DIRECTORS' REPORT: 2021-22

The Board of Directors have pleasure in presenting the 53^rd Annual Report together with the Balance Sheet as on 31^st March, 2022 and Profit & Loss Account for the financial year ended 31^st March, 2022.

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

The global business of the Bank increased to Rs.1827556 crore, up by 8.39% y-o-y, out of which domestic business grew by 7.61% y-o-y to Rs.1738813 crore as at March 2022. Domestic CASA deposits surged by 11.52% y-o-y to Rs.368732 crore with Savings Account growing at 12.22% y-o-y and Current Account at 7.50% y-o-y. Thus, domestic CASA Ratio improved to 35.88% as at March 2022.

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 142 bps to 7.51% and Net NPA to 2.65%, down by 117 bps. Further the provision coverage ratio has improved to 84.17% from 79.68% in the previous year. The healthy CRAR of 14.90%, up by 172 bps, highlights that the bank is well cushioned for an organic growth in the coming quarters. In FY 2021-22, operating profit of the Bank stood at Rs.23089 crore and net profit at Rs.5678 crore.

Dividend

The Board of Directors of the Bank has recommended a dividend of Rs.6.50 per equity share (i.e. 65%) of face value of Rs.10/- each to the Shareholders for the year 2021-22, subject to the approval of the Shareholders at the AGM.

GLOBAL ECONOMY

The global economy picked up pace of economic recovery in first half of FY 2021-22 on widespread vaccination of larger populations, ebbing new infections and supportive policy environment. However, recovery momentum faced headwinds in the second half of the financial year in terms of resurgence of the virus in several parts of the world, continued supply disruptions and bottlenecks, persistent inflationary pressures and spill over effects of policy normalisation of major economies. The escalation in geo-political tensions between Russia-Ukraine since February 2022, further fuelled the spike in global commodity prices-particularly global crude oil prices, leading to inflationary pressures across the globe.

Taking into consideration the evolving scenarios related to the worsening geo-political tensions, International Monetary Fund (IMF) has revised downwards the global growth to 3.6% in 2022 and 2023 from earlier estimate of 6.1%.

Going forward, the global economic growth outlook hinges on global headwinds from the Russia-Ukraine conflict, resurgence of new variants of COVID-19, volatility in global financial markets and inflation trajectory.

INDIAN ECONOMY

The domestic macroeconomic conditions showed signs of improvement since July 2021 with ebbing of the second wave of the pandemic, acceleration in vaccination process, easing of pandemic related restrictions and gradual normalisation of economic activities. The growth momentum was slowed down in later part of Q3FY22 on resurgence of the pandemic. However, the domestic macroeconomic conditions soon started improving in Q4FY22 with subsiding new infections, universal vaccination, normalization of economic activities and improvement in consumer & business confidence. Improvement is being observed in exports and imports, bank credit growth and manufacturing activities.

There is positive prospects for rural demand in 2022 with the forecast of a normal monsoon and urban demand is expected to be sustained with pick-up in contact-intensive services and expected strengthening of private investment activity, which has positive implication for the domestic economy. However, downside risks to the growth momentum has increased since February 2022 with intensifying geo-political tensions, elevated commodity prices, spike in crude oil prices, slowing external demand and tightening global financial conditions on the back of monetary policy normalization in advanced economies. Considering all these factors, RBI has revised downwards its projection for real GDP growth for FY 2022-23 to 7.2% from earlier projection of 7.8%.

Going forward, GDP growth momentum is expected to gain traction with higher Government spending in infrastructure sector and expected revival in aggregate demand. The outlook of bank credit is positive in the medium to long term with some moderation expected in the near term due to the ongoing geo political issues.

OUTLOOK FOR 2022-23

Given the global slowdown in the wake of volatility induced by prolonged geo-political tensions, higher commodity prices, pace of monetary policy normalisation in advanced economies and resurfacing of COVID infections in some major countries, the growth outlook is subdued for the near term. The key channels of impact will likely be higher inflation, weak consumer demand and tighter financial conditions.

The economic growth momentum of the country is largely dependent on ongoing global events that pose downside risk to growth. Higher price levels are expected to weigh on private consumption and investment that are important growth levers. However, the fiscal and monetary policy support will remain growth supportive in the coming year. The credit growth is expected to pick up in tandem with economic recovery.

The Bank will continue to focus on achieving greater growth in business along with profitability. On the deposits front, the Bank is giving thrust on shoring up of CASA, while consciously reducing the reliance on bulk deposits. On the advances front, Bank focuses on a balanced advances portfolio with proper mix of retail, agriculture, MSME and corporate credit. Need is to focus on best-in-class customer service, be it in retail segment or in Corporate Banking. Strategic focus will also be on strengthening risk management framework with focus on compliance & proper implementation of systems and procedures.

The Bank takes adequate efforts for NPA management with ardent credit monitoring, contain fresh slippages and strengthen recovery efforts. The Bank will continue to strive for process and product improvements in view of changing customers' and industry requirements. In the coming years, Bank looks forward to provide 'customercentric' Banking services, leveraging technology and creating value for all stakeholders through inclusive growth.

CANARA BANK IN 2021-22

Canara Bank's business growth has remained robust in FY 2021-22 with record 122% y-o-y growth in net profit to Rs.5678 crore, with major thrust on balanced growth, optimal resource mobilization, robust fee income, expanding retail assets, including Agriculture, Housing and other retail segments and improving asset quality.

BUSINESS PERFORMANCE

During FY 2021-22, the global business of the Bank stood at Rs.1827556 crore with a growth of 8.39% y-o-y from Rs.1686030 crore, with global deposits at Rs.1086409 crore with a growth of 7.47% y-o-y and global advances at Rs.741147 crore with a growth rate of 9.77%.

A snapshot of business growth in FY 2021-22

Deposits

Total Deposits grew by 1A1% y-o-y from Rs.1010875 crore as on March 2021 to Rs.1086409 crore as on March 2022. Domestic CASA deposits of the Bank grew by 11.52% y-o-y to Rs.368732 crore as on March 2022 with Savings deposits at Rs.315916 crore, a growth rate of 12.22% y-o-y and Current deposits at Rs.52816 crore with a growth of 7.50% y-o-y. The Bank's domestic CASA deposits share to domestic deposits stood at 35.88%.

The focus on premier CASA products, like Single Nodal Agency (SNA) Accounts/Central Nodal Agency (CNA) Accounts, Canara Galaxy, Canara Privilege, Canara Payroll, SB Power Plus and NRI accounts were given to improve the average balances under CASA. Total deposit clientele of the Bank stood at 10.51 crore as at 31^st March 2022.

Advances

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

Advances (Gross) of the Bank reached Rs.741147 crore as at March 2022. The number of borrowal clientele stood at 1.08 crore as at March 2022. Total business of the Bank increased to Rs.1827556 crore for the year ended March 2022.

FINANCIAL PERFORMANCE

Operating profit of the Bank stood at Rs.23089 crore for FY 2021-22. Bank reported a net Profit of Rs.5678 crore for FY 2021-22. Net Interest income of the Bank stood at Rs.26384 crore. NIM stood at 2.82% and Yield on Advances at 7.22%.

Income and Expenditure Analysis

During the year, total income is at Rs.85907 crore, comprising Rs.49862 crore interest from advances, Rs.16972 crore interest from investments, Rs.16497 crore from non-interest income and Rs.2576 crore 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.13904 crore. Apart from trading profit, other major sources of non-interest income, like, service charges (Rs.3125 crore), commission and exchange (Rs.1230 crore), recovery from written off accounts (Rs.2747 crore) and Profit from exchange transaction (Rs.2813 crore) contributed to the non-interest income of the Bank. The share of non-interest income to total income stood at 19.20%.

Total expenditure of the Bank stood at Rs.62818 crore in FY 2021-22. Interest expenses of the Bank is at Rs.43026 crore. Operating expenses is at Rs.19792 crore, comprising staff cost of Rs.12704 crore and other operating expenses of Rs.7088 crore.

Due to the decrease in interest rates, the Bank's cost of deposits is reduced to 3.95%. The net interest income, the difference between interest paid and interest earned by the Bank, is at Rs.26384 crore.

Capital and Reserves

Net worth of the Bank, as at March 2022 stood at Rs.48692.46 crore. While the total paid-up capital of the Bank stood at Rs.1814.13 crore, the reserves and surplus at Rs.64297.18 crore.

Capital Adequacy Ratio, under Basel III was 14.90% as at March 2022 against the regulatory requirement of 11.5%, including capital conservation buffer of 2.50%. Within the capital adequacy ratio, CET I ratio was at 10.26% and Tier I capital ratio was at 11.91%.

During the Financial Year 2021-22, Bank has raised capital via Basel III compliant additional Tier 1 Bond amounting to Rs.4000 crore, Tier 2 Bonds amounting to Rs.2500 crore and equity through QIP of Rs.2500 crore and thereby Government of India shareholding in the Bank is 62.93% as on 31.03.2022.

RETAIL LENDING OPERATIONS

For the FY 2021-22, Retail Lending as one of the thrust areas of the Bank had shown a considerable growth of 9.51% compared to FY 2020-21. The Core Retail Portfolio of the Bank increased to Rs.126277 crore as on March 31, 2022 with Housing Loans at Rs.73828 crore and Rs.14105 crore under Vehicle Loans. The share of Retail Loans stood at 17.75% as of March 31, 2022 of Domestic Advances (Rs.711046 crore). The initiatives taken in the hassle-free credit delivery of Retail Portfolio resulted in the growth of 9.51% over the previous year.

EDUCATION LOAN

Over the years, the Bank has assisted a substantial number of promising students to pursue higher education in India and abroad. The Bank's education loan portfolio increased to Rs.12975 crores as at March 2022. The Bank has financed around 3.58 lakh students as at March 2022. During FY 2021-22, the Bank has disbursed education loans worth Rs.2269.68 crores and sanctioned 36293 number of accounts amounting to Rs.3661 crores through online Vidya Lakshmi portal.

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

The Bank has a special education loan scheme namely "Vidya Turant", Collateral-free Education loans for the meritorious students who are admitted to premier institutes such as IITs, IIMs, ISB etc. up to a limit of Rs.50 lakh with concessional rate of Interest; Bridge Loan Scheme namely "Vidya Sahay" to assist the needy and meritorious students who are in need of the down payment to be made to the CET/Counselling Authorities at the time of selection/counselling and "Vidya Shakthi" Education loan scheme for the PwD category of students including expenses for specially designed equipment's for differently abled persons with concessional interest rate.

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

*Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Other Backward Classes (OBCs) & Economically Backward Classes (EBCs)

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, microcredit, credit to weaker sections and specified minority communities.

Priority Sector Advances of the Bank as at March 2022 reached Rs.339039 crore and achieved 49.68% to Adjusted Net Bank Credit (ANBC) against 40% mandated norm.

• With a focus on credit delivery to Agriculture, the Bank's advances under agriculture portfolio increased by 12.34% to Rs.175238 crore, covering over 1.07 crore farmers.

• Under agriculture lending, the Bank achieved 22.47% to ANBC against 18% mandated norm.

• During FY 2021-22, the Bank's agriculture credit disbursal is at Rs.152686 crore.

• Advances to Small & Marginal Farmers achieved 16.26% to ANBC as against the mandatory Target of 9% (Net of PSLC-SF/MF sale) as at March 2022.

• During the year, the Bank issued 20.14 lakh Kisan Credit Cards (KCCs), amounting to Rs.35169 crore.

• The credit outstanding under KCCs reached Rs.44491 crore as at March 2022.

• 16.32 lakh Kisan RuPay Cards were issued against eligible accounts of 20.28 lakh, with an achievement of 80.47%.

• Advances to Micro Enterprises (Priority) stood at Rs.61171 crore achieving 10.16% to ANBC as against the mandatory target of 7.5%.

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

• As at March 2022, the outstanding advances under the following Government Schemes, aggregated to Rs.33137 crores, involving around 21.29 lakh beneficiaries.

Schemes:

(Accounts in actuals & Amount in Rs. crore)

• Advances to DRI stood at Rs.80 crore, consisting of 1.02 lakh beneficiaries, of which, advances by rural and semi-urban branches amounted to Rs.60 crore.

• In support of the underprivileged sections of the society, the Bank's advances to SCs/STs beneficiaries amounted to Rs.15041 crore as at March 2022, covering 8.38 lakh borrowers.

• The advances to SCs/STs comprised 4.44% of total priority sector advances.

• Advances to weaker sections reached Rs.174880 crore, constituting 22.41% to ANBC against mandated norm of 11%.

Various components of advances to Weaker Sections as at March 2022:

(Accounts in actuals & Amount in Rs. Crore'

Rs. As at March 2022, advances to specified minority communities aggregated to Rs.56520 crore, accounting for 16.71% of the actual priority sector advances against the stipulated 15% norm.

MICRO SMALL & MEDIUM ENTERPRISES (MSMEs)

Advances to MSMEs increased to Rs.119026 crores as at March 2022, with a y-o-y growth of 9.87%. Credit to M&SE segments rose to Rs.101716 crores, with a 7.27% y-o-y growth. Advances to Micro Enterprises recorded a growth of 13.72 %. In order to increase credit flow to this segment and in view of the ongoing Covid-19 pandemic, the Bank has launched various need based schemes and products catering to the needs of the specific segments such as:

• GECL Schemes (GECL 1.0, GECL 2.0, GECL 3.0, GECL 4.0, GECL Extension)-

To existing Business Enterprises/MSMEs/PMMY Customers to build up current assets and to meet operational liabilities and restart the business as per communication received from M/s NCGTC Ltd from time to time.

GECL SCHEME - CUMULATIVE PERFORMANCE TILL 31.03.2022

• CGSSD-CGSSD (Credit Guarantee Scheme for Subordinate Debt) has been launched on 31.07.2020 to provide guarantee coverage for the Credit Guarantee Scheme for Subordinate Debt to provide Sub-Debt support in respect of restructuring of MSMEs. The scheme is valid till 31.03.2023. Bank has opened 147 accounts to the tune of Rs.15.76 crore under the scheme till 31.03.2022.

• PM SVANidhi - This scheme has been introduced during July 2020 for all street vendors engaged in vending in urban areas as on or before 24.03.2020 as per identification criteria stipulated in scheme guidelines of MoHUA. Small Industries Development Bank of India (SIDBI) is the implementation partner of the MoHUA. Under PM SVANidhi, the Bank sanctioned 217642 accounts amounting to Rs.231.91 crore, since inception till 31.03.2022.

• Based on RBI Notification DOR.STR.REC.11/21.04.048/2020-21 dated 05-05-2021, Wing has extended Resolution Framework 2.0 (R.F. 2.0) Scheme to MSME loans under standard asset category as at 31.03.2021 with exposure up to Rs.50 crores, where restructuring is invoked by 30.09.2021 and is implemented within 90 days from the date of invocation. Under Resolution Framework 2.0 Scheme (Accounts restructured under RBI Circular dated 05.05.2021) 236484 accounts have been restructured amounting to Rs.9587.14 crore till 31.12.2021 (i.e. Last date for implementation of the scheme).

• In line with the Government guidelines, Bank has formulated various schemes for supporting healthcare infrastructure and tourism sector to tide over the pandemic situation, such as:

a) Canara Jeevanrekha, wherein loans up to Rs.2 crore are extended to set up oxygen plants in hospitals/nursing homes & units engaged in manufacturing & supply of liquid oxygen & associated medical devices at concessional ROI, without processing charges and CGTMSE guarantee fee is borne by the Bank. During FY 2021-22, Bank has sanctioned 324 accounts to the tune of Rs.46.99 crore under Canara Jeevan Rekha scheme.

b) Canara Chikitsa, credit facilities for Rs.10 lakhs to Rs. 50 crore are extended at concessional ROI to facilitate immediate liquidity for ramping up COVID related healthcare infrastructure and services. Bank has sanctioned 1633 accounts to the tune of Rs.774.51 crore under Canara Chikitsa scheme during FY 2021-22.

c) LGSCAS (Loan Guarantee scheme for Covid affected sectors), wherein loans up to Rs.100 crore is extended for financing Brownfield and Greenfield projects for setting up of/modernization/expansion of COVID related healthcare infrastructure and services in the non-metropolitan areas, at concessional ROI, under partial credit guarantee coverage of M/s. NCGTC.

d) LGSCATSS (Loan Guarantee scheme for Covid affected Tourism Service Sector) has been implemented by the Bank, to finance registered eligible tourist guides and Travel & Tourism stakeholders in terms of credit facilities at concessional ROI and no processing

charges, restricted to maximum of Rs.10 lakh each in case of recognized/approved Travel & Tourism Stakeholders and up to Rs.1 lakh each for registered Tourist Guides, under 100% Credit Guarantee coverage of M/s. NCGTC, for discharging liabilities and restarting their businesses affected due to Covid -19 pandemic.

• Bank has sanctioned 43 accounts to the tune of Rs.66.99 crore under LGSCAS scheme and sanctioned 284 accounts to the tune of Rs.2.14 crore under LGSCATSS scheme during FY 2021-22.

• Under Pradhan Mantri Mudra Yojana (PMMY), the Bank sanctioned an amount of Rs.13521.49 crore against the target of Rs.12500 crore during FY 2021-22. Sanctions and disbursals under different categories of Mudra Yojana are as under:

Major Highlights

> Under Stand Up India scheme, the Bank Sanctioned 4314 accounts to the tune of Rs.984.43 crore during FY 2021-22 as against sanction of 4196 accounts and sanction amount of Rs.929 crore during FY 2020-21.

> Bank has achieved the mandatory target under PMMY for Bank as a whole including RRBs against the target of Rs.21500 crore Bank has achieved Rs.22064 crore (102%).

> During FY 2021-22, under PMEGP the Bank sanctioned 11191 proposals amounting to

'1098.89 crore, with Total Margin Money claimed stood at Rs.345.44 crore, as against sanction of 7985 accounts, sanction amount of Rs.750 crore and Margin Money claim of Rs.281 crore during FY 2020-21.

> With respect to PSB Loans in 59 minutes, the Bank is one of the top performers on this portal with 37056 in-principle sanctions since the inception till 31.03.2022.

> Under TReDS Platform, our Bank has discounted 4499 Bills amounting to Rs.1286.83 crore during FY 2021-22.

> Bank has entered into co-lending arrangement with M/s Indiabulls Commercial Credit Limited and M/s Lendingkart Finance Limited and has already sanctioned loans to the tune of Rs.206 crore to MSMEs.

> Bank has implemented 4 Government Sponsored MSME Schemes (PMMY, Stand Up India, Weavers Mudra and NULM) under unified portal called National Portal (also known as Jan Samarth Portal)- an initiative by DFS, Ministry of Finance.

DIGITAL BANKING & ALTERNATE DELIVERY CHANNELS

The Bank has 12,208 number of ATMs. The Average Uptime of ATMs & Cash Recyclers stood at 95.37% with ATM HITs of 102 as on March 2022. The Bank's Debit Card base reached to 4.65 crore and Credit Card base to 9.27 lakhs as on March 2022. The number of registered users under Mobile Banking is at 121.05 lakhs and Net Banking users is at 212.39 lakhs as at March 2022. The number of merchant on-boarding in POS stands at 50,032 terminals. The total issuance under BHIM QR reached 12.64 Lakhs. Bank has achieved MeitY digital transaction target for FY 2021-22.

New functionalities introduced in Debit & Credit Cards

> PIN generation through IVR for cards.

> Relevant SMS to customer for decline of transactions such as incorrect PIN, invalid CVV, insufficient fund etc. for Credit Card.

> Card Management System upgradation which includes issuance, generation, processing, authorization and maintenance of cards.

> Implementation of credit card application processing, sanction and review through Loan Application Processing System (LAPS).

> Enabling of Card Management System package for Branches/Circles/Regional office to provide better customer service.

Compliance of RBI guidelines for Cards during FY 2021-22

> Implementation of E-mandate for recurring card transactions.

> Enabling the Card on File tokenization at card network level for securing the card transaction on e-com merchant wherever merchants are enabled.

> Automation of asset classification for cards.

Tie-up with Online Retailers for providing discounts to customers on using of Debit Card & Credit Card

Bank had tied-up with Flipkart, Swiggy during FY 2021-22 for providing discounts to customers on use of Debit/Credit card for e-commerce transaction and is in the process of more tie-ups in future. It helps to increase the customer delight & spends, enhance the per card spend, ensure activation of more number of cards. With these offers and with higher spends, Interchange earned will also increase.

Security measures taken for Card transaction security for avoiding online frauds

As per RBI guideline, Enhancing Security of Card transactions for Debit Card & Credit Card, enabling and disabling card for online and international transactions is enabled in all channels like Internet Banking, Mobile Banking, ATM and branch channel.

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 ATMs within the timelines.

> Implementation of Terminal Layer Security (TLS)

to mitigate risk arising from Man in The Middle attack in ATM ecosystem is completed in ATMs & Cash Recyclers.

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

> As a part of strengthening security control in ATMs, RBI has directed banks to implement e-surveillance in ATMs and same is under progress.

> All ATMs are migrated for centralized reconciliation.

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

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

New Features Added in Internet Banking in FY 2021-22:

> Agricultural Loan services: Apply/Renewal for KCC, Apply for Gold Loan, Repayment of GOLD LOAN/KCC, Agri loan Account statements etc.

> Alternative Generation of Transaction Password through Aadhaar Card.

> Form 16 Download through Internet Banking.

(CANDI) in FY 2021-22:

> UPI International: Bank is working upon enabling our Customers to Scan and Pay to International Merchant QRs in Singapore through UPI.

> Recurring Mandate in UPI: Processing of e-mandate in Unified Payments Interface (UPI) is implemented for recurring transactions/SI Mandate. UPI currently does not have the functionality of generating mandate or authorizing recurring payments through onetime authentication. Now UPI users will be able to perform recurring payment transactions with the same ease and convenience with the below functionalities from payer and payee side:

(a) Create/Add Mandate

(b) Pause Mandate

(c) Revoke Mandate and

(d) Modify Mandate.

> UPI Prepaid Voucher Issuer & Acquirer: UPI Prepaid Voucher can be issued only by banks authorized by RBI to issue Prepaid Payment Instruments (PPI) and who are participating as Payment Service Providers (PSP) in the UPI ecosystem (referred hereunder as the "Issuer"). Canara Bank is one of the Banks to be part of this revolutionary transition in the payment system in co-ordination with NPCI.

> Block/Unblock functionality in Digital Channel:

Providing features like blocking/unblocking individual channels like IB, MB, UPI & Card through IB, MB, UPI, SMS & IVRS. The Customer's account will not be debit frozen. Only the channel opted by the Customer will be blocked.

> To enhance security in our Mobile Banking application: Bank has integrated with MASS to identify any malware/harmful application, restrict use of Mobile Banking application in jailbroken devices (for iOS) and rooted devices (for Android), etc.

> Revamping of Mobile Banking Application (CANDI): To compete with new generation Banks and remain ahead of peers in competition, it is essential for the Bank to implement innovative solutions to attract customers and provide them better service and experience. For the same, we are in the process of upgrading our present Mobile Banking application to a new version. The upgraded Mobile Banking application contains 250+ new features in 10 vernacular languages.

> Upgradation of Internet Banking Application from FCDB to OBDX: Current version of Internet Banking application is FCDB. It is proposed to upgrade to the latest version of OBDX which will be mobile compatible and will be having enhanced Customer experience. OBDX will leverage lots of APIs which can be directly utilized by other alternate channels to integrate.

> WhatsApp Banking Solution: Bank is in the process of implementing WhatsApp Banking Channel. It will facilitate our customers for doing non-financial transactions over WhatsApp.

> ODR - Implementation: Enabling Online Dispute Resolution for all the digital transaction seamlessly for the users. Customers will be provided with an option to raise the complaints from the channel used as well as track the status of complaint. This implementation will address major customer grievances.

> ICCW (Interoperable Card-less Cash Withdrawal): To provide an Interoperable Card-less Cash Withdrawal facility from any NFS ATM using UPI. The aim of this facility is to increase customer convenience and boost online services of Canara Bank. Benefits of using ICCW facility are: No need to carry card for ATM withdrawals, Increase in QR Code based transactions, Frictionless transaction experience, SMS notification, more secure as PIN entered on customer's mobile for ATM withdrawals, instant money withdrawal etc.

> Implementation of Risk Mitigation measures to enhance the security i.e. One Time Combinations Locks & upgradation of Windows OS in ATMs and Cash Recyclers are in the initial phase.

> Providing BHIM QR with Sound Box Facility:

Sound Box facility enables the BHIM QR Merchants (of Canara Bank) and customers/ Remitter (of all Banks) to receive voice notification for the successful QR Transactions done via our Bank provided QR Code. Sound Box facility makes it convenient for both the merchant and remitter to get the Transaction confirmation with ease. The advantages include the Voice Notification for confirmation of the successful QR Code transactions. Canara Bank is the first public sector Bank to provide Sound Box facility to its Merchants.

> DIGITAL LENDING END-TO-END: Bank is in the process of launching end-to-end Digital lending system. It is the new-age practice of applying for and giving out loan or credit to borrowers by financial services through the completely online or digital platform journey. The advantages are: Simplified Loan Process, Quicker Decision Making, Reduced Turnaround Time, Consistency Power of Analytics, Improved Lead Conversion, Cost Reduction, Additional Revenue, Customized Loans, Swift Payback, Improved Business Efficiency, Optimized Loan Life Cycle etc.

DOCUMENT MANAGEMENT SYSTEM

Rapid digitalization has led to an exponential growth in business data and content. On a daily basis, Banks create and manage massive amount of business documents, Contracts, Loan proposals, Manuals etc. and with the traditional approach it consumes a lot of time, resource utilization and cost too.

Our Bank has embarked upon the Document Management System (DMS) project to digitalize the various Banking operations to improve operational efficiency and to encourage paper light banking.

Key Benefits of Document Management System (DMS)

• Centralization and Management of Documents

• Increased Operational Efficiency

• Reduced physical Storage Space

• Enhanced Security

• Go Green initiative and reduced paper usage DMS includes digitalization of documents including work-flow automation, centralized storage, solution to physical storage management, Content Management System and secure accessing of documents, etc. Bank has digitalized various workflows and continues to identify more workflows to be brought under this system.

FINANCIAL INCLUSION

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

> The Bank has 1123 Financial Inclusion (FI) Branches under branch model and also engaged 8906 Business Correspondent Agents (BCAs) under Business Correspondents (BC) model. Bank has covered 5267 SSA, 153 SLBC and 3486 NON SSA locations.

> Bank formed Rs.Canara Financial Advisory Trust' 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 152 FLCs in districts & blocks level across the country, managed by the Counsellors (retired bankers).

> Bank opened 138.47 lakh accounts under PMJDY.

Scheme Enrolments including Renewals as at March 2022

Under Sukanya Samriddhi Yojana, the outstanding number of accounts as on 31^st March 2022 is 138997 accounts.

Updation Centres

The Bank is a Registrar and Enrolment Agency for Aadhaar Enrolment. As per UIDAI guidelines, the Bank has to establish ASKs at 10% of the Bank branch premises. Accordingly, Bank has established 1494 ASKs, comprising of 1201 centres for the Bank and 293 centres for the 4 sponsored RRBs (KAGB 116, KGB 62, KVGB 62 & APGB 53).

Empowering Women

Women Empowerment Section at Head office and Centre for Entrepreneurship Development for Women (CEDW) at 24 Circle Offices and 176 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 529 Programmes were organized by the CEDWs during FY 2021-22.

Lead Bank Responsibility:

As on 31.03.2022, our Bank has been assigned with:

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

> Lead Bank responsibility in 60 districts across 8 states and 2 Union Territories viz. Andhra Pradesh (5), Bihar (1), Delhi (3), Haryana (3), Lakshadweep (1), Karnataka (15), Kerala (7), Tamil Nadu (7), Telangana (4) & Uttar Pradesh (14) comes under 14 Circles of the Bank.

INTERNATIONAL OPERATIONS AND BUSINESS

The Bank has 3 overseas branches, viz., London (UK), New York (USA) and Dubai International Financial Centre - DIFC (UAE). Besides the above 3 branches, the Bank has a Representative Office at Sharjah (UAE), a wholly-owned subsidiary; Canara Bank (Tanzania) Limited at Dar Es Salaam (Tanzania) and a joint venture with State Bank of India; Commercial Indo Bank LLC at Moscow (Russia).

Total Business of the overseas branches aggregates to Rs.88743 crore comprising of deposits to the tune of Rs.58642 crore and advances to the tune of Rs.30101 crore as at March 2022. Overseas business constituted 4.86% of the Bank's global business. As per the rationalization plan for overseas branches, Bank has closed Hong Kong branch during Financial Year. Further, we are awaiting for final approval from Central Bank of Russia for sale of our entire stake in Commercial Indo Bank LLC to State Bank of India. During the year, Bank has also decided for divestment of Canara Bank (Tanzania) Limited, which is in progress.

ASSET QUALITY

Gross NPA of the Bank is at 7.51% (Rs.55652 crore) and Net NPA is at 2.65% (Rs.18668 crore) as at March 2022. The cumulative Cash Recovery including Recovery in written off accounts during FY 2021-22 was at Rs.12116 crore. Upgradation for FY 2021-22 was at Rs.3177 crore. Provision Coverage Ratio (PCR) is at 84.17% as at March 2022. Recovery in written off accounts for FY 2021-22 was Rs.2747 crore. Slippage has been contained during the year to Rs.12707 crore.

During FY 2021-22, 1709 properties were sold amounting Rs.1197.31 crore and 4293 accounts were settled/closed/upgraded amounting Rs.2296.67 crore were made on account of initiating actions under the SARFAESI ACT. The Bank conducted 4649 Recovery Meets during FY 2021-22 that has resulted in recovery of Rs.4183.71 Crore. In FY 2021-22, 482940 cases were settled, covering a liability of Rs.8417.93 Crore. In FY 2021-22, 113025 cases were referred to LOK ADALAT, out of which, 22038 cases were settled, covering an amount of Rs.251.32 crore. Besides, the Bank took several initiatives to contain slippages and speed up recovery from overdue loan accounts. These include, conduct of Can Adalats at Branch level, cluster adalats at Regional level and Mega Adalats at Circle level for one time settlements (OTS), Lok Adalats at district level, regular follow-up of overdue in loan accounts through Call Centre, conduct of e-auctions for sale of seized assets and initiation of stringent recovery measures against willful Defaulters. As on March 2022, there were 1073 willful defaulters with an outstanding amount of Rs.14207.18 crore.

The Bank has initiated resolution process in respect of 382 cases by referring to NCLT/Filing our claim as at 31.03.2022 and is expecting substantial recovery through resolution during FY 2022-23. In FY 2021-22 recoveries amounting to Rs.2431 crore were done in NCLT referred accounts. The Bank has also formulated various special OTS Schemes for settlement of small value NPAs in Agriculture NPA, Education Loans, Tractor loans and other Farm mechanization.

As on March 2022, the outstanding Stressed Assets Portfolio (including restructured Standard Accounts) stood at Rs.59512 crore, accounting for 8.03% of Gross Advances.

RISK MANAGEMENT

Bank's Risk Management ensures identification, measurement, monitoring and mitigation of all pertinent risks and aligns its function for comprehensive solutions. It acts as decision-enabler for effective resource allocation based on the risk impact ranking and risk appetite. Strategic decisions are taken after careful consideration of risks and opportunities.

The guiding principles to manage risk in the Bank is compliance of regulatory and legal requirements and achieving balance between risk and return, while ensuring independence of risk and business functions.

Risk Management Policies are approved by the Board duly encompassing business strategies, capital strength, risk appetite, laws & regulation in order to function efficiently and effectively in analysing all pertinent and emerging risks.

Board of Directors is the highest governing body and is duly assisted by the Risk Management Committee of the Board and various executive level risk management committees- ALCO, CRMC, ORMC, MRMC, GRMC etc. To meet the goal of making risk governance and culture more pervasive all across the Bank, local risk management committees are also formed at administrative units throughout the country with active involvement of field functionaries.

While the Bank follows standardised approach to measure its risks, it is actively pursuing in moving towards advanced approach to identify and measure all its material risks (credit, market and operational risk) under Pillar I of Basel III framework.

Bank has put in place Credit Policy and Credit Risk Management Policy which articulates Bank's approach to identify, measure, monitor & control/mitigate and actively manage Credit risk. Bank also has in place a robust system for internal rating (internally developed models) of the borrowers, appraisal of loan/credit proposals, credit approval process and credit monitoring. The entire process of the Loan review and monitoring is duly administered by the Credit Administration & Monitoring Wing.

Market risk is managed through a well-defined Board- approved Market Risk Management Policy and Integrated Treasury Policy that captures risk through limits/triggers. Mid Office of Risk Management Wing monitors the limits on a daily basis. A reporting framework has been put in place for effective and timely monitoring of market risk limits and triggers.

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.

Bank also analyses other imminent risks like liquidity & interest rate risk, concentration, reputational, strategic, compliance, group risk and other key risks both qualitatively and/or quantitatively as part of its Internal Capital Adequacy Assessment Process (ICAAP) under Pillar II of Basel III framework.

The Bank has put in place a Board approved Policy on Group Risk Management to assess, identify and monitor risks at consolidated group level. The Group Chief Risk Officer (GCRO) of the Bank is supervising the risk management activities of the Group Entities.

Bank follows responsible and transparent approach while disclosing all relevant risks and mitigation plan to its stakeholders for meaningful insight into the functioning of the Bank.

Protection and care of environment and society with strong and ethical governance practices are the guiding theme for future sustainability under ESG framework. Considering the future importance of ESG risk in shaping business architecture, Bank is evolving mechanism to bring in cohesive approach to manage the ESG risks.

Fully appreciable of the facts that the advance risk management practices are all about seamless data flow and its integrity, leveraged by technology for effective and timely management action - the Bank has embarked upon automation of its risk management system and processes.

COMPLIANCE TO INTERNATIONAL STANDARDS

Bank has been certified with ISO: 27001:2013 for Data Centre, Near Data Centre, Disaster Recovery centre and Department of Information Technology Wing/ Technology Operations Wings and the certification is valid for a period of 3 years from 11/04/2020 till 10/04/2023. 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: 2013 standard.

INTEGRATED TREASURY

Aggregate investments Domestic (net) of the Bank stood at Rs.2,79,515.81 crore as at March 2022. While modified duration of the investments portfolio stood at 4.71 as at March 2022, the modified duration of the Available for Sale (AFS) portfolio is at 2.33 as at March 2022. The yield on investments stood at 6.28% as at 31^st March 2022. The trading profit under domestic treasury operations during the year is Rs.2366.01 crore on account of active churning of the investment portfolio along with active participation in OMOs.

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.1,04,968.00 crore out of which, the underwriting commitment accepted by RBI was Rs.55,154.00 crore. With regard to treasury bills under PD business as against minimum success ratio of 40% to be achieved in each half year, the Bank has achieved 75.19% during the first half and 47.06% for second half of Financial Year 2021-22.

Foreign Business Turnover of the Bank aggregated to Rs.1,85,128 crore, comprising of Rs.90,783 crore under exports, Rs.37,191 crore under imports and Rs.57,154 crore under remittances during the year ended March 2022.

Merchant Banking

During the Financial year 2021-22 Merchant Banking Division of the Bank:

> Handled 180 Equity Issues and 30 Debt Issues and Bank got float fund benefit for 4-7 days through ASBA. The Bank collected commission of Rs.78.32 Lakhs during the financial year.

> Under 54EC Capital Gain Bonds, Bank is getting 0.12% Commission + applicable GST on the amount so mobilized and floating fund for one day.

Rural Electrification Corporation Ltd (REC), National Highways Authority of India (NHAI), Indian Railway Finance Corporation Ltd (IRFC) and Power Finance Corporation (PFC) have entrusted the Bank to continue to act as "Arrangers and Collecting Bankers" for the Private Placement Capital Gain Bond Issues.

During the year, funds mobilized/Collected by our Bank are Rs.761.20 crore as collecting banker and Rs.68.74 crore as arranger. We have received an Arranger fee of Rs.27.09 Lakhs.

> During the year, Section has prepared 2 valuation reports of the companies and earned commission Rs.7.13 Lakhs.

> We also initiated the work as arranger for AT1 Bonds, Tier II Bonds and NCDs. During the year, we have earned Rs.319.30 Lakhs on account of arranger fees.

> Bank has introduced new ASBA package for customers to apply for IPO/Rights/Debt which is more user-friendly for customers as well as staff.

BANCASSURANCE AND MUTUAL FUNDS

The Bank has tied-up arrangements with life and nonlife insurance segments under its 'Bancassurance' arm. During the year FY 2021-22, Bank earned a commission income of Rs.249.27 crore from its joint venture, M/s Canara HSBC OBC Life Insurance Company Ltd. Under the Mutual Fund business, the Bank earned a commission of Rs.34.47 crore from its joint venture, M/s Canara Robeco Asset Management Company Ltd. A commission income of Rs.72.34 crore was earned under Non-Life (General Insurance & Health Insurance) business from its tie-up arrangements with all the three GI Partners M/s Bajaj Allianz General Insurance Co Ltd, M/s TATA AIG General Insurance Co. Ltd and M/s The New India Assurance Co. Ltd & Standalone Health insurance partner M/s HDFC

Ergo General Insurance Co. Ltd (Erstwhile AMHI) for marketing their Health insurance products. In Social Security Schemes (SSS), Bank has earned commission of Rs.14.02 crore under PMJJBY & Rs.2.36 crore under PMSBY. Bank has also earned renewal/trail commission from E-Syndicate Insurance and Mutual Fund partners of Rs.4.21 crore.

GOVERNMENT BUSINESS

The Bank undertakes Government Business, comprising Direct and Indirect Tax collections, payment of Central Government and State Government Pensions, Handling of Postal Transactions and State Government Treasury Transactions, Public Provident Fund Scheme and Senior Citizens' Saving Scheme, issuing Sovereign Gold Bonds and Sukanya Samriddhi Scheme. These products have contributed towards collection of fee income of Rs.210.85 crore during FY 2021-22 and also enhancing Bank' goodwill.

The Bank has been authorized as the accredited banker for Ministry of Human Resources Development (MHRD), Ministry of Culture, Ministry of Youth Affairs & Sports, Archaeological Survey of India, Ministry of Shipping, Ministry of Road Transport and Highways, Lakshadweep Administration and Unique Identification Authority of India (UIDAI), New Delhi. The Bank was implementing the National Pension System for Unorganised Sectors under Swavalamban Scheme since FY 2012-13. The Government of India has launched Atal Pension Yojana (APY) in place of Swavalamban with a view to provide defined pension to unorganised sector. The Bank could mobilise 662654 accounts under APY during the FY 2021-22.

ORGANISATION AND SUPPORT SERVICES

Branch Network - Expanding Pan India Presence

In a bid to expand the reach, the Bank added 201 domestic branches during the year. As at March 2022, the Bank had 9734 domestic branches, including Specialized Branches.

Composition of Branch Network

Note: 883 domestic branches were merged during the year. 1 Overseas branch was merged/closed during the year.

The total Specialized Branches of the Bank stood at 777 as at March 2022.

MANPOWER PROFILE

As at March 2022, the Bank had 86919 employees on its roll. The cadre-wise break-up of manpower is as follows:

*indudes Part-time Employees (PTEs)

Total staff strength of the Bank comprised of 58.59% Officers, 27.25% Clerks and 14.16% Sub Staff. The Women staff strength of the Bank was 27,356, constituting 31.47% of the employees. The total number of ex-servicemen staff as at March 2022 stood at 5,299. There were 2,436 Differently abled persons on the rolls of the Bank.

RESERVATION POLICY

The Bank has been strictly adhering to the Reservation Policy in respect of Scheduled Castes, Scheduled Tribes, Other Backward Classes and Differently Abled Persons, EWS as per the Government of India guidelines.

The representation of SCs/STs/OBCs/EWS/DAPs employees as at March 2022 was as under:

*includes Part Time Employees (PTEs)

Reservation Cell is functioning in the Bank to Implement and monitor the Reservations and other provisions related to SC/ST/OBC/DAPs/Ex-Servicemen & EWS employees. Further Bank has nominated Executives in the rank of GMs as Chief Liaison Officer for SC/ST/ Ex-Servicemen/DAPs and also for EWS, OBC employees respectively, who ensure compliance of various Govt. Guidelines pertaining to Reservations.

RECRUITMENT

During the FY 2021-22, the Bank recruited 2840 persons in various cadres, out of which 436 belonged to Scheduled Castes (SCs) and 232 to Scheduled Tribes (STs), 1018 belonged to Other Back Ward Class (OBC), 305 EWS category, 98 ex-servicemen and 96 DAPs in various cadres and 1059 were women employees.

HR INITIATIVES

a) Performance Linked Incentive (PLI) for the FY 2021-22 has been disbursed.

b) Term Insurance Cover for all employees (20 Months of their Gross Salary subject to a minimum of Rs.20 lakhs to Officer employees, Rs.15 lakhs to Clerical employees and Rs.10 lakhs for Sub-ordinate employees)

c) The Group Personal Accident Insurance Policy for employees under Staff Welfare Measures Scheme is in place and Insurance cover is available for Death & Temporary/Partial/Total disability.

d) Introduced Video-based life certificate submission facility for our ex-employee pensioners.

e) Introduced online application for Pension and Commutation (for the Employees retiring on Superannuation/VRS).

f) Pensioners receive Digital Pension Payment Order (PPO) instantly to their e-mail address post processing/sanction of Regular pension.

SKILL DEVELOPMENT & TALENT MANAGEMENT

Employees 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". 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. Apart from strengthening the employee skill sets in general banking, the key verticals have been identified for the purpose of developing talent.

Bank is imparting training in various functional areas to build and upgrade competencies. Through the 02 Centre of Excellence (CIBM Manipal & COE Gurugram) supported by 24 Regional L&D Centres, functional trainings are imparted to staff members in various cadres by drawing training calendars in consultation with Circle offices. For the year ended 2021-22, 2437 internal trainings, 293 external trainings were conducted where 60534 employees were imparted training in spite of Covid pandemic. A shift to online trainings was made.

Executive Development Programs (EDPs), Management Development Programs (MDPs) and Leadership Development Programs (LDPs) are provided to Executives upon their promotion at institutes of repute like IIMs, ASCI Hyderabad, MDI Gurgaon, in order to acclimatize them with their new roles and responsibilities. During FY 2021-22 around 490 executives have attended EDP & MDP. 57 Executives have undergone the RBI mandated Certificate program in IT & Cyber Security at IDRBT.

In addition to this, the Bank is grooming its top leadership through the Banks Board Bureau's Flagship Leadership Development program.

Competency assessment & Individual development plans have been created for 470 Executives in Scale V/VI with a view to grooming future leaders.

Bank has also formulated a mid-career training policy in line with CVC recommendations to give refresher training to executives in Scale IV/V who have put in 14 - 21 years of service.

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

CUSTOMER ORIENTATION

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

• As per the instructions of IBA and RBI, the Bank has adopted Customer Rights Policy as advised by the RBI since July 2015, which spells out the Rights of the Customers and also responsibilities of the Banker.

• To assess the quality of customer service rendered by the branches and to get the feedback an online "Annual Survey of Customer Satisfaction" was conducted from 15.09.2021 to 27.09.2021 with 14 pre-defined questionnaires. A total of 7,917 customers participated in the survey.

• Bank's overall rating of services post-amalgamation was rated as Average & above by 96% of customers and 4% customers rated overall services as Below Average.

• Under Digital products, 84% of customers rated as Average & Above and 16% customers have rated as Below Average.

• As per the Damodaran Committee recommendations, the Bank has appointed a Chief Customer Service Officer (CCSO), who acts as an Internal Ombudsman of the Bank.

• In order to enhance customer convenience, Bank has popularized 24/7 Self Service Functions on IVRS (Missed Call facility) for various services like Balance enquiry, Mini Statement (last 5 transactions), Hot Listing of Cards etc.

• The following Toll Free numbers are available for customers to contact within India - 1800 425 0018, 1800 103 0018, 1800 208 3333 & 1800 3011 3333.

• The Non Toll free number for customers calling from abroad (Outside India) is +91 80 2206 4232.

• Call Centre is catering to customers in 9 regional languages, viz., Kannada, Malayalam, Marathi, Tamil, Odiya, Telugu, Gujarati, Bengali and Punjabi besides Hindi and English for redressal of grievances.

• The Bank has implemented online grievance redressal facility for customers to lodge their grievances at Bank's website www.canarabank.com under the portal: Canara Public Grievance Redressal System (CPGRS). The complaints received at the Branches & Call Centres of the Bank are also integrated with the CPGRS package.

• The pre-defined Turnaround Time (TAT) for resolution of complaint at Branch Level is 6 days and on 7th day, the grievances are auto escalated to next higher authority.

• On closure of grievance an SMS with web link is pushed to the customers to submit his/her feedback regarding resolution.

• Bank has introduced VCIP-Video Based Customer Identification Process' for submission of Life Certificate by pensioners. Facility for filing Form 15G/15H through Net banking is enabled for the convenience of customers.

• 6 Central Processing Centres are established at Bhubaneswar, Ernakulam, Manipal, Patna, Ranchi & Vijayawada for CASA (Current Account & Savings Bank Account) account opening purposes.

• Our Bank is a partner in the PSB Alliance which has floated Door Step Banking Services (DSB). Door Step Banking is popularized in 100 identified centres panIndia for the benefit of all the individual customers including Senior Citizens & Differently-abled persons. Customers can book the major banking services by downloading the Mobile App, Website or Call Centres.

• Bank has complied the New Integrated Ombudsman Scheme, 2021 introduced by RBI. A copy of the new scheme, salient features and the contact details of the Principal Nodal Officer are displayed in our corporate website www.canarabank.com under the head Customer Service.

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 reports on his activities to the Customer Service Committee of the Board 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.

Reserve Bank of India has introduced new Integrated Ombudsman Scheme 2021 with effect from 12.11.2021.

Ms. Manorama K.N. has taken over as Internal Ombudsman with effect from 25.02.2022 on expiry of the term of the earlier IO.

INTERNAL CONTROL AND AUDIT

Risk based Internal Audits (RBIA) numbering 7368 were conducted along with Information System audit (IS Audit) across branches/service units as per the program for onsite RBIA for the FY 2021-22.Monthly Concurrent/continuous audits were conducted in branches/service units, of which 252 branches/service units were subjected to concurrent/continuous audit by Internal Auditors and 1237 branches/service units were subjected to concurrent audit by External Auditors, covering 70% of Advances and corresponding deposits of the total business of the Bank. 2824 branches were subjected to income/revenue audit on Quarterly basis.

• The Bank has been continuously going for upgradation of audit packages, duly revising the checklists to include latest developments and trends in the Bank. Further, the Concurrent Audit System version upgradation was effected duly revising the checklist in line with the RBI directions.

• New version of Darpan-V, 5.0 has been introduced during the FY 2021-22 and Concurrent Audit of RAH, ARM, MSME, CPH were incorporated in Audit Package.

• Bank has shown NIL tolerance on frauds and in that process, the Inspection/Audit policy of the Bank has been revised and accordingly the branches where fraud has been detected or serious irregularities were observed, the gradation was reassigned as "High Risk" to have more control on such branches/units and concurrent audit will be conducted until upgradation of Risk Rating.

• Off Site Monitoring of the transactions carried out in 9734 branches were reviewed under 34 parameters during 2021-2022 covering Deposits, Loans, GL transactions, Staff Transactions, newly opened accounts, premature closure of Deposits, reactivation of dormant accounts and LCs and Guarantees etc. for ascertaining any suspicious or dubious transactions. During the review of transactions, deviations which attract analysis from AML angle found were referred to the AML Cell of the Bank for further action.

• During the period FY 2021-2022 OTM section also reviewed issues like Business variations during quarter ends, Accounts transferred and re-transferred, Accounts opened and closed in short duration.

• Now the alerts are being assigned to Regional Offices instead of branches for verification of the transactions and for submission of replies. Such replies are reviewed at Circle Offices concerned and are being closed.

• Inspection Wing is conducting Investigations independently on complaints emanated from MD & CEO, ED, CVC, Statutory Bodies and NPA accounts of'10 lakhs & above where irregularities/lapses are observed. During the year 2021-22, Inspection Wing has completed 253 Investigations and submitted the reports to the concerned authorities for logical conclusion.

RISK BASED SUPERVISION

The Bank was brought under Risk Based Supervision (RBS) regime by RBI, in lieu of Annual Financial Inspection (AFI) from FY 2013-14. Presently, the Bank has completed the 8th 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.

IMPLEMENTATION OF OFFICIAL LANGUAGE

Our Bank is ensuring compliance of OL Implementation as per OL Act 1963, OL Rules 1976, recommendations of Parliamentary Committee on Official Language, Annual programme of OL Department, Min. of HA and also as per the guidelines issued by DFS, MoF, GoI. OL Implementation concerns teaching & training of Employees to learn and understand Hindi and use it in day-to-day banking activities. Bank deputes employees who have no working knowledge in Hindi for Prabodh, Praveen and Banking Pragya examinations conducted by HTS, New Delhi and also incentivize them on passing it. Incentives also provided to employees for passing Parangath examination for employees who aspire to obtain proficiency in Hindi. Bank provides incentives to motivate employees for obtaining Hindi Degrees like Graduation, PG, M.Phil. and Ph.D in Hindi Language along with reimbursement of exam fees and also for creative writing in Hindi for employees whose literary work is recognized by institutes of repute.

Bank has made available forms in Bilingual in Region Rs.A' and Trilingual in Rs.B' & Rs.C' regions at branch counters for the use of customers. OL Section HR wing provides translation for Hindi & English and vice-versa to meet the requirements of all Wings in HO. OL cells established at COs & ROs are also providing the requisite translations in Hindi & English and vice versa.

OLIC are constituted at all levels, where quarterly meetings are being 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 is now made available. Salary slips of employees could now be generated in Hindi with a provision for them to view the same via our Enterprise resource Planning portal-HRMS package. Provision has been made in ATM Screen to view the transactions in 8 Regional Languages. Standard greetings and messages to customers are being sent through SMS in Hindi & Regional Languages also. Customers can also now opt to receive SMS in their opted language. An online package has been made live (in SAS portal) for submission of QPR i.e., STR 18 by all branches and administrative offices. Hindi Workshops and Unicode training are organized for staff. 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 TOLIC (Banks) meetings at Bengaluru. Our Bank is also the convener of 22 TOLICs at various cities/towns. Bank has secured numerous Shields and Certificates, pan-India, awarded by various TOLIC committees for the best implementation of OL.

Our Bank has secured 1st Prize for our Hindi magazine "Canara Jyothi" under Rajbhasha Keerthi Puraskar for Hindi magazine in Region "C" awarded by OLD, Min. of HA, Govt of India for the year 2020-2021. In order to accelerate OL implementation, Shields are awarded to Offices and Branches under Rs.Rajbhasha Akshay Yojana'. Rs.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" are included in Today's Tidings, a daily news brief. Rs.HRD (e)light's, Rs.NRI Bulletin' & Rs.Staff Meeting Literature' are being brought out in Hindi as well on a Monthly basis.

Regional Language Cells like Kannada cell, Tamil cell, Telugu cell, Marathi cell etc., are formed in Circle offices located in Region Rs.B" & Rs.C'. Regional Language Cell under OL Section, HR Wing has been formed as a Nodal Cell for coordinating the usage of Regional Languages. Bank has released a slogan "ATErSt MJT AC[ir iTitiXiur,

• TTL: On 01.09.2021, during inaugural function of Hindi Month 2021. "Hindi Mein Paricharcha", an innovative Discussion programme in Hindi on contemporary banking subjects, was also conducted in all quarters at all Administrative Offices.

Bank has established a Hindi library at HO, COs & ROs for motivating employees to read books in Hindi. A Digital Library portal has also been initiated which constitutes books in Hindi and made available to all employees. Bank is committed for better OL implementation.

VIGILANCE SETUP

Vigilance set up at Head Office level comprises of Chief Vigilance Officer, who is assisted by the Executives and staff of Vigilance Department at HO. The Chief Vigilance Officer is also assisted by Vigilance Officers at Circles/ HO/RRBs/other subsidiaries of the Bank in Vigilance administration. The Vigilance Management in the Bank under the supervision/guidance of CVO administers various functions on preventive, participative, proactive and punitive aspects of vigilance with more emphasis on preventive vigilance measures to eliminate/minimise factors which provide opportunities for frauds, corruption and malpractices in the organization and also to take punitive action as a deterrent measure to check recurrence of such instances.

Vigilance Awareness Week was observed in our Bank from 26^th October 2021 to 1^st November 2021 with the theme "Independent India @ 75: Self-Reliance with Integrity" - "XUT1T?T pTTUT @ 75: All the Branches/Offices have actively participated in conducting various activities such as administering Integrity Pledge, Seminars, Workshops, Customer Grievance Redressal Meetings, Awareness Sabhas in Gram Panchayats, Panel Discussions, Competitions in Schools/Colleges (viz. Essay Writing, Debate & Quiz Competitions) etc to bring awareness in society about the ill effects of Corruption. Online quiz and Essay Writing & Cartoon Drawing competitions were conducted for employees of the Bank.

Important case studies with the modus-operandi of the fraud, in cases where frauds are observed, is uploaded in CANNET for the benefit of employees to enable them to be more vigilant in day-to-day functions.

Systemic improvements are periodically suggested based on the lapses observed while determining vigilance angle in respect of IACs.

To bridge the knowledge gap at the operational level a "Compendium on Preventive Vigilance" is available in CANNET for the benefit of all Canarites.

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 22^nd 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 Rs.One Stop Banking' facilities for the customers, forayed into diversified business activities by opening subsidiaries during late 1980s. Today, the Bank functions as a Rs.Financial Supermarket', with eight Domestic Subsidiaries, one overseas subsidiary, five associates and one joint venture. All the Domestic Subsidiaries/Associate/Joint Venture of the Bank recorded satisfactory performance during the financial year 2021-22. RBI has identified Canara Group as a Bank led Financial Conglomerate and Canara Bank as the designated entity for the group.

CANFIN HOMES LIMITED (CFHL)

M/s Canfin 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 2022 were Rs.26711 crore. The Company earned a profit after tax of Rs.471.11 crore as against Rs.456.06 crore in the previous year, with y-o-y growth of 3.30%. Gross NPAs of the Company was Rs.170.59 crore (0.64%) and Net NPA was Rs.80.71 crore (0.30%) as on 31.03.2022. The Company has provided interim dividend of 75% and also proposed 75% final dividend for the year 2021-22.

CANARA HSBC ORIENTAL BANK OF COMMERCE LIFE INSURANCE COMPANY LIMITED

M/s Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd (CHOICE) is a Life Insurance Joint Venture floated by the Bank in association with HSBC Insurance (Asia Pacific) Holding Limited and Punjab National Bank in the year 2007. The JV commenced its business operations with effect from 16.06.2008, with majority shareholding of 51% by Canara Bank, followed by HSBC (26%) and Punjab National Bank (23%). The Company recorded gross premium of Rs.5824.10 crore during the year. The Company registered Profit after tax of Rs.10.20 crore for FY 2021-22. The company also proposed 3% final dividend for the year 2021-22.

CANARA ROBECO ASSET MANAGEMENT CO LIMITED (CRAMC)

M/s Canara Robeco Asset Management Company Limited is a joint venture (JV) with M/s Orix Corporation, Japan with the Bank's holding of 51% Stake. This JV was formed in 2007 divesting 49% Stake held by the Bank in M/s Can Bank Mutual Fund in favour of M/s Robeco Group N V (now Orix Corporation, Japan). The Company is currently managing 21 Mutual Fund Schemes with a mix of equity, balanced and debt schemes. The Company has registered a net profit of Rs.59.53 crore and has also provided interim dividend of 20% and also proposed final dividend of 20% for FY 2021-22.

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 profit after tax of Rs.18.03 crore and has provided interim dividend of 22.22% (Rs. 8.88 crore) for the year 2021-22.

CANBANK FACTORS LIMITED (CFL)

M/s Canbank Factors Limited is a factoring Subsidiary of the Bank with 70% stake held by the Bank. During 2021-22, the Company had a total business turnover of Rs.2512.82 crore registering a growth of 70.94% as compared to Previous Year. The company has suffered a loss of Rs. 7.06 crore during the year due to provisions made towards NPA accounts.

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 has managed 5 funds so far with total Asset under Management of Rs.383.56 crore. CVCFL has been appointed by the Ministry of Electronics and Information Technology (MeitY) to manage the Electronic Development Fund (EDF) with a corpus of Rs.2206 crore.

Another new fund named as "Empower India Fund" is set up with a target corpus of Rs.500 crore with green shoe option of Rs.150 crore. The initial closing is done and available for investment. The Company recorded a profit after tax of Rs.1.11 crore during the year 2021-2022 and has provided interim dividend of 2000%.

CANBANK COMPUTER SERVICES LIMITED (CCSL)

M/s Canbank Computer Services Limited is the only Software Company promoted by a Public Sector Bank in the country, with a 69.14% shareholding by the Bank. CCSL is mainly engaged in IT and Software development services, BPO services, ATM/Any Time Payment services, Training, Consultancy and R&T agent. The Company has posted a profit after tax of Rs.4.96 crore for FY 2021-22. The company has also provided interim dividend of 75%.

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.17.55 crore for the year 2021-22 by way of receipt of dividends and amount pertaining to pending litigations.

SYNDBANK SERVICES LIMITED (SBSL)

M/s SyndBank Services Limited is a wholly-owned Subsidiary of e-Syndicate Bank, was incorporated under Companies Act 1956 on 25.01.2006. Company has posted a profit of Rs.0.44 crore for FY 2021-22 and has provided interim dividend of Rs.11 crore (4400%) during the financial year. As the Company is not undertaking any activity, company is under the process of voluntary liquidation, as approved by the Board of the Bank.

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 shareholder 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 31.03.2022, MoE has infused Capital of Rs.4812.50 crore and Canara Bank has contributed Rs.481.25 crore respectively. The total loans sanctioned as on 31.03.2022 is Rs.33486.37 crore and disbursed is Rs.13935.37 crore. HEFA has disbursed Rs.2627 crore of loans to different institutions during FY 2021-22 and Bank has received Rs.26.27 crore of Management Fee.

REGIONAL RURAL BANKS (RRBs)

As at March 2022, the Bank had four sponsored RRBs, viz., Kerala Gramin Bank (KeGB) in Kerala, Karnataka Gramin Bank (KaGB) and Karnataka Vikas Grameena Bank (KVGB) in Karnataka and Andhra Pragathi Grameena Bank (APGB) in Andhra Pradesh.

Andhra Pragathi Grameena Bank (APGB) operates in 5 districts of Andhra Pradesh with 552 branches and 109 ATMs. Total business of the Bank as at March 2022 is Rs.39,257 crore (Deposits: Rs.19,128 crore, Advances: Rs.20,129 crore).

Kerala Gramin Bank (KeGB) operates in all 14 districts of Kerala with 634 branches & 269 ATMs. The total business of the Bank as at March 2022 is Rs.41,113 crore (Deposits: Rs.21,834 crore, Advances: Rs.19,279 crore).

Karnataka Gramin Bank (KaGB) operates in 22 districts of Karnataka with 1119 branches & 159 ATMs. The total business of the Bank as at March 2022 is Rs.57,210 crore (Deposits: Rs.31,788 crore, Advances: Rs.25,422 crore).

Karnataka Vikas Grameena Bank (KVGB) operates in 9 districts of Karnataka with 629 branches & 76 ATMs. The total business of the Bank as at March 2022 is Rs.30,748 crore (Deposits: Rs.17,647 crore, Advances: Rs.13,101 crore).

Aggregate business of the RRBs increased to Rs.1,68,328 crore as at March 2022 comprising of Deposits of Rs.90,397 crore and Advances Rs.77,931 crore. Through the Bank's infrastructure support, the RRBs are extending facilities, like, ATM cum Debit Card services. The sponsored RRBs are 100% CBS compliant and are ahead of their peer RRBs under technology front by extending IT based products, like Internet Banking, Mobile Banking, RuPay Debit Card services and also Aadhaar enabled services and remittance facilities through NEFT/RTGS to their customers. The RRBs have put in place ChequeTruncation System and e-KYC technology.

CORPORATE SOCIAL RESPONSIBILITY

Following the founding principles and century old tradition, the Bank is engaged in varied Corporate Social Responsibility (CSR) activities. CSR initiatives of the Bank are multifarious, covering 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. A few social initiatives are outlined below:

• Cumulatively, the Bank has sponsored/co-sponsored 74 training institutes, which have trained more than 11.34 lakh unemployed youth so far, with a settlement rate of 74%.

• The Bank has donated 4 hi-tech, custom- built, solar powered Rs.Retail Mobile Marketing Van' to assist women entrepreneurs, SHGs and artisans to market their products.

• Canara Vidya Jyothi Scholarship scheme to meritorious SC/ST Girl Students. During FY 2021-22, 8200 students have been benefitted, utilizing a total amount of Rs.3.09 crore.

• Financial assistance for combating poverty & malnutrition to persons with disability (PwD), homeless and people effected by floods & Pandemic COVID-19 for supporting to lead a better life.

• During the difficulties of COVID-19 situation, the Bank has taken efforts to ensure that the difficulties faced by the general public are redressed to the maximum extent possible by distribution of Masks, sanitizers and other sanitation material.

• Providing of food packets, groceries, medical kits, distribution of blankets ambulance van, hearse Van are among the few activities that were being organized.

• Under CSR, the Circles have also organized various activities as mentioned above.

• Bank has assisted differently-abled persons by providing wheel chairs, standing frames, corner chairs and also supported differently-abled athletes.

• Families of COVID-19 victims were identified and they were provided with financial assistance.

• As part of Environmental protection, Bank has supported various organizations for planting of tree saplings, renovation of public ponds for protection of flora and fauna etc.

• During the FY 2021-22, under the Sustainable & Development Corporate Social Responsibility (SD&CSR) initiatives of the Bank, the Bank has spent to the tune of Rs.50.96 crore to various sectors like Skill development, Financial Inclusion, Women Empowerment activities, Education, Environment protection, Health, Poverty & Nutrition, Person with Disability, Rural Development, Swachh Bharat, Sports & other Sectors.

Visits by Standing Committee

During the year 2021-22, Standing Committee on Reservations, Committee on Social Justice and Empowerment and National Commission for Scheduled Castes conducted Study Visits and reviewed our Bank's performance.

AWARDS/ACCOLADES & ACHIEVEMENTS

• Canara Bank has received APY annual award 2021-22 from PFRDA.

• Canara Bank has been awarded 2nd position under implementation of Prime Minister Employment Generation Programme (PMEGP) for FY 2020-21 by KVIC, Ministry of MSME.

• Canara Bank has received Runner-up award in IBA's 17th Annual Banking Technology Conference and Awards 2020-21 "Next Gen Banking" under the category "The Best Payment Initiatives".

• Canara Bank has been awarded " BEST MSME BANK OF THE YEAR (PSU) - RUNNER UP" at 8^th MSME EXCELLENCE AWARDS BY ASSOCHAM.

• Canara Bank has been awarded DSCI Excellence Awards 2021 as Winner in Best Security practices in Banking Sector.

• Canara Bank has been awarded DSCI Excellence Awards 2021 as Winner in Security Leader of the year (BFSI).

• Canara Bank has been awarded DSCI Excellence Awards 2021 as Finalist in Best Security Operations Centre of the year.

• Canara Bank won Best In-house Magazine by Feather Business Solutions with Economic Times as media Partner for in-house Magazine "Shreyas".

• Canara Bank received first prize for "Rajbhasha Kirti Award 2020-21" in September 2021 for in-house Magazine "Canara Jyothi".

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

Board of Directors

(Appointment/Cessation of Directors during the year 2021-22)

Shri Brij Mohan Sharma was appointed as Executive Director w.e.f 19.05.2021, by the Central Government u/s 9 (3) (a) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 upto the date of his attaining the age of superannuation (i.e.30.06.2023), or until further orders, whichever is earlier.

Ms Nalini Padmanabhan was appointed as Part-time Non-Official Director w.e.f 21.12.2021, Clause (h) of Sub-Section (3) and Sub section (3A) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of three years from the date of notification, or until further orders, whichever is earlier.

Shri Dibakar Prasad Harichandan was appointed as Parttime Non-Official Director w.e.f 21.03.2022, Clause (h) of Sub-Section (3) and Sub section (3A) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 for a period of three years from the date of notification, or until further orders, whichever is earlier.

Shri Karunakara Shetty was elected as Shareholder Director w.e.f 30.11.2021, under clause (i) of Sub Section (3) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980, read with Sub clause (1) of Clause 3 of the Nationalised Banks (Management Miscellaneous Provisions) Scheme 1970/1980, Canara Bank (Shares and Meetings) Regulations, 2000 for a period of three years.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors, in preparation of the annual accounts for the year ended March 31, 2022, 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 judgements 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 2021-22

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 Mr. S. VISWANATHAN, Practicing Company Secretary (CP No. 5284) as the Secretarial Auditor for 2021-22 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.

LVPRABHAKAR

MANAGING DIRECTOR & CEO.