1. CANARA BANK Creating Value For Investors Brought to you by Bsplindia.com

2. 2 CANARA BANK Brought to you by Bsplindia.com Summary Third largest Public Sector Bank in India with an asset base of Rs.90644 Crore and market capitalization Rs.5453 Crore. Over 2440 branches and 265 lakh accounts with one of the widest retail networks. Growth in credit with CAGR of 30% for past 3 years with relatively low Net NPA at 3.28% due to aggressive recovery efforts. Cash recoveries Targeting Rs.650 crore during the current fiscal. Sustained Treasury Income and adequate cushion for Interest Rate reversals.

3. 3 CANARA BANK Brought to you by Bsplindia.com Summary Focus on better yielding Retail Assets accounting for 15.57% of the net credit. Retail assets at Rs.6369 Crore. Focus on Technology Upgradation/ Hi-tech Banking Subsidiaries are a source of Income and no more a cause of concern with all the past burdens taken care of. NIM sustained at around 3.37% coupled with improved operational efficiency (March 2003 at 3.53%). RoA of 1.28%, Favorably placed among peer banks.

4. 4 CANARA BANK Brought to you by Bsplindia.com Creating Wealth Date PriceMarket Capitalisation Dec 2002Rs. 35.00Rs.1435 Crore Oct 2003Rs.133.00Rs.5453 Crore Wealth Created in 10 Months Rs.4018 Crore Annualized Growth 236%

5. 5 CANARA BANK Brought to you by Bsplindia.com Banking Sector – Strengthening Fundamentals Strengthening of Prudential Norms and Market Discipline Adoption of Appropriate International Standards and Benchmarks Human Resource Development as a Catalyst of Transformation. Focus on Technology upgradation

6. 6 CANARA BANK Brought to you by Bsplindia.com Corporate Objectives 2004 Efficiency Profitability & Productivity Organizational Effectiveness Customer Centric Hi-tech Banking

7. 7 CANARA BANK Brought to you by Bsplindia.com Plans for 2004 Global Business to reach Rs.131000 Crore at a growth rate of 15.55% - Rs.82000 Crore of Deposits and Rs.49000 Crore of Advances. Thrust on low cost deposits and 10% growth in client base. Retail Lending expansion at the rate of 35% of incremental advances Hi-Tech Banking – 500 ATMs, 2000 computerized branches, 500 branches under Anywhere Banking, RTGS & SFMS Target of launching Mobile & Internet Banking and Debit Cards already achieved.

8. 8 CANARA BANK Brought to you by Bsplindia.com Renewed Strategy Thrust on Technology n Reduction in operational cost n Better customer service n Matching competitive forces Treasury Management n Effective Funds Management n Improving Yield n Ability to hedge Market Risk NPA Management n Better Asset Quality n Higher recoveries n Better profitability Retail Lending n High Potential n Improvement in spreads n Better Asset Quality

9. 9 CANARA BANK Brought to you by Bsplindia.com A Snap Shot Investments RS.37300 Crore Deposits Rs.75396 Crore Total Assets Rs.90644 Crore CAR 13.27% EPS Rs.28.34 * BV Rs.112.33 Net Profit Rs.581 Crore Operating Profit Rs.1495 Crore Net NPA 3.28% of Net Advances Advances Rs.40908 Crore Bank with a distinguished history of over 97 years of Continuous Profitability * Annualised As of 30/09/2003

10. 10 CANARA BANK Brought to you by Bsplindia.com Strong Business Growth Year on Year Deposit Growth of 11.31% in Sept. 2003. Year on Year Credit Growth of 15.14% in Sept. 2003. Credit Deposit Ratio Sustained at the same levels of 56% in Sept 2003. Gross Profit growth at 57.81% & Net Profit at 38.60% in Sept. 2003. ( Rs.Crore)

11. 11 CANARA BANK Brought to you by Bsplindia.com Maturity Pattern of Investments 57% 62% 66% 19% 11% 15% 9% 10% 12% 13% 65% 13% 11%

12. 12 CANARA BANK Brought to you by Bsplindia.com Duration of Investment Portfolio

13. 13 CANARA BANK Brought to you by Bsplindia.com Capital Adequacy Ratio The Capital Adequacy Ratio has reached a comfortable level of 13.27% in FY 2003 from 11.88% in FY 2002.

14. 14 CANARA BANK Brought to you by Bsplindia.com Earning Capacity The Bank continued to sustain High levels of Earnings Return on Assets at 1.28% compares well with that of peer banks. Book Value of the Share has improved to Rs.112.33 from Rs.98.14 in March 2003 Rs.14.52 Rs.28.34

15. 15 CANARA BANK Brought to you by Bsplindia.com Business Ratios -Cost of Deposits/ Borrowings The cost of Deposits has come down from 6.32% for FY 03 to 5.67% as at Sept- 03. The Overall cost of Borrowing has come down from 11.19% for FY 03 to 8.5% as at Sept 2003.

16. 16 CANARA BANK Brought to you by Bsplindia.com Business Ratios – Yield% The yield on Advances has come down from 9.83% for FY 03 to 9.20% as at Sept 03. The yield on Investments has come down from 9.99% for FY 03 to 9.04as at Sept 03.

17. 17 CANARA BANK Brought to you by Bsplindia.com Income and Expense Analysis THE NII HAS GROWN BY 23% IN FY 03 OVER FY 02 THE NII HAS GROWN BY 10% IN HY SEP 03 OVER HY SEP 02 THE CORE NON INTEREST INCOME HAS GROWN BY 19 %. THE NON INTEREST INCOME OF RS.1209 CRORE AS AT SEPT 2003 INCLUDES RS.389 CRORE OF PROFIT ON ACCOUNT OF GOVT. BUY BACK OF GILTS

18. 18 CANARA BANK Brought to you by Bsplindia.com Earnings Analysis Sep 2002 Sep 2003 Sep 2003** Interest Income as a % of Total Income83%74%80% Other Income as a % of Total Income17%26%20% Net Interest Income as a % of Total Income27%26%28% Treasury Profit as a % of Other Income47%68%52% Treasury Profit as a % of Average Investments1.22%2.37%1.24% Fee Based Income as a % of Other Income53%32%48% ** EXCLUDING RS.389 CRORE OF OTHER INCOME

19. 19 CANARA BANK Brought to you by Bsplindia.com Efficiency Ratios

20. 20 CANARA BANK Brought to you by Bsplindia.com Productivity ratios Mar 2002 Mar 2003 Sep 2003 Business per Employee (Rs.Crore)2.152.502.59 Business per Branch (Rs. Crore)40.3146.4447.98 Gross Profit (Rs.Lakh) per Employee3.464.193.32* Staff Expenses (Rs.Lakh) per Employee2.352.441.31* Net Profit (Rs.Lakh) per Employee1.552.141.29* * Not Annualised

21. 21 CANARA BANK Brought to you by Bsplindia.com Retail Lending Loans OutstandingSep 2002Sep 2003Growth % Housing Finance –Direct1153200574% Retail Trade1402198041% Other Personal Loans1676238442% Total Retail Lending - excluding Indirect Housing 4231636951% As a % of Net Credit11.96%15.57%- Housing Finance –Indirect789150190% Total as a % of Net Credit14.19%19.24%- (Amount: Rs. Crore)

22. 22 CANARA BANK Brought to you by Bsplindia.com Retail Lending DisbursementsSep 2002 Sep 2003 Growth % Housing Finance –Direct41953327% Housing Finance –Indirect87577563% Retail Trade3443656% Other Personal Loans6737248% Total Retail Lending1436162213% Aggregate Retail Lending including Indirect Housing 1523219944% (Amount: Rs. Crore)

23. 23 CANARA BANK Brought to you by Bsplindia.com Distribution of Branches - Deposits & Advances RegionNumber of Branches (%) Aggregate Deposits (%) Aggregate Advances (%) Northern Region1224 Eastern & N. Eastern Region100807 Central Region100705 Western Region101924 Southern Region5840 As at 30.09.2003 Well diversified credit portfolio with 12% in the Engineering industry, 11% in Petroleum, 9% in Infrastructure, 9% in Textiles and 7% in Iron & Steel. Well balanced CD Ratio across the country. CAGR of 20% in Credit book over last three years.

24. 24 CANARA BANK Brought to you by Bsplindia.com Deposit Mix The Term Deposits have grown at an annualized rate of 9% over FY 03 The Current & Savings Deposits have grown at an annualized rate of 9% over FY 03

25. 25 CANARA BANK Brought to you by Bsplindia.com Deposit Mix (%) Aggregate Deposits increased from Rs.64030 Crore in FY 02 to Rs.75396 Crore in Sep-03. Average cost of deposits declined from 7.16 in FY 2002 to 5.67% in HY ended Sep 2003 During FY 04, around RS.3500 Crore of high cost deposits would mature.

26. 26 CANARA BANK Brought to you by Bsplindia.com Credit Quality FY 02FY 03Sep 02Sep 03 Gross Advances3396641508.5036655.4242607.17 Gross NPA21122474.782471.553026.48 Gross NPA Ratio (%)6.225.966.747.10 Net Advances (Excluding Food Credit) 3312740471.6435528.4540908.20 Net NPA12881453.881364.571343.84 Net NPA Ratio (%)3.893.593.843.28 (Amount: Rs. Crore)

27. 27 CANARA BANK Brought to you by Bsplindia.com Credit Quality Despite credit growth being higher than industry average, net NPA remained lower than industry average. The Bank has been undertaking much higher levels of provisioning. Provisioning coverage, including Write-off, at 68.7% is reasonable by industry average. Bank effected a Cash Recovery of Rs.228 Crore during HY Sep 03 as against Rs.204 during the corresponding period of FY 2003.

28. 28 CANARA BANK Brought to you by Bsplindia.com Focus on Subsidiaries & Sponsored Institutions The Subsidiaries and Sponsored Institutions with focus on identified niche business areas have yielded good results. Gilt Securities Trading Company, a Primary Dealer in Government Securities Market recorded a Turnover Exceeding Rs.45000 Crore in FY 03. Canfin Homes Ltd, sponsored by the Bank has created a niche in Retail Home Financing by assisting more than 90000 families with Cumulative Sanctions of Rs. 2767.88 Crore and Cumulative Disbursements of Rs.2374.43 Crore. Canbank Factors Ltd is Numero Uno in the Indian Factoring Business with ISO Certification. CIMS is managing more than Rs.1600 Crore net assets. CCSL, the ISO Certified Software outfit is the only Public Sector IT Company. Aadequate provisions are being made to take care of all future obligations of Canfina and all the commitments towards the PSUs with which settlement is reached is being met promptly.

29. 29 CANARA BANK Brought to you by Bsplindia.com Technology matters Strategic Direction Computerization Computer Policy and Planning Department to monitor IT activities as per the IT Plan drawn up by the Board The Bank has designated The Indian Institute of Science, Bangalore, as consultant to implement various IT initiatives The Bank is in preparedness to implement RTGS and has designated 191 branches for SFMS implementation. 1,910 branches computerized 1039 fully computerized 871 partially computerized 87.73% of the Bank’s business computerized All Circle Offices, the Head Office and most Regional Offices inter-connected through INFINET 615 branches brought under Corporate Network

30. 30 CANARA BANK Brought to you by Bsplindia.com Technology matters Technology-Enabled Delivery Channels and Services Anywhere Banking implemented in 383 branches across 19 cities. 253 Networked ATMs, 28 ATMs under Shared Payment Network System (SPNS) and 1 standalone – SWADHAN and SWITCH connectivity to 253 branches Provision of Televoice Banking in 71 branches The Bank has recently launched Mobile Banking, Internet Banking and Debit Card. Corporate Cash Management Services (CCMS) implemented in 198 Operating Centres and 706 pooling branches

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