Page 1 Mar’09 Results PERFORMANCE HIGHLIGHTS March 2009

Page 2 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

Page 3 Mar’09 Results FINANCIAL HIGHLIGHTS

Page 4 Mar’09 Results ROBUST PROFIT GROWTH Q4 FY09

Page 5 Mar’09 Results ROBUST PROFIT GROWTH FY09

Page 6 Mar’09 Results PROFIT GROWTH LAST FIVE YEARS PROFIT GROWTH LAST FIVE YEARS

Page 7 Mar’09 Results BUSINESS PROFILE Mar’09Mar’08Y-o-Y Gr Total Business % Total Deposits % Net Advances % C-D Ratio (%) bps Amt. in Rs. Crore Total Business Crossed Rs lakh crore Growth over 24%

Page 8 Mar’09 Results TOPLINE GROWTH Total Business added during the year : Rs Crore

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

Page 10 Mar’09 Results INCOME INCOME Amt. in Rs. Crore Mar’09Mar’08GrowthQ4 FY09Q4 FY08Growth Total Income % % Int. Income % % Int. Loans/Adv % % Non-Int. Inc *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

Page 11 Mar’09 Results EXPENDITURE Amt. in Rs. Crore Mar’09Mar’08 Growth Q4 FY09 Q4 FY08 Growth Total Exp % % Int. Exp % % Op. Expense % % Staff Expense 1877* % % Cost-Income Ratio (%) bps bps *Includes Rs.150 Cr provided for likely wage revision Enterprise-wide ‘Cost Saving and Cost Control’ awareness

Page 12 Mar’09 Results PROFIT GROWTH Amt. in Rs. Crore Mar’09Mar’08Q4 FY09Q4 FY08 Operating Profit Growth (%) Provisions incl Prov for Taxation Net Profit Growth (%) RoAA (%) EPS ( For Q4 Not Annualized)

Page 13 Mar’09 Results EARNINGS PROFILE Mar’09Mar’08Q4 FY09Q4 FY08 Net Int. Income Y-o-Y Growth (%) Net Int. Margin (NIM) Amt. in Rs. Crore NIM Improved by 36 bps Over Mar’08

Page 14 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

Page 15 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

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

Page 17 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

Page 18 Mar’09 Results BREAK-UP OF PROVISIONS Mar’09Mar’08 FY09Q4 FY09FY08Q4 FY08 Total Provision & Contingencies Of Which: Non Performing Advances Provision for Investments Taxation In Rs Crore

Page 19 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 Deposits Yield on Advances Cost of Funds Yield on Funds Spread Net Interest Margin (In %) Consistent Improvement in Spread and NIM

Page 20 Mar’09 Results PRODUCTIVITY RATIOS Mar’09Mar’08 Business per Employee (Rs. Crore) Business per Branch (Rs. Crore) Gross Profit per Employee (Rs. Lakh) Net Profit per Employee (Rs. Lakh) Highest Per Branch Business amongst Peers

Page 21 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) Held to Maturity (71.8%) (58.6%) Available for Sale (27.5%) (41.0%) Held for Trading 412 (0.72%) 204 (0.40%)

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

Page 23 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

Page 24 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

Page 25 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

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

Page 27 Mar’09 Results SHARE HOLDING PATTERN As on Mar 31, 2009

Page 28 Mar’09 Results BUSINESS FOCUS

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

Page 30 Mar’09 Results CREDIT FOCUS Amt. in Rs. Crore Mar’09Mar’08 Y-o-Y Gr Net Advances % Agriculture Credit % MSME Advances % Retail Lending % Housing (Direct) % Industrial Advances % Infrastructure Advances % Well Diversified Credit Portfolio Focus on Productive Sectors

Page 31 Mar’09 Results PRIORITY SECTOR Mar’09Mar’08Y-o-Y Gr Priority Credit O/s % % to ANBC Agriculture Adv O/s % % to ANBC MSME Advances O/s % (Amt. in Rs. Crore) Surpassed 18% Adjusted Net Bank Credit (ANBC) Norm in Agriculture

Page 32 Mar’09 Results Beyond Numbers

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

Page 34 Mar’09 Results EXPANDED CLIENTELE BASE Mar’09Mar’08Y-o-Y Incr Clientele Base in Mn No of Deposit a/cs (Mn) No of Borrowal a/cs (Mn) 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

Page 35 Mar’09 Results INFOTECH PROGRESS Mar’09Mar’08 Core Banking Branches ATMs AWB Branches IMB Branches NEFT and RTGSAll Branches2675 Debit Card Base (Lakh) % Business under Core Banking Solution Largest ATM Network amongst Nationalized Banks 77% Business under Core Banking Solution Largest ATM Network amongst Nationalized Banks

Page 36 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.

Page 37 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

Page 38 Mar’09 Results To Expand Credit in FY10

Page 39 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

Page 40 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

Page 41 Mar’09 Results SPREAD MANAGEMENT Spread Management  Challenges on Sustaining Net Interest Margin … southward movement in interest rates  Reduction in BPLR - from 14% to (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

Page 42 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

Page 43 Mar’09 Results