1. Page 1 www.canarabank.com Mar’09 Results PERFORMANCE HIGHLIGHTS March 2009

2. Page 2 www.canarabank.com Mar’09 Results Canara.. at a Glance A Premier Nationalised Bank in India  Well spread network of 2733 branches Over 2000 ATMs spread across the country  Nearly 35 million strong cross-section clientele base  Consistent track record of profit making.. Since inception  Financial Supermarket - 9 subsidiaries/sponsored institutions/JVs  Business Superbrand Status

3. Page 3 www.canarabank.com Mar’09 Results FINANCIAL HIGHLIGHTS

4. Page 4 www.canarabank.com Mar’09 Results ROBUST PROFIT GROWTH Q4 FY09

5. Page 5 www.canarabank.com Mar’09 Results ROBUST PROFIT GROWTH FY09

6. Page 6 www.canarabank.com Mar’09 Results PROFIT GROWTH LAST FIVE YEARS PROFIT GROWTH LAST FIVE YEARS

7. Page 7 www.canarabank.com Mar’09 Results BUSINESS PROFILE Mar’09Mar’08Y-o-Y Gr Total Business32511226131024% Total Deposits18689315407221% Net Advances13821910723829% C-D Ratio (%)73.9669.60436bps Amt. in Rs. Crore Total Business Crossed Rs. 3.25 lakh crore Growth over 24%

8. Page 8 www.canarabank.com Mar’09 Results TOPLINE GROWTH Total Business added during the year : Rs.63800 Crore

9. Page 9 www.canarabank.com Mar’09 Results TOTAL ASSETS Total Asset size has crossed the Rs.200,000 crore mark

10. Page 10 www.canarabank.com Mar’09 Results INCOME INCOME Amt. in Rs. Crore Mar’09Mar’08GrowthQ4 FY09Q4 FY08Growth Total Income 194301641418.38%5500450222.17% Int. Income 171191420120.55%4654378822.86% Int. Loans/Adv 12813987529.75%3575262136.37% Non-Int. Inc 23112213*4.44%846714*18.51% *If the one time income of Rs.498 Cr for FY08 and Rs.278 Cr for Q4 of FY08 are reckoned, the growth works out to 35% for FY09 and 94% for Q4 of FY09

11. Page 11 www.canarabank.com Mar’09 Results EXPENDITURE Amt. in Rs. Crore Mar’09Mar’08 Growth Q4 FY09 Q4 FY08 Growth Total Exp. 154671345414.96%4228356318.65% Int. Exp. 124011066316.30%3349286616.86% Op. Expense 306527919.82%87969826.04% Staff Expense 1877*166112.99%53035748.60% Cost-Income Ratio (%)43.6148.54-493bps40.8642.62 -176bps *Includes Rs.150 Cr provided for likely wage revision Enterprise-wide ‘Cost Saving and Cost Control’ awareness

12. Page 12 www.canarabank.com Mar’09 Results PROFIT GROWTH Amt. in Rs. Crore Mar’09Mar’08Q4 FY09Q4 FY08 Operating Profit396429591273939 Growth (%)33.941.6135.50-10.74 Provisions incl Prov for Taxation 18911394554475 Net Profit20721565719464 Growth (%)32.4210.1554.90-8.12 RoAA (%) 1.060.921.471.09 EPS ( For Q4 Not Annualized) 50.5538.1717.5311.32

13. Page 13 www.canarabank.com Mar’09 Results EARNINGS PROFILE Mar’09Mar’08Q4 FY09Q4 FY08 Net Int. Income471835381305922 Y-o-Y Growth (%) 33.36-12.1441.50-12.92 Net Int. Margin (NIM)2.782.422.782.42 Amt. in Rs. Crore NIM Improved by 36 bps Over Mar’08

14. Page 14 www.canarabank.com Mar’09 Results  Interest Income continues to drive growth in income.. over 60% of earnings from int on advances  Contribution from fee-based business on a rise.. Fee Income up by 18% over March 2008 MAJOR COMPONENTS OF INCOME March 2008 March 2009

15. Page 15 www.canarabank.com Mar’09 Results EARNING ANALYSIS : FY 09 Mar 2008Mar 2009 Interest Income as a % of Total Income 86.52%88.11% Interest on Advances as a % of Total Income 60.17%65.94% Fee Income as a % of Total Income 7.05%7.00% Treasury Income* as a % of Total Income 26.68%24.18% * Int on Inv. + Trading Profit + Profit on Revaluation + Dividend Incm

16. Page 16 www.canarabank.com Mar’09 Results BREAK-UP OF OTHER INCOME Mar’09Mar’08 FY09Q4 FY09FY08Q4 FY08 Total Other Income 23118462213714 Commission & Exchange 639198569164 Profit from Exchange Trans 1741415438 Trading Profit 675349435101 Dividend Income 3811223114 Recovery in w/off A/cs 31999316115 Other Misc. Income 466175516182 of the above.. Fee Income 13613831157360 Rs. in Crore Fee-based income grew by 18% over Mar’08

17. Page 17 www.canarabank.com Mar’09 Results MEASURES TO AUGMENT NON INTEREST INCOME  Increased thrust on Fee Income  Broadbasing of Fee Income sources Cross Selling of Insurance Mutual Fund Products On-line Trading Services Retail sale of Bullion

18. Page 18 www.canarabank.com Mar’09 Results BREAK-UP OF PROVISIONS Mar’09Mar’08 FY09Q4 FY09FY08Q4 FY08 Total Provision & Contingencies 18915541394475 Of Which: Non Performing Advances 900250875313 Provision for Investments 4072014928 Taxation 500200340100 In Rs Crore

19. Page 19 www.canarabank.com Mar’09 Results PROFITABILITY RATIOS Mar’08 (FY08) Jun’08 (Q1 FY09) Sep’08 (H1 FY09) Dec’08 (9M FY09) Mar’09 (FY09) Cost of Deposits6.806.366.606.816.87 Yield on Advances10.2210.0610.5010.6910.79 Cost of Funds6.245.906.076.236.32 Yield on Funds8.318.128.398.578.73 Spread2.072.222.322.342.41 Net Interest Margin2.422.572.702.752.78 (In %) Consistent Improvement in Spread and NIM

20. Page 20 www.canarabank.com Mar’09 Results PRODUCTIVITY RATIOS Mar’09Mar’08 Business per Employee (Rs. Crore) 7.806.10 Business per Branch (Rs. Crore) 118.9697.58 Gross Profit per Employee (Rs. Lakh) 9.516.91 Net Profit per Employee (Rs. Lakh) 4.973.65 Highest Per Branch Business amongst Peers

21. Page 21 www.canarabank.com Mar’09 Results Amt. in Rs. Crore Figures in the brackets are percentage share in Net Investments (Domestic) INVESTMENT PORTFOLIO Mar’09Mar’08 Net Investments (Domestic)5714649053 Held to Maturity 41007 (71.8%) 28721 (58.6%) Available for Sale 15728 (27.5%) 20128 (41.0%) Held for Trading 412 (0.72%) 204 (0.40%)

22. Page 22 www.canarabank.com Mar’09 Results ASSET QUALITY Mar’09Mar’08 Gross NPA (Rs. Crore)21681273 Gross NPA Ratio (%)1.561.18 Net NPA (Rs. Crore)1507899 Net NPA Ratio (%)1.090.84 Cash Recovery (Rs. Crore)12891030 Restructured a total of 72184 A/Cs, aggregating to Rs.2066 Cr in FY09 under the Special Regulatory Treatment Intensive thrust on credit monitoring and containing slippages

23. Page 23 www.canarabank.com Mar’09 Results BASEL II AND CAPITAL STRATEGY Comfortable Capital Adequacy Ratio  CRAR of 14.10% at Mar’09.. well above the regulatory minimum  Medium Term Objective.. CRAR of above 12%  One of the best Capital Position amongst its Peers ……. Still undiluted 73.17% GoI Holding in the Bank

24. Page 24 www.canarabank.com Mar’09 Results 9.0% Minimum Total CRAR 6.0% Minimum Tier I CRAR 12.78%11.22% Total CRAR % CAPITAL ADEQUACY – Basel II 13.50% 13.25%*14.10* (6738)(7850) (6925) (8148) (7250) (2940) (3372) (4483) (Figures in the brackets are amt. in Rs. Crore) (7623) (10023) * Mar’08 and Mar’09 as per Basel II

25. Page 25 www.canarabank.com Mar’09 Results EARNINGS PROFILE  The Bank continued to sustain high levels of earnings. Book Value and Earnings Per Share show consistent rise, year on year  The Bank continued to sustain high levels of earnings. Book Value and Earnings Per Share show consistent rise, year on year

26. Page 26 www.canarabank.com Mar’09 Results VALUE FOR STAKEHOLDERS Dividend... Progressive Return for the Shareholders

27. Page 27 www.canarabank.com Mar’09 Results SHARE HOLDING PATTERN As on Mar 31, 2009

28. Page 28 www.canarabank.com Mar’09 Results BUSINESS FOCUS

29. Page 29 www.canarabank.com Mar’09 Results CORE DEPOSITS GROWTH Amt. in Rs. Crore Mar’09Mar’08 Y-o-Y Gr Core Deposits 15012710893638% Savings Deposits 418113526719% CASA per Branch20.5518.1213% Deposits Clientele (Mn)30.5028.302.2Mn Highest Per Branch CASA Deposit among Peers

30. Page 30 www.canarabank.com Mar’09 Results CREDIT FOCUS Amt. in Rs. Crore Mar’09Mar’08 Y-o-Y Gr Net Advances13821910723829% Agriculture Credit201441799612% MSME Advances238231860028% Retail Lending197981766512% Housing (Direct)7896665819% Industrial Advances521424143526% Infrastructure Advances173131379426% Well Diversified Credit Portfolio Focus on Productive Sectors

31. Page 31 www.canarabank.com Mar’09 Results PRIORITY SECTOR Mar’09Mar’08Y-o-Y Gr Priority Credit O/s487634320313% % to ANBC46.0244.15 Agriculture Adv O/s201441799612% % to ANBC19.0117.70 MSME Advances O/s238231860028% (Amt. in Rs. Crore) Surpassed 18% Adjusted Net Bank Credit (ANBC) Norm in Agriculture

32. Page 32 www.canarabank.com Mar’09 Results Beyond Numbers

33. Page 33 www.canarabank.com Mar’09 Results EXPANDING THE REACH Mar’09Mar’08Y-o-Y Incr Branch Network2733267855 ATM Strength20192006  55 Branches added during the year  Commissioned a Branch at SHANGHAI, CHINA  ATM Tally of over 2000.. Highest amongst Nationalized Banks (includes 609 Off-Site ATMs + 187 ATMs at important Railway Stations)  150 e-kiosks for Railway Ticket Booking

34. Page 34 www.canarabank.com Mar’09 Results EXPANDED CLIENTELE BASE Mar’09Mar’08Y-o-Y Incr Clientele Base in Mn 34.8032.352.45 - No of Deposit a/cs (Mn) 30.5028.302.20 - No of Borrowal a/cs (Mn) 4.304.050.25 Nearly 35 million strong clientele base 2.5 million clientele added during the year Nearly 35 million strong clientele base 2.5 million clientele added during the year

35. Page 35 www.canarabank.com Mar’09 Results INFOTECH PROGRESS Mar’09Mar’08 Core Banking Branches1053569 ATMs20192006 AWB Branches20621911 IMB Branches13621200 NEFT and RTGSAll Branches2675 Debit Card Base (Lakh) 57.5132.87 77% Business under Core Banking Solution Largest ATM Network amongst Nationalized Banks 77% Business under Core Banking Solution Largest ATM Network amongst Nationalized Banks

36. Page 36 www.canarabank.com Mar’09 Results AWARDS/ACCOLADES AWARDS/ACCOLADES  Golden Peacock National Training Award 2008 for excellence in training.  Global HR Excellence in Training, an award conferred by the Asia Pacific HR Congress,  Best Corporate Social Responsibility Practice Award, instituted by BSE, NASSCOM and Times Foundation.  Two Silver Corporate Collateral Awards for Best Corporate Ad in the Print Media and Best Corporate Film on Corporate Social Responsibility at the Public Relations Council of India Awards 2009.

37. Page 37 www.canarabank.com Mar’09 Results PLANS FOR FY10 PLANS FOR FY10  Aiming at a Total Business of Rs.4,00,000 crore by Mar’10 … Rs.2,25,000 crore under Deposits … Rs.1,75,000 crore under Advances  Over 200 new branches to be opened during the year  Continued focus on Core Business Growth  Leveraging the new brand identity to improve standard of customer service and attract younger clientele  All branches are slated for full coverage under CBS by March 2009  Increasing technological automation will be leveraged fully to provide a wide range of value-added services to our vast cross-section clientele and sustain business growth.  Strengthening overseas presence RBI approval for 10 overseas Branches/offices obtained… Johannesburg, Frankfurt, Muscat, Manama, QFC-Qatar, Leicester, New York, Sao Paulo, Dar-er-Salam and Tokyo

38. Page 38 www.canarabank.com Mar’09 Results To Expand Credit in FY10

39. Page 39 www.canarabank.com Mar’09 Results INITIATIVES… To Expand Credit INITIATIVES… To Expand Credit  Meeting emergent needs of corporates, MSME, housing, auto, infrastructure and other sectors, hit by economic downturn  Resorting to effective utilization of resources- deposits, refinance, market borrowings.  Continuing thrust on increasing exposure to all productive sectors- Agriculture, MSME, manufacturing and services  Special incentives for MSME, Housing and Auto sectors  Extensive support to NBFCs and Mutual Funds

40. Page 40 www.canarabank.com Mar’09 Results INITIATIVES… To Expand Credit RETAIL LENDING PUSH  Intensive focus on housing loans  Attractive offerings for housing loans upto Rs.30 lakhs … RoI fixed at 8.25% for 12 months and 9.25% for next 48 months  Focus on Retail Asset Hubs-Central Processing Units …. for reducing turnaround time  Tie-ups with Auto Majors- M/s Hyundai Motor India Ltd, M/s. Swaraj Mazda Ltd, M/s. Maruti Suzuki Ltd and M/s. Tata Motors to push auto loans

41. Page 41 www.canarabank.com Mar’09 Results SPREAD MANAGEMENT Spread Management  Challenges on Sustaining Net Interest Margin … southward movement in interest rates  Reduction in BPLR - from 14% to 13.25 (w.e.f 10 th Nov’08) from 13.25% to 12.50% (w.e.f 1 st Jan’09) from 12.50% to 12.00% (w.e.f 1 st April 2009 )  Reduction in deposit rate from the peak of 10.5% to 7.5% at present Measures  Intensive mobilization of Core Deposits, including CASA  Substitution of high cost preferential rate deposits with low cost term deposits  Deployment of resources in better yielding productive assets  Focus on Corporates  Intensive thrust on credit monitoring and containing slippages

42. Page 42 www.canarabank.com Mar’09 Results COST MANAGEMENT Cost Management  Effective Cost Management to protect ‘Operating Margin’  Exercising Restraint/Control on ‘Other Operating Expenses’  Economizing cost and rental for branches/offices/ATMs  Optimizing the utilization of ATMs Making ATMs profit centres Rationalization/Relocation of ATMs Increasing number of Debit Cards and hits per ATM Encouraging Customers to use ATMs and other e-banking channels  Reducing burden, improving pool of non-interest income by Mar’09  Enterprise-wide ‘Cost Saving and Cost Control’ awareness

43. Page 43 www.canarabank.com Mar’09 Results