About Canara Bank

Canara Bank is a state-owned commercial bank with headquarters in Bangalore. The Bank provides a range of products and services to the customers. Across the borders, the Bank has 8 branches, one each at London, Leicester, Hong Kong, Shanghai, Manama, Johannesburg, New York and DIFC (Dubai) & a Representative Office at Sharjah, UAE. Canara Bank was incorporated on July 1, 1906 with the name Canara Hindu Permanent Fund Ltd. In the year 1910, the name of the Bank was changed from Canara Hindu Permanent Fund Ltd to Canara Bank Ltd. In July 19, 1969, the Bank was nationalized along with 14 major banks in the country. In the year 1976, they inaugurated their 1000th branch. In the year 1983, the Bank inaugurated an overseas branch at London. In the year 1984, Laksmi Commercial Bank Ltd was amalgamated with the Bank. In the year 1985, the Bank commissioned Indo Hong Kong International Finance Ltd. In the year 1987, they launched Canbank Mutual Fund & Canfin Homes. In the year 1989, they started Canbank Venture Capital Fund. During the year 1989-90, the Bank incorporated their factoring subsidiary, Canbank Factors Ltd. During the year 1992-93, they became the first Bank to articulate and adopt the directive principles of 'Good Banking'. During the year 1995-96, they became the first Bank to be conferred with ISO 9002 certification for one of its branches in Bangalore. During the year 2001-02, the Bank opened a 'Mahila Banking Branch', first of its kind at Bangalore, for catering exclusively to the financial requirements of women clientele. During the year 2003-04, they launched Internet Banking Services. During the year 2005-06, they launched Core Banking Solution in select branches. During the year 2006-07, the Bank signed MoUs for commissioning two joint ventures in Insurance and Asset Management with international majors namely, HSBC (Asia Pacific) Holding and Robeco Groep N.V respectively. During the year 2007-08, they launched New Brand Identity. They incorporated Insurance and Asset Management joint ventures. Also, they launched 'Online Trading' portal and a 'Call Centre'. During the year 2008-09, the Bank commissioned their third foreign branch at Shanghai. They expanded their arrangement under 'Remit Money', a web based product by extending to 11 Exchange Companies/ Banks and continues to have Electronic Funds Transfer (EFT) arrangement with 10 Exchange Houses /Banks. The Bank opened 54 new branches during the year. During the year 2009-10, the Bank opened 314 new branches taking the total branches to 3046. They expanded their arrangement under 'Remit Money', a web-based product by extending to 17 Exchange Companies/ Banks and 4 branches abroad. They launched 'SME SULABH', a new business model for speedy credit delivery to the MSME Sector. During the year 2010-11, the Bank added 210 domestic branches, taking the total tally under the branch network to 3,257 branches, including 4 overseas branches one each at London, Leicester, Hong Kong and Shanghai. During the year, the bank's aggregate business crossed Rs 5 lakh crore mark and net profit crossed Rs 4000 crore mark. The bank achieved 100% coverage under Core Banking Solution during the year. In 2010-11, Canara Bank raised Rs 1993 crore under QIP. The holding of Government of India in the bank was reduced to 67.72% post QIP. In 2011-12, the total number of branches of the bank reached 3,600. During the year, the bank opened its 5th foreign branch at Manama, Bahrain. In 2013-14, the bank opened 1,027 branches and 2,786 ATMs. During the year, the global business of the bank crossed the Rs 7 lakh crore milestone. In 2014-15, the global business of the bank crossed Rs 8 lakh crore. In 2015-16, Canara Bank opened its 8th foreign branch at DIFC (Dubai). In 2016-17, Canara Bank's branch network crossed 6,000 milestone. During the year, the bank opened a foreign subsidiary in Tanzania. As on 31 March 2018, the bank has 7 domestic subsidiaries, one joint venture and one associate company under its roof. During the FY2018, the bank received Master card Innovation Award for Canara International Prepaid card under prepaid segment. The bank also received VISA Award on crossing a key milestone on issuance of 1.35 crore VISA debit card. The bank also bagged ASSOCHAM Social Banking Excellence Awards 2017 for Government Sponsored Schemes and Runner-up for Agriculture Banking in the Large Bank Class. The bank received Golden Peacock Award 2017 for Corporate Social Responsibility from Institute of Directors, New Delhi. The Bank raised Rs 4865 Crore on 27.03.2018 by issue / allotment of 135954616 shares of Rs 10 each issued at a price of Rs 357.84 to Government of India on preferential basis In a bid to expand the reach, the bank added 132 domestic branches during the year. As at 31 March 2018 the Bank had 6212 branches, including Specialized Branches and 8 overseas branches. The bank has 9395 number of ATMs as on 31 March 2018. During the fiscal 2019, the total Deposits increased to Rs 599033 crore as compared to Rs 524772 crore in the previous year, with a y-o-y growth of 14.15%. The total business of the Bank increased to Rs 1043249 crore, with a y-o-y growth of 12.71% compared to Rs 925615 crore in the previous year. During the year, the Bank's total clientele base increased by 46 lakhs to 8.73 crore from the last year's level of 8.27 crore. In a bid to expand the reach, the bank added 32 domestic branches and converted 84 Retail Asset Hubs as general branches during the year. As at 31 March 2019 the Bank had 6316 branches, including Specialized Branches and 6 overseas branches. The bank has 8851 number of ATMs as on 31 March 2019. During the FY2019, the bank Secured Chamber of Indian Micro Small & Medium Enterprises (CIMSME) awards for best bank for promotional schemes (Large category). The bank Secured 1st position in Digital Score Card among all PSBs published by Ministry of Electronics and Information Technology (MeitY) as on 31.12.2018. The bank bagged four awards from the Associated Chambers of Commerce and Industry of India (ASSOCHAM) under its Social Banking Excellence Awards 2018. During the FY2020, the total Deposits increased to Rs 625351 crore as compared to Rs 599033 crore in the previous year, with a y.o.y growth of 4.39%. The total business of the Bank increased to Rs 1076574 crore, with a y.o.y. growth of 3.19% compared to Rs 1043249 crore in the previous year. In a bid to expand the reach, the bank added 45 domestic branches during the year. As at 31 March 2020, the Bank had 6334 branches, including 291 Specialized Branches and 5 overseas branches. The bank has 8850 number of ATMs as on 31 March 2020. During the year, Ministry of Finance, Government of India has infused Capital of Rs 6571 Crore in the Bank during the current financial year by way of preferential allotment of equity shares. The Bank issued 27, 69, 88,576 fully paid-up equity shares of Rs 10/- each at an issue price of Rs 237.23 per equity share including premium of Rs 227.23 aggregating Rs 6571 crore, on preferential basis to the Government of India and there by Government of India holding in the bank increased to 78.52%. The bank has raised capital by issuing Basel III Compliant Tier II Bonds to the tune of Rs 3000 crore bearing coupon of 7.18% in the last quarter of FY 2020. The Government of India (Gol}, Ministry of Finance, Department of Financial Services dated 04th March, 2020 approved Scheme of Amalgamation of Syndicate Bank into Canara Bank in exercise of powers conferred by Section 9 of Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980, which came into effect from 01st April, 2020. During quarter ended 31.03.2020, the Bank has issued and allotted 19,32,36,714 equity shares of face value of Rs 10 each to qualified institutional players at an issue price of Rs.103.50 per equity shares (which includes Rs.93.50 per equity share towards share premium}. During quarter ended 31.03.2020, the Bank has issued Basel Ill Compliant Additional Tier -I Bond Series Ill of Rs.1635 crore through private placement. The Bank added 45 domestic branches during the year 2020. As at March 2020, the Bank had 6334 domestic branches, including Specialized Branches and 5 overseas branches. The Bank added 130 domestic branches during the year 2021. As at March 2021, the Bank had 10416 domestic branches, including Specialized Branches. As on 31 March 2022, Bank had 9,734 branches, including Specialized Branches and 12,208 ATMs. In FY 2021-22, the Bank has opened 158 new Banking outlets, out of which 16 are General branches, 27 are Retail Assets Hubs, 81 are MSME Sulabhs, 5 are Asset Recovery Management (ARM) branches, 14 are Agricultural Credit Centers and 15 are Large Corporate Branches. Moreover, 31 SME Hubs (Back Office) and 12 Sanction-Alone' RAHs were converted as Banking Outlets. Hence, total of 201 branches were added. Besides this, 3 Currency Chests were also opened in FY 2021-22. In 2022, Canara Bank has entered into tie-up with two Fin-tech companies namely M/s Atyati Technologies Pvt. Ltd., and M/s SUB K Impact Solutions Ltd., for sourcing of loan proposals up to Rs. 10 lakhs. During FY 2022-23, the global business of the Bank stood at Rs 20,42,001 crore with a growth of 11.73% y-o-y from Rs 18,27,556 crore, with global deposits at Rs 11,79,219 crore with a growth of 8.54% y-o-y and global advances at Rs 8,62,782 crore with a growth rate of 16.41%. Total Deposits grew by 8.54% y-o-y from Rs 10,86,409 crore as on March 2022 to Rs 11,79,219 crore as on March 2023. Advances (Gross) of the Bank reached Rs 8,62,782 crore as at March 2023. As on 31 March 2023, Bank had 9,706 branches, including Specialized Branches and 12,130 ATMs. The Bank opened 79 domestic branches during the year 2022-23. 107 domestic branches were merged during the year. The total Specialized Branches of the Bank stood at 823 as at March 2023. During the Financial Year 2022-23, Bank raised capital via Basel III compliant additional Tier 1 Bond amounting to Rs 4,000 crore, Tier 2 Bonds amounting to Rs 2,000 crore and as a result, the Government of India shareholding in the Bank stands at 62.93% as on 31.03.2023. During the year FY 2022-23, Bank earned a commission income of Rs 300.11 crore from its joint venture, M/s Canara HSBC Life Insurance Company Ltd. A commission income of Rs 83.93 crore was earned under Non-Life (General Insurance & Health Insurance) business from all the three GI Partners namely, The New India Assurance Co. Ltd, M/s Bajaj Allianz General Insurance Co. Ltd and M/s TATA AIG General Insurance Co. Ltd. Under the Mutual Fund business, the Bank has earned a commission of Rs 41.75 crore from its joint venture, M/s Canara Robeco Asset Management Company Ltd.

Canara Bank Chairman Speech

Dear Shareholders,

It gives me immense pleasure to present before you the Annual Report of our Bank for the Financial Year 2022-23.

At the outset, I am grateful to each one of you for your valuable partnership with Canara Bank. This has helped this esteemed institution - with a rich legacy of 117 years - to stand strong with healthy fundamentals and to emerge as a major Financial Conglomerate with as many as thirteen subsidiaries / sponsored institutions in India and abroad (as of March 2023). Your continued trust and support have also enabled the Bank to navigate the challenge posed by volatile global macroeconomic conditions over the past three years, while continuing to remain at the forefront of the Banking industry.

The global economic outlook continues to remain fragile amidst concern over slowdown in global economic growth due to: the lagged impact of monetary policy tightening by global central banks; vulnerability of financial institutions to liquidity constraints; continued war between Russia and Ukraine; trade tensions and continued high inflation levels despite moderation from historic highs of last financial year. In its latest

World Economic Outlook (April 2023), IMF has revised downward the global growth projection to 2.8% for 2023; lower than its January 2023 projection of 2.9%.

India however remains a bright spot - despite a clouded global macroeconomic scenario - with its resilient domestic demand; robust rebound in contact-intensive services sector; revival of manufacturing; investment activity (amidst Government focus on capex) and a resilient agricultural sector. IMF has projected India to be the fastest growing major economy in the world in 2023 with a growth rate of 5.9% y-o-y (higher than 5.2% growth projected for China). RBI on its part has projected India?s economic growth even higher at 6.5% for FY 2023-24 with Q1 growth at 7.8%, Q2 growth at 6.2%, Q3 growth at 6.1% and Q4 growth at 5.9%.

Together with positive growth outlook, headline inflation is also projected to moderate further to 5.2% in FY 2023-24 (easing from the peak of 7.8% in April 2022 to 4.7% in April 2023) supported by Government supply side measures and RBI monetary policy measures.

Such positive domestic macroeconomic development, together with sufficient capital buffer, improving asset quality and deleveraged corporate balance sheets have led to robust credit growth. Being one of the premier Banks, your Bank has continued to show excellent performance in FY 2022-23 too: crossing a key milestone of `20 lakh crore gross global business in the financial year. This stands testimony to your Bank?s strong fundamentals and improved profitability.

Your Bank?s Vision is to "Emerge as the Best Bank to Bank with" and towards this end the Bank seeks to offer optimal Banking services through leveraging its Digital Banking capability. Your Bank has been proactively strengthening its Digital Banking base and has undertaken innovative steps: including launching a new mobile banking app "Canara ai1" ; Video-based Customer Identification

Process (V-CIP); online grievance redressal system; "API Banking" for corporate customers; Global Trade Processing Centers (GTPC) for handling forex & domestic trade transactions and upgraded internet banking for corporate customers; to name a few.

Your Bank also recognizes the need to fully leverage the power of data analytics to provide personalized Banking services to customers along with seamless digital experience and improved products / services offerings to drive business growth. Towards this objective, Bank has set up a dedicated Analytics department that uses State-of-the-Art AI/ML algorithms and techniques to develop machine learning models to perform tasks ranging from prediction to near real-time decisioning. Bank has developed 50+ models in FY 2022-23 covering areas such as cross-sell / up-sell, customer churn prediction & retention, NPA prediction, increasing fee income, CASA, digital adoption among others. Under fraud detection mechanism, Bank has implemented Clari5 EFRM Solution using AI/ML based scenarios. Along with the above, Bank is also using advanced analytical models to make personalized offers to customers, resulting in customer delight and satisfaction.

These initiatives have been receiving positive response from both retail and corporate customers; the Bank remains committed to providing "Best in the Industry Banking Services" to our valued customers.

Your Bank is similarly committed to helping drive the economy?s growth in a sustainable way by being a provider of responsible and sustainable finance. Towards its Environmental, Social & Governance (ESG) framework, your Bank has constituted an ESG Desk to deal with emerging ESG risks / mitigation. As part of its green financing, the Bank has several sustainable financing initiatives viz. Renewable Energy Projects; Compressed Biogas & Energy Conservation scheme; Solar Pump scheme under PM-KUSUM and Canara Green Wheels scheme for e-Vehicles. Further, your Bank has been providing financial assistance to for the betterment of society and for supporting eco-friendly campaigns like ‘Save Soil?, sustainable projects like installation of rooftop solar, e-vehicles etc.

Looking ahead, there appears to be a positive outlook for the Banking industry: due to the resilience of growth momentum in the economy, supported by Government focus on infrastructure development and other priority sectors. Your Bank is poised to convert these opportunities into sustainable business growth and further improvement in profitability, while supporting

Government initiatives in Nation building.

I sincerely thank all stakeholders - including shareholders, customers - for their tremendous support and patronage of the Bank. I sincerely place on record my heartfelt thanks to all Canarites: whose contribution has been key to excellence and sustained growth of the Bank. I acknowledge with gratitude support and guidance from the Government of India and the Reserve Bank of India. My appreciation is due to the esteemed members of the Board, the Auditors, the Legal Advisors for their unstinted guidance, support and co-operation. I thank the Securities & Exchange Board of India (SEBI), Stock Exchanges, the investor community and constructive coverage by the Media, for reposing faith in Canara Bank?s professional prowess and proven capabilities.

Your Bank remains committed to its founding principles to serve the society at large through its dedicated work force of 84,978 employees and PAN-India branch network of 9,706 branches along with 12,130 ATMs/

Recyclers as of March 2023. I am confident that the Bank will continue to achieve greater milestones in inclusive business growth (with focus on priority sectors including

Agriculture, MSME, Health & Education) and profitability

- with stronger fundamentals, while simultaneously leveraging / strengthening the Digital base of the Bank. We seek your continued support, patronage and input in our journey ahead, in taking Your Bank to new heights during FY 2023-24 and beyond.

Yours sincerely,

VIJAY SRIRANGAN Date: 18.05.2023

The Directors, in preparation of the annual accounts for the year ended March 31, 2023, 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 2022-23

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 S. KEDARNATH & ASSOCIATES, Practicing Company Secretary (CP No. 4422) as the Secretarial

Auditor for 2022-23 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.

K. SATYANARAYANA RAJU

MANAGING DIRECTOR & CEO