FINANCIAL STATEMENT OF CANARA BANK

INTRODUCTION:
Widely known for customer centricity, Canara Bank was founded by Shri
Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at
Mangalore, then a small port town in Karnataka. The Bank has gone through the
various phases of its growth trajectory over hundred years of its existence.
Growth of Canara Bank was phenomenal, especially after nationalization in the
year 1969, attaining the status of a national level player in terms of geographical
reach and clientele segments. Eighties was characterized by business
diversification for the Bank. In June 2006, the Bank completed a century of
operation in the Indian banking industry. The eventful journey of the Bank has
been characterized by several memorable milestones. Today, Canara Bank
occupies a premier position in the comity of Indian banks. With an unbroken
record of profits since its inception, Canara Bank has several firsts to its credit.
These include:
Launching of Inter-City ATM Network
Obtaining ISO Certification for a Branch
Articulation of Good Banking Banks Citizen Charter
Commissioning of Exclusive Mahila Banking Branch
Launching of Exclusive Subsidiary for IT Consultancy
Issuing credit card for farmers
Providing Agricultural Consultancy Services
Over the years, the Bank has been scaling up its market position to emerge as a
major 'Financial Conglomerate' with as many as nine subsidiaries/sponsored
1 | Page

institutions/joint ventures in India and abroad. As at December 2014, the Bank

has further expanded its domestic presence, with 5641 branches spread across
all geographical segments. Keeping customer convenience at the forefront, the
Bank provides a wide array of alternative delivery channels that include 7599
ATMs, covering 3839 centres. Several IT initiatives were undertaken during the
year. The Bank set up 132 hi-tech E-lounges in select branches with facilities
like ATM, Cash Deposit Kiosk with voice guided system, Cheque Deposit
Kiosk, Self Printing Passbook Kiosk, Internet Banking Terminal, Online
Trading Terminal and Corporate Website Access. Canara e-Infobook an
electronic passbook and banking related information facility was introduced on
mobile platforms - Android, Windows8 & iOS. The Bank also launched Canara
Bank RuPay Debit Card, Canara Club Card Debit, Canara Secured Credit
Card, Canara Elite Debit Card and EMV Chip Cards under debit and credit
cards. Online Savings Bank and PPF account opening were introduced during
the year. The Bank made several value additions under internet banking and
mobile banking services.
Not just in commercial banking, the Bank has also carved a distinctive mark, in
various corporate social responsibilities, namely, serving national priorities,
promoting rural development, enhancing rural self-employment through several
training institutes and spearheading financial inclusion objective. Promoting an
inclusive growth strategy, which has been formed as the basic plank of national
policy agenda today, is in fact deeply rooted in the Bank's founding principles.
"A good bank is not only the financial heart of the community, but also one
with an obligation of helping in every possible manner to improve the
economic conditions of the common people". These insightful words of our
founder continue to resonate even today in serving the society with a purpose.
The growth story of Canara Bank in its first century was due, among others, to
the continued patronage of its valued customers, stakeholders, committed staff
and uncanny leadership ability demonstrated by its leaders at the helm of affairs.
We strongly believe that the next century is going to be equally rewarding and
eventful not only in service of the nation but also in helping the Bank emerge as
a "Preferred Bank" by pursuing global benchmarks in profitability,
operational efficiency, asset quality, risk management and expanding the global
reach.

2 | Page

OBJECTIVES OF THE STUDY : Understand the strategies adopted by a market leader in

the banking industry to retain its market share.
Explore the reasons how a market leader can loose its
market share significantly.
Study the marketing initiatives adopted by Canara Bank
to reposition itself as a customer-oriented bank.
Examine the challenges that can be faced by a market
leader due to the changes in the industry structure.
Study and analyze the structure of the Indian banking
industry.

SCOPE OF THE STUDY:The scope of the study is to know the marketing

strategies adopted by Canara Bank .its not easy for covering all
the boundaries for collecting the data. So, this research study is
covering some important aspect. In this research study analysis
the marketing strategies of SBI.
The research project evaluation of the banking sector in
India has primal importance due to intense competition, and
changing banking reforms. This research project is very
important

because

in

today

scenario

there

is

strong

competition in public and private sector bank. Its very

important for us to know which sector is performing well and
what are the marketing strategies adopted by banks (public
sector or private sector).
3 | Page

Research means a search for knowledge or gains

some new knowledge and methodology can properly refer to
the theoretical analysis of the methods appropriate to a field of
study or to the body of methods and principles particular to a
branch of knowledge. A Research methodology has a specified
framework for collecting the data in an effective manner.
This study has focused on a phenomenon that is a very
extensive and major one, i.e. that market. Clearly, this
represents a challenging task for research regardless of the
more specific interests that the study may have. In this study,
this

extensive and complex

phenomenon has been studied

form a rather narrow empirical perspective .The selection

of

the singe case study design naturally brings forth many

limitation as far as the generation of the result of the study is
concerned. On the other hand , this also represent the whole
idea of making case study. By understanding something about
this particular case more in depth, we might eventually also
learn something about more general phenomena. Research
challenges in this topic. Multiple case study design would
enacble us to test the conceptual framework of the study
further. However, as the them of this study has been related to
emerging market, it can of course be seen that eventually the
software component market are likely to develop so that their
emergence, even through multiple case studies become
different, I.e the emergence needs to be studied retrospective.

4 | Page

PROFILE OF ORGANISATION
INTRODUCTION :
STORY :
Founded as Canara Bank Hindu Permanent fund in 1906, by
late Shri Amm embal Subba Rao Pai, a philanthropist, this small
seed blossomed into a limted company as Canara Bank Ltd. In
1910 and became Canara bank in 1969 after nationalization.
FOUNDING PRINCIPLES:
1. To remove superstition and ignorance.
2. To spread education among all to sub-serve the first
principle.
3. To inculcate the habit of thrift and savings.
4. To transform the financial institution not only as the financial
heart of the
community but the social heart as well.
5. To assist the needy.
6. To work with sense of service and dedication.

5 | Page

7. To develop a concern of fellow human being and sensitivity

to the surrounding with a view to make change/remove
hardships and sufferings.
Sound founding principles, enlightened leadership, unique work
culture and remarkable adaptability to changing banking
environment have enabled Canara Bank to be frontline banking
institution of global standard.
MILESTONES :1ST July 1906 : Canara Hindu Permanent Fund Ltd. Formally
registered with a capital of 2000 shares of 50/-each, with 4
employees.
1910 : Canara Hindu Permanent Fund renamed as Canara Bank
Limited.
1969 : 14 major banks in the country, including Canara Bank,
nationalized on July 19.
1976 : 1000th branch inaugurated.
1983 : Overseas

branch

at

London

inaugurated

Cancard( the Banks credit card) launched.

1984 : Merger with the Laksmi Commercial Bank Limited.
1985 : Commissioning of Indo Hong Kong International Finance
Limited.
1987 : Can bank Mutual Fund & Canfin Homes Launched.
1989 : Can bank Venture Capital Fund started.
1989-90 : Can bank Factors Limited, the factoring subsidiary
launched
6 | Page

1992-93 : Became the first Bank to articulate and adopt the

directive principles of Good Banking.
1995-96 : Became the first Bank to be conferred with ISO 9002
certification for one of its branches in Bangalore
2001-02 : Opened a Mahila Banking Branch, first of its kind at
Bangalore, for catering exclusively to the financial requirements
of women clientele.
2002-03 : Maiden IPO of the Bank.
2003-04 : Launched Internet Banking Services.
2004-05 : 100% Branch computerization.
2005-06 : Entered 100th Year in Banking Service. Launched Core
Banking Solution in select branches. Number One Position in
Aggregate Business among Nationalized Banks.
2006-07 : Retained Number One Position in Aggregate Business
among Nationalized Banks. Signed MoUs for
Two

JVs

in

Insurance

and

at

Asset

commissioning

Management

with

international majors viz., HSBC (Asia Pacific) Holding and

Robeco Groep N.V respectively.
2007-08 : Launching of New Brand Identity. Incorporation of
Insurance and at Asset Management JVs. Launching of Online
Trading portal. Launching of a Call Center. Switchover to
Basel II New Capital Adequacy Framework.
2008-09: The Bank crossed the coveted 3lakhs corer in
aggregate business. The Banks 3 rd foreign branch at Shanghai
commissioned.
7 | Page

2009-10: The
lakhs

Banks

aggregate

business

crossed

corer mark. Net profit of the Bank crossed 3000 corer.

The Banks branch network crossed the 3000 mark.

2010-11: The Banks aggregate business crossed 5 lakh corer
mark. Net profit of the Bank crossed 4000 corer. 100%
coverage under Core Banking Solution. The Banks 4 th foreign
branch at Leicester and a Representative office at Sharjah, UAE,
opened. The Bank raised 1993 crore under QIP. Govt. holding
reduced to 67.72% post QIP.
2011-12 : Total number of branches reached 3600. The Banks
5th foreign branch at Manama, Bahrain opened.
2012-13 : Highest Dividend of 130% paid for the year.
VISION & MISSION:
VISION: To emerge as a Preferred Bank by pursuing global
benchmarks

in

profitability,

operational

efficiency,

asset

quality, risk management and expanding the global reach.

MISSION : To provide quality banking services with good
customer care, create value for all stakeholders and continue
as a responsive corporate social citizen.
AWARDS & ACHIEVEMENTS:
AWARDS AND ACHIEVEMENTS DURING 2013-14
Golden Peacock Award for excellence in Corporate Social
Responsibility for the year 2013.
Greentch Award for excellence in Corporate Social
Responsibility for the year 2013.
8 | Page

 Skoch Renaissance Award 2013, with a Medal and Citation

for being India Best-2013.
Jury Award for New Initiatives under MSME instituted by
Chamber of India MSME under banking Excellence Awards
2013.
Best Bank

Award

for

implementation

of

Rural

Self

Employment Traning Institutes for the second consecutive

year by the Ministry of Rural Devlopment, Govt. of India.
Award under category 1 & Category II for its two of its
exclusive RSETIs at Hassan ( Karnataka ) and Tiruppur (TN)
as best performing RSETIs. 5 of the 27 RUDSETIs cosponsored by the Bank awarded as best performing
RUDSETIs.
Top performer in New Demat Accounts Opened in banking
sector by National Securities depository Ltd. ( NSDL) for
the year 2013
CANARA BANK BAGS Golden Peacock Global Award for
Corporate Social Responsibility for the year 2013.
Golden Peacock Award for excellence in Corporate
Governance 2013.
C & MD was conferred Mahatma Gandhi Pravasi Gold
Samman Award during the Global Achievers Conclave
organized by NRI Welfare Society of India at House of
Lords, London.
FIPS Excellence Award 2013 under DBT Category for the
Project-

Direct

Benefit

Transfer

LPG

(DBTL)

100%

implementation in Waynad District

SKOCH AWARD under Corporate Social Responsibility.
Unity International Foundation conferred Outstanding
Banker of the Decade Award
Green Tech Life Time Award for Excellence in banking
9 | Page

 Asia Pacific HRM Congress 2013 instituted by Institute of

public Enterprises conferred CEO of the Year and CEO
with HR Orientation.
Hindi Rajbhasha Samrakshak Ratna Award in Dasham
Hindi Mahakumbh Evam Saahitya Conference.
Organized by Parivartan Jan Kalyaan Samiti, New Delhi.
The Bank has been conferred with the Skoch Corporate
Social Responsibility Award 2013, Indias Best-2013 &
Skoch Award 2013, Indias Best -2013 for ICT enabling
Desktop Management System
Best Bank of the Year Award Instituted by the Bangalore
Management System
Best Financial Institution Category Gold in the Export
Excellence Awards 2013 by the Federation of Karnataaka
Chamber of Commerce, Bangalore.
Awarded Institute of Directors Fellowship on the ev of
Golden Peacock Awards.
Awarded certificate of Excellence for exemplay CSR
Initiative for the project Strengthening Traditional Art and
culture under India Awards 2013.

AWARDS AND ACHIEVEMENTS DURING 2011-12

Under the implementation
received

Indira

Gandhi

of

Rajbhasha,the Bank

Puraskar

Yojan-2009-10-

Encouragement Prize.
NABARDs Best Performance Award, 2010-11, for SHG
Credit Linkage and Best Performing Farmers club
Award of NABARD, 2010-11, in Karnataka.
10 | P a g e

 The Bank was conferred 5 Awards by the Public Relations

Council of India (PRCI), in the following categories.
Silver Award for Corporate Advertisement-single
language.
Bronze Award for Annual Report.
Bronze Award for Corporate Brochure on CSR
activities.
Bronze Award for Corporate Single AdvertisementEnglish.
Bronze Award for Shreyas In-house MagazineEnglish.
RECEIVED DURING 2011-12
Canara Bank was awarded coveted skoch award for
financial inclusion on 5.01.2012 at New Delhi. The award
was handed over by Dr C Rangarajan, Chairman Prime
Ministers. Economic Advisory Council to Smt Archana
Bhargava Executiv Director Canara Bank in a glittering
function held at New Delhi. The other dignitaries present
on the occasion were Dr D Damodarn Former Chairman
SEBI, Dr Govinda Rao, Mr Yogesh Aggarwal Chairman
PFRAD. A certificate of merit was handed over to S S Bhat
General Manager financial Inclusion Wing for Canara
Banks role in providing Access to Banking and Financil
Services. Citation reads as Canara Bank has a hand in
every arena when it comes to promoting financial
inclusion through skilling and self employment. During last
one year it is has shown significant improvement in its
financial inclusion efforts. Canara Bank deems it a great
honour and would redouble its efforts for the cause of
financially excluded.
The Bank was conferred with National Award-2011 for
excellence in the field of Khadi and Village Industries Best
Bank, South Zone for PMEGP.

11 | P a g e

 Corporate Social Responsibility Awards-2011 to CANARA

BANK.
RECEIVED DURING 2010-11
Awards/Accolades
Canara Utsav & SLBC Kerala-Declaration of total banking
coverage.
The Bank has been conferred with the Second Best Bank
Award under National Awards for Excellence in lending to
Micro Enterprises for the year 2009-10, by the Ministry of
MSME and Outstanding Performer at National level for
implementation of Interest Subsidy Eligibility Scheme
(ISEC) of KVIC in the country for 2009-10.
The Bank was conferred 4 awards by the Public Relations
Council of India (PRCI), in the following categories.
Silver
Award
for
Corporate
Film

(TV

Commercial)-English
Bronze Award for House Journal/MagazineLanguages
Bronze Award for Table Calendar
Bronze Award for Corporate AdvertisementSingle-English
OVERSE AS SUBSIDIARIES, BRANCHES AND OFFICES:
Canara Bank established its International Division in
1976. In 1983, Canara Bank opened its first overseas
office, a branch in London. Twe years later, Canara
Bank established a subsidiary in Hong Kong, Indo Hong
Kong International Finance. In 2008-9, Canara Bank
opened its third foreign operation, this one a branch in
Shanghai. Later Canara Bank established a branch
12 | P a g e

each in Leicester and Bahrain, and converted its Hong

Kong

subsidiary

into

branch.

It

also

has

representative office in Sharjah.

Together with State Bank of India, Canara Bank
established a joint venture in Moscow, Commercial
Bank of India LLC.
Canara Bank provides the general manager and the
branch managers for A1 Razouki Intl Exchange Co
(LLC), which a number of business leaders and NonResident Indians (NRIs) established in 1981 into the
United Arab Emirates to facilitate remittances to India
by tourists and NRIs.
Since 1983, Canara Bank has been responsible for the
management of Eastern Exchange Establishment,
Doha, Qatar, which Abdul Rahman M.M. A1 Muftah had
established in 1979.
BANK FACLITIES:
PERSONAL BANKING:
Loans
Whatever your need, our range
of loans can help
Personal Loan
A wedding in the family? Maybe
your house need renovation?
Our range of Personal Loans
brings you one step closer to
your dreams
HOUSING LOAN TO
AGRICULTURISTS

Home Loan
Get the home of your dreamswith a little help from us
Lone against Prooerty
Get a lone against your
residential
or
commercial
property. Flexibility to choose
between an EMI based loan or
an Overdraft.
PREMIMUM HOUSING LOANS
TO HIGH NETWORTH
INDIVIDUALS
CORPORATE BANKING

Accounts & Deposits

Cash Management Services

IPO Monitoring Activity

Merchant Banking Services
13 | P a g e

Loans & Advances

Syndication Services

TUF Schemes
Canara e-Tax
NRI FACILITIES

REMITMONEY-WEB BASED SPEED REMITTANCE FACILITY.

FLASH remit.
BANK-WESTERN UNION REMITTANCES SCHEME SWIFT.
LOCK BOX SERVICE.
RUPEE DRAWING ARRANGEMENT-REMITTANCE THROUGH
CHEQUES DRAWN ON ACCOUNT MAINTAINED WITH OUR
BANK.

INTERNET BANKING:
PRIORITY & SME BANKING

INTRODUCTION:
MEANING
AND
STATEMENTS:

DEFINITION

OF

FINANCIAL

A financial statement is a collection of data organized

according to logical and consistent accounting rocedure. Its
purpose is to convey an understanding of some financial
aspects of a business firm. It may how a position at a moment
in time, as in the case of a balance sheet, or may reveal a
series of activities over a given period of time, as in the case of
an income statement.
Financial Statements are the outcome of summarizing
process of accounting. In the words of John N. Myer, the
financial statements provide a summary of the

accounts of a

business enterprise, the balance sheet reflecting the assets,

liabilities and capital as on a certain data and the income

14 | P a g e

statements showing the results of operation during a certain

period.

TYPES:
Financial statements primarily comprise three
basic statements:
The position statement or the balance sheet; and
The income statement or the profit and loss account
Cash flow statement
These statements are used to convey to management
and other interested outsiders the profitability and
financial position of a firm.
BALANCE SHEET:
A balance sheet is a statement of the total assets and
liabilities of an organization at a particular date usually the
last date of an accounting period.

THE BALANCE SHEET IS SPLIT INTO PARTS:

A statement of fixed assets, current assets and the
liabilities (sometimes referred to as Net Assets)
A statement showing how the Net Assets have been
financed, for example through share capital and retained
profits.
The Companies Act requires the balance sheets to be
included in the published financial accounts of all limited
companies. In reality, all other organizations that need to
prepare

accounting

information

for

external

users

(e.g.

charities, clubs, partnerships) will also product a balance sheet

15 | P a g e

since it is an important statement of the financial affairs of the

organization.

1. TABLE OF BALANCE SHEET OF CANARA BANK

---------in Rs. Cr.
----------

Sources OF Funds
Total Share Capital
Equity Share
Capital
Share Application
Money
Preference Share
Capital

Mar14

Mar13

Mar12

Mar11

Mar10

12
Months

12
Months

12
Months

12
Months

12
Months

4.24
4.24

4.24
4.24

4.24
4.24

4.24
4.24

4.24
4.24

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

16 | P a g e

Reserves
Revaluation
Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
Application Of
Funds
Gross Block
Less: Accum.
Depreciation
Net Block
Capital Work in
Progress
Investment
Inventories
Sundry Debtors
Cash and Bank
Balance
Total Current
Assets
Loans and
Advances
Fixed Deposits
Total CA, Loans &
Advances
Deffered Credit
Current Liabilities
Provisions
Total CL &
Provisions
Net Current Assets
Miscellaneous
Expenses
Total Assets
Contingent
Liabilities
Book Value(Rs)

2,853.56
0.00

2,293.53
0.00

1,686.44
0.00

1,357.18
0.00

1,116.55
0.00

2,857.80
1,433.34
198.09
1,631.43
4,489.23

2,297.77
1,209.30
306.96
1,516.26
3,814.03

1,690.68
541.95
410.54
952.49
2,643.17

1,361.42
189.75
103.04
292.79
1,654.21

1,120.79
634.29
327.90
962.19
2,082.98

5,062.51
2,148.71

3,831.82
1,860.44

3,367.90
2,038.99

2,734.33
1,800.77

2,422.56
1,556.01

2,913.80
414.65

14,971.38
1,135.25

1,328.91
497.72

933.56
286.24

866.55
443.68

424.71
1,645.59
1,454.09
61.10

72.69
1,526.02
1,308.09
55.98

77.67
1,110.68
811.49
52.27

148.57
650.47
580.03
59.60

68.56
984.28
610.05
102.06

3,160.78

2,890.09

1,974.44

1,290.10

1,696.39

298.33

269.14

142.29

405.59

307.03

0.00
3,459.11

1.26
3,160.49

0.52
2,117.25

0.29
1,695.98

0.29
2,003.71

0.00
2,488.51
234.53
2,723.04

0.00
2,318.22
207.56
2,525.78

0.00
1,202.25
176.13
1,378.38

0.00
966.41
443.73
1,410.14

0.00
1,039.90
259.62
1,299.52

736.07
0.00

634.71
0.00

738.87
0.00

285.84
0.00

704.19
0.00

4,489.23
404.11

3,814.03
551.10

2,643.17
918.85

1,654.21
513.34

2,082.98
324.33

6,738.28

5,417.81

3,986.38

3,210.03

2,642.66

OBSERVATION & INTERPRETATION OF

BALANCE SHEET:
17 | P a g e

 The equity share capital of the company was 4.24crores

in every year that means company does

not issue

further equity share capital from the year 2010.

The reserve has shown upward. It was 1116.56crores in
the year 2010 and increased to 2853.56crores in the year
2014.
The loan funds constitute a greater part in total capital of
the year company. The

secured loan of the company

634.29crores in the year 2010 but it was decreased to

189.75crores in 2010 it was increased to 1433.34crores
in 2014. But in the case of unsecured loan except 2012 it

was decreased value.

The gross block of the company have shown on upward
trend from the year 2010 to 2014. Where as accumulated
depreciation was no impact on net block that was
increased from 866.55crores to 2913.80crores from the
year 2010 to 2014.
The investment of the company was decreased in the
year 2012 and 2013 i.e. 77.67crores and 72.69crores
respectively. But it was 148.57crores in the years 2011.
The total current assets was more then the current
liabilities. The net current assets of the company was
704.19crores in the year 2010 and it was 4489.28crores
in the year 2014.
The capital working progress of the company was
decreased in the year 2011 and it was increased in the
year 2012 and 2013. But again it was decreased to
414.65crores in the year 2014.
The company has also some contingent liabilities in
every year. It have been increased from the year 2010
2012 i.e. 324.33crores to 918.85crores but it was
decreased in the year 2013 and 2014 i.e. 551.10crores
and 404.11crores.
18 | P a g e

PROFIT & LOSS ACCOUNT:

PROFIT AND LOSS STATEMENT (P&L) is also known as
an income statement. It shows your business revenue and
expenses for a specific period of time. The difference between
the total revenue and the total expense is your business net
income. A key element of this statement, and one that
distinguishes it from a balance sheet, is that the amount shown
on the statement represent transactions over a period of time
while the items represented on the balance sheet show
information as of a specific date (or point in time).
2. TABLE OF PROFIT & LOSS OF CANARA BANK
--------in Rs.
Cr.--------Mar14
12 mths

Mar1
3
12
mths

Mar1
2
12
mths

Mar11
12
mths

Mar1
0
12
mths

10,644.8
6
928.32
9,716.54

8,104.3
1
641.57
7,462.7
4
20.59
158.36
7,641.6
9

6,164.06

5,731.63

484.49
5,679.57

670.82
5,060.81

11.29
-214.24
5,476.62

-2.22
89.23
5,147.82

5,315.1
4
405.08
378.17
110.92

3,613.20

3,645.42

285.54
316.82
76.17

294.88
275.71
87.87

535.89
39.63
0.00
6,784.8
3
836.27
856.86
63.10
793.76
260.75
0.00
533.01
0.82

446.66
21.51
0.00
4,759.90

387.64
20.44
0.00
4,711.96

705.43
716.72
68.92
647.80
249.32
0.00
398.48
-3.29

438.08
435.86
66.25
369.61
169.52
0.00
200.09
13.89

Income
Sales Turnover

13,061.75

Excise Duty
Net sales

1,211.07
11,850.68

Other Income
Stock Adjustments
Total Income

32.01
37.33
11,920.02

16.33
331.74
10,064.6
1

Expenditure
Raw Materials

8,590.59

7,615.20

Power & Fuel Cost

Employee cost
Other Manufacturing
Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses

618.51
513.69
50.47

436.91
446.75
133.66

0.00
853.75
0.00
10,627.01

578.18
23.84
0.00
9,234.54

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items

1,261.00
1,293.01
158.78
1,134.23
301.11
0.00
833.12
0.10

813.74
830.07
93.02
737.05
247.63
0.00
489.42
404.90

19 | P a g e

PBT(Post Extra-ord Items)

Tax
Reported Net Profit
Total Value Addition

833.22
260.86
572.36
2,036.42

894.32
274.90
619.42
1,619.34

Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualized)
Share in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

0.00
10.60
1.73

0.00
10.60
1.73

42.41
1,349.54
250.00
6,738.28

42.41
1,460.50
250.00
5,417.81

533.83
179.85
353.98
1,469.6
9
0.00
21.20
3.52

395.19
142.16
256.32
1,146.70

213.98
69.42
141.97
1,066.54

0.00
10.60
1.80

0.00
8.48
1.44

42.41
834.63
500.00
3,986.3
8

42.41
604.37
250.00
3,210.03

42.41
334.74
200.00
2,642.66

OBSERVATION & INTERPRETATION OF P&L ACCOUNT:

The sale volume has been increased from 2010 to 2014

i.e. 5731.63crores to 13061.75crores due to efficient
management.
The material consumed has been increased from 2010 to
2014 except in the year 2011. It was due to the
decreased in production volume of the company. The
material consumed in the year 2010 was 3645.42crores
where as in the year 2014 it was 8590.59crores.
The company incurs different type of selling & admin
expenses to increase to the sale volume of the company
which will lead increase the profit. The selling & admin
expenses have shown trend except the year 2014.
The other expenses such as miscellaneous

and

manufacturing expenses have also shown same trend in

case of selling expenses expect the year 2014.
Profit before tax have increase from the year 2010 to
2014 i.e. 200.09crores to 833.12crores.
Tax also increased due to increase of production and
sale volume from the year 2010 to 2013 i.e. 69.42crores
to 274.90crores but in the year 2014 it is 260.86crores.
The operating profit has shown an upward trend except
the year 2013 which may due to decrease in sale
20 | P a g e

volume. The operating profit was 438.08crores in 2010

and increased to 836.27crores in 2012 but it was
decreased to 813.74crores in 2013.
The earnings per share was increased from the year
2010 to 2013 i.e. 334.74crores to 1460.50crores but it
was decreased to 1349.54crores in the year 2014.
RATIO ANALYSIS:
Ratio analysis is a widely used tool of financial
analysis. It is defined as the systematic use of ratio to interpret
the financial statements so that the strength and weaknesses
of a firm as well as its historical performance and current
financial condition can be determined. The term ratio refers to
the numerical or quantitative relationship between two
variables.
Key financial Ration of CANARA BANK
Mar1 Mar
4
13

Mar1 Mar1 Mar1

2
1
0

Investment Valuation
ratios
Face Value
Dividend
Operating Profit Per Share
(Rs)

10.00
25.00
2,973.2
6

10.00
25.00
1,918.
68

10.00
50.00
1,971.8
0

10.00
25.00
1,663.3
0

10.00
20.00
1,032.9
3

Net Operating Profit Per

Share (Rs)

17,942.
18

22,910.
19

17,596.
06

13,391.
60

11,932.6
6

Free Reserves Per Share

(Rs)
Bonus in Equity Capital
Profitability Ratios
Operating Profit
Margin(%)
Profit Before interest and
Tax Margin(%)
Gross Profit Margin(%)
Cash Profit Margin (%)
Adjusted Cash Margin(%)
Net Profit Margin(%)
Adjusted Net profit
Margin(%)

-41.98

5,365.
51
41.98

3,976.3
8
41.98

3,200.0
3
41.98

2,632.6
6
41.98

10.64

8.37

11.20

12.42

8.65

8.07

5.81

7.70

8.02

5.30

8.09
7.34
7.34
4.81
4.81

5.82
4.72
4.72
6.36
6.36

7.71
8.02
80.02
4.73
4.73

8.03
8.78
8.78
4.50
4.50

5.30
6.05
6.05
2.80
2.80

21 | P a g e

Return on Capital
Employed (%)
Return on Net worth(%)
Adjusted Return on Net
Worth(%)
Returns on Assets
Excluding Revaluation
Returns on Long Term
Funds(%)
Liquidity and solvency
ratios
Current ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity
Ratio
Deb coverage Ratios
Interest Cover
Total Debt to Owners Fund
Financial charges
Coverage ratio
Financial Charges
Coverage ratio post Tax
Management Efficiency
ratio
Inventory Turnover Ratio
Inventory Turnover Ratio
Fixed Assets Turnover
Ratio
Total Assets Turnover
Ratio
Average Raw Material
Holding
Average Finished Goods
Held
Number of Days in
working Capital
Profit & Loss Account
Ratios
Material cost composition
Imported Composition of
raw Materials Consumed
Selling Distribution of
total sales
Cash flow Indicator Ratios
Dividend Payout ratio Net

22.09

15.21

22.01

27.88

13.11

20.02
20.02

26.95
9.23

20.93
20.04

18.82
18.38

12.66
12.26

6,738.2
8
25.04

5,417.
81
17.04

3,986.3
8
24.72

3,210.0
3
28.34

2,642.6
6
16.86

0.91
0.67
0.57
0.39

0.94
0.94
0.66
0.48

1.08
0.72
0.56
0.39

1.16
0.73
0.22
0.20

0.90
0.78
0.86
0.44

6.25
0.57
8.14

6.24
0.66
8.90

9.22
0.56
13.35

6.69
0.22
10.31

4.12
0.86
6.68

6.50

10.32

10.32

8.34

5.70

8.58
7.94
2.35

9.17
7.35
2.55

10.73
7.68
2.22

9.54
10.17
2.09

8.71
6.09
2.10

2.65

3.01

3.74

3.04

2.10

--

32.08

41.60

31.48

43.30

--

23.29

17.31

14.63

30.19

22.36

23.52

35.64

18.12

50.09

72.49
40.17

78.37
33.79

71.22
32.17

63.61
33.73

72.03
20.06

10.81

8.47

8.97

8.82

9.83

2.15

1.99

6.98

4.83

6.98
22 | P a g e

Profit
Dividend payout Ratio
Cash Profit
Earning Retention Ratio
Cash Earning Retention
Ratio
Adjusted Cash Flow Times
Earnings per share
Book value

1.41

1.42

4.02

2.45

3.18

97.85
98.59

94.20
97.32

92.71
95.88

95.05
97.52

92.79
96.77

1.87
Sep12
1,349.5
4
6,738.2
8

3.30
Sep11
1,460.
50
5,417.
81

1.59
Sep10
834.63

0.59
Sep09
604.37

3.13
Sep08
334.74

3,986.3
8

3,210.0
3

2,642.6
6

OBSERVATION & INTERPRETATION OF RATIO:

The dividend per share has increased from 2010 to 2012
i.e. Rs20.00 to Rs50.00 but it was decreased to Rs25.00in
the year 2013 and 2014.
The net operating profit per share has increased from the
year 2010 to 2014. It was Rs11932.66 in 2010 and
Rs27942.18 in 2014.
The free reserve per share was Rs2632.66in the year
2008and it was increased to rs5365.51 in the year 2014.
The profitability ratio includes operating margin, gross
profit margin, and net profit margin. The operating profit
margin was 8.65% in the year 2010and it was increased
to 12.42% in 2010 but it was decreased in the year 2012
and 2013 i.e. 11.20% and 8.37% again it was increased to
10.64% in the year 2014, The gross profit margin and
cash profit margin have also shown the same trend as in
case of operating margin. The net profit margin was
increased from 2010 to 2013 i.e. 2.80% to 6.36% but it
was decreased to 4.81%in the year 2014.
The liquidity ratio includes current ratio, liquid ratio and
absolute liquid ratio. The current ratio is the relationship
23 | P a g e

between current

assets and current liabilities. Current

assets include cash, bank, debtor, temporary investment,

advance etc. The current liability include creditor, bills
payable and short term loan etc. The standard current
ratio is 2:1 where as actual current ratio was below the
standard. The current ratio was 0.90:1 in the year 2010
and it was 1.16:1 in the year 2011. But it was 0.91:1 in
2014.
The management efficiency ratio includes debtor turnover
ratio, investment turnover ratio and assets turnover ratio.
Debtor turnover ratio was 5.71 in the year 2009 and it
was increased in the year 2010 and 2012 i.e. 9.54 and
10.73 then it was decreased to 9.17 and 8.58 in the year
2013 and 2014. The assets turnover ratio has also shown
same trend as in case of debtor turnover ratio. But the
investment turnover ratio was increased in 2011 i.e.
10.17 and it was 7.94 in the year 2014.
The profit and loss ratio of the company has show a
haphazard trend. It include material cost composition,
imported composition of raw material consumed, selling
distribution
cost
composition
and
expenses
as
composition of total sale. Material cost composition was
72.03 in the year 2010 and it was 78.37 in the year 2013.

FROM THE ABOVE BALANCE SHEET. PROFIT AND LOSS

A/C AND RATIO ANALYSIS WE CAN CONCLUDE THAT THE

24 | P a g e

OVERALL FINANCIAL POSITION AND PROFIT OF

THE

COMPANEY IS SATISFACTORY.
FINDINGS:
Sales turnover has been increased to Rs. 2416.89 from
the previous year.
The total income has been constantly raised. The total
income of the year 2013 was Rs. 10064.61 and it is
increased to Rs.11920 in the year of 2014.
The operating profit has been increased to Rs. 447.26
between the year 2013 and 2014.
The PBDT was Rs. 1134.23 in the year of 2014, where as
it was Rs. 737.05 in the year of 2013.
The reported Net Profit has been decreased to Rs. 47.06
in the year of 2013 in comparison to 2014.
The company had paid corporate dividend

tax of Rs.

1.73 both in year of 2013 and 2014.

The contingent liability has been decreased to Rs. 146.99
in the year of 2014.
The book value of share was increased to Rs. 1320.47
between the year 2013 and 2014.
The company have made a reserve of Rs. 2853.56 in the
year of 2014. Whereas it was only Rs. 1116.55 in the
year of 2010.
The total current assets loans and advances of the year
2014 was Rs. 3459.11 whereas it was only Rs. 1695.98 in
the of 2011.
The total debt of the company was Rs. 1631.43 whereas I
was only Rs. 292.79in the year of 2011.
SUGGESTION:
Awareness programme is required
25 | P a g e

 If these are any hidden data that must be disclosed

CANARA Bank should take some steps so that more
people can get benefit
Better service should be provided
INVESTMENT BENEFITS:
High Growth rate in the share price i.e., better return
on investment.
Dividend paid is also high which creates confidence
among the investor.
Volume in trading is very good it shows it is very active
shares.
Very stable company
Good for both long term and short term investor.
CONCLUSION & RECOMMODATION:
One of the leading Nationalzed Banks with wide net work
of branches in India and connection in abroad. Recently got
some awards .It ranks one among 4 leasing Banks in India. Well
known for good customer service. In Canara Bank the credit
appraisal is done by the study involves the Evaluation of
management, Technical feasibility, Financial viability, Risk
analysis and Credit rating. It is on the basis of the credit risk
level, collateral securities to be given by the borrower are
determined. The credit department thoroughly analyses the
credit requirement of the company and the capacity to service
the debt. The bank has conservative

norms to appraise the

project the bank at the max . Allows a 20% hike in projections.

The credit appraisal passes through various stages and
evaluations before it is appraised.

26 | P a g e

The financial and banking system has placed before

the SME sector a fully dressed up and it is the appreciation of
the efforts and also as an incentive to work hard. The sector
should avail of the opportunities and scale new heights. With
this the sector will be benefited and the society too. This shows
Canara Bank has sound system for credit appraisal. The credit
appraisal process carried out at Canara Bank has good
parameters to appraise.
All the documents required to appraise the project
should be asked at the time of application only rather
than later by the bank.
The bank must bring more transparency in appraisal of
the project there should be explanation for a appraisal
of the project that was sanctioned by higher authority.
The bank must not rely on software or information
provided by the client the bank should dig in for other
sources in order to draw a real picture for the
company.
Credit scoring allows lenders to determine whether or
not you fill the profit of the type of customers they are
looking for.
Banks concerned should continuously monitor loans to
identify account that have potential to become
nonperforming.
At the time of projections due to lack of documents,
the projections are done.
BIBLIOGRAPHY
Advance Accounting

J.N. Narang

NEWSPAPERS & MAGAZINES:

Times of India
India Express
Business Today
Current Affairs

WEBSITES:
27 | P a g e

 www.google.com
www.scribd.com
www.statebankofindia.com

28 | P a g e