented.

- Simplified onboarding flow for Corporate ai1: Activation code generation through branch option has been introduced in addition to the existing flow for Corporate ai1 registration. An online passcode reset via the app adds further convenience.

- Biometric Login for Android Corporate ai1 app: Enabled android Corporate ai1 app user to login through biometric authentication.

Major features added in Mobile Banking application (Canara ail) in FY 2025-26:

- Beneficiary Account Name Lookup

- Limit enhancement in MB: Daily transaction limit through Mobile Banking application has been enhanced to ' 15.25 Lakhs including Rs. 7.5 Lakhs for Interbank, '.7.5 Lakhs for Intrabank and Rs. 0.25 Lakhs for Direct pay option.

- Account Portability facility is enabled in Mobile Banking, to port their savings account into specialized products such as Canara Angel and Canara Aspire.

- PoS NFC Restriction without passport detail: Users not maintaining Passport details with the Bank will not be able to enable / disable / modify transaction limit for in-person international transactions such as through PoS and NFC.

- Creation / View / Deletion of Mandate for recharging of NCMC Balance

- ‘Deposit Revamp' has been successfully implemented. This will facilitate a more intuitive and user-friendly UI / UX design for users.

- Bank has implemented analytics-based Customer Engagement and Personalization aimed to create customer segmentations, targeted campaigns, personalized services etc.

- Bank has implemented Re-KYC in Mobile Banking.

- As an additional layer of security, Face Recognition is integrated as a part of activation of mobile banking services through Aadhaar.

- Multiple Nominee updation for CASA, Recurring and Fixed Deposit accounts

- Credit Card Module with new features - View EMI details, Foreclosure of EMI, Changing Revolving Facility.

- Notification bar for Bill Reminders - Credit Card & Loan.

- Urdu and Konkani languages added for customer convenience

Major features added in UPI in FY 2025-26:

- Canara ailPe: Bank has launched an exclusive UPI application powered by BHIM that allows customers of any bank to link their accounts for seamless digital payment and transfers.

- UPI Lite Limits Enhancements: UPI Lite wallet limit is increased to Rs. 5000 (from Rs. 2000), with a per transaction cap of Rs. 1000 (from Rs. 500), and a daily limit of Rs. 10,000.

- Transfer Out Functionality feature allows for partial withdrawal of the UPI Lite balance into the linked bank account at any time without disabling the UPI Lite Account.

- Introduction of UPI Help, an AI powered support assistant launched by NPCI to help users.

- Integrated Bharat Bill Payment System (BBPS) with the UPI in Canara ai1 app as an additional payment mode.

- UPI Circle(Issuer) to allow users to delegate UPI transaction authorization to trusted individuals within predefined limits.

Major features added in CBDC Application in FY 2025-26:

- NACH based PCBDC token disbursement to the beneficiaries of PMGKAY, directly to the CBDC wallet of the user. (Pilot was done in Puducherry under PMGKAY scheme for 1028 users).

- Voucher Code based CBDC wallet creation for the feature phone user.

Major Products / features added in Digital Lending

Platform in FY 2025-26:

- Loan Against Mutual Fund

- Staff OD Renewal / Enhancement

- Renewal of Working Capital Limits up to Rs. 10 Lakhs

- New To Bank customers for Heal (Health care Loan) & Loan Against Mutual Fund LAMF loans (Including V-KYC Module)

- Canara Vehicle (4 Wheeler)

- Mortgage Loan / Loan Against Property / Overdraft against Property

- Digital Renewal of Working capital Loan up to Rs. 10 Lakhs

- Integration of FASTag

Major features added in ATMs in FY 2025-26:

- SMS is being sent to all customers for ATM ON US & REMOTE ON US transactions informing the number of free transactions used / available in that calendar month.

- Implementation of ICCW (Interoperable Cardless Cash Withdrawal) functionality as an acquirer in Hitachi and Hyosung ATMs.

- To provide real-time refunds for failed or unsuccessful ICCW transactions, ensuring that customers are not impacted by system failures / issues with the cash withdrawal process.

- Implementation of Interoperable Cash Deposit (ICD) facility enables cardholders of participating member Banks to use NFS networked ATMs of participating member Banks for depositing cash in their own account or third-party account (Card Based). Using this facility customer can deposit cash to own account or third-party account by using debit card. Bank has implemented this functionality in Hyosung ATMs.

- Re-KYC updation facility enabled.

- Providing One Free Remote-On-Us Transaction, if the customer's transaction is not honoured in our ATM for reasons attributable to the Bank.

Strategies / Initiatives for FY 2026-27:

Mobile Banking:

- Electronic generation of No Objection Certificate for closed loans.

- Unified Mobile Banking Onboarding Flow.

- Mobile Banking for HUF and Minors with Guardians.

- Displaying of Product features for flagship account.

- Online Dispute Redressal (ODR) in Mobile Banking.

Internet Banking:

- Enabling of cross platform continuity for dropped off digital journeys of customer.

- Single Debit Multiple Credit Bulk payment option.

- Single Debit Multiple credit bulk IMPS.

- Scheduled Bulk facility for customers to schedule Bulk file transactions to a later date.

UPI:

- Introduction of UPI Circle (Partial / Full Delegation) to allow users to delegate UPI transaction authorization to trusted individuals within predefined limits.

- Enhancement of UPI AutoPay to allow customers to view and manage mandates across different UPI applications.

- Multi-Signatory Accounts to enable business accounts to perform UPI transactions based on a predefined authorization matrix.

- Cash Withdrawal through Micro ATM.

- UPI payments will be extended to IoT devices such as smartwatches and connected devices.

- Loan Repayment through UPI.

- UPI services will be extended to minors aged 14-18 years with controlled transaction limits.

- Fixed Deposit Revamp through UPI.

- National Pension System (NPS) Onboarding through UPI.

CBDC:

- Offline Tap n Pay based transaction for the CBDC.

ATMs:

- Cash deposit in loan accounts through ATMs.

- Implementation of UPI-ICD (Interoperable Cash Deposit) functionality as an acquirer.

- Pre-Disbursement Validation in CBS for CERSAI charge registration

Enhanced validations in General / Agriculture loan disbursement screens to ensure upfront creation and maintenance of CERSAI charges in CBS. This initiative improved regulatory compliance and ensured priority in charge creation for the securities attached before loan disbursement.

- SC Calculation on Cumulative Amount for KCCS Loan

As per the extent guidelines service charge waiver maybe permitted up to Rs. 3 lacs inclusive of all loans of the customer under KCCS, whenever multiple loans were being extended and cumulative amount was above Rs. 3 lacs, service charge was being collected manually. We have implemented functionality to collect service charges by the system automatically on the cumulative loan amount of the borrower.

- Collection of SC During Disbursement

Earlier, applicable charges were being collected after disbursement of the loan during EOD. With this functionality, applicable charges will be collected during the disbursement of the loan itself. Branch has to maintain sufficient balance in CASA and proceed for disbursement.

- TD Opening without CASA for walk-in customer through our corporate website.

A new functionality has been implemented for term deposit opening and closure without CASA account through Corporate Website of Canara Bank.

- Locker Account Closure, Refund and Closeout Withdrawal

A single screen for locker account closure, refund and closeout withdrawal has been implemented for avoiding operational issues such as locker account closed whereas closeout withdrawal is not done.

- Enhancement in service charges in LC & BG

Previously branches were collecting the forex service charges manually on different types of foreign LC's and foreign guarantees, which has been automated for collection of service charges/ commission in FCC.

- FX Margin Linkage Facility for Forward Contracts

To mitigate the risk of loss arising out of exchange rate fluctuations, bank may stipulate margin amount at the time of sanction of forward contract limits facility based on the risk profile of the customer. Linking of margin amount to forward contracts in FX module is introduced.

- GEFU for exchange rate upload at Treasury

Earlier, various types of Exchange rates were being captured in CBS-FCC screen by HO on daily basis. Now all the access / Rights are given to Treasury Wing Users to update the Exchange rates through GEFU. The rates such as Daily Ratex, Forward Rate (Revaluation rates, Swap rates, Swap Cash Spot rates, Swap Exchange Rates, Swap Forward Premium Points, Forward Rate are updated by treasury directly now.

- Automation of Commission in Lieu of Exchange in BC / FT modules

To eliminate manual intervention and decrease TAT, we have fully automated the collection of commission in lieu of exchange in FT Module and in BC Module wherever EEFC account is being debited

- Automation Of Correspondent Bank Charges - FBK

We have automated the collection of Correspondent Bank Charges also known as "Agent Charge", "Foreign Bank Fee" (FBK), or "Intermediary Bank Fee" which is a fee charged for processing and clearing international fund transfer between Correspondent Banks which has eliminated manual intervention.

- New Screen to Modify RETAD / Better rate details, with Authentication

New Screen has been introduced at front-end in FCC to facilitate modifications of Exchange Rate data (RETAD) / Nostro credit data (RECON) & Better Rate deals flowing through RETAD/ RECON at Integrated Treasury Wing itself which has drastically reduced backend updations and branch complaints.

- Transformation of SWIFT Messaging format from MT to MX (ISO 20022)

All cross border foreign currency payments, securities, documentary credits from and to Canara Bank are being routed through SWIFT network. SWIFT currently uses MT (Message Type) messaging format standard, introduced in 1977, and same is being phased out in favour of the new MX standard achieving better alignment with the current industry standard (ISO 20022).

The following message types have been migrated to MX in the first phase this year:

i. SWIFT MT 1 series - Customer payments

ii. SWIFT MT 2 series - Financial Institution payments

iii. SWIFT MT 9 series - Statements

These MX messages which are structured in line with SWIFT's cross-border payments and reporting (CBPR+) guidelines, will make payments more efficient, more transparent and will ultimately lower costs. We are the first public sector bank to transform SWIFT Messaging format from MT to MX.

- Foreign Currency Settlement System-IBU GIFTCITY

Foreign Currency Settlement System (FCSS), a payment system within GIFT-IFSC established by CCIL IFSC Limited to facilitate clearing and settlement of transactions involving USD currency has been implemented in IBU GIFT CITY branch.

- SWIFT MX - Message Generation from FCUBS as per latest ISO 20022 Standards in FCUBS - London, Dubai, GIFT City

As per the Global SWIFT standards migrating to the internationally accepted ISO 20022 MX message format, changes have been implemented in FCUBS-LONDON, DUBAI and GIFT CITY to transmit the MX Messages.

- PPF / SSY remittances through UPI

Now customers can do subscription payment for small saving schemes such as Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) through UPI channel. Integrating UPI for PPF and SSY remittances significantly modernises the contribution process by removing the dependency on net banking or physical branch visits. This facility empowers customers with the flexibility to make instant, real-time subscriptions directly from any UPI-linked app, ensuring they never miss crucial investment deadlines.

- Facility of instant account opening through BC Tab

Now enhancements have been done in the existing SB account opening facility provided through Business Correspondent Channel. With this, the account opening process becomes simpler and customers can immediately start depositing and avail PMSBY / PMJJBY facilities which will help in achieving Bank's FI parameters.

- NPS Vatsalya functionality

NPS Vatsalya is a contributory pension scheme under the National Pension System (NPS), launched by the Pension Fund Regulatory and Development Authority (PFRDA) to secure the financial future of children. The NPS Vatsalya scheme offers families a simple and effective way to start building long-term wealth for their children from an early age.

- Re-KYC Facility through BC Channel

Re-KYC facility has been extended through Business Correspondent channel for low-risk customers. Extending Re-KYC services through our Business Correspondent (BC) network brings banking directly to the customer's doorstep, removing the need for them to visit a branch. This move significantly reduces friction for low-risk customers, allowing them to maintain active accounts through a quick and convenient digital update.

- Customer feedback mechanism to review BC Services

To ensure we are meeting high service standards; we have introduced a simple feedback system that reaches customers in their own local language via SMS. By asking for their input immediately after they use a Business Correspondent (BC) service, we get an honest, real-time look at how our frontline operations are performing. This move not only makes our customers feel heard and valued, but it also gives the bank the clear data needed to fix service gaps and improve trust.

- Provision for FRSB subscription through online portal

Now a facility has been provided in our Bank's corporate website, using which our Bank customers can subscribe to RBI's Floating Rate Savings Bond online. This digital shift removes the hassle of physical paperwork, allowing our clients to diversify their portfolios instantly and securely from any location.

- BBMP (Bruhat Bengaluru Mahanagara Palike)

Package developed for "Property Tax Collection through OTC mode" on behalf of BBMP (Bruhat Bengaluru Mahanagara Palike).

- NATS 2.0

Integration with NATS 2.0 (National Apprenticeship Training Scheme) of board of Apprenticeship and Training (BOAT) to process stipend payment to apprentices through Canara Bank.

- MP Kamdhenu Portal

Portal for Dr. Bhimrao Ambedkar Kamdhenu Yojana portal which will act as unified portal for 'Dairy / Cattle Loan' applications across MP State. This portal facilitates easy access of bank loans for constructing cattle sheds, purchasing high-yielding cattle, animal transportation, and cattle insurance.

- MACT Portal: MACT (Motor Accident Claim Tribunal)

Integration with Sub-Court Devakottai, Tamil Nadu to track the Insurance claim status through virtual account numbers. Victims or their legal heirs of motor accidents are getting financial compensation, timely disbursal for the awarded monetary relief by Sub-Court Devakottai is being monitored through this portal.

- Stree Suraksha Pension Scheme under Govt. of Kerala

Stree Suraksha Pension Scheme under Government of Kerala covering almost 20-25 Lakh beneficiaries with a monthly outflow of nearly Rs. 200-250 Crores. Eligible beneficiaries receive a fixed sum of Rs. 1,000 per month through 'Direct Benefit Transfer (DBT)' which is helping them getting direct payment to their UID linked bank account, ensuring transparency and timely disbursement without middlemen.

- Haryana e-GRAS

Integration with e-GRAS System of Govt. of Haryana to Verify VPA, Raise Collect Request, GenerateDynamicORCodeandGetStatusthrough Canara Bank. This integration allows citizens and businesses to pay taxes and fees seamlessly by scanning a OR code or entering a Virtual Payment Address (VPA) on their smartphones / Tabs / Laptops, eliminating the need for physical challans or manual bank transfers. UPI payments typically avoid Additional Transaction Fees and also providing 24/7 Availability.

- NAFED & NCCF e-KYC Solution

Integration of Biometric Authentication system for registration of beneficiaries for payment processing under NAFED & NCCF Projects. Biometric data (fingerprint or face authentication via Aadhaar) securely locks a user's identity. This prevents duplication, ensures that agricultural subsidies and payments reach the intended individuals, and stops fraudulent claims. It also replaces the need for physical paperwork and manual verification. Verification can take place in seconds, accelerating payment settlement through Aadhaar Payment Bridge System (APBS). It links beneficiaries directly to formal banking and payment channels, promoting financial inclusion.

- Integration of UPI Payment Mode under GSTN Collection Package

Enhancements in the existing software of Goods and Service Tax (GST) for enabling payment collection through UPI OR code (Quick Response Code) along with the existing payment collection modes of INB, OTC, UPI, Debit Card and Credit card. This integration allows citizens and businesses to pay taxes seamlessly by scanning a QR code or entering a Virtual Payment Address (VPA) on their smartphones / Tabs / Laptops, eliminating the need for physical challans or manual bank transfers. UPI payments typically avoid Additional Transaction Fees and also providing 24/7 Availability.

- OTP validation for Cash NEFT transactions for walk-in customers

We have enabled OTP validation for Cash NEFT transactions for walk-in customers to transfer up to ' 50,000 via NEFT. Under this new functionality, OTP validation must be completed before any Cash NEFT transaction is processed.

- Continuous Clearing

Cheque Truncation System (CTS) is migrated from the previous approach of batch processing of presentation and return sessions for clearing and settlement of cheques to 'on-realization settlement' model, wherein the processing is continuous as mentioned below. single presentation session starts from 09:00 AM to 3:00 PM. Cheque realization TAT is reduced from T+1 to T i.e., on same day Customer is getting Credit.

Gold Loan Progress

Performance highlights for FY2025-26

- Gold loan business has crossed Rs. 2,45,000 Crores as at 31.03.2026

- Number of gold loan accounts crossed 1.02 Crores

- Business has grown by Rs. 64,097 Crores (35.34%) during FY 2025-26

- Net NPA decreased during FY2025-26 Key Initiatives during FY 2025-26

- Drawing Power is being updated on daily basis for Gold overdraft loans, based on the market rate of gold jewellery.

- SOP for claim settlement to gold loan borrowers in lieu of lost gold jewellery, which has been approved by System and Procedure Committee and the same is incorporated in the Gold loan Policy for FY 2026-27.

- The functionality to capture the data on purity of gold jewellery certified by GPTM, in LAPS & DLP package has been enabled.

- In the Board approved Gold Loan Policy for FY 2026-27, Vertical has incorporated all the changes as per the RBI Master directions on lending against Gold and silver collateral, dated 06.06.2025 and reiterated by RBI on 28.11.2025.

- Change request has been submitted for the development of new mobile app (CAN JAP) to capture Gold Jewellery image and jewellery details like gross weight, deductions, Gold purity, net weight assessed during appraisal process by Jewel Appraiser in the Branch.

- Change request has been submitted to develop the option to maintain Gold jewel packet movement details in CBS, for tallying the physical gold loan packets available with the branch.

FINANCIAL INCLUSION

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

- Bank has made significant efforts to empower underserved communities through the implementation of the Pradhan Mantri Jan Dhan Yojana (PMJDY). We have opened 3.28 Crores of PMJDY accounts. Additionally, we have been enrolled in schemes like PMJJBY (103.56 Lakhs), PMSBY (319.74 Lakh), and APY (68.75 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 3.28 Crores accounts under PMJDY, having total outstanding balance of Rs. 25,721 Crores in those accounts with average balance of Rs. 7,841 per account.

- With regard to extending banking services through the BC model, the Bank has 15000 Business Correspondent locations out of which 5483 are 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 150 FLCs (118 FLCs sponsored by Canara Bank and 32 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 counsellors. The broad objective of the FLCs will be to provide free financial literacy / education and credit counselling. During FY 2025-26, 23,646 FLC camps were conducted wherein 23,16,767 persons were educated and 1,57,208 persons were counselled.

- As per RBI directions, 243 CFLs are running across 8 States and one Union Territory with funding from DEA Fund 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 financially excluded persons in remote areas.

- During the current year 2025-26, the bank settled 6910 death claims under the PMJJBY, totalling Rs. 138.20 Crores, and 2206 cases under PMSBY, amounting to Rs. 44.12 Crores. Since its inception, the bank has settled 49973 death claims under the PMJJBY scheme, totalling Rs. 999.32 Crores, and 12873 cases under PMSBY, amounting to Rs. 257.46 Crores.

Scheme Enrolments including Renewals as at March 2026

AADHAAR ENROLMENTS UPDATION CENTRES:

The Bank is a Registrar and Enrolment Agency for Aadhaar Enrolment. As per UIDAI guidelines Bank has established 500 ASKs.

EMPOWERING WOMEN:

Women Empowerment Section at Head office and Centre for Entrepreneurship Development for Women (CEDW) at 26 Circle Offices and 178 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 234 Programmes (17068 beneficiaries) were organized by the CEDWs during FY 2025-26.

Flow of Credit to Women Beneficiaries:

As against RBI's requirement of 5% of Net Credit to women beneficiaries, the Bank has advanced 28.93% of Net Bank Credit as at March, 2026. Over 80,19,433 Women are assisted to the tune of Rs. 2,58,188.05 Crores.

Lead Bank Responsibility:

As on 31.03.2026, 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

Canara 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; Canara Tanzania Limited (erstwhile Canara Bank Tanzania Limited) at Dar Es Salam (Tanzania).

Total Business of the overseas branches aggregate to Rs. 2,08,178.48 Crores (USD 21,951.65 Mn) comprising deposits to the tune of Rs. 1,31,773.50 Crores (USD 13,895.03 Mn) and advances to the tune of Rs. 76,404.98 Crores (USD 8,056.62 Mn) as at March 2026.

Canara Tanzania Limited (erstwhile 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 of defunct CBTL on 05.05.2025. Further, the divestment process of said entity is in the final phase of completion.

ASSET QUALITY

The sustained focus to contain risk, well supported by broad-based recovery in economic growth, kept the asset quality robust in FY2026. Gross NPA of your Bank stood at 1.84%, an improvement of 110 bps YoY while the Net NPA stood at 0.43%, an improvement of 27 bps YoY. The improvement in asset quality was seen across all sectors. Overall Gross NPA declined to Rs. 22,740 Crores as of March 2026 from Rs. 31,530 Crores in March 2025 and Net NPA declined to Rs. 5,209 Crores as of March 2026 from Rs. 7,353 Crores in March 2025. The cumulative Cash Recovery including Recovery in written off accounts stood at Rs. 9,161 Crores and upgradation at Rs. 814 Crores during FY 2025-26. Bank has recovered Rs. 7,642Croresunderrecoveryinwrittenoffaccountsduring FY 2025-26. Slippage during the year has contained to Rs. 7,030 Crores. Provision Coverage Ratio (PCR) improved by 151 bps and stood at 94.21% as at March 2026 against 92.70% as at March 2025.

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

Bank has centralised actions under SARFAESI Act 2002 at 178 Regional Offices and 43 ARM & SAM Branches resulting Bank sales as well as resolution through SARFAESI actions increased manyfold. During FY 2025-26, 2407 properties were sold amounting to Rs. 1,824 Crores and 5620 accounts were settled / closed/ upgraded amounting to Rs. 1,216 Crores 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, highest under property sold and highest resolution among PSBs during FY 2025-26.

Further, Bank had conducted 8496 Recovery Meets during FY 2025-26 that has resulted in settlement of 2,64,461 accounts covering book liability of Rs. 5,361 Crores.

Bank has popularised "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, 378 cases have referred to NCLT under IBC for resolution wherein our Bank is having Book liability exposure of around Rs. 29,584 Crores. Out of which, 339 cases admitted by NCLT with our Bank's aggregate admitted claim of Rs. 27,931 Crores. Our Bank is expecting substantial recovery during FY 2025-26 through resolution / liquidation in these NCLT referred cases. During FY 2025-26 Bank has recovered Rs. 1,599 Crores through cases referred to NCLT.

MANAGEMENT

Bank has a dedicated Risk Management Wing 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 regulatory guidelines and 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 Risk, Compliance & Inspection units to bolster collaboration across different lines of defence 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 an independent 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 endeavours 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) 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.

f) 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.

g) 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).

h) 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.

i) 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.

lNTEGRATED TREASURY

Aggregate investments Domestic (net) of the Bank stood at Rs. 3,99,081.64 Crores as at March 2026. Modified duration of the investment portfolio and Available for Sale (AFS) portfolio stood at 4.48 and 5.10 as at March 2026 respectively. The yield on investments stood at 6.98% as at 31st March 2026. The trading profit under domestic treasury operations during financial year is Rs. 5,307.95 Crores including profit on sale of stakes in subsidiaries of Rs. 2,006.16 and revaluation gain of ' 1,368.36 Crores for HFT & FVTPL as on 31.03.2026.

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. 1,06,255 Crores out of which the underwriting commitment accepted by RBI was Rs. 64,928 Crores. 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 41.99% during the first half and 44.00% for second half of Financial Year 2025-26.

Foreign Business Turnover of the Bank aggregated to Rs. 2,24,711 Crores, comprising of Rs. 83,589 Crores under exports, Rs. 51,013 Crores under imports and Rs. 90,169 Crores under remittances during the year ended March 2026.

(organisation and support services

Branch Network - Expanding Pan India Presence

With aim to expand the reach, Bank has added 263 domestic branches during the year. As at March 2026, the Bank had 10097 domestic branches, including Specialized Branches.

Composition of Branch Network

Note:

1. Out of 263 Branches, 250 Branches are general Banking Branches and 13 are Specialized Branches (RAH-5, MSME SULABH-1 & ARM-7).

2. Domestic branches were merged during the year: 15

3. The total Specialized Branches of the Bank stood at 628 as at March 2026.

human resources

PERSONNEL PROFILE

As at 31st March 2026, the Bank had 81827 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 65.68% Officers, 23.85% Clerks and 10.47% Sub Staff / PTE.

The Women staff strength of the Bank was 26600 constituting 32.50% of the total employees. The total number of ex-servicemen staff as at March 2026 stood at 5077. There were 2570 Differently abled persons (DAPs) on the rolls of the Bank.

IMPLEMENTATION OF 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), Ex-Servicemen (ESM) and Persons with Benchmark Disabilities (PwBD), as per the Government of India guidelines.

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 Section under the direct control of Chief Liaison Officers for monitoring Reservation and other matters related to SC/ST/OBC/ EWS/PwBDs/Ex-Servicemen employees.

Category-wise representation in the organization:

The representation of SCs/STs/OBC/EWS/PwD/ESM employees in our Bank as on 31st March 2026 is as under:

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

Details of the posts filled up by the candidates of SC/ST/OBC/ EWS/PwBD/ESM during the FY 2025-26 at various levels:

During the FY 2025-26, our Bank recruited 2976 employees in various cadres. The category wise details are as under:

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

RECRUITMENT:

During the FY 2025-26, Bank recruited 2934 persons in various cadres. Out of which, 1266 were women employees, consisting of 43.14% of total recruitment. The category wise representation of newly recruited employees is as under:

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

Note: Data Does not include Compassionate Appointment.

INITIATIVES:

- Engagement of graduate apprentices - In compliance with the Apprentices Act, 1961, our Bank has been engaging Graduate Apprentices for a period of one year. Accordingly, our Bank has released an advertisement to engage 3,500 graduate Apprentices for FY 2025-26. At present 3,015 Apprentices are undergoing Apprenticeship Training in various Branches across India for a period of one year.

- Monthly sessions on Work-Life balance for employees.

- Cross Bank Training:

Cross Bank Training is an initiative of CIBM wherein specialized training program such as "NARI - Nurturing Aspiring Role Models in Inclusive Banking" was conducted for women executives of Scale IV and above from other PSBs and SBI. The programme facilitates inter-bank knowledge sharing, leadership development and capacity building among senior women executives. It also strengthens collaboration across banks and promotes best practices, thereby contributing to a more inclusive and empowered leadership ecosystem in the banking sector.

- Canara Resume:

Canara Resume is an online program designed for employees returning to duty after Maternity or Sabbatical leave. Monthly webinar sessions are conducted a few months post re-joining, to support smooth transition back into the work environment. In addition, a two-day online training program has been conducted twice, ensuring focused re-orientation, skill upgradation and continued support for returning employees.

- RKY (Rashtriya Karma Yogi): Rashtriya Karma Yogi training programmes were conducted across all centres as per the directions of GOI, successfully achieved the target of training 25000 staff under the programme.

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

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

- 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 mandatorily from CSA to Scale-V based on their job-roles to get two marks in APAS this year.

- Wellness Within - Yoga Series: Wellness Within is a health-focused digital initiative wherein guided

Yoga sessions conducted by certified trainers are recorded and made available for staff access. It enables employees to practice wellness routines at their convenience, supporting physical fitness, stress management and overall well-being. The initiative promotes a healthy work-life balance and encourages a culture of preventive healthcare through simple, accessible and self-paced learning.

- CIBM V-Learn:

It is a structured digital learning initiative aimed at strengthening staff capability through expert-led video modules developed by CLDC / CCoE faculties. It facilitates standardized knowledge dissemination across the organization, ensuring uniform understanding and consistency in learning. The platform promotes self-paced, anytime-anywhere access, thereby enhancing training reach, improving efficiency and supporting continuous professional development with minimal disruption to day-to-day operations.

- Learn Local Language:

Learn Local Language is a focused digital learning initiative wherein L&D staff develop short video modules to help employees acquire basic proficiency in regional languages. It is particularly beneficial for staff posted in non-home states, enabling them to communicate effectively with customers and local stakeholders. The initiative promotes inclusivity, enhances customer service quality, and supports smoother integration of staff into diverse linguistic environments through easy, self-paced learning.

- Audio Books:

Audio Books Library is an initiative of CIBM wherein key highlights of daily circulars are converted into short audio clips and made available for staff. It enables employees to conveniently listen to important updates, ensuring better accessibility, quick understanding, and effective dissemination of information across the organization.

- Mentor - Mentee Concept:

The existing mentorship programme has been digitized and integrated into the HRMS Portal of the Bank to facilitate the development and implementation of the digital Mentorship Programme. Further, to institutionalize mentoring

as a core developmental intervention and extend its benefits across all officer cadre, the Mentoring Concept-Interactive Sessions has been introduced for all officers in Scale I to IV who are not covered under existing PO or Women Mentoring programme. Under this initiative, Mentors shall be conducting at least one structured interactive session on a half-yearly basis either in physical mode / through approved virtual platforms.

- Emotional Champions:

In order to enhance the emotional well-being of employees, 307 executives in Scale V and VI have been identified and nominated as Internal Emotional Champions. These Emotional Champions will facilitate internal peer support and counselling for employees. The details of the nominated Emotional Champions are available in CANNET under HRD - CAN-EASE, where employees may reach out to them whenever emotional support or guidance is required.

- As instructed by Top Management, to create a pool of credit officers, a special program on Core Credit has been initiated from FY 2025-26 for willing Branch Heads in Scale II / III / IV. The program is being conducted in four phases of one week each. The phases are classroom program at SBI Gurgaon / Hyderabad followed by On-the-Job Training (OJT) at LCB / MCB, HO-LCC vertical and HO-GTPC vertical at Manipal. So far, 261 employees have been trained under this program.

- During FY 2025-26, seven in-principle sanctions have been accorded for the opening of new Holiday Homes.

- Introduced scheme of Absorption of Tax on Perquisites of employees from FY 2025-26.

- Opened Canara Care Home at Chennai in addition to Delhi, Vellore and Mumbai.

- Enabled Auto approval (without authorization) of certain staff benefits such as - conveyance and Mobile charges expenses up to Scale I.

- Payment of PLI for the FY 2024-25 to Employees up to Scale III.

- Introduction of New Schemes, viz, Reimbursement of Fitness Expenses and Wellness expenses under Staff Welfare measures.

- 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 2025-26 on 29th September, 2025 by Public Relation Council of India for Corporate Collaterals held at Goa.

- Canara Bank's In-house magazine 'Shreyas has been awarded the Best In house Magazine-Corporate Communications by the Public Relation Society of India on 13th February 2026 held at Dehradun.

- During Hindi Day and 5th All India OL Conference held at Gandhinagar, Gujarat on 14-15 September 2025 TOLICs Convened (TOLICs constituted under the Convenorship our Bank pan India) by our Bank have won "NARAKAS Samman 2024-25" from Dept. of Official Language, Ministry of Home Affairs, GOI in various categories.

- During the Joint Regional Official Language conference of Central, West, South and South- West regions held at Indore on 20 January 2026, the Honourable Union Minister of State for Home Affairs Shri Bandi Sanjay Kumar honoured the Town Official Language Implementation Committee (Bank & Insurance), Bengaluru with the "First" prize (Consecutively for the Third Time) of the Regional Official Language Award for excellent implementation.

- Under the aegis of Department of Financial Services, Ministry of Finance, Government of India, a two- day seminar / review meeting was organized at Mussoorie on 12-13 June 2025 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 by PRCI in 15th Excellence Awards 2025.

- 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.

- Compendium for Retirees released in the presence of MD & CEO with comprehensive guidelines and details on eligible post-retirement benefits including welfare measures.

- Appointed Nodal Officer at Head Office to get guidance / assistance to claim eligible Terminal and other benefits for family members of Canara Bank employees who die in harness.

- Auto e-mail trigger enabled to Pensioner's e-mail upon modification of profile details such as Address, Mobile No., e-mail ID, Aadhaar and PAN updation, change in Pension A/c No. & Pension drawing branch.

- Provision is given in HRMS package for Pension Fund to upload the Pensioner's photograph and capture the same in Digital PPO.

- In HRMS package we have enabled auto approval of Voluntary Provident Fund (VPF) updates once the subscriber submits the application.

- In HRMS package we have enabled the facility of Partial payments or full closures of Repayable Withdrawal Loans.

- The HRMS package automatically triggers e-mail notifications to the employee, respective branch, Circle office (CO), and HRM Section upon the settlement of SPF and Gratuity amounts.

- Automated e-mail notifications are sent to the respective branch and employee immediately upon the sanction of repayable withdrawal and non-repayable withdrawal via the HRMS package.

- The following modules developed newly / handled manually and brought up in HRMS (Automated) for FY 2025-2026.

1 Transfer Appeal module

2 Transfer grievances module

3 Mentoring module for women & prob., officers

4 Module for booking appointment for counselling

5 Service card updation module

6 HRMS SEP access module

7 HRMS feedback module

8 Apprentice Exit Module

9 Apprentice Attendance Marking

10 Apprentice Photo upload

11 Apprentice Termination

12 Apprentice Stipend payment module

13 Quarters / Personal leave conveying module

14 Seniority list of all officials

15 Availment of leave confirmation module

16 DA tracker module

17 Strike data updation module

18 HRMS ticketing tool module

19 Digital attendance register

20 TPO review module

21 HOTO module

22 Incentive Short excess pay module

23 Incentive Annual fee reimbursement module

24 Litigation page

25 Apprentice profile page

26 Area classification module

27 ODI agreed module

28 TPO & HRA integration page

29 PWD data confirmation page

30 Various willingness pages

31 Laptop / I pad facility to CGM / GM

32 SWM - Wellness / fitness allowance pages

33 Revamped photo upload module

34 Un-authorised absence module

35 Incentive Non-intimation module

36 DA appeal & Review module

37 Canara Prashikshan - Internal training module

38 Canara Prashikshan - External training module

39 Union / Welfare Association - willingness to increased subscription page

40 ODI agreed module

41 Automation of conveyance expenses

42 Incentive payment through STP

43 SPF NRW automation

44 Automation of mobile call charges

45 Gratuity settlement - Auto GL process

46 Bio-data Clearance - automation 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 need 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 2025-26, 1395 programmes were conducted in which 146953 employees were trained, a total of 80091 employees got at least one training in the Financial year which is almost 97.87 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 2025- 26 around 475 executives have attended EDP & Customised Leadership Development Program was conducted for 871 Executives (CGMs, GMs, DGMs & RO Heads). 32 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 92 officials were given Foreign Training Programmes / Workshop during FY 2025-26.

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

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

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

“Welfare of SC / ST / OBC / EWS”

IMPLEMENTATION OF 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), Ex-Servicemen (ESM) and Persons with Benchmark Disabilities (PwBD), as per the Government of India guidelines.

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 Section under the direct control of Chief Liaison Officers for monitoring Reservation and other matters related to SC/ST/OBC/ EWS/PwBDs/Ex-Servicemen employees.

Measures for the welfare of SC/ST/OBC/EWS/PwBD & Ex-Servicemen Employees

i. Reservation Cell has been set up at Head Office in accordance with the Govt. guidelines to monitor the welfare of Scheduled Castes(SCs)/ Scheduled Tribes(STs) / Other Backward Class(OBC)/ Economically Weaker Section(EWS) / Persons with Disabilities and Ex-Servicemen employees.

ii. Bank is adhering to the Govt. of India guidelines on reservation to SC/ST/OBC/EWS/Persons with Benchmark Disabilities (PwBDs) & Ex-Servicemen in direct recruitment and also in internal promotions to SC/ST and PwBD employees.

iii. Bank has appointed a Chief General Manager (CGM) as Chief Liaison Officer (CLO) for SC/ST/PwDs & Ex-Servicemen employees and also a General Manager as Chief Liaison Officer for OBC / EWS employees in compliance with the Govt. guidelines. Bank has also nominated Liaison Officers at all its Circle Offices of the Bank to look after the grievances and welfare of SC/ST/PwD/OBC/EWS & Ex- Servicemen employees.

iv. Bank has appointed Grievance Redressal Officer for PwD employees at Head Office.

v. Reservation Cell at Head Office is conducting the mandatory quarterly meetings with the representatives of the majority SC / ST welfare association and OBC welfare association with the MD & CEO of the Bank. Quarterly meetings with the majority SC / ST and OBC welfare associations are also being conducted at Circle Offices of the Bank and grievances, if any, are redressed by the Liaison Officers at Circles.

vi. An Internal Grievance Redressal Committee for SC / STs consisting of Senior Officials of the Bank including CLO has been formed at Head Office for redressal of employment / service grievances of SC / ST employees based on the recommendations of National Commission for Scheduled Castes and National Commission for Scheduled Tribes.

vii. Bank is providing pre-promotion training to SC / ST / OBC and PwBD employees in tune with the Govt. guidelines.

viii. Bank is also providing training in IR matters to the representatives of welfare associations for the benefit of SC / ST / OBC employees.

ix. Bank is providing Job Access With Speech (JAWS) software to visually impaired / blind employees. Also, Bank is reimbursing up to eligible ceiling to PwD employees for purchase of spectacles, crutches/ wheel chairs / hearing aid along with batteries.

Category-wise representation in the organization:

The representation of SCs / STs / OBC / EWS employees

in our Bank as on 31st March 2026 is as under:

Details of the posts filled up by the candidates of SC / ST / OBC / EWS during the FY 2025-26 at various levels:

During the FY 2025-26, our Bank recruited 2976 employees in various cadres. The category wise details are 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 been engaging Graduate Apprentices for a period of one year. Accordingly, our Bank has released an advertisement to engage 3,500 graduate Apprentices for FY 2025-26. At present 3,015 Apprentices are undergoing Apprenticeship Training in various Branches across India for a period of one year. The category wise details are as under:

Out of which

Total

SCs STs OBCs EWS PwBDs*

3,015 469 181 748 222 124

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

IMPLEMENTATION OF OFFICIAL LANGUAGE

Our Bank is ensuring compliance of Official Language Implementation as per Official Language Act 1963, Official Language Rules 1976, recommendations of Parliamentary Committee on Official Language, Annual programme of Department of Official Language, Ministry of Home Affairs and also as per the guidelines issued by Department of Financial Services, Ministry of Finance, Government of India. OL Implementation encompasses teaching & training of Employees to learn and understand Hindi and its use in a day-to- day banking activities. Employees who do not possess working knowledge in Hindi are nominated for Prabodh,

Praveen and Banking Pragya examinations conducted by Hindi Teaching Scheme, New Delhi and they are also incentivized on passing it. Incentives are also provided to employees for passing Parangat examination who aspires to obtain proficiency in Hindi. Bank provides cash incentives to motivate employees for obtaining Hindi Degrees like Graduation, Post-Graduation, M.Phil. and Ph.D. in Hindi and also for creative writing in Hindi whose literary work is recognized by institutes of repute.

Bank has made available forms in bilingual format in Region 'A' and trilingual format in 'B' & 'C' region branch counters for the use of customers. In addition, important customer-related forms are also made available in 13 languages to enhance accessibility and convenience. The Bank has further introduced WhatsApp Banking services in 9 languages and Mobile Banking services in 13 languages to cater to a diverse customer base. The 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 and Regional Offices also provide the requisite translations in Hindi and English apart from ensuring implementation of Official Language policy in their respective areas.

Official Language Implementation Committees are constituted at all levels, where quarterly meetings are conducted promptly and review of status of OL implementation is effectuated. A Hindi inter-translator system has been introduced in CBS through which pass book / pass sheets could be generated in Hindi, including generation of Deposit receipts and DDs. CBS Screens (in Hindi) have been created and a facility to generate reports in Hindi are now made available. Provision has been made in ATM Screen to view the transactions in 11 Regional Languages. Standard greetings and messages to customers are being sent through SMS in Hindi & Regional Languages also. Customers can now opt to receive SMS in their opted language.

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

Our Bank's Head Office is the Convenor of Town Official Language Implementation Committee (Banks & Insurance), Bengaluru. Our Bank is also the Convener of 20 other TOLICs constituted at various Cities / Towns across the Country. TOLICs Convened by our Bank has won "NARAKAS Samman 2024-25" from Dept. of Official Language, Ministry of Home Affairs, GOI in various categories. TOLIC (Bank & Insurance) Bengaluru has also won the 1st prize (consecutively for the third time) for commendable performance for the year 2024-25 in Regional Official Language Awards.

Various Units (COs, ROs and Branches) of our Bank have secured Shields and Certificates pan-India, awarded by TOLICs for the best implementation of Official Language.

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.

Banking related news in Hindi under the title "Aaj Ke Samachar" is 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. The Magazine has bagged best Magazine award (Silver) by PRCI in 15th Excellence Awards 2025 and also won First prize in "C" Region by DFS for the year 2025-26.

Regional Language Cells, i.e., Kannada Cell, Tamil Cell, Telugu Cell, Marathi Cell, etc., have been formed in Circle Offices located in Regions 'B' and 'C'. The Regional Language Cell under the Official Language (OL) Section of the HR Wing functions as the Nodal Cell for coordinating and promoting the usage of regional languages. To further support staff in learning and using regional languages effectively, "Know Your Regional Language" books have been published in Kannada, Telugu, Tamil, Malayalam, Assamese, Marathi, Punjabi, Gujarati, Bengali and Odia.

"Hindi Mein Paricharcha" an innovative discussion programme in Hindi on contemporary banking subjects (topics as informed by OL Section, HO) is being organized at 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.

CUSTOMER ORIENTATION

Bank has taken several initiatives to remain customer focused through provision for prompt service, offering diversified products & services, responding to customers' queries in shortest possible time and redressal of customer complaints within the timelines stipulated.

- Bank has adopted 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 co-ordination 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 360? 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 up 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 & e-mail 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.

- To ensure consistence monitoring & improvement,

a dedicated Customer Service Vertical team headed

by General Manager and overseeing by Chief General Manager is created. Customer service vertical team steadily work towards improvement of quality of Grievance Redressal and customer experience in the Bank.

- Since implementation of Centralised Grievance Redressal Mechanism, We have improved quality of grievance redressal. The same is evident with the fact that out of total complaints referred to Internal Ombudsman of the Bank, for 99.64% complaints, the IO has given views in favour of the Bank for the period from 01.04.2025 till 31.03.2026.

- Our Vertical has implemented Comprehensive Employee Specific Feedback Mechanism for enhanced customer connect at field. From 1st April 2025 to 31st March 2026 a total number of 1,09,41,018 customer feedback have been collected under the mechanism with a Customer Satisfaction Score (CSAT) of 98.83%. This Mechanism captures Transaction Based real- time customer feedback on the experience & quality of service provided by the employees at branch. This is first-of-its-kind, in Indian Banking industry. Feedback is collected through various channels- OR, SMS, WhatsApp, E-mail, Kiosk. The responses are analysed to identify areas of concern so that systemic level changes can be implemented.

- One Bank One Number (Toll free number 18001030) has been introduced where customers can avail 47 services through its call centre in 17 languages by 24*7.

- Bank is offering country-specific Toll Free numbers for NRI Customers. Helpline numbers shall continue for NRI Customers of all the other countries (For which toll free number is not available). All the Toll free numbers & Helpline number are displayed at Bank's website.

- Bank is offering 80 services through WhatsApp Banking presently. Since 1st April 2025, additional 8 languages i.e., Gujarati, Bengali, Tamil, Punjabi, Malayalam, Odia, Konkani and Urdu have been added in WhatsApp and ChatBot banking services increasing the total number of languages to 13.

- Bank's ChatBot-AURA (Always Up for Reliable Assistance) provides 17 services in total 13 languages.

- Voice bot service has been enabled through ChatBot, where user can avail ChatBot services and receive responses of their queries through voice assistance by the Bot. Presently Voice bot service is available in 5 languages i.e. English, Hindi, Kannada, Telugu, and Marathi.

- Customer Service Vertical is conducting surprise visits / surprise video calls to branches of selected Circles at quarterly intervals to observe customer service parameters.

- CRM (Customer Relationship Management)-CANARA RISHTEY is adopted by our bank for improving service quality and driving business growth. Bank has launched 12 modules under CRM as of now. Comprehensive End-to-End CRM solution from the perspective of Customer acquisition, retention, cross-selling and upselling of various products and augmenting business growth. To automate and streamline Business Analytics, Campaign Management, Centralised Complaint management, Marketing & Sales processes such as Lead Generation, Tracking & Conversion of Leads and to identify potential customers.

• Operational CRM: Day-to-Day operations of the Bank such as Contact Management, Sales Management, Marketing Automation, Integration with CBS and other applications.,

• Analytical CRM: Analysis of data, improving the Bank's existing operations in a structured manner, providing predictive analysis and forecasting of data, integration of AI / ML, Analytics and Reporting etc.,

• Collaborative CRM: Shows how the data or processes are interacting with various applications, teams, processes, channels, etc. Social Media Management, Call Centre Management, Campaign Management etc.

- Considering customer connect is the need of the hour, Customer Meets at Branch, Regional Office, Circle Office and Head Office are being conducted periodically. Where customers ranging across various segments participate, discuss and connect

with the bank. A dedicated portal for end-to-end logical closure of suggestions received during such meetings has been developed. A customer can lodge a suggestion by visiting our official corporate website as well.

- In order to inculcate awareness among the customer in the wake of ever-growing financial frauds and digitalization, theme-based awareness programmes were conducted throughout the year.

- Since the introduction of ranking system in June 2025 till March 2026, our bank has secured rank under top 5 on 8 occasions among 12 PSBs, based on Grievance Redressal Assessment and Index Score (for CPGRAM complaints).

- Appreciation received from Department of Financial Services for ranking 3rd for the month of July 2025, March 2026 & 2nd for the month of November 2025 amongst 12 Public Sector Banks (PSB) category, based on Grievance Redressal Assessment and Index Score (for CPGRAM complaints).

- Special Appreciation received from Department of Financial Services for reducing average disposal days (TAT) from 13 days in April 2025 to 2 days in December 2025 for redressal of grievances for CPGRAM & INGRAM complaints. Presently, the TAT is 1.65 days.

- Under Doorstep Banking, Our Bank has been leading during current FY, in terms of service request completed and raised among group of peer Public sector Banks i.e. Group A (Canara Bank, Union Bank of India, Bank of Baroda, and Punjab National Bank).

- Presently, 4132 branches are offering Doorstep Banking services pan India from 2572 selected Centers. We are offering three free any Doorstep Banking services per month to all Senior Citizens of the age above 75 years.

- PSB Alliance launched Abhiyan -2 Campaign for Doorstep Banking for all the Public Sector Banks starting from 5th August 2025 to 4th November 2025. Notably, Our bank achieved the 1st position in Group A (Canara Bank, Union Bank of India, Bank of Baroda, and Punjab National Bank) regarding both service requests raised and service request completion.

- PSB Alliance has launched a new campaign for the submission of Digital Life Certificates, which ran from

November 1st to December 31st. During this period, Canara Bank secured the top position in Group A, outperforming peer banks such as Union Bank of India, Bank of Baroda, and Punjab National Bank.

- Video Call Functionality for NRI customers became operational.

- Facility of Blocking of CBDC Wallet is made available at Call Centre.

- Prioritized services for persons with disabilities/ Divyangjan implemented at Call Centre.

- A dedicated cell has been established within the Vertical to prioritize complaints from persons with disabilities.

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.

GRIEVIANCE REDRESSAL MECHANISM FOR PwD CUSTOMERS:

Status of Grievance redressal for PwD Customers (from 01.04.2025 to 31.03.2026):

‘Mentioned 11 complaints are within TAT of 21 days.

* All the 42 complaints which are pending beyond 30 days are Vigilance in nature.

INTERNAL CONTROL AND AUDIT

Details of audits conducted during the Financial Year 2025-26 are furnished below:

Risk Based Internal Audit (RBIA): RBIA was conducted in 7100 branches / units.

Concurrent Audit: It collectively covers 70% of advances as at end of previous financial year, forming a significant portion of the Bank's total business. Monthly concurrent / continuous audits were carried out in 1763 branches / units, out of which, in 1248 branches the audit was conducted by external auditors and in 515 branches, audit was conducted by internal auditors.

Income Audit: 2906 branches underwent income / revenue audits on a quarterly basis.

Key Initiatives and Enhancements in the Audit Process:

1. Revamping of Checklists of Regular Inspection of HO Wings / Verticals: Presently, Wing has completed Checklist revamping for 37 Verticals & 04 Wings and the same has been implemented in DARPAN. The revamped checklist of HO Wings / Verticals has resulted in proper checking of the works being handled by the concerned sections. Thus, improved monitoring is being ensured during regular inspection of Wings / Verticals.

2. Wing has completed the revamping of Checklists for conducting Concurrent Audit (Weekly Audit) & RBIA of Currency Chests and the same has been implemented in respective DARPAN modules.

3. Currency Chest Sensitization program - Wing has conducted a one-day sensitization session for Inspecting Officials for Currency Chest audits in which 43 IOs covering all the Zonal Inspectorates have attended the program. The sensitization sessions were taken up by Executives specialized in those areas and various insights on the importance of currency chest audit have been conveyed to the IOs during the sessions so as to enable IOs to ensure comprehensive coverage and quality reporting during the audit.

4. Introduced 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. Thus, eliminating the manual work of sharing the files and follow-up. Further, this package acts as a repository for storage of all ZACE related files, which can be accessed any time in future.

5. Automation of issue of Pilot letter through E-mail to branches / units before 3 months of commencement of RBIA along with details of previous audit for better Pre-Audit preparation of auditee units. This will intimate the branches / units to perform Pre- audit exercise at the branch / unit well before commencement of RBIA and take corrective.

6. Introduced standard jotting sheet template for reporting account-wise discrepancies identified during pre-audit for ensuring effective implementation of pre-audit exercise.

7. Introduction of Snap Audit in all low risk rated branches after nine months and before twelve months from the conclusion of the previous RBIA, wherever spurt in advances is more than 20% in number as well as in amount. It acts as a tool to have a monitoring mechanism of any credit related or operational risk wherever spurt in advances portfolio is noticed.

8. 'INTERACTION FORUM' - Wing has introduced an Interactive chat module to address and resolve audit- related / policy related queries of Inspecting officials on real-time basis where field level officials can directly interact with Head Office.

9. Wing has introduced a new package for conducting Management Audit of COs for better monitoring and record keeping.

10. Tracker package has been released for addressing daily troubleshooting in Darpan package.

11. Enabled new module for conducting continuous audit of accounts opened through Tab Banking with revamped process flow (Maker-Checker facility).

12. Enabled new module for conducting continuous audit of reactivated Inoperative accounts.

13. Wing has completed the revamping of checklist for conducting Continuous audit of Government Link Cell, Nagpur.

14. Geo Tag security Verification web App - Darpan (RBIA and CAS) integrated Web application was developed and released for capturing Geo Tagged Photos of securities visited by IOs during the course of audits. It will provide location and time tagged photos for capturing actual ground level status of securities at the time of audit to higher authorities for monitoring and fact checking.

15. Half Yearly performance of ECAs - As per the directions of the Board, the process of performance monitoring of ECA's has now been digitized and this new package is developed to facilitate the same. It will consolidate record keeping, tracking and Reporting functionalities.

16. AD Integration - All Darpan packages are now integrated with SAS (Single Authenticate Service) of the bank providing multiple level authentication for the Darpan users. Also, accessibility of the packages and user roles are also integrated with HRM profiles of the users ensuring increased automation and time savings.

17. Complete revamping of application audit package (Pre-Implementation and Post-Implementation).

18. Enabled new module for conducting annual audit of critical applications identified by the Bank (IS audit).

19. Studied the process of account opening through Business Correspondent - Tab and observed few gaps which have been shared to FI Vertical for rectification to ensure smooth process flow.

20. Formed Wing level Executive Committee for ensuring recording of all directions in Action Taken Report (ATR) given by the ACB during the meetings held.

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 12th 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).

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.

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, the Department also undertakes vigilance administration in the 2 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 ensures 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 "Co-ordination Meeting of CBI, CVOs of PSBs, IDBI Bank and DFS head on 17-06-2025 at Bengaluru", which was well appreciated by all the participants from various regulatory offices. Further Vigilance Officers' Conference-2025 And Capacity Building Programme for lAs / POs was conducted by the Vigilance Wing at Hyderabad on 9th and 10th of October, 2025.

The Vigilance Wing at Head Office and the three Vigilance Units at Bengaluru, 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 27.10.2025 to 02.11.2025 with the theme, "Vigilance - our Shared Responsibility" 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 have been implemented by the Bank during the financial year 2025-26.

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 six Domestic Subsidiaries, five associates and one joint venture. All the Domestic Subsidiaries / Associates / Joint Venture of the Bank recorded satisfactory performance during the year 2025-26. 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 2026 were Rs. 42,209 Crores. The Company earned a Net Profit of Rs. 1,085.75 crore as against Rs. 857.16 Crores in the previous year, with y-o-y growth of 27%. Gross NPAs of the Company was Rs. 357 Crores (0.85%) and Net NPA was Rs. 156 Crores (0.37%) as on 31.03.2026. The Company has provided an interim dividend of 350% and also declared final dividend of 400% for FY 2025-26.

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 in the year 2007. The JV commenced its business operations with effect from 16.06.2008. The company got listed on BSE & NSE on October 17, 2025 with present shareholding of Canara Bank (36.5 per cent) and HSBC Insurance (Asia Pacific) Holdings Limited (25.5 per cent). The Company recorded net premium of Rs. 9,840.98 Crores during the FY 2025-26. The Company registered Net Profit of Rs. 126.61 Crores for FY 2025-26. The company has declared final dividend of 4% for the year 2025-26.

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. The company is listed on NSE & BSE on October 16, 2025 with present shareholding of Canara Bank (38 per cent) and Orix Corporation Europe N V (37 per cent). The Company is currently managing 27 Mutual Fund Schemes with a mix of equity, balanced and debt schemes. The Company has registered a net profit of Rs. 206.68 Crores and has provided an interim dividend of 15% and also declared final dividend of 25% for FY 2025-26.

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 of Rs. 5.25 Crores for the year 2025-26.

CANBANK COMPUTER SERVICES LIMITED (CCSL):

M/s Canbank Computer Services Limited is Software Company promoted by Canara Bank with 69.14% shareholding. CCSL is mainly engaged in IT and Software development services, BPO services, ATM services and Manpower Training. The Company has posted net profit of Rs. 15.97 Crores for FY 2025-26. The Company has provided an interim dividend of 50% FY 2025-26.

M/s Canbank Factors Limited is a factoring Subsidiary of the Bank with 70% stake held by the Bank. During 2025-26, the Company had a total business turnover of Rs. 82.44 Crores, registering net profit of Rs. 2.34 Crores.

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. 160.40 Crores. The Company recorded a net profit of Rs. 0.81 Crores during the year 2025-26.

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 of Rs. 6.47 Crores for the year 2025-26 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 16.67% for FY 2025-26.

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 31.03.2026, MoE has infused Capital of Rs. 4,812.50 Crores and Canara Bank has contributed Rs. 481.25 Crores respectively. The total loans sanctioned till 31.03.2026 is Rs. 48,311.75 Crores and disbursement stood at Rs. 24,977.61 Crores.

HEFA has disbursed Rs. 2,376.78 Crores of loans to different institutions during FY 2025-26 and Bank has received Rs. 17.83 Crores of Management Fee from HEFA.

REGIONAL RURAL BANKS (RRBs)

As at March 2026, the Bank had two sponsored RRBs, viz., Kerala Grameena Bank (KeGB) in Kerala and Karnataka Grameena Bank (KaGB) in Karnataka.

Kerala Grameena Bank (KeGB) operates in all 14 districts of Kerala with 635 branches & 269 ATMs. The total business of the Bank as at March 2026 is Rs. 65,835 Crores (Unaudited). (Deposits: Rs. 32,489 Crores, Advances: Rs. 33,346 Crores).

Karnataka Grameena Bank (KaGB) operates in 31 districts of Karnataka with 1750 branches & 211 ATMs. The total business of the Bank as at March 2026 is Rs. 1,10,974 Crores (Unaudited). (Deposits: Rs. 60,055 Crores, Advances: Rs. 50,919 Crores).

Aggregate business of the RRBs increased to Rs. 1,76,809 Crores as at March 2026 comprising of Deposits of Rs. 92,544 Crores and Advances of Rs. 84,265 Crores. 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, Swachh 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. 10,000.00 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 2025-26, 45,670 students have been provided with scholarships to the tune of Rs. 1825.04 Lakhs.

- The details of few major CSR projects under education sector sanctioned in the financial year 2025-26 are mentioned below:

S Health: Bank has undertaken various initiatives to support the health sector including hospitals, health centres, clinics, laboratories etc., The details of few major CSR projects under health sector sanctioned in the financial year 2025-26 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 few 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 few 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:

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

S Skill Development: The Bank has sponsored/

co-sponsored 44 RSETIs, 27 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 78%.

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

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

Total sector wise assistance under CSR activities for the FY 2025-26 is as under:

AWARDS / ACCOLADES & ACHIEVEMENTS

Canara Bank received Awards for Best Data Quality index award for Consumer and MFI amongst all public sector banks and was Recognized as the data quality champion amongst all public sector banks at Trans- union CIBIL Office, One World Trade Centre, Mumbai on 24th Feb 2026.

Canara Bank received recognition from the Department of Financial services for its "Business Around" initiative as an innovative national wide rollout at the Indian bank's Association, Mumbai on 3rd July 2025.

Canara Bank won the Gold Award at the ET HR World Future Skills Awards 2025 for best use of AI in learning (Gen AI & AR / VR training framework) at JW Marriot, Sahar, Mumbai on 11th June 2025.

Canara Bank was honoured with the first prize by the Department of Official Language, Ministry of Home Affairs, Government of India in the Joint Regional Official Language Conference of Central, Western and Southern Regions held on 20th January 2026 at Devi Ahilya University, Indore. The Award was presented under the TOLIC (Bank & Insurance) Bengaluru, where Canara bank was the convenor.

Canara Bank, as the convenor bank of NARAKAS (Bank & Insurance) Bengaluru, was honoured under "Prashansaneeya" category by the Department of Official Language, Ministry of Home Affairs, Govt. of India during the Hindi Diwas program held on 14th September 2025 in Gandhinagar, Gujarat.

Canara Bank has been awarded the third prize in Region 'C' for better implementation of Official Language for the year 2024-25 in the two days seminar / review meeting programme organized by the Department of Financial Services at Dehradun on 12.06.2025.

Canara Bank has been awarded with the following prestigious awards at MSME Banking Excellence Awards 2025 scheduled on December 22, 2025: Best Bank for Creating Awareness as a Winner and Best MSME Bank as Runner-up.

Canara Bank's Inhouse Magazines, "Shreyas"- bilingual publication and "Canara Jyoti"-Hindi publication won awards under the category of Best House Journal Print in English and Regional Category in 15th PRCI (The Public Relation Council of India) Excellence Awards 2025 for Corporate Collaterals held at Goa on 27/09/2025. Canara Bank's In House Magazine - "Shreyas" won the 3rd Prize in the category of Corporate Communications - Best House Journal - "English" conducted by the Public Relation Society of India on 13/12/2025 held at Dehradun.

Canara Bank received Green Warrior award for contribution towards digital journey of issuing e-BGs (Electronic Bank Guarantees) by the NeSL (National e-governance Services Limited) on 24.10.2025 at IIM Bangalore.

Canara Bank has received an award from NSE Mumbai during the Muhurat Trading Ceremony on 21st October 2025 for active participation under IPO through ASBA.

Canara Bank bagged third position in INDIA SME FORUM, National MSME Impact Awards 2025 held at The LALIT Hotel, New Delhi on 27.06.2025

Canara Bank has received Gold Awards for below two services / products under BFSI Category at Skoch Award ceremony on 20th September 2025 at New Delhi. Gold award for "Mobile banking services for minor customers" and Gold award for " Hybrid POS"

Canara Bank received ICC Award for Best Bank in MSME Acceleration - INDIA in Le Meridien, New Delhi on 27.08.2025 by Shri. K Balakrishna (DGM, CO Delhi)

Canara Bank has received "2nd Runner-up" award in Theme-"Excellence in Customer Service "in EASE 7.0 Citation Ceremony, held in Mumbai on 03.07.2025.

Canara Bank has been honoured with the prestigious "Best Data Performance Award - Public Sector Banks 2025" by TransUnion CIBIL at the conference held in Mumbai on 01.07.2025. In addition, Canara Bank has been conferred with two more Gold awards.

Best Data Quality Award - Public Sector Bank - Commercial Segment.

Best Data Quality Award - Public Sector Bank - Consumer Segment.

Canara Bank has received awards from DFS, Digital Payment Awards (Erstwhile MEITY Digital Awards):

Canara Bank has received "Best Digital Bank Award" for securing the 1st Rank in Digital Payment performance for the Financial Years 2022-23 and 2023-24.

Canara Bank has received "Special Mention Award" for initiatives in Fraud Prevention and Grievance Redressal for the Financial Year 2024-25.

Canara Bank has received Banking Frontiers FINNOVITI 2025 award for "ail for Minors" Shri Prasad R G, DM, DIH Mumbai received the award on behalf of DBS Vertical Canara Bank.

Canara Bank was honoured with ET HR World Future Skills Awards 2025 on 11th June 2025 at Awards Night, JW Marriott, Sahar, Mumbai for Best Use of AR / VR and Metaverse in Learning (GOLD).

CHANGE IN DIRECTORS, INCLUDING MANAGING

DIRECTOR / WHOLE-TIME DIRECTOR

(APPOINTMENT / CESSATION OF DIRECTORS DURING

THE YEAR 2025-26)

Appointments / Re-Appointment:

Cessations:

‘Department of Financial Services, Ministry of Finance, Government of India, vide its Notification No. 4/3/2024- BO.I dated 30th December 2025, has assigned additional charge of the post of MD & CEO to Shri Hardeep Singh

Ahluwalia, Executive Director, w.e.f. 01.01.2026 for a period of three months, i.e., up to 31.03.2026, or until the appointment of a regular incumbent to the post of MD & CEO or until further orders, whichever is earlier. Further, Department of Financial Services, Ministry of Finance, Government of India, vide its Notification No. 4/3/2024- BO.I dated April 09, 2026, has extended the additional charge for the post of Managing Director and Chief Executive Officer (MD&CEO), Canara Bank, assigned to Shri Hardeep Singh Ahluwalia, Executive Director, Canara Bank, for a period of three months beyond 31.03.2026 , i.e., up to 30.06.2026, or until the appointment of a regular incumbent to the post of MD & CEO, Canara Bank, or until further orders, whichever is earlier.

^DIRECTORS' RESPONSIBILITY STATEMENT

The Directors, in preparation of the annual accounts for the year ended March 31, 2026, 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 2025-26

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 M/s. Ragini Chokshi & Co., Practicing Company Secretary (CP No. 1436) as the Secretarial Auditor for 2025-26 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.