Canara Bank

1.  We have audited the attached Balance Sheet of Canara Bank as at
 31st March 2009 and also the Profit & Loss Account and the Cash Flow
 Statement annexed thereto for the year ended on that date in which are
 incorporated the returns of 20 Indian Branches audited by us and 2522
 other Indian branches and Offshore Banking Unit, Noida audited by
 Branch Auditors and 3 Foreign Branches audited by the Overseas
 Auditors. The Branches audited by us and those audited by other
 auditors have been selected by the Bank in accordance with the
 guidelines issued to the Bank by the Reserve Bank of India. Also
 incorporated in the Balance Sheet and the Profit & Loss Account are the
 returns from 185 Branches, which have not been subjected to audit.
 These unaudited branches account for 0.23 per cent of advances, 1.46
 per cent of deposits, 0.13 per cent of interest income and 0.95 per
 cent of interest expenses. These financial statements are the
 responsibility of the Banks Management. Our responsibility is to
 express an opinion on these Financial Statements based on our audit.
 
 2.  We conducted our audit in accordance with the auditing standards
 generally accepted in India. Those Standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free of material misstatements. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and significant estimates made
 by the management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for our opinion.
 
 3.  The Balance Sheet and the Profit & Loss Account have been drawn up
 in Forms A and B respectively of the Third Schedule to the Banking
 Regulations Act, 1949.
 
 4.  Subject to the limitations of the audit indicated in paragraph 1
 above and as required by the Banking Companies (Acquisition and
 Transfer of Undertakings) Act, 1970 and subject also to the limitations
 of disclosure required therein, we report that:
 
 a.  We have obtained all the information and explanations, which to the
 best of our knowledge and belief, were necessary for the purposes of
 our audit and have found them to be satisfactory.
 
 b.  The transactions of the Bank, which have come to our notice, have
 been within the powers of the Bank.
 
 c.  The returns received from the Offices and Branches of the Bank have
 been found adequate for the purposes of our audit.
 
 5.  In our opinion, the Balance Sheet, Profit & Loss Account and Cash
 Flow Statement comply with the applicable Accounting Standards.
 
 6.  In our opinion, as shown by the books of the Bank, and to the best
 of our information and according to the explanations given to us:
 
 (i) The Balance Sheet is a full and fair Balance Sheet read together
 with Accounting Policies and Notes on Accounts containing all the
 necessary particulars, is properly drawn up so as to exhibit a true and
 fair view of the state of affairs of the Bank as at 31st March 2009;
 
 (ii) The Profit & Loss Account read together with Accounting Policies
 and Notes on Accounts shows a true balance of Profit for the year ended
 on that date; and
 
 (iii) The Cash Flow Statement gives a true and fair view of the cash
 flow for the year covered by the statement.
 
 
 For S N Mukherji & Co. For De Chakraborty & Sen For Satyanarayana & Co.
 Chartered Accountants  Chartered Accountants    Chartered Accountants
           
 Sudip K Mukherji       R K Chattopadhyay        Ch. Seshagiri Rao
 Partner                Partner                  Partner
 Membership No.13321    Membership No.52225      Membership No.18523
           
 For Parakh & Co.       For M Anandam & Co.      For N Sankaran & Co.
 Chartered Accountants  Chartered Accountants    Chartered Accountants
           
 Vishnu Dutt Mantri     A V Sadasiva             B Chandrasekhar
 Partner                Partner                  Partner
 Membership No.74678    Membership No.18404      Membership No.16616
 
 
 Bangalore
 April 29, 2009