ABSTRACT

Public sector banks play a pivotal role in the financial stability and economic development of a nation. The
appropriation of profits in these banks is crucial for their sustainability, growth, and ability to support public
welfare. This abstract examines the appropriation of profits in public sector banks, with a specific focus on
Canara Bank, one of India's leading public sector banks.

Canara Bank, like other public sector banks, generates profits through various financial services, including
lending, investments, and fee-based services. These profits are subject to appropriation in different ways to
ensure the bank's ongoing operations, compliance with regulatory requirements, shareholder value, and
social obligations.

The key aspects of profit appropriation in Canara Bank are as follows:

Reserves and Surplus:

A significant portion of profits is allocated to reserves and surplus, providing a buffer for contingencies and
ensuring compliance with regulatory capital requirements. This allocation enhances the bank's financial
strength and risk management capabilities.

Dividend Distribution:

As a public sector bank, Canara Bank is obligated to distribute dividends to its shareholders, including the
Government of India. The distribution of dividends is a critical component of profit appropriation, reflecting
the bank's commitment to returning value to its stakeholders.

Provisions for Non-Performing Assets (NPAs):

Given the risk associated with lending activities, Canara Bank sets aside a portion of its profits for provisions
against non-performing assets. This prudent approach ensures that the bank can absorb potential losses
arising from defaulted loans, thereby maintaining financial stability.

Investments in Infrastructure and Technology:

To remain competitive and meet customer expectations, Canara Bank invests a portion of its profits in
technology, infrastructure, and human capital. These investments contribute to operational efficiency and
improved customer experiences.

Corporate Social Responsibility (CSR):

Public sector banks are mandated to allocate a certain percentage of their profits to corporate social
responsibility activities. Canara Bank's CSR initiatives focus on education, healthcare, rural development,
and environmental sustainability, contributing to the broader societal good.

Employee Welfare and Benefits:

A share of profits is used to provide employee benefits, such as bonuses, healthcare, and pension schemes.
This allocation supports employee morale and retention, contributing to the bank's overall productivity.

In summary, the appropriation of profits in public sector banks like Canara Bank involves a multifaceted
approach, balancing financial stability, shareholder value, regulatory compliance, and social responsibility.
Understanding these dynamics is essential for analyzing the bank's financial health and its role in
contributing to economic development and societal welfare.
 CHAPTER I

INTRODUCTION

Public sector banks (PSBs) are foundational to a nation's economy, providing a range of financial services
that support businesses, individuals, and government operations. One key aspect of managing these
institutions is the appropriation of profits, which determines how the surplus generated by the bank's
operations is allocated among various stakeholders and for specific purposes. This introduction explores the
concept of profit appropriation within PSBs, with a focus on Canara Bank, a major public sector bank in
India.

Understanding Public Sector Banks

Public sector banks are owned and operated by the government, with the primary objective of serving the
public interest. They differ from private banks in that their operations often align with broader government
policies and objectives, such as promoting financial inclusion, supporting priority sectors, and fostering
economic growth. Because of their public ownership, the way they allocate profits can impact a wide range
of stakeholders, from individual shareholders to the government itself.

What is Profit Appropriation?

Profit appropriation refers to the process of allocating the profits earned by a bank to various accounts and
uses. This can include reserving a portion for future contingencies, distributing dividends to shareholders,
funding corporate social responsibility (CSR) initiatives, reinvesting in the bank's infrastructure, and more.
The way these profits are appropriated can significantly influence a bank's financial stability, growth
potential, and public perception.

The Role of Canara Bank

Canara Bank, established in 1906, is one of India's oldest and largest public sector banks. As a significant
player in the Indian banking sector, Canara Bank's approach to profit appropriation serves as an important
case study for understanding how public sector banks balance the need for financial sustainability with
broader social objectives.

Key Areas of Profit Appropriation

  In public sector banks like Canara Bank, profit appropriation often involves several key areas:

 Reserves and Surplus: Allocating a portion of profits to reserves to meet regulatory requirements and
manage risks.
 Dividends: Distributing a share of profits to shareholders, which in the case of PSBs includes the
government.
 Provisions for Non-Performing Assets (NPAs): Reserving funds to cover potential losses from bad
loans, ensuring financial stability.
 Corporate Social Responsibility (CSR): Dedicating a portion of profits to social causes, reflecting the
public sector's role in societal welfare.
 Investment in Infrastructure and Technology: Reinvesting profits to improve operations and customer
experience.

NEED FOR THE STUDY

Profit appropriation is crucial for public sector banks because it balances the financial health of the bank
with its broader public responsibilities. For Canara Bank, this process determines how the bank can grow,
adapt to changing market conditions, and contribute to the public good. It also impacts the bank's
relationship with its stakeholders, including the government, shareholders, employees, and customers.

This introduction sets the stage for a deeper exploration of how Canara Bank and other public sector banks
manage their profits and what implications this has for their operations and broader societal goals.

OBJECTIVES

This study aims to explore the various aspects of profit appropriation in public sector banks, focusing
specifically on Canara Bank, one of India's leading public sector financial institutions. The following
objectives will guide this study to understand the mechanisms, implications, and outcomes of profit
appropriation in Canara Bank, with potential insights into the broader public sector banking system.

1. To Understanding Profit Appropriation Mechanisms

2. To Examining Compliance with Regulatory Frameworks

3. To Evaluating Shareholder Value and Dividend Policies

4. To Assessing Investments in Infrastructure and Technological Advancement

5. To Investigating Corporate Social Responsibility (CSR) Allocations

6. Understanding Provisions for Non-Performing Assets (NPAs)

7. Exploring Trends and Best Practices in Profit Appropriation

8. To Evaluating the Role of Profit Appropriation in Economic Development

These objectives will guide the study in providing a comprehensive understanding of profit appropriation in
Canara Bank, offering insights into its role within the public sector banking ecosystem, and exploring
broader implications for economic development and societal welfare.

Research Approach and design

Research means search for knowledge. It aims at discovering the truth. It is an essential and powerful
tool in leading men towards progress. It is an original contribution to the existing stock of knowledge.
It is undertaken to discover answers to questions by applying scientific method. It is the search for
knowledge through objective and systematic method of finding solution to problems. Therefore
research is a process of systematic and in depth study of search of any particular topic, subject or area
of investigation backed by collection, computation, presentation and interpretation of relevant data. For
any research assignment, a proper planning is required and the same holds true in case of present study.
Research methodology is a way to systematically solve the research problem. It may be understood as
a science of studying how research is done scientifically. In it we study the various steps that are
generally adopted by a researcher in studying his/her research problem along with the logic behind
them. It is necessary for the researcher to know not only the research methods/techniques but also the
methodology. Researchers not only need to know how to develop certain indices or tests, how to
calculate the correlation, ratios, trend indices how to apply particular research techniques, but they
also need to know which of these methods or techniques, are relevant and which are not, and what
would they mean and indicate and why.

Researchers also need to understand the assumptions underlying various techniques and they need to
know the criteria by which they can decide that certain techniques and procedures will be applicable
to certain problems and others will not. All this means that it is necessary for the researcher to design
his methodology for his problem as the same may differ from problem to problem. For example, an
architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to
evaluate why and on what basis he selects particular size, number and location of doors, windows and
ventilators, uses particular materials and not others and the like. Similarly, in research the scientist
has to expose the research decisions to evaluation before they are implemented. He/she has to specify
very clearly and precisely what decisions he/she selects and why he/she selects them so that they can
be evaluated by others also.The methodology used in the study involves the collection of secondary
data.

Research Design

A research design is a plan that specifies the source and type of information relevant to the research
problem. It is a strategy specifying which approach will be used for gathering and analysing data.

Descriptive, analytical, empirical and quantitative researches have been followed. Descriptive
research includes surveys and fact finding enquiries of different kinds. The major purpose of
descriptive design is the description of the state of affairs as it exists at present. In descriptive
research design a researcher is interested in describing a situation or phenomena under his study. It is
a theoretical type of researcher design based on the collection designing and presentation of the
collected data. The main characteristic of this type of design is that the researcher has no control over
the variables. In analytical research one has to use facts or information already available and analyze
these to make a critical evaluation of leverage. Empirical research relies on experience or observation
alone. In empirical research, the researcher has to first set up a hypothesis or guess as to the probable
results. He then works out to get enough facts to prove or disprove his hypothesis. Quantitative
research is applicable to phenomena that are measurable so that they can be expressed in terms of
quantity
Various questions related to the organization were collected from the information available in the
internet. Other details were collected from the annual report of Canara Bank that have published and
also the books that are provided information on history and functioning of the organization.
Discussions with employees working in different sections of the organization as well as referencing
the annual report helped in understanding the impact of leverage.

• Nature of Data: Secondary Data

• Area of Study: Canara Bank
 Sources of online data

As soon as a researcher defines a research problem and checks out research design, he starts
collecting data. Researcher can collect his required information from the two sources namely primary
and secondary. Thus he is provided with two types of data known as primary and secondary data.

When the researcher himself is trying to collect the data for his particular purpose from the sources
available, it becomes primary data. Secondary data are those which have been collected by some
other person for his purpose and then published. For Example: When the Agriculture Department
collects data for the study of yield obtained in respect of various agricultural products in a locality, it
is primary data for them. When they publish such data in their journals and if a researcher makes use
of that information for his purpose, he can be said to be using secondary data.

The present research plan calls for gathering secondary data for reaching the final results through
data analysis and interpretation.
The secondary data were available from:

• Annual reports

• Journals

• Books

• Internet

Data analysis tools

• Ratio Analysis
• Trend Analysis

The most convincing & appealing ways in which data may be presented are tables, charts &
pictures. Pictorial representation helps in quick understanding of the data. Charts have greater
memorizing effect as the impression is created by the figure. A chart can take the shape of either a
diagram or a graph.

To analyze the collected data, simple tool of percentage methods issued. The study diagram
representations are adopted. The data are presented through different types of diagram are as
follows
1) Table
2) Charts 3) Bar diagram
Limitations of the study
The findings of this study are limited from the following aspects:

 This study investigated only for five year period

 In this study, only selected ratios are used
 Data mismatch in some records due to data entry errors
 Unavailability of full-fledged data from the firm
 CHAPTER II
REVIEW OF LITERATURE
Syed Tahir Hijazi and Yasir Bin Tariq (2006) made an attempt to determine the capital structure of
listed firms in the cement industry of Pakistan. The study finds that a specific industry‘s capital
structure exhibits unique attributes which are usually not apparent in the combined analysis of many
sectors as done by Shah and Hijazi (2005). The study took 16 out of 22 firms in the cement sector
listed at the Karachi stock exchange for the period 1997-2001 and analyzed the data by using pooled
regression in a panel data analysis. Among the four independent variables i.e. firm size (measured by
natural log of sales), tangibility of assets, profitability and growth, the firm size is found to be highly
significant.
Huang and Song (2006) studied the determinants of capital structure of Chinese companies for the
periods of 1995 to 2004. They have applied regression analysis to study the relationship between
leverage and profitability. They found that there was a negative correlation between leverage and
profitability of Chinese listed companies during the study period.

Martin Hovey (2007) studied liquidity, profitability and ownership structure of listed firms in China.
Regression analysis was used to find the relationship between the variables like liquidity, profitability
and ownership structure during the periods 1997 to 2005. The study concluded that leverage has a
significant relationship with profitability.

Frank and Goyal (2007) examines the relative importance of various factors in the leverage decisions
of publicly traded American firms from 1950 to 2003. The most reliable factors were median industry
leverage (positive effect on leverage), market-to-book ratio (negative), tangibility (positive), profits
(negative), log of assets (positive) and expected inflation (positive). The empirical evidence seems
reasonably consistent with some versions of the Trade-off theory of capital structure.
Mallikarjunappa (2007) in his study ―Factors Determining the Capital Structure of Pharmaceutical
Companies in India‖, made an attempt to test the important determinants of the capital structure of
companies taking profitability, collateral value of assets, growth, debt services capacity, size, tax rate,
non-debt tax shield, liquidity, uniqueness and business risk as the determinants and the Debt-Equity
Ratio (DER) as the dependent variable. Multiple regression models were used for the pooled data of
pharmaceutical companies in India. The period of study was from 1993 to 2002. The result indicated
that the regression was a good fit and the independent variables together determine the capital
structure of companies.

Joshua Abor (2007) investigated the relationship between capital structure and profitability of listed
firms on the Ghana Stock Exchange (GSE). The results revealed a significantly positive relationship
between the ratio of short-term debt to total assets and ROE. However a negative relationship
between the ratio of long-term debt to total assets and ROE was found .With regard to the relationship
 between total debt and return rates, the results showed a significantly positive association between the
ratio of total assets and return on equity. Further, profitability, collateral value of assets, growth, size,
tax rate and uniqueness do not have significant co-efficient and therefore, are not the significant
determinants of the capital structure of companies. The co- efficient of the variables, debt service
capacity, non-debt tax shield, and liquidity and business risk are significant and therefore, these
variables are the important determinants of the capital structure of Pharmaceutical companies in
India.

Ying Hong Chen (2007) analysed the factors influencing a firm‘s leverage. They used market capital
ratio, book capital ratio and book debt ratio as measures of leverage. They compared the factors
influencing firm‘s leverage using unbalanced panel data of seven countries: Canada, Denmark,
Germany, Italy, Sweden, UK, and the US. They found the firm size, tangibility are positively related
to leverage while profitability shows a negative relationship on leverage across all seven countries.
More profitable firms tend to borrow less. Evidences found from the seven countries are consistent
with the findings in conventional capital structure theories, for example the pecking order theory and
the static trade off theory, i.e. risky firms borrow less.

Attaullah Shah and Safiullah Khan (2007) made an attempt to find the determinants of capital
structure of KSE listed non-financial firms for the period 1994-2001. Pooled regression analysis was
applied with the assumption that there is no industry or time effect. They used six explanatory variables
to measure their effect on leverage ratio. Three of the variables were significantly related to leverage
ratio whereas the remaining three variables were not statistically significant in having relationship with
the debt ratio. The results approved the prediction of trade-off theory in case of tangibility variable
whereas the earning volatility and depreciation variables fail to confirm to trade-off theory. The growth
variable confirms the
agency theory hypothesis whereas profitability approves the predictions of pecking order theory. Size
variable neither confirms to the prediction of trade-off theory or asymmetry of information theory.
Yanmin qian (2007) examined the determinants of the capital structure. They used static panel data
models for the analysis of the firms‘ capital structure with both unobserved cross-sectional and time
effects as well as industry effects. The results showed that in the publicly listed Chinese firms the
adjustment process was very slow. It is also found that firm size, tangibility and ownership structure
are positively associated with firm‘s leverage ratio, while profitability, non- debt tax shields, growth
and volatility are negatively related to firm‘s leverage ratio. Lastly, they found that lagged
profitability has a negligibly small and positive impact on firm‘s leverage ratio.

Boopen Seetanal, Kesseven Padachi and Rishi Ronoowah (2007) made an attempt to investigate the
determinants of capital structure for the small Island developing state of Mauritius, using firms listed
on the stock exchange of Mauritius over the years 1994-2004. The results of the study revealed that
certain firm- specific factors which explain capital structure in developed countries, are also relevant
to a small Island economy like Mauritius. The analysis showed that most important firm-specific
factors that influence capital structure choice are profitability, size, tangibility and liquidity. Other
factors like business risk, non-debt tax shield effects and growth opportunities do not seem to affect
the capital structure decision of corporate firms. The result also showed that, there was an inverse
relationship between pre-tax weighted average cost of capital and the capital structure of a firm. In
case of cost of capital the irrelevancy theorem of Modigliani and Miller does not seem to hold good

for Indian industries.

Christina (2008) conducted a research to determine the nature of capital structure across non- finance
industries in Indonesia, whether they prefer to use debt or equity as their source of financing. he
findings of the study confirm that, first of all capital structure varies across industries. Each industry
would have different decisions regarding its optimal capital structure depends on several factors. This
leads to the second findings in which it proves that there is negative significant relationship between
profitability and leverage, positive significant relationship between company‘s size and leverage and
negative relationship between dividend payout and leverage. Finally, this research also verified that
there was no relationship between leverage and company‘s growth of share price, which means that
the growth of share price was not influenced by the company‘s capital structure decision.

Gunasekaran (2008) in his article studied the major factors influencing the capital structure of Indian
industries. He found that collateral value of assets and liquid assets in aluminum industry; corporate
size, liquid assets and business risk in automobile industry; growth rate and liquid assets in cement
industry; profitability and trading on equity in chemical industry; business risk and debt service
capacity
in Electronics industry; trading on equity in engineering industry; trading on equity, asset structure
and corporate size in IT industry; collateral value of assets in leather industry; liquid assets and asset
structure in paper industry have affected the capital structure. The collateral value of assets has
maximum influence on the capital structure among the public sector companies and asset structure
has similar influence on capital structure among the private sector companies.

Ayesha Mazhar and Mohamed Nasr (2008) discussed the determinants of capital structure of
Pakistani firms. They have selected a sample from Pakistani companies registered on Islamabad stock
exchange. They divided the samples into two sub-samples of private and government owned
companies to make companies between both sectors. The sample comprise of 91 Pakistani companies
out of which 80 companies are private and 11 are government owned covering the period of 1999-
 2006. Tangibility, size, growth rate, tax provision, return on assets and profitability are used as
independent variables, while leverage is the dependent variable. The results imply that government
owned companies employed more leverage than private companies.

Yuanxin Liu and Jing Ren (2009) identified the determinants of corporate financial structure for the
IT industry in China which is a promising service industry but is facing challenges and risk in the
Global
financial turmoil. They analyzed the determinants of the capital structure for a panel of 92 IT
companies listed in the China stock exchange. Six traditional explanatory variables were adopted in the
study including size, profitability, tangibility, liquidity, growth rate and growth opportunity. It was
found that the size of companies is positively related to leverage, while growth, profitability, liquidity,
profit growth rate and opportunity are negatively associated with leverage. The sign of these relations
suggest that both the pecking order theory and trade-off hypothesis are at worth in explaining the
capital structure of IT companies in China.
Mahdi Salehi (2009) studied the relationship between capital structure measures and performances of
firms which are listed in Tehran Stock Exchanges in Iran. The variables studied are capital structure,
return on investment and return on equity. The results of correlation concluded that firms‘
profitability is negatively correlated with financial leverage.

Bidjut Jyoti Bhattacharjee (2010) conducted an empirical investigation into the determinants of
capital structure of Indian industries. Panel data methodology has been applied to determine to what
extent the macro-economic determinants affect debt equity ratios under various grouping such as size,
growth, profitability, liquidity and dividend payout. He found that liquidity and growth in terms of
performance of the firm have significant influence on debt equity ratio. Further, the results from
econometrical analysis reveal that determinants are industry specific which imply that the weight of
the explanatory variables varies from sector to sector.
Sumikhare and Saima Rizvi (2011) focused on capital structure characteristics for BSE 100 index
companies in India. The panel data methodology, which incorporates both time series and cross-
sectional data, has been applied to the actual data to find determinants of leverage ratios for each firm
with in the period of 2000-2009. The empirical findings revealed that returns on asset and profit
margin on sales significantly affects firms leverage value. Therefore, profitability is one of the most
important determinants for leverage. Results also showed that depreciation over operating profit,
growth opportunities, size and tangibility do not explain leverage needs. Also, tangibility is found to
be negatively affecting leverage.
Shilpa Peswani (2011) compared high and low leveraged FMCG companies in India. The study found
that there was substantial difference in the capital structure of BIL and Marico. The difference was
due to the source of financing of these two companies for their expansion project. BIL has low degree
of leverage and MIL has comparatively higher degree of leverage. Though profitability of the
company is not entirely dependent on the sources of financing but the return to equity holders vary
according to the sources of capital funding adopted by the company.

David, McMillan and Omar Camara (2012) used dynamic panel estimators to test whether there are
differences in the speed of capital structure adjustment between US-based multinationals and
domestic corporations and whysuch differences may occur. The results show that average domestic
corporations adjust to target leverage faster than multinationals. This provides support for the market-
timing, pecking order and dynamic trade-off theories of capital structure. Further they identified the
overall relatively faster capital structure adjustment speed of domestic corporations to relatively
higher equity returns for multinational corporations, relatively lower incidence of under-leverage for
domestic corporations and the relatively higher incidence of above-target leverage for domestic
corporations. Further, tests show that agency costs, financial flexibility and capital investments have
different effects on adjustment process for multinational corporations relative to domestic
corporations.
 CHAPTER III
COMPANY PROFILE

Canara Bank Limited is one of the largest public sector banks owned by the Government of India.
It is headquartered in Bengaluru. It was established at Mangalore in 1906 by Ammembal Subba Rao Pai
and later the government nationalized the bank in 1969. The bank also has offices abroad in London,
Hong Kong, Moscow, Shanghai, Dubai, Tanzania and New York. As per the announcement made by
the Finance Minister Nirmala Sitharaman on 30 August 2023, Manipal based Syndicate Bank merged
with Canara bank on 1 April 2020, making it the fourth largest bank in the country.

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent Fund in
Mangalore, India, on 1 July 1906. The bank changed its name to Canara Bank Limited in 1910 when it
incorporated. Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. This
had been founded in September 1944 and at the time of its acquisition on 20 May 1961 had three
branches. The second bank that Canara Bank acquired was Seasia Midland Bank (Alleppey), which had
been established on 26 July 1930 and had seven branches at the time of its takeover.

In 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‘ – Bank‘s Citizen Charter
• Commissioning of Exclusive Mahila Banking Branch
• Launching of Exclusive Subsidiary for IT Consultancy
• Issuing credit card for farmers
• Providing Agricultural Consultancy Service

Canara Bank provides various banking products and services primarily in India. The company offers
personal banking products and services, including savings, current, fixed, and recurring deposits, as
well as auto renewal deposits, deposit schemes for senior citizens, and other deposits; and loan products
comprising housing loans, home improvement loans, vehicle loans, teachers loans, gold loans, pension
loans, mortgage loans, reverse mortgage loans for senior citizens, loans for medical practitioners, and
education loans. Canara Bank's personal banking products and services also comprise ATM and debit
cards, inter-bank funds transfer and electronic funds transfer services, mutual fund products, insurance
products, foreign exchange and international banking services, credit cards, consultancy services, and
depository services, as well as safe deposit lockers, custody services, and retail sale of gold coins.

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 institutions/joint ventures in India and
abroad. As at March 2015, the Bank has further expanded its domestic presence, with 5682 branches
spread across all geographical segments. Keeping customer convenience at the forefront, the Bank
provides a wide array of alternative delivery channels that include 8533 ATMs, covering 4021 centres.
Several IT initiatives were undertaken during the year. The Bank set up 132 hi-tech Elounges 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, Canara Bank Platinum Rupay Cards, Platinum Rupay 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.

In 1958, the Reserve Bank of India had ordered Canara Bank to acquire G. Raghumathmul Bank, in
Hyderabad. This bank had been established in 1870, and had converted to a limited company in 1925.
At the time of the acquisition G. Raghumathmul Bank had five branches. The merger took effect in
 1961. Later in 1961, Canara Bank acquired Trivandrum Permanent Bank. This had been founded on 7
February 1899 and had 14 branches at the time of the merger.

Next, Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam Bank,
Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin, and Pandyan Bank,
Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21 February 1923 and at the time
of its acquisition it had 14 branches. Arnad Bank had been established on 23 December 1942 and at the
time of its acquisition had only one branch. Cochin Commercial Bank had been established on 3 January
1936, and at the time of its acquisition had 13 branches. The Government of India nationalized Canara
Bank, along with 13 other major commercial banks of India, on 19 July 1969. In 1976, Canara Bank
inaugurated its 1000th branch. In 1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue.
This brought Canara Bank some 230 branches in northern India.
In 1996, Canara Bank became the first Indian Bank to get ISO certification for "Total Branch Banking"
for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting for ISO certification
of branches.

On 30 August 2023, Finance Minister Nirmala Sitharaman announced that Syndicate Bank would be
merged with Canara Bank. The proposed merger would create the fourth largest public sector bank in the
country with total business of ₹15.20 lakh crore (US$210 billion) and 10,324 branches. The Board of
Directors of Canara Bank approved the merger on 13 September. The Union Cabinet approved the
merger on 4 March 2020. The merger was completed on 1 April 2020 with Syndicate Bank shareholders
receiving 158 equity shares in the former for every 1,000 shares they hold.

Canara Bank established its international division in 1976. In 1983, Canara Bank opened its first
overseas office, a branch in London. Two years later, Canara Bank established a subsidiary in Hong
Kong, Indo Hong Kong International Finance. In 2008–9, Canara Bank opened its third foreign
operation, this one a branch in Shanghai. Later Canara Bank established a branch each in Leicester and
Bahrain, and converted its Hong Kong subsidiary into a branch. It also has a 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 Al Razouki
Intl Exchange Co (LLC), which a number of business leaders and nonresident Indians (NRIs) established
in 1981 in 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 Co. WLL,
Doha, Qatar, which Abdul Rahman M.M. Al Muftah established in 1979. Canara Bank opened its
seventh overseas branch in New York, United States on 10 June 2014.
 Canara Bank sponsors four regional rural banks (RRB):

• Andhra Pragati gramin Bank

• Kerala Gramin Bank – It is the largest RRB in India. Its headquarters are at
Malappuram and it operates in all districts in Kerala. It was established in 1976 as a
Scheduled Commercial Bank.

• Karnataka Gramin Bank has its headquarters at Bellary, Karnataka, and has 645 branches
spread over eleven districts.

• Karnataka Vikas Grameena Bank was constituted on 12 September 2005 after amalgamation
of four Regional Rural Banks (RRBs) namely Malaprabha Grameena Bank, Bijapur
Grameena Bank, Varada Grameena Bank and Netravathi Grameena Banks as per
recommendations of the Narasimhan Committee under Government of India Notification
dated 12 September 2005. All four amalgamated RRBs were sponsored by Syndicate Bank
(Now Canara Bank) and were located in Karnataka.
Canara Bank offers Unified Payment Interface (UPI) app named ―empower‖. This app empowers
Canara Bank and other Bank customers to perform pay and collect transactions using a single mobile
app. On 19 November 2017, it launched Canarites (Candi) app, a digital library, a field recovery mobile
app, a retail loan (vehicle) – tracking system, and a regulatory guidance tracking system.
On 7 May 2020, Bhanu Srivastav from Canara Bank, partnered with NGOs to donate all his royalty
proceeds for the betterment of needy children. He is working at Canara Bank Head Office, in Human
Resource Department and a bestselling author of novel 'Hacker 404 Happiness not found'.
On 23 May 2020, Canara Bank announced credit support for borrowers affected by COVID-19 to
enable them to avail the sanctioned facilities to the full extent and improve their business.

On 19 July 2020, Canara Bank announced to raise up to Rs 5,000 crore equity capital in Financial Year
2021 to strengthen capital base and to boost capital adequacy ratio in view of expansion plans. The
Bank will seek nod from shareholders for the same in its AGM in August 2020.

Corporate Vision:
To emerge as a world class Bank with best practices in realms of asset portfolio. Customer orientation,
product innovation, profitability and enhanced value to stake holders.

Corporate Mission:

• Augmenting low cost Deposits

• Threat on Retail lending
• Toning up Asset Quality
 • Assent on cost control
• Product innovation and marketing
• Customer Centric focus
• Leveraging IT for comprehensive MIS
• Maximizing stakeholders Value
Corporate Objectives:
• Efficiency
• Profitability and Productivity
• Organisational Effectiveness.
• Customer Centric
• Hi-tech Banking

MARKET DEMAND AND SUPPLY- CONTRIBUTION TO GDP- REVENUE

GENERATION

Financial markets are made up of a large number of markets for different types of securities: equities,
bonds, credit cards, etc. In the market for each asset, supply and demand interact to determine the price
and rate of return. Since each financial market is both a source of borrowed funds and a destination for
saving, each financial asset is a substitute for every other financial asset (to greater or lesser extent), and
thus, all financial markets are linked, directly or indirectly. For example, if the interest rate on U.S.
Treasury Bills goes up, you should expect the interest rates on U.S. Treasury notes and bonds to go up a
certain extent also. The reason is that if interest rates on Treasury bills increase, that will make bills
more attractive to people who normally invest in Treasury notes and bonds. As people shift their
savings to bills, the interest rates on notes and bonds will rise. Financial markets can be analyzed by
using the theories of supply and demand. Those who save money (or make financial investments, which
is the same thing), whether individuals or businesses, are on the supply side of the financial market.
Those who borrow money are on the demand side of the financial market. In any market, the price is
what suppliers receive and what demanders pay. In financial markets, those who supply financial capital
through saving expect to receive a rate of return, while those who demand financial capital by receiving
funds expect to pay that rate of return. A rate of return can come in a variety of forms, depending on the
type of investment. The simplest example of a rate of return is an interest rate. For example, when you
put money into a savings account at a bank, you receive interest on your deposit. The interest payment
expressed as a percent of your deposits is the interest rate. Similarly, if you demand a loan to buy a car
or a computer, you will need to pay interest on the money you borrow
 Fig 2.1 Demand and supply in the financial market for credit cards

In this market for credit card borrowing, the demand curve (D) for borrowing financial capital intersects
the supply curve (S) for lending financial capital at equilibrium E. At the equilibrium, the interest rate
(the ―price‖ in this market) is 15% and the quantity of financial capital being loaned and borrowed is
$600 billion. The equilibrium price is where the quantity demanded and the quantity supplied are equal.
At an above-equilibrium interest rate like 21%, the quantity of financial capital supplied would increase
to $750 billion, but the quantity demanded would decrease to $480 billion. At a below-equilibrium
interest rate like 13%, the quantity of financial capital demanded would increase to $700 billion, but the
quantity of financial capital supplied would decrease to $510 billion.

Contribution to GDP

• Contribution of the banking sector to GDP is about 7.7% of GDP.

• Banking sector intermediation as measured by total loan as a % of GDP is 30%.

• Banking sector has generated employment to the tune of 1.5 million.

The development of the banking sector plays a pivotal role in the economic development of any
country. Capital or funds can be considered as one of the essential components while measuring the
growth of a nation and a developed and able body that can administer the entire financial system is
given paramount importance. Thus, to attain a steady GDP growth and ensure economic development,
the valuable services of a developed financial system of the country are taken into consideration.

To understand economic development, one must understand the notion of demand and supply, which are
the basic principles of any economy. An economy grows when there is consumption, that is, there is a
demand for goods and services of various sectors. Consumption can be looked upon as a driver of GDP
growth. However, when products are manufactured, and there is a dearth of consumption, the industry
will hit a recession, as faced by the automobile industry in the past year.

The commercial banks support the government by helping with finance using various methods such as
offering direct credit to government bodies and government agencies. These banks also subscribe to
public debt and make investments in several of the government securities. Through this provision of
direct credit, the government is able to deploy multiple development schemes.

These banks are also spreading their wings worldwide, as well as reaching every nook and corner of the
country, enabling semi-urban and rural population to avail the banking services. By granting credit to
the ones in distress, these balance the economic development without differentiating or segregating and
decentralize it.

Besides contributing to the formation of initial capital required for investment, the banking industry
indirectly assists the government in handling several problems namely shortage of savings, rising
prices, unemployment, unbalanced development, entrepreneurial blocks due to capital limitations. This
sector is crucial for the development of trade and industry as these often act as financial advisers,
counselors. Having people's trust at its core, it continues to drive up GDP growth and follow regulations
and mandates to avoid any economic disruption.

Revenue Generation

Banks are known for charging penalties or recurring fees to account holders, but the main way they
make money is through loans. Below are the main ways in which banks make money.

a) Profits from debt interest When you deposit your money in a bank account, the bank uses that
money to make loans to other people and businesses to whom they charge interest. The bank pays you a
certain amount of interest in exchange for keeping your deposit. However, they collect more interest on
the loans they issue to others than the amount of interest they pay to account holders like you. This, in
turn, earns them a profit.

b) Banking fees Another way banks make money is through regular or case-by-case fees. These
might include: • Account ―maintenance‖ fees are generally charged to your account monthly just for
being open. These are often avoidable and should be taken into consideration when choosing a bank or
a particular account.

• Inactivity fees for not using your account often enough. Be sure to look into this before opening an
account you plan to seldom use.

• Overdraft or insufficient fund charges when you spend more than you have in your account. You can
 avoid these by staying on top of your budget.

• Excessive withdrawal fees from savings accounts, which have monthly caps mandated by the federal
government.

• Wire transfer fees if you want to send money to another bank or entity quickly. These transfers
typically happen on the same day. It is not the same as ACH transfers which can take a few days etc.

• Charges for paper statements if you opt not to receive online statements. Going paperless is more
environmentally friendly, easier to track, and efficient anyway, so definitely consider this option.

• Debit card replacement fees for lost or stolen debit cards.

• ATM fees if you use certain ATMs outside of your bank's network.

• Bad check penalties if you deposit someone else‘s bad check, even if you do so unknowingly.

• Minimum balance charges if your account balance falls below the minimum required balance

c) Interchange fees While swiping your debit or credit card is generally free to you, a transaction or
processing fee called interchange is typically generated. This fee is charged by your bank to the
merchant's bank as a percentage of your transaction. The merchant's bank then deducts this fee and their
own processing fee, from the cost of your purchase.

As with any other business, banks also have their share of expenses they need to pay to keep things
running. They include:

a) Non-interest expenses About 15% of the cost of running a bank is ―non-interest expenses,‖ with
a median expense of about $400,000 for branches across the country. These costs include standard
operational spending like employee salaries and benefits, equipment and IT, rent, taxes, and
professional services like marketing.

b) Interest expenses On the other hand, banks also have ―interest expenses,‖ which are the cost of
interest on loans they take out, just like you pay when you take out a loan. As mentioned earlier, banks
might pay interest on deposits to their account holders, short-term and long-term loans they take out,
and trading account liabilities.

LEVEL AND TYPE OF COMPETITION- FIRMS OPERATING IN

BANKING INDUSTRY

Competition in banking is entirely different from other sectors of the economy due to the special
function of banks in the financial system. The standard competition paradigm in favor of competition
regarding cost minimization and allocate efficiency is not entirely valid for banking because many
market failures distort the nature of competition and its outcomes. This paper presents an overview of
competition in the banking sector for developed markets and its particular characteristics. The
uniqueness and fragility of banks, business models in banking, competition paradigm in banking, and
historical overview of competition in banking is discussed. Finally, the different measures of
competition frequently used in the empirical literature on banking are introduced. Banking competition
and four types of competition are defined: banking competition, competition between the state and non-
state banks, competition between banks and non-banking credit institutions, and competition between
banks and non-financial organizations.

PRICING STRATEGIES IN BANKING INDUSTRY

Traditionally, the Indian banking industry has been tightly regulated, with little scope for innovation in
products and pricing. Most banks follow a cost-plus and market-based pricing strategy, which was
justifiable until recently as the banking industry was in a nascent stage and the market, largely
underpenetrated. This strategy has helped banks grow considerably. Typically, the approach for banks‘
pricing factors in the cost of funds, risk-based spread and an assessment of the competitors‘ product
portfolios. However, there are other components that are either underestimated or not fully accounted
for such as the correct cost of servicing and the customers‘ value perception regarding such products.

1. Estimation of the right cost of servicing

Since most banks and financial institutions adopt a traditional approach to determine the cost of
production and marketing of products, the current estimates do not take into account other associated
costs. These include the cost of maintenance of infrastructure (branches, ATMs and call centre‘s) and
those incurred to support technology, product launches and pilots. Fee-based income does not aid in the
recovery of the cost of services. Instances wherein the spread (net interest margin) compensates for the
cost of services are rare, and it merely compensates for risk-adjusted returns on the equity of the core
lending business.

2. Value-based pricing
A value-based pricing approach focuses on understanding the customers‘ willingness to pay a premium
for products or services on the basis of the value offered. Banks can optimize their pricing and secure a
larger share of customers‘ wallets with an increased focus on product innovation and customer analytics
applications. Value-based pricing advocates segmenting customers first. It calls for a gradual shift from
a product-centric mind-set to a customer-centric approach.
 Banks should deploy a dual transformation strategy focused on both tactical measures and strategic
enablers to implement value-based pricing strategy. In the long term, banks should set up strategic
analytic functions, which should be supported by pricing operations, product management, data
analytics and technology. Notwithstanding the effort involved, there are certain tactical methods which
can be deployed swiftly and effectively to realize benefits in the near term.
These include:

a) Marketing campaigns:

Banks should deploy dedicated marketing campaigns for the launch of new product features, while
targeting a set of customers. Marketing campaigns that emphasize differentiated value propositions for
dedicated customer segments enable a faster go-to-market approach.

b) Dynamic pricing:

Industries that have successfully implemented dynamic pricing can be used as examples by banks
looking to adopt the same approach. The concept implies that the pricing of products and services adjust
on a real- time basis to the prevailing demand. Customers exposed to e-commerce are familiar with this
concept and will not view it as a negative. They would attempt to make the best use of this opportunity,
which in turn will prompt banks to optimize their services. For example, the usage of ATM networks or
call centre‘s can be dynamically priced on the basis of time and location. c) Loyalty pricing:

Rewarding loyalty can provide a special price differentiation feature to banks‘ products. This will not
only enable them to retain and increase their share of wallets with existing clients, but can also help
increase market share. The concept is gaining prominence in e-commerce and credit cards, and can also
be used to market other banking products. For instance, any bank can offer a ‗next vehicle loan‘ to its
existing vehicle loan customers at a slightly competitive rate. This enables it to capture significant value,
as most car owners purchase new vehicles every five to six years.

d) Behavioral pricing:

A fairly new concept, behavioral pricing is a form of price differentiation based on customers‘ usage or
buying history. However, the prerequisite for using this strategy is access to a large amount of customer
data. Behavioral pricing can be easily applied in the allied areas of e-commerce like mobile banking,
cards and other payment-related products.
PROSPECTS AND CHALLENGES IN BANKING INDUSTRY

Future Prospects a) Potential of internet banking b) Internet banking risk c) Challenges to internet banking
d) Proposed strategies e) Future prospects of internet banking a) Potential of internet banking Personal
computer sales in India are presently growing at a rate of 57% annually and developments in information
technology including internet access are also persistent. 35% of households are expected to own a PC by
2016 and this growth will proliferate if Indian internet infrastructure keeps on following the prototype of
global trends. Introduction of internet banking system in India will result into a thriving number of online
bankers. In India, there is a colossal potential for progress and expansion of a world-scale internet
economy. The elements that may impact enhancement of internet banking in India are discussed in the
ensuing section.

KEY DRIVERS IN BANKING INDUSTRY

1. Customer Behavior

The new ways consumers get information and go about their lives is profoundly different from the
customer behavior norms of yore. Increasingly, customers are looking for digital interactions that are
simple yet aesthetically appealing, highly personalized and context aware so that the need of the
moment is served quickly without cumbersome intervention from the service provider. Customer
Experience (CX) is now the decisive competitive differentiator between banks, more so than just the
breadth and depth of their products and services portfolio.

2. Digital Innovation

Advances in digital technology are offering a myriad of channels for customer interaction. Channels
like online and mobile banking have already changed how customers engage with the bank. Customer
interaction through digital channels is also generating valuable behavioral and transactional data.
Analytics on this newly available data enables even more meaningful ways to engage customers. Ever
since the transaction mix started favoring digital channels, most industry analysts and technology
service providers have been calling out the underlying technology imperative. However, what is often
overlooked is the operational transformation and process optimization required to profitably support
the morphing
operating model. Furthermore, as the operating model transitions to support this bias towards digital
interactions, back office systems such as Core Banking and CRM will also need to be modernized to
provide requisite functional capabilities.

3. Regulatory Compliance

Increasing regulatory pressure is one of the legacies of the recent financial crisis. The cost of
compliance as well as non-compliance continues to be on the rise. In many scenarios, streamlined
customer interaction and low-touch transaction processing made possible by the ubiquity of digital
channels will help mitigate various risks associated with regulatory compliance. Moreover, a number of
compliance initiatives can generate information and context that can be channeled towards revenue
creation.

4. Macroeconomic Environment

The interest rate trends and after-effects of the financial crisis have created a tough operating
environment for banks. At the time of this writing, the return on equity and return on assets for banks in
the US is close to the lowest it has been over the past 12 quarters. Return on equity remains below the
cost of equity. Now, more than ever, banks are looking to eke out incremental profitability from product
and service innovation deployed via digital channels. However, such profitability can only be achieved
via efficiencies derived from requisite operational changes and process optimization.

CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
 Mar '15 Mar '14
12 mths 12 mths

INCOME
Interest Earned 43,750.04 39,547.61
Other Income 4,550.25 3,932.76
Total Income 48,300.29 43,480.37
Interest expended 34,086.37 30,603.17
Employee Cost 4,274.26 3,672.38
Selling, Admin & Misc Expenses 10,262.72 10,271.16
Depreciation 427.06 228.47
Operating Expenses 10,716.30 9,814.01
Provisions & Contingencies 4,247.74 4,358.00
Total Expenses 49,050.41 44,775.18
Mar '15 Mar '14
12 mths 12 mths
Net Profit for the Year -750.12 -1,294.80
Profit brought forward 0 0
Total -750.12 -1,294.80
Equity Dividend 540.97 507.38
Corporate Dividend Tax 110.76 86.23
Earning Per Share (Rs) -15.79 -28.07
Equity Dividend (%) 105 110
Book Value (Rs) 556.68 522.96
Transfer to Statutory Reserves 2,050.90 1,844.58
Transfer to Other Reserves -0.01 0
Proposed Dividend/Transfer to Govt 651.73 593.61
Balance c/f to Balance Sheet 0 0
Total 2,702.62 2,438.19
Source : Dion Global Solutions Limited

Chart Title
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
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Mar '15 12 mths Mar '14 12 mths

TABLE-2

Mar '16 Mar '15

12 mths 12 mths

Income
Interest Earned 44,022.14 43,750.04
Other Income 4,875.23 4,550.25
Total Income 48,897.37 48,300.29
Interest expended 34,258.77 34,086.37
Employee Cost 4,445.88 4,274.26
Selling, Admin & Misc Expenses 23,168.00 10,262.72
Depreciation 169.96 427.06
Operating Expenses 17,824.36 10,716.30
Provisions & Contingencies 9,959.48 4,247.74
Total Expenses 62,042.61 49,050.41
Mar '16 Mar '15
12 mths 12 mths

Net Profit for the -13,145.25 -750.12

Year
Profit brought forward 0 0
Total -13,145.25 -750.12
Equity Dividend 0 540.97
Corporate Dividend Tax 0 110.76
Earning Per Share (Rs) -242.09 -15.79
Equity Dividend (%) 0 105
Book Value (Rs) 481.75 556.68
Transfer to Statutory Reserves 0 2,050.90
Transfer to Other Reserves 0 -0.01
Proposed Dividend/Transfer to Govt 0 651.73
Balance c/f to Balance Sheet -2,812.82 0
Total -2,812.82 2,702.62
Source : Dion Global Solutions Limited
 Chart Title
60,000.00
40,000.00
20,000.00
0.00
d e st n s ar al Ta
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Mar '16 12 mths Mar '15 12 mths

TABLE 3
Mar '17 Mar '16
 12 mths 12 mths

Income
Interest Earned 41,387.64 44,022.14
Other Income 7,554.40 4,875.23
Total Income 48,942.04 48,897.37
Interest expended 31,515.87 34,258.77
Employee Cost 4,915.09 4,445.88
Selling, Admin & Misc Expenses 18,333.59 23,168.00
Depreciation 327.54 169.96
Operating Expenses 15,784.25 17,824.36
Provisions & Contingencies 7,791.97 9,959.48
Total Expenses 55,092.09 62,042.61
Mar '17 Mar '16
12 mths 12 mths

Net Profit for the -6,150.05 -13,145.25

Year
Profit brought forward 0 0
Total -6,150.05 -13,145.25
Equity Dividend 0 0
Corporate Dividend Tax 0 0
Earning Per Share (Rs) -102.97 -242.09
Equity Dividend (%) 10 0
Book Value (Rs) 474.01 481.75
Transfer to Statutory Reserves 1,058.00 0

Transfer to Other Reserves 0 0

Proposed Dividend/Transfer to Govt 0 0

Balance c/f to Balance Sheet 63.92 -2,812.82

Total 1,121.92 -2,812.82
 Chart Title
Total
Proposed Dividend/Transfer to Govt
Transfer to Statutory Reserves
Equity Dividend (%)
Corporate Dividend Tax
Total
Net Profit for the Year

Provisions & Contingencies

Depreciation
Employee Cost
Total Income
Interest Earned
-20,000.00 0.00 20,000.00 40,000.00 60,000.00 80,000.00

Mar '16 12 mths Mar '17 12 mths

TABLE 4

Mar '18 Mar '17

12 mths 12 mths

Income
Interest Earned 41,252.09 41,387.64
Other Income 6,942.85 7,554.40
Total Income 48,194.94 48,942.04
Interest expended 29,088.76 31,515.87
Employee Cost 5,444.11 4,915.09
Selling, Admin & Misc Expenses 15,100.65 18,333.59
Depreciation 445.05 327.54
Operating Expenses 20,989.81 15,784.25
Provisions & Contingencies 0 7,791.97
Total Expenses 50,078.57 55,092.09
Mar '18 Mar '17
12 mths 12 mths

Net Profit for the -1,883.62 -6,150.05

Year
Profit brought forward -2,748.90 0
Total -4,632.52 -6,150.05
Equity Dividend 0 0
Corporate Dividend Tax 0 0
Earning Per Share (Rs) -25.69 -102.97
Equity Dividend (%) 0 10
Book Value (Rs) 396.59 474.01
Transfer to Statutory Reserves 63.92 1,058.00
Transfer to Other Reserves 0 0
Proposed Dividend/Transfer to Govt 0 0
Balance c/f to Balance Sheet -7,035.06 63.92
Total -6,971.14 1,121.92
 Chart Title
Balance c/f to Balance Sheet
Transfer to Other Reserves

Equity Dividend (%)

Corporate Dividend Tax
Total
Net Profit for the Year

Provisions & Contingencies

Depreciation
Employee Cost
Total Income
Interest Earned
-50,000.00 0.00 50,000.00 100,000.00 150,000.00

Mar '18 12 mths Mar '17 12 mths

 TABLE 5

Mar '18 Mar '19

12 mths 12 mths

Income
Interest Earned 41,252.09 46,810.34
Other Income 6,942.85 6,574.96
Total Income 48,194.94 53,385.30
Interest expended 29,088.76 32,332.22
Employee Cost 5,444.11 5,675.11
Selling, Admin & Misc Expenses 15,100.65 27,532.38
Depreciation 445.05 416.84
Operating Expenses 20,989.81 23,380.47
Provisions & Contingencies 0 10,243.86
Total Expenses 50,078.57 65,956.55
Mar '18 Mar '19
12 mths 12 mths

Net Profit for the -1,883.62 -12,571.26

Year
Total -4,632.52 -12,571.26
Equity Dividend 0 0
Corporate Dividend Tax 0
Earning Per Share (Rs) -25.69 -166.89
Equity Dividend (%) 0 0
Book Value (Rs) 396.59 394.68
Transfer to Statutory Reserves 63.92 347.02
Transfer to Other Reserves 0 0
Proposed Dividend/Transfer to Govt 0 0
Balance c/f to Balance Sheet -7,035.06 0
Total -6,971.14 347.02
 Chart Title
Balance c/f to Balance Sheet
Transfer to Other Reserves
Book Value (Rs)
Earning Per Share (Rs)
Equity Dividend
Net Profit for the Year

Provisions & Contingencies

Depreciation
Employee Cost
Total Income
Interest Earned
-50,000.00 0.00 50,000.00 100,000.00 150,000.00

Mar '18 12 mths Mar '19 12 mths

TABLE 6
 Mar '20 Mar '19
12 mths 12 mths

Income
Interest Earned 48,934.99 46,810.34
Other Income 7,813.15 6,574.96
Total Income 56,748.14 53,385.30
Interest expended 35,811.08 32,332.22
Employee Cost 7,134.18 5,675.11
Selling, Admin & Misc Expenses 26,721.83 27,532.38
Depreciation 432.16 416.84
Operating Expenses 22,692.63 23,380.47
Provisions & Contingencies 11,595.54 10,243.86
Total Expenses 70,099.25 65,956.55
Mar '20 Mar '19
12 mths 12 mths

-13,351.11 -12,571.26
Net Profit for the Year
Total -13,351.11 -12,571.26
Equity Dividend 0 0

Earning Per Share (Rs) -129.59 -166.89

Equity Dividend (%) 0 0
Book Value (Rs) 319.93 394.68
Transfer to Statutory Reserves 0 347.02
Transfer to Other Reserves 0 0
Proposed Dividend/Transfer to Govt 0 0
Balance c/f to Balance Sheet -2,235.72 0
Total -2,235.72 347.02
 Chart Title
Balance c/f to Balance Sheet
Transfer to Other Reserves
Book Value (Rs)
Earning Per Share (Rs)
Equity Dividend
Net Profit for the Year

Provisions & Contingencies

Depreciation
Employee Cost
Total Income
Interest Earned
-20,000.00 0.00 20,000.00 40,000.00 60,000.00 80,000.00

Mar '19 12 mths Mar '20 12 mths

TABLE 7
Mar '21 Mar '20
12 mths 12 mths

Income
Interest Earned 69,239.78 48,934.99
Other Income 15,285.29 7,813.15
Total Income 84,525.07 56,748.14
Interest expended 45,177.62 35,811.08
Employee Cost 12,689.96 7,134.18
Selling, Admin & Misc Expenses 39,581.80 26,721.83
Depreciation 820.17 432.16
Operating Expenses 35,640.24 22,692.63
Provisions & Contingencies 17,451.69 11,595.54
Total Expenses 98,269.55 70,099.25
Mar '21 Mar '20
12 mths 12 mths

-13,744.48 -13,351.11
Net Profit for the Year
Total -13,744.48 -13,351.11
Equity Dividend 0 0
Earning Per Share (Rs) -83.46 -129.59
Equity Dividend (%) 0 0
Book Value (Rs) 307.28 319.93
Transfer to Statutory Reserves 2,557.58 0
Transfer to Other Reserves 0 0
Proposed Dividend/Transfer to Govt 0 0
Balance c/f to Balance Sheet 0 -2,235.72
Total 2,557.58 -2,235.72
 Chart Title
100,000.00
60,000.00
20,000.00
-20,000.00 ed e t n s r d ) s t l
n m os tio cie ea en (% ve ov ta
a r co e
C i a n Y i d d e r G To
tE lI
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Pr
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op
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Mar '21 12 mths Mar '20 12 mths

TABLE 8

Mar '21 Mar '22

12 mths 12 mths

Income
Interest Earned 69,239.78 69,410.24
Other Income 15,285.29 16,496.90
Total Income 84,525.07 85,907.14
Interest expended 45,177.62 43,026.26
Employee Cost 12,689.96 12,703.64
Selling, Admin & Misc Expenses 39,581.80 37,810.64
Depreciation 820.17 815.58
Operating Expenses 35,640.24 33,919.30
Provisions & Contingencies 17,451.69 17,410.56
Total Expenses 98,269.55 94,356.12
Mar '21 Mar '22
12 mths 12 mths

-13,744.48 -8,448.98
Net Profit for the Year
Total -13,744.48 -8,448.98
Equity Dividend 0 1,179.18
Earning Per Share (Rs) -83.46 -46.57
Equity Dividend (%) 0 65
Book Value (Rs) 307.28 317.54
Transfer to Statutory Reserves 2,557.58 2,079.35
Transfer to Other Reserves 0 0.01
Proposed Dividend/Transfer to Govt 0 1,179.18
Balance c/f to Balance Sheet 0 2,419.88
Total 2,557.58 5,678.42
 Chart Title
Total
Proposed Dividend/Transfer to Govt
Transfer to Statutory Reserves
Equity Dividend (%)
Equity Dividend
Net Profit for the Year

Provisions & Contingencies

Depreciation
Employee Cost
Total Income
Interest Earned
00 00 00 00 00 00 00
00. 0. 00. 00. 00. 00. 00.
0 ,0 0 0 0 0
0, 50 0, 0, 0, 0,
-5 10 15 20 25

Mar '21 12 mths Mar '22 12 mths

TABLE 9
Mar '22 Mar '23
12 mths 12 mths
Income
Interest Earned 69,410.24 84,424.78
Other Income 16,496.90 18,762.20
Total Income 85,907.14 103,186.98
Interest expended 43,026.26 52,989.49
Employee Cost 12,703.64 13,743.83
Selling, Admin & Misc Expenses 37,810.64 38,399.96
Depreciation 815.58 992.96
Operating Expenses 33,919.30 36,024.50
Provisions & Contingencies 17,410.56 17,112.25
Total Expenses 94,356.12 106,126.24
Mar '22 Mar '23
12 mths 12 mths

-8,448.98 -2,939.25
Net Profit for the Year
Total -8,448.98 -2,939.25
Equity Dividend 1,179.18 2,176.96
Earning Per Share (Rs) -46.57 -16.2
Equity Dividend (%) 65 120
Book Value (Rs) 317.54 364.54
Transfer to Statutory Reserves 2,079.35 5,355.34
Transfer to Other Reserves 0.01 -0.01
Proposed Dividend/Transfer to Govt 1,179.18 2,176.96
Balance c/f to Balance Sheet 2,419.88 3,071.47
Total 5,678.42 10,603.76
 Chart Title
Total
Proposed Dividend/Transfer to Govt
Transfer to Statutory Reserves
Equity Dividend (%)
Equity Dividend
Net Profit for the Year

Provisions & Contingencies

Depreciation
Employee Cost
Total Income
Interest Earned
-50,000.00 0.00 50,000.00 100,000.00 150,000.00

Mar '23 12 mths Mar '22 12 mths