The Board of Directors have pleasure in presenting the 42nd Annual
 Report together with the Balance Sheet as on 31st March, 2011 and
 Profit and Loss Account for the financialyearended March 31,2011.
 
 
 FINANCIAL PERFORMANCE
 
 For Canara Bank, 2010-11 was a year of robust performance on the
 business, profits and profitability fronts.
 
 Net profit reached an all time high ofRs.4026 crore, signifying a
 strong 33.2% growth y-o-y and substantially higher than Rs.3021 crore
 recorded duringthe preceding year. Operating profit recorded a 20.7%
 growth to reach a level of Rs.6107 crore. Return on average assets
 (RoAA) for the year improved to 1.42%. Profit per employee, moved up to
 Rs.9.76 lakh compared to Rs.7.35 lakh in the previous financialyear.
 
 Dividend of 110% for 2010-11
 
 Enhancing Shareholder Value:
 
 The Bank showed steady improvement in Earnings PerShare (EPS) and Book
 Value. While Book Value increased to Rs.405 as at March 2011 as
 compared to Rs.305.83 for the previous financial, EPS rose to Rs.97.83
 as at March 2011 compared to Rs.73.69 a year ago. Ensuring increased
 value for the shareholders year after year, the Banks Board of
 Directors recommended a dividend of 110% for 2010-11 compared to 100%
 last year.
 
                                           March      March
 
 Key Financial Ratios (%)                  2010       2011
 
 Cost of Funds                             5.65       5.37
 
 Yield on Funds                            8.10       8.13
 
 Cost of Deposits                          6.12       5.80
 
 Yield on Advances                         9.81       9.73
 
 Yield on Investments                      7.52       7.72
 
 Spread as a % to AWF                      2.45       2.76
 
 Net Interest Margin (NIM)                 2.80       3.12
 
 Operating Expenses to AWF                 1.50       1.56
 
 Return on Avg. Assets (RoAA)              1.30       1.42
 
 Return on Avg. Networth                  26.76      28.26
 
 Business per Employee (Rs. in Crore)      9.83      12.28
 
 Profit per Employee (Rs.in Lakh)          7.35       9.76
 
 Book Value(Rs.)                         305.83        405
 
 Earnings perShare(Rs.)                   73.69      97.83
 
 AWF - Average Working Funds
 
 Income and Expenditure Analysis
 
 The Banks interest income recorded a y-o-y growth of 23% to reach
 Rs.23064 crore compared to Rs.18752 crore recorded during the previous
 financial year. Non-interest income increasedtoRs.2703 crore.
 
 Despite increase in interest rates, the Bank could reduce the cost of
 deposits by 32 bps to 5.80% compared to 6.12% a year ago, while yield
 on advances maintained at 9.73%. Interest spread increased to 2.76%from
 2.45% as at March 2010.
 
 While interest expenditure increased to Rs.15241 crore with a y-o-y
 growth of 16.6%, the Banks operating expenses increased by 27.1% to
 reach Rs.4419 crore. Notably, the net interest income of the Bank
 registered a good 37.7% growth to reach Rs.7823 crore and Net Interest
 Margin (NIM) improved by 32 bps to 3.12% compared to 2.80% as at March
 2010.
 
 Capital and Reserves
 
 Networth of the Bank, as at March 2011 increased to Rs.17941 crore
 compared to Rs.12539 crore as at March 2010.  While total paid-up
 capital of the Bank increased to Rs.443 crore from Rs.410 crore last
 year, reserves and surplus increased to Rs.19597 crore. To augment the
 capita resources, the Bank raised upperTier II bonds to the extent of
 Rs.1000 crore and Rs.749.3 crore under Innovative Perpetual Debt
 Instrument. For the first time, the Bank raised equity capital through
 Qualified Institutiona Placement (01P) route for Rs.1993.2 crore. Post
 01P, Government Shareholding in the Bank came down from 73.17% at March
 2010to67.72%asat March 2011.
 
 (Amt. in fCrore)
 
                                     March 2010     March 2011
 Composition of Capital              Basel II       Basel II
 
 Risk Weighted Assets                 150623         176136
 
 Tierl Capital                         12870          19139
 
 CRAR(%)(TierI)                         8.54          10.87
 
 Tierll Capital                         7362           7956
 
 CRAR (%)(Tier II)                      4.89           4.51
 
 Total Capital                         20232          27095
 
 CRAR(%)                               13.43          15.38
 
 As at March 2011, Capital to Risk Weighted Assets Ratio (CRAR) of the
 Bank under Basel II significantly improved to 15.38%, with a Tier I
 capital ratio of 10.87%. The Bank has still adequate headroom available
 under both Tier-I and Tier-ll options to raise capital to support
 business growth momentum.
 
 Deposits
 
 Total Deposits of the Bank registered a growth of 25.3% to reach
 Rs.293973 crore as at March 2011 compared to Rs.234651 crore a year
 ago. The Banks CA5A deposits grew by 21.8% to reach Rs.83117 crore as
 at March 2011. Savings deposits rose by 17.5% y.o.y to Rs.58617 crore.
 The Bank opened over 24 lakhs SB clientele during FY11. During FY11,
 the Bank had launched a nationwide Savings Mahotsav campaign to
 mobilize SB deposits, resulting in fresh addition of over 16 lakhs
 SBclientele.
 
 With a CA5A per branch at Rs.25.52 crore, the Bank continues to be one
 of the best among the peers. Pursuing a strategy of broad basing
 deposit clientele, all the branches together opened over 64 lakhs
 deposit accounts, taking the total tally under deposit accounts to 3.42
 crore.
 
 Advances (Net)
 
 During FY11, the Banks net advances witnessed a robust 25.5% growth to
 reach Rs.2,12,467 crore compared to Rs.1,69,335 crore a year ago. In
 quantum terms, credit increased by over Rs.43,000 crore during the
 year. The Banks diversified credit portfolio include all productive
 segments of the economy like agriculture and Micro, Small and Medium
 Enterprises (M5ME), exposure to corporate and infrastructure segments.
 As at March 2011, the number of borrowal accounts stood at 45 lakhs.
 
 25% Growth in Total Business for last 3 Years
 
 The Bank has recorded a Compounded Annual Growth Rate (CAGR) of 25% for
 the last 3 financial years. During 2010-11,the total business of the
 Bank grew by a robust 25.4% to reach Rs.5,06,440 crore as against
 Rs.4,03,986 crore during the previous financial.  Productivity, as
 measured by business per employee, increased to Rs.12.28 crore from
 Rs.9.83 crore a year ago, continuing to be one of the best amongthe
 peers.
 
 During the year, the Banks clientele base increased to 3.87 crore.
 
 Retail Lending Operations
 
 Retail lending operations of the Bank registered a strong 32% to reach
 Rs.31572 crore as at March 2011, accounting for 15.52% of the domestic
 credit. The disbursals under the retail lending stood at Rs.13826
 crore. The outstanding housing loan portfolio increased to Rs.15219
 crore, constituting 48% of the total retai lending portfolio.
 
                                              (Amt. in Rs.Crore)
 
 Retail Lending          March 2010    March 2011     Growth (%)
 
 Retail Lending          23902           31572           32.1
 
 Housing Loans           10116           15219           50.4
 
 Retail Trade             5383            6313           17.3
 
 Other Personal
 (Incl. Education
 Loan)                    8403           10040           19.5
 
 The Bank took several measures du ring theyear to expand retail credit.
 To facilitate speedy disposal of proposals and cred it flow, a total of
 25 Centralized Processing Units (CPU) and 16 Retail Assets Hubs (RAH)
 for housing and other retai loans a re functioning at major centres
 across the country
 
 TREASURY AND INTERNATIONAL OPERATIONS
 
 Aggregate investments of the Ba n k, as at Ma rch 2011, were of the
 order of Rs.83700 crore. Portfolio modified duration (years) came down
 to 4.75 as at March 2011 from 4.95 a year ago. The modified duration of
 the Available for Sale (AF5) portfolio has increased from 1.93 as at
 March 2010 to 2.23 as at March 2011 due to redemption of short dated
 securities and fresh investments made in medium and long dated
 securities. The trading profit for the year was Rs.293 crore. The yield
 on investments improved to 7.72% as at Ma rch 2011 as compared to 7.52%
 a year ago.
 
 The Bank continues to be an active player in government securities as a
 primary dealer. The total amount of underwriting commitments fortheyear
 was Rs.33216 crore.  During theyear, the Bank achieved over 55% success
 ratio as against mandatory 40% of itsobligationasa Primary Dealer.
 
 Foreign Business Turnover of the Bank, as at 31st March 2011,
 aggregated to Rs.1,24,094 crore, comprising Rs.45,658 crore under
 exports, Rs.39,616 crore under imports and Rs.38,820 crore under
 remittances. Outstanding export credit
 oftheBankwasRs.10489crore,withay-o-ygrowth of 17%.
 
 The Banks overseas presence covered four branches one each at London,
 Hong Kong, Leicester (UK) and Shanghai as at March 2011. Leicester
 branch was opened on 12th April 2010 and the Representative Office at
 Sharjah was opened on 20th June 2010. Besides, a joint venture bank,
 namely, Commercial Bank of India LLC in Moscow is also operational in
 association with State Bank of India.
 
 All overseas branches recorded improved business performance during the
 year. Total business of these 4 overseas branches aggregated to US $
 4376 million for thefinancia I yea rending Ma rch 2011.
 
 To fund overseas assets expansion, the Bank raised foreign
 currencyfundsof USD 350 millionthrough London branch by issuing senior
 unsecured bonds listed in Singapore Stock Exchange under MediumTerm
 Notes Programme.
 
 The Bank has approval from RBI for expansion in 8 other international
 centres viz., Manama (Bahrain), Qatarjohannesburg (South Africa),
 Frankfurt (Germany), New York (USA), Sao Paulo (Brazil), Dar-es-Salaam
 (Tanzania) and Tokyo (Japan).  The Bank has conducted survey in Sri
 Lanka, Kenya and Nigeria to explore opening of branches in these
 countries.
 
 The Banks international operations are well supported by a wide
 network of 382 Correspondent Banks, spread across 80 countries. The
 Bank has rupee drawing arrangements with 22 exchange houses and 17
 banks in the Middle East for channelising the remittances of
 expatriates. The Bank has been managing two exchange houses viz., Al
 Razouki International Exchange Company, Dubai and Eastern Exchange
 Est., Qatar, under secondment and management agreement respectively.
 The Bank, during the year, expanded its arrangement underRemit Money,
 a web based product by extending to 18 Exchange Companies/Banks and 4
 branches abroad viz., London, Leicester, Shanghai and Hong Kong. During
 the year, the Bank obtained approval from RBI for remittance
 arrangements with 5 more Exchange Houses in UAE. It also introduced
 lock Box Service for quick collection of cheques drawn by NRIs on
 Banks in the USA.  One more Remittance Product Remit Worlwidefor NRIs
 in the USA is on the cards and will be introduced shortly.
 
 OTHER SERVICES
 
 During 2010-11, Merchant Banking Division of the Bank handled Private
 Placement of Capital Gain Bond Issues in respect of National Highways
 Authority of India (NHAI) and Rural Electrification Corporation Ltd.,
 (REC) as Arrangers. Amount mobilized by Merchant Banking Division in
 respect of Capital Gain Bonds Issue of NHAI and
 RECwasRs.120crore.TheBanksTierl Bonds Issue (IPDI) a mounting to
 Rs.500 croreand Upper Tier II series III bonds issue amounting to
 Rs.1000 crore was also dealt by the Division in preparing/compiling the
 Disclosure Documents in terms of SEBI guidelines. During the period, it
 handled 5 specialized assignments ofFairValuation of Equityand 8
 Bankers to an Issueassignments as Escrow Bankers/ Collecting Bankers
 with total float funds, amounting to Rs.3034 crore. The Division
 facilitated implementation of Application Supported by Blocked Amount
 (ASBA), a supplementary process of applying for Public/Rights issues
 with effect from 1st September 2010 as per SEBI guidelines. Ason date,
 152 branchesacrossthe country have been designated for ASBA facility.
 
 The Syndication Group handled projects involving cost of Rs.9604 crore
 during the year, with a total debt size of Rs.5240 crore. The Group has
 generated substantial fee based income from syndication operations and
 arranged funds for projects in diverse segments like Steel, Power,
 Hotel, Road, BusTerminal and Sugar.
 
 The Bank has tie-up arrangements in both life and non-life insurance
 segments under its bancassurance arm. The Bank earned a commission
 income of Rs.51 crore from Canara HSBC Oriental Bank of Commerce Life
 Insurance Company Limited. The Bank has tie up with M/s Canara Robeco
 Mutual Fund for cross selling of mutual fund products businessand
 earned net brokerageofRs.3.4crore.
 
 The Banks tie-up arrangement with M/s United India nsurance Company
 Ltd (UIICL) for general insurance business has resulted in a commission
 income of around Rs.11 crore duringtheyear. The Bank has Corporate
 Agency Agreement with M/s Export Credit Guarantee Corporation of
 Indiaformarketingexport policiesthrough its branchesacross India.
 
 Corporate Cash Management Services (CCMS) network of the Bank, covering
 94 Operating Centres and 595 Pooling Branches, provides services
 related to local and upcountry cheque collection, bulk cheques
 collection and zero balance account facility. The aggregate turnover
 under CCMS a mounted to Rs.979 crore duringtheyear.
 
 Under Card Business, the Bank took several initiatives to expand credit
 and debit-cum-ATM card base. The total debit card base of the Bank
 increased to 59.69 lakhs as at March 2011. Profit under card business
 during the year wasatRs.21.4crore.
 
 The Bank offers its depository services from 54 DP Service Centres
 spread across 36 centres in the country. The Bank is extending Online
 Trading Facility to DP clients through its own broking subsidiary M/s.
 Canara Bank Securities Limited,Mumbai.
 
 Executor, Trustee and Taxation Services outfit of the Bank provides
 services like Debenture/Security Trusteeship, Will and Executorship,
 Trusteeship, Personal Tax Assistance and Power of Attorney Services. It
 secured 7 new debenture/security trusteeship issues, amounting to
 Rs.3286 crore and generated fee-based income of XI.3 crore
 duringtheyear.
 
 Under Government Business, comprising Direct and ndirect Tax
 collections, payment of pensions to various departments, handling
 Ministry Accounts, Posta Transactions and Treasury, collection of
 Senior Citizens Deposit, Public Provident Fund Scheme and issue of
 relief/ savings bonds of RBI and Government of India, the Bank earned
 income to the extent of Rs.55 crore duringtheyear.
 
 The Bank has been authorized as the accredited banker for Ministry of
 Human Resources Development (MHRD), handling Department of School
 Education and Literacy, Department of Higher education, Department of
 Arts - Archeological Survey of India, Ministry of Culture and Ministry
 of Youth Affairs and Sports. The Bank has developed a Web-Porta I for
 Ministry of HRD fore-tracking of funds under the Sarva Shiksha Abhiyan
 (SSA) Scheme.  The Bank has implemented the web porta I in a II the
 States except Jammu and Kashmir, Uttar Pradesh and Chattisgarh, wherein
 the facilities will be implemented shortly.The Bank has implemented the
 e-payment of sales tax/ commercial tax in the states of Maharashtra,
 Tami Nadu and Karnataka.
 
 The Bank is authorized as the accredited Bankers for Unique
 Identification Authority of India (UIDAI), New Delhi. The UIDAI was
 established in February 2010, as an agency of Government of India
 responsible for implementingthe Multipurpose National Identity Card or
 Unique Identification Card (UID Card) project in India.The project is
 implemented in 8 centres at present and the Banks branches at these
 centres have been designated as the deal branches for hand ling the
 UIDAI accounts.
 
 The Bank introduced e-stamping project in 5 branches in Bangalore and
 at other 26 branches situated in the District Head Quarters in the
 State of Karnataka, the project is under implementation.
 
 Agricultural Consultancy Services (ACS) outfit of the Bank handled 138
 assignments during the year under review with the total outlay of the
 assignments at over Rs.1363 crore. Apart from the regular assignments,
 the outfit handled special projects. These projects include cultivation
 and export of culinary herbs, cultivation of medicinal plants and
 manufacturing herbal products, rice mill project, organic farming of
 fruits and vegetables, tissue culture of banana, dairy farming and
 development through embryo transfer technology, silvi culture -
 sandalwood cultivation, food processing, cheese manufacturingand prawn
 processing and exports.
 
 Special studies and trainings were also conducted during theyear,which
 includes, studyon identification of clusters in agriculture and allied
 activities for finance, report on scope of Tamil Nadu mega food park at
 Dharmapuri and Agriculture Extension Officers training on project
 appraisal of hi-tech agriculture.
 
 All Time High Cash Recovery  at Rs 2032 crore                   
 
 Asset Quality
 
 In tune with the industry and economic conditions, the gross NPA level
 of the Bank rose to Rs.3089 crore duringthe year. Notwithstanding the
 above, the Bank could contain its gross NPA ratio at 1.45% compared to
 1.52% in the previousyear. The Banks gross NPA ratio continues to be
 one of the lowest among the peers. With a net NPA level of Rs.2347
 crore, net NPA ratio stood at 1.11% as at March 2011. The Provision
 Coverage Ratio stood at 72.99% as at March 2011 which is well above the
 RBI stipulated 70%.
 
 Cash recovery during the year aggregated to an all time high ofRs.2032
 crore, well exceeding the preceding years cash recoveryofRs.1575
 crore.
 
 The performance under settlements and recovery was quite noteworthy.
 During the year, recovery amounting to Rs.830 crore was made under
 5ARFAE5I Act. The Bank conducted 9969 recovery meets during the year
 which resulted in a recovery of Rs.3 51 crore. Besides,the Banktook
 several initiatives to contain slippages and speed up recovery from
 overdue loan accounts. These include identification of stressed
 accounts for restructuring/ rephasing in time, frequent conduct of
 Canadalats at branch level and mega adalats at Circle level for onetime
 settlements, regular follow-up of overdues in loan
 accountsthroughcallcentreande-auctions.
 
 Risk Management
 
 Basel II norms: Status and Future Strategies
 
 Risk Management Initiatives
 
 The Bank has put in place a unified risk management architecture to
 attain global best practices for effective implementation of risk
 management initiatives in consistence with the Basel II framework and
 RB guidelines. The Board of Directors drives the Risk Management
 initiatives in the Bank. The Risk Management Committee of the Board is
 constituted and operational. Top Executive Committees for Credit Risk,
 Operational Risk and Market Risk Management oversee and monitor the
 respective risk management processes and procedures. Asset Liability
 Committee (ALCO) meets periodica I lyfor effective and
 pro-activeALMintheBank.
 
 Risk Management Wing at the Head Office is functioning asa nodal centre
 for overall implementation ofvarious risk management initiatives across
 the Bank. Integrated Mid Office of both domestic and forex treasury a
 re functioning under the Risk Management Wing for effective and
 independent supervision and monitoring of Market Risk in investment and
 forex functions. Risk Management Sections a re in place in a II the 34
 Zona I/Circle Offices of the Bankasan extended arm ofthe Risk
 Management Wingat the Corporate Office.
 
 The Bank has in place various risk management policies, which include
 policy for management of Credit Risk, Market Risk, Operational Risk,
 Asset Liability, Liquidity Risk, Country Risk, Counterparty Bank Risk,
 Corporate Governance, Disclosures, Collateral Management, Stress
 Testing, Compliance Functions, Disaster Recovery and Business
 Continuity Planning, Business Lines, Outsourcing, Group Risk, Legal
 Risk etc. The Bank also framed risk management policies for its
 overseas branches, taking into account the requirements of the
 respective regulators.These policies are reviewed and fine tuned
 annually.
 
 Migration to BaseI 11 Norms
 
 The Banktransitedto Basel II Normsason 31.03.2008.The Capital to Risk
 Weighted Assets Ratio (CRAR) is computed as per Pillar 1 requirement of
 Basel II Norms, adhering to the New Capital Adequacy Framework (NCAF)
 guidelines stipulated bytheRBI.
 
 The Bank hasframed its Policy on ICAAP (Internal Capital Adequacy
 Assessment Process) in consistent with the RBI guidelines under Pillar
 2 of Basel II Norms. A Capital Planning Committee is in place at the
 Corporate Office which meets periodicallytoassesscapital requirement of
 the Bank, ensure maintenance of appropriate level of CRAR and evaluate
 various options for raising Capita I.
 
 The Bank adheres to the Disclosure norms as per the RBI guidelines
 under Pillar 3 of Basel II Norms. A Board approved Disclosure Policy is
 in place. A Disclosure Committee, comprising of Top Executives has been
 constituted to ensure adherencetothe policy guidelines.  The Bank also
 initiated steps in preparation to migrate to the advanced credit risk
 and operational risk approaches undertheBasel llframework.
 
 Credit Risk Management
 
 The Bank has adopted Standardized Approach1 to estimate Credit Risk
 Weighted Assets (RWA) for computing CRAR from the year 2007-08 onwards
 as required underthe NCAF.
 
 The Bank has various risk management systems for managing credit risk.
 The various initiatives taken by the Bankareasunder:
 
 A comprehensive Credit Risk Management Policy in tunewiththe
 regulatoryguidelinesand best practices in the industry
 
 The Bank has in place specific rating definitions, processes and
 criteria for assigning exposures to grades within a rating system,
 which results in a meaningful differentiation of risk.
 
 Four credit risk rating models are in place, developed internally, for
 rating borrowal accounts based on the exposure limits. Rating of
 eligible account has been made mandatory as a pre-sanction exercise.
 Migration analysis of rated accounts is done periodically.
 
 The Bank is using/ mapping the ratings assigned by recognized external
 credit rating agencies to the exposures of the concerned borrowers to
 optimize capital undera standardized approach.
 
 Pricing based on credit risk rating has been introduced.
 
 Entry barriers a re fixed based on risk rating.
 
 Credit sanctioning powers are delegated to various authorities based on
 internal risk rating of the borrowers.
 
 To avert concentration of risk, fixation of various exposure ceiling/
 prudential norms, such as, single and group borrowers, substantial
 exposures, term loans, unsecured advances, exposures to various
 industries, NBFCs, real estate sector and capita market a re in vogue.
 
 For strengthening loan review and monitoring mechanism, Credit
 Monitoring and Credit Administration Wings wereformed.
 
 An exclusive credit monitoring policy has been put in place. The loan
 review mechanism articulated in the credit monitoring policy covers the
 entire gamut of review and monitoring to be an effective tool for
 evaluatingthe loan book continuously and intendsto bring out
 qualitative improvements in credit administration including credit
 audit.
 
 Credit Audit system by external / internal auditors of all borrowal
 accounts of Rs. 1 croreand above has been put in place.
 
 Operational Risk Management
 
 The Bank computed capital charge for operational risk by adoptingBasic
 Indicator Approach1 asstipulatedbythe RBI.
 
 A proper organizational structure is in place to oversee and guide the
 operational risk initiatives of the Bank. To move towards advanced
 approaches for operational risk, thefollowing initiatives have
 beentaken-
 
 Formulation of Operational Risk Management Policy which covers the
 objectives, identification, assessment, monitoring and control of
 operational risk loss incidents.
 
 Training imparted to staff to create awareness on operational risk
 management system.
 
 The Bank has compiled a comprehensive Best Practices Codes (Manual of
 Instructions) and Desk Cards on all the activities carried out at
 branches for theirguidance.
 
 Market Risk Management
 
 The Bank has been computing capital charge for market risk on Available
 For Sale (AF5) and Held For Trading portfolio under investments, by
 adopting Standardized Measurement Method.
 
 Integrated Mid Office at RiskManagement Wing monitors market risk
 exposure. Exposure limits, such as, Stop Loss limits on trading books,
 Dealer-wise limits, limits on Money Market Operations, M-duration
 limits for AFS category, VaR limits, Aggregate Gap limit, Intra day and
 overnight limit for various currency positions are fixed to act as risk
 mitigants and are monitored. Reporting system has been strengthened for
 effective market risk management.
 
 Towards implementation of Internal Models Based Approach for
 calculation of capital charge for market risk, the Bank has put in
 place a VaR based model for estimating General Market Risk. The process
 of back testing of the results given by the model has been completed.
 Stress testing exercise as per the guidelines isenvisaged.
 
 Asset Liability Management
 
 An effective Asset Liability Management (ALM) system, addressing issues
 related to liquidity and interest rate risks is in place. The Board of
 Directors of the Bank has constituted an Asset Liability Committee
 (ALCO) to oversee ALM functions, includingfixation of interest rates
 for various components of assets and liabilities, its composition,
 maturity and duration. A comprehensive software solution has been
 installed for quantifying risks and to analyze Maturity Gap, Duration
 and Sensitivity of Assetsand Liabilitiesto interest rate variations.
 
 The liquidity position of the Bank is tracked on a daily basis by means
 of residual maturity of assets and liabilities.  Periodical studies are
 undertaken to analyze the behaviora patterns of various components of
 assets and liabilities to estimate the liquidity on a dynamic basis.
 The Banks iquidity policy sets the tolerance limit for its structure
 iquidity positions. The liquidity positions of overseas branches are
 managed in line with home and host country regulatory guidelines. Such
 positions are reviewed by the Banks ALCO along with domestic
 positions.
 
 Toevaluatethe impact of changes in interest rate on Banks earnings, an
 analysis of Earnings at Risk (EAR) and its impact on Net Interest
 Income (Nil) are done on an ongoing basis.  The change in the
 composition and residual maturity of assets and liabilities is
 evaluated by the Traditional Gap Method as also by the Duration Gap
 Method. Stress testing exercises by simulating scenarios of liquidity
 and interest rates are undertaken to estimate the stress cost as also
 the Economic Value of Equity (EVE).
 
 The ALCO meets regularly to discuss various issues pertaining to the
 liquidity position by considering the residual maturity profile of
 various assets and liabilities, ta kes stock of the dynamic interest
 rate scenario, discusses at length the changes evolving in economic and
 financia parameters, which have a director indirect bearing on the
 banking industry and focuses on the impact of all these factors on the
 business profile of the Bank.
 
 Risk Management Committee of the Board:
 
 The Board level Risk Management Committee is already in place in the
 Bank, which meets regularly to provide guidance and direction in
 implementing the risk management initiatives of the Bank.
 
 In conformity with the RBI guidelines, the Bank has implemented the New
 Base Rate system of interest application on loans and advances with
 effect from lstJuly2010.
 
 NATIONAL PRIORITIES
 
 Priority Sector Advances
 
 As one of the leaders in the domestic banking arena, the Bank continues
 to accord importance to varied goals under national priorities,
 including agriculture, smal enterprises, education, micro-credit,
 weaker sections, SC/STsand minorities.
 
 During the last 3 years, the Bank has achieved stipulated mandatory
 targets under Total Priority, Total Agriculture, Agriculture (Direct)
 and Weaker Sections.
 
 Priority Sector Advances of the Bank as at March 2011 increased
 byRs.11447 croreto reach Rs.70757 crore, recording ay-o-y growth of
 19.3%, covering over 40 lakhs borrowers.  Priority sector advances
 formed 44.08% of the Banks Adjusted Net Bank Credit (ANBC), well above
 the 40% stipulated norm.
 
                                              [Amt. in Rs. Crore]
 
 Priority Sector Advances         As at             Growth
                                  March
 
                               2010      2011     Amount        %
 
 Total Priority Sector        59310     70757     11447      19.3
 
 Agriculture                  25052     29656      4604      18.4
 
 Micro & Small                24180     29558      5378      22.2
 Enterprises
 
 With a focus on credit delivery to agriculture, the Banks advances
 under agriculture rose by Rs.4604 crore to reach Rs.29656 crore,
 covering over 31 lakh farmers. Agriculture credit as a proportion of
 ANBC crossed the mandatory targeted level of 18% to reach 18.48%.
 Advances to agriculture (direct) reached a level ofRs.22669 crore, with
 an 18.9% growth and accounting for 14.12% of ANBC as againstthe
 mandatory 13.5% norm.
 
 Under Kisan Credit Card Scheme, the Bank issued 3.68 lakh cards
 duringtheyear, with credit coverage of Rs.3082 crore.  As at March
 2011, the cumulative number of Kisan Credit Cards reached over 33
 lakhs, involving credit coverage of Rs.17589 crore.
 
 Over the years, the Bank has supported lakhs of promising students to
 pursue higher education in India and abroad.
 
 The Bank has further increased its education loan portfolio and
 sustained its premier position among nationalized banks in ndia for
 FY11. The Banks advances under Education Loan Scheme recorded a growth
 of 21%to reach Rs.3503 crore.
 
 The Bank hasfinanced morethan 1.92 lakhs students as at March 2011. The
 Bank is designated as the nodal bankfor administering subsidy under the
 Central Sector Scheme for Interest Subsidy on educational loans. The
 Bank also extended financia assistance to other priority sectors, such
 as, retail traders, housingand microcredit.
 
 During the year, the Bank actively participated in various Government
 Sponsored Schemes, such as, PMRY, SGSY, SJSRY, SLRS and DRI. As at
 March 2011, the outstanding advances under these schemes aggregated to
 Rs.610 crore, involvingover 1.46 lakhs beneficiaries.
 
 Performance under various Government sponsored schemes
 
 Name of the Scheme    No. of Accounts      Amt. in Rs. Crore
 
 PMRY                        49167                252.63
 
 SGSY                        48189                234.39
 
 SJSRY                       16005                 69.40
 
 SLRS                          691                  1.38
 
 DRI                         32057                 51.91
 
 Total                      146109                609.71
 
 - In support of the underprivileged sections of the society, the Banks
 advances to 5C/5T beneficiaries reached Rs.5087 crore as at March 2011,
 with a y-o-y growth of 30%. The ad va nces to 5C/5T com prised 7.19% of
 total priority sector advances.
 
 - Advances to weaker sections aggregated to Rs.17823 crore, with a
 y-o-y growth of 21.8%. Advances to weaker sections formed 11.10% of
 ANBC against the norm of 10%.
 
 - As at March 2011, advances to specified minority communities
 aggregated to Rs.11718 crore and accounted for 16.56% of the total
 priority sector advancesasagainstthenormof 15%.
 
 Advances to Micro, Small and Medium Enterprises (MSMEs) reached
 Rs.37684 crore, with a y-o-y growth of 21.3% vis-a-vis
 mandatoryy-o-ygrowth of 20%.
 
 The Bank has covered 49,260 accounts with an exposure of Rs.1471 crore
 as at March 2011 under the Credit Guarantee Scheme of Credit Guarantee
 Fund Trust for Micro and Small Enterprises (CGTMSE).
 
 Considering the importance of cluster based approach of lending to MSME
 sector, the Bank has focused on adoption of select industrial clusters
 across the country and expanded lending underclusterbased approach.
 
 During the year, the Bank has increased the number of independent
 centralized loan processing centres for MSMEs, viz., SME SULABHto 25
 centers. It is proposed to increase the number of such centres to 34
 during 2011-12. The Bank has embarked upon reaching out to large
 section of MSMEs at major centres in the country through thismodel.
 
 The Bank received an amount of Rs.16.9 crore from the Ministry of
 Micro, Small and Medium Enterprises, Government of India, during the
 year as a Nodal Agency for Technology Upgradation of SSI units under
 Credit Linked Capital Subsidy Scheme (CLCSS) and amount utilized
 duringtheyearstoodatRs.13.3 crore.
 
 Financial Inclusion
 
 Canara Nayee Disha- A Complete Solution for Financial Inclusion
 
 Not just mobilizing no-frill accounts from the financially excluded,
 the Bank is providing total solution for the Financial Inclusion
 byextendingcreditfacilityunderGeneral Credit Cards, Credit linking
 Self-Help Groups (SHGs), making provision of small insurance
 facilities, enhancing outreach through Business Correspondents and
 using of technology- Smart Cardsand Bio-Metric ATMs.
 
 The Bank achieved total Financial Inclusion in all the 26 Lead
 Districts spread over five States, namely, Karnataka, Kerala, Tamil
 Nadu, Bihar and Uttar Pradesh. During 2010-11, the Bank mobilized 6.05
 lakhs no-frill accounts (CanSaral) and reached a cumulative level of
 27.84 lakhs since inception.  The Bank has opened 913 new accounts per
 Rural and Semi urban branches as againsttheGovernment of India target
 of 250 per annum. The total savings in the no-frill accounts reached a
 level of Rs. 520 crore.
 
 Duringtheyear,the Bankhasformed 31121 SHGs,taking the cumulative number
 of SHGs formed to 3.51 lakhs as at March 2011. With 45977 SHGs credit
 linked during the year, the cumulative tally under credit linking
 reached 3.21 lakhssince inception.Thetotal exposureofthe Bank under SHG
 finance rose to Rs.1064 crore, spreading over 90172 SHGs accounts.
 
 The Bank undertook several technology initiatives to further financial
 inclusion process like multi-lingual bio- metric ATMs, voice-enabled
 mobile bio-metric ATM and Smart Cards. The Bank has installed Bio
 Metric Voice Enabled ATMs/ Biometric Mobile ATMs in 23 Rural/Semi urban
 locations and has issued around 84000 Smart Cards as at March 2011. The
 Bank also issued 3.02 lakhs General Credit Cards (GCC) since inception
 and thetotal exposure under GCCs as at March 2011 increased to Rs. 359
 crore, spread over 1.75 GCC accounts. The Bank on its founders day on
 19th November 2010, distributed 1 lakh GCCs, 50,000 Smart Cards and
 opened 9 Financial Literacy and Credit Counseling Centres (FLCCs)
 across India.
 
 The Banks FLCCs called Amulya are in operational in 10 districts,
 viz., Kolar, Chitradurga and Chikkaballapur in Karnataka, Madurai,
 Erode and Dindigul in Tamil Nadu, Malappuram, Waynad and Trissur in
 Kerala and Sheithpura in Bihar. The Bank has registered a new Trust,
 viz., Canara Financial Advisory Trust to manage the Financial
 Literacyand CreditCounselingCentres.
 
 To create awareness about banking facilities and the Banks products
 among the rural households, the Bank has deployed Gramin Vikas Vahini1
 (vehicles) in 35 districts across the country.To disseminate
 information to the rura people about the banking products and advanced
 tech nology the Ban kformed 127 Fa rimersclubsduringthe yea
 r,takingthetota I to 1360 across the country.
 
 For catering to the needs of the urban poor and urban financial
 inclusion, the Bank opened 19 Exclusive Microfinance branches in urban
 centres viz., Madurai, Hyderabad, Mumbai, Amritsar, Chandigarh,
 Lucknow, Coimbatore, Bangalore, Chennai, Bhopal, Bhubaneshwar, Delhi,
 Jaipur, Kolkata, Patna, Pune, Shimoga, Trivandrum andVisakapatnam.
 
 The Bank is allotted 1573 villages with population more than 2000,
 across the country for provision of banking facilities. The Bank has a
 I ready covered 626 villages as at March 2011 and will cover all the
 1573 allotted villages with population of morethan 2000,through
 ICTmodel or through Brickand Mortar branch by 31.03.2012.
 
 The Bank is the registrar for Unique Identification Authority of India
 and it has taken up enrollment for issue of UID numbers by engaging an
 enrollment agency, namely, M/s. Smart Chip Ltd. The Bank has started
 the enrollment and set up a work station at Parliament Street branch,
 New Delhi, on 29.03.2011.
 
 Lead Bank Scheme
 
 Canara Bank has lead bank responsibilities in 26 districts in the
 country, viz., eight in Karnataka, seven in Tami Nadu,five in
 Kerala,five in Uttar Pradesh and one in Bihar.  The Bank works as the
 Convenor of the State Level BankersCom mittee(SLBC) in the State of
 Kerala.
 
 Entrepreneurship Development among Women
 
 Centre for Entrepreneurship Development for Women (CEDW) at Head
 Office, Bangalore and Centres at 34 Zonal/Circle Offices are working
 towards economic empowerment of women.These Centres have conducted
 several training programmes during the year, including general
 Entrepreneurship Development Programmes (EDP), Entrepreneurship
 Awareness programmes, Seminars, Career Guidance programmes, Skills and
 provided marketing support to women entrepreneurs by organizing
 Canutsav /Canbazar. CEDW cells have also assisted in formation of SHGs
 and credit linkages. Two exclusive Mahila Banking Branches at Bangalore
 and Chen nai a re also operating specifically to cater to women
 clientele. 19 micro finance branches also cater to the financial
 needsofwomen SHGs.
 
 - As at March 2011, the Bank has extended credit to women to the tune
 of Rs.27022 crore, accounting for 16.84% of ANBC against the RBI norm
 of 5%. The Bank has covered nearly 12.78 lakhs women beneficiaries.
 
 - During the year, fresh disbursement of Rs.9298 crore was madeto women
 beneficiaries.
 
 - The Bank has financed Rs.18549 crore to women beneficiaries under
 priority sector.
 
 - The Bank has provided certain special benefits to women entrepreneurs
 in MS ME sector for loans upto Rs.5 lakh to encourage more and more
 women to undertake entrepreneurial activities.
 
 CORPORATE SOCIAL RESPONSIBILITY
 
 Following the century old tradition and founding principles, the Bank
 is engaged in varied Corporate Social Responsibility (CSR) activities.
 CSR initiatives of the Bank are multifarious, covering activities like
 training unemployed rural youth, providing primary health care,
 drinking water, community development, em powerment of women and other
 initiatives.
 
 Rural Development
 
 The Bank, through its Canara Bank Centenary Rural Development Trust
 (CBCRDT), has established exclusive training institutes to promote
 entrepreneurship development among rural youth and encourage them
 taking up self-employment activities. During the year, 3 new training
 institutes were opened at Kanshiram Nagar and Hathras in Uttar Pradesh
 and Tiruppur in Tamil Nadu taking the number of such training
 institutes to 29. For the yea r 2010-11, CBCRD training institutes have
 trained 26753 candidates, taking the tally to 125049 unemployed youth
 since inception. The candidates trained comprised 68% women and 31%
 SC/ST, with an impressive settlement rate of 67%.
 
 The Bank has co-sponsored 24 Rural Development and Self Employment
 Training Institutes (RUDSETIs) engaged in training of rural youth for
 taking up self-employment programmes. During 2010-11, the RUDSET
 institutes have trained 21459 candidates. The 24 RUDSETIs have, so far
 trained 2,59,036 unemployed youth, with a settlement rate of 71%.
 
 Canara Banks Rural Clinic Service Scheme provides basic health care
 services in remote areas lacking basic medical infrastructure
 facilities. Under the Scheme, the Bank encourages doctors to set up
 clinics in identified rural areas. As at March 2011, the total number
 of such clinics rose to 544. The Bank under Jalayoga, a scheme to
 provide safe drinking water, implemented 35 projects in its lead
 districts.
 
 AN EXAMPLE FOR NURTURING AND
 
 FINE-TUNING THE SKILLS OF RURAL
 
 ARTISANS IN INDIA.
 
 A lot of talented Rural Artisans have found their ways to fine-tune and
 master their skills with the aid of training imparted by the Banks
 sponsored/co- sponsored Rural Training Institutes. One such success
 story is that of Shri. Sadashiv Shenoy an artist par excellence who has
 seen to it that the long tradition of his family, who are renowned
 artists, is well nurtured.  Though a born artist, he did not have a
 single specific area but concentrated on wide ambit of art in
 multifarious fields. He spent almost two years at the CE Kamath
 Institute for Artisans at Karkala as a trainee to further excel his
 skills a nd attain mastery overarts.
 
 Completing an eventful training of two years at the C E Kamath
 Institute for Artisans at Karkala , he went back to his own family work
 shed and started executingthe masterpieces. Wood Carving, Sculpture
 were his area of strength and he employed 4 Master Craftsmen and 25
 Artisans at his work shed. The products created by him and his team has
 wide appreciation and demand in India and abroad. His pieces are
 decorated in many temples across the Country and the Ganapathy statue
 is very popular in Mangaloreand USA.
 
 Being an artist with excellent creativity and fineness, there is no
 dearth of money and recognition. This should be enough motivation to
 sustain the famed art of the nation, he says. Just focus on the job,
 everything willfollowyou is his conviction and message.
 
 Son of late Shri. Su rend ra Shenoy, an artist of eminence and
 recipient of numerous awards, Shri Sadashiv Shenoy hailingfrom Bantwal
 Taluk has dedicated his life towards art and improving the skill.
 
 The Bank donated a hi-tech, custom built, solar powered Mobile Sales
 Van1 to assist women entrepreneurs, SHGs and artisansto
 markettheirproducts.
 
 The Banks Social Action Cell organized Blood Donation camps, Health
 camps, assisting people affected by natural calamities, assisting
 challenged section of the society, including encouraging students by
 conducting various programmes and activities.
 
 Visits by Parliamentary Committees
 
 During 2010-11, Parliamentary Committees on Industry, Parliamentary
 Committee on Personnel, Public Grievances, Law & Justice, Parliamentary
 Committee on Government Assurance, Parliamentary Committee on
 Subordinate Legislation and Committee of Parliament on Official
 LanguagevisitedtheBank.
 
 ORGANISATION AND SUPPORT SERVICES
 
 Expanding Pan India Presence
 
 During the year, the Bank undertook a major branch expansion drive
 across the country. The Bank, on its Founders Day on 19th November
 2010, opened 100 new branches and 100 new ATMs across the country,
 inaugurated by the Honble Union Finance Minister Shri Pranab
 Mukherjee. The Bank added 210 domestic branches in FYll,takingthetotal
 tally underthe branch networkto 3257 branches, including4overseas
 branches one each at London, Leicester, Hong Kong and Shanghai.
 
 Composition of domestic branch network
 
                             No. of Branches 
 Category                 31.03.2010   31.03.2011
 
 Metropolitan                727           758
 
 Urban                       744           762
 
 Semi-urban                  793           922
 
 Rural                       779           811
 
 Total Branches             3043          3253
 
 The Bank has 139 specialized branches catering to the specific
 clientele segment.
 
 Categories of Specialized Branches              31.03.2011
 
 1.    SMEs                                         49
 
 2.    Overseas                                     16
 
 3.    Agri-Finance                                 10
 
 4.    Micro Finance Branches                       19
 
 5.    Savings                                       6
 
 6.    NRIs                                          7
 
 7.    Asset Recovery Management                     7
 
 8.    Prime Corporate                              10
 
 9.    Industrial Finance                            4
 
 10.  Stock Exchange                                 3
 
 11.  Capital Market                                 3
 
 12.  Mahila Banking                                 2
 
 13.  Consumer Finance                               1
 
 14.  Housing Finance                                1
 
 15.  Branch for Physically Challenged               1
 
      TOTAL                                        139
 
 Info Tech Progress
 
 The Bank took several initiatives in the InfoTech front during the
 year. The Bank covered all its branches/offices under Core Banking
 Solution (CBS). With 100% CBS, the Bank now offers technology banking
 services, such as, nternet Banking, Funds Transfer through NEFTand
 RTGS, SMS Alerts, IVRS based enquiryacrossall its branches. The Ba nk
 also offers on I inetradingfacility to its clients through its own
 subsid ia ry M/s Ca na ra Ba n k Secu rities Ltd.
 
 As at March 2011, the Bank had 2216 ATMs spread across 846 centres.
 These ATMs have also been enabled to offer value added services like
 Travel ticket booking, Mobile top up and Utility Bill payments.
 
 In view of the increased attacks of phishing and pharming, the Bank has
 put in place a 24X7 centralized monitoring system of anti phishing and
 anti malware. To make the nternet Bankingfacility more secure a slew of
 measures like implementation of OTP (One Time Password) module, two ive
 validation of account numberforNEFT/RTGS transaction through Net
 Bankingand mutual authentication of Internet Server customer PC (CAN
 SECURE) were introduced. With increased confidence, the number of
 customers enrolled for nternet Banking has moved upto 3.86 lakhs.
 
 The Bank upgraded its Data Centre infrastructure to comply with ISO
 27001 standards and did the upward migration of database to Oracle 11G
 version. The Bank has a well designed and secured corporate network
 covering all the branches and offices. Local Processing Centres (LPCs)
 have been extended to 31 Centres.The Bank has also established one
 Central Pension Processing Cell and 3 NRI Hubsduringtheyear.
 
 A customer terminal has been provided in the branches for easy and
 ready reference to own accounts of customers. Bank has also implemented
 Electronic Data nterchange Module for payment of customs duty and
 fulfillingthe related formalities in electronic mode.
 
 To connect with the youth of the country and obtain first hand
 unrestricted feedback, the Bank has a presence at Twitter
 (http://twitter.com/canarabanktweet).
 
 Manpower Profile
 
 As at March 31, 2011, the Bank had 43397 employees on its rolls.
 
                                       March           March
                                       2010             2011
 
 Total No. of Employees               43380            43397
 
 Officers                             17338            17649
 
 Clerks                               16285            16178
 
 Sub-Staff                             9757             9570
 * includes part-time employees (PTEs)
 
 The Banks employees comprised 40.7% officers, 37.3% Clerks and 22.0%
 Sub-Staff. Women employees comprising 10281 constituted over 23.5% of
 the Banks total staff. The Bank recruited 1089 women employees and
 promoted 303 women employees under various cadres duringtheyear.
 
 During the year, the Bank recruited 2335 persons in various cadres, out
 of which 412 belonged to Scheduled Castes (SCs) and 179 to Scheduled
 Tribes (STs) categories.  The total number of ex-servicemen staff as at
 the end of March 2011 stood at 1652, out of which 169 were recruited in
 various cadres during the year. There were 870 Physically Challenged
 Employees on the rolls of the Bank.
 
 Reservation Policy in respect of SCs and STs
 
 As at March 2011, the number of Scheduled Castes and Scheduled Tribes
 together constituted 26% of total staff strength ofthe
 Bank.Thecomposition of SC/STemployees in the Bank as at March 2011 was
 as under:
 
                                     Scheduled      Scheduled
 Cadre                               Castes         Tribes
 
 Officers                              3245           1172
 
 Clerks                                2814            894
 
 Sub-staff + PTEs                      2721            448
 
 Total                                 8780           2514
 
 The Bank has been strictly adhering to the Reservation Policy in
 respect of Scheduled Castes and Scheduled Tribes as perthe Govt, of
 India guidelines.
 
 - Reservation Policy is implemented through the mechanism of Post Based
 Rosters. In terms of the directives ofthe Ministry of Finance,
 Government of India, Bank has since switched over to Post Based Rosters
 for all cadres.
 
 - The Bank has been extending Reservation/ Relaxations/Concessions in
 Direct Recruitment as well as in promotionsto candidates belongingto
 Scheduled Castes and Scheduled Tribes as per the Govt, guidelines.
 
 - Pre-recruitment and Pre-promotion training is given to candidates
 belonging to Scheduled Castes and Scheduled Tribes. In the
 Advertisement inviting for the application from the eligible candidates
 for recruitment to Clerical and Office read res, a specific reference
 is made with regard to imparting of pre-recruitment training to
 candidates belonging to SC/ST / PWD / Minority Communities / Ex-service
 men. Candidates who opt for pre-recruitment training are given training
 to prepare themselvesforwrittentestas well as interview.
 
 - Study materials, note book, stationery are provided free of cost to
 all the participants. Wherever possible, respective State Governments
 are also providing the lodgingfacilities in government/backward class
 hostels.
 
 - The Ba n k has setu p SC/ST Cel I at the Head Office a nd a Iso at
 Circle Offices to ensure maintenance of Rosters and implementation of
 otheraspects of Reservation Policy
 
 - Chief Liaison Officer has been nominated at Head Office and Liaison
 Officers have been nominated at Circle Offices for ensuring
 implementation of Reservation Policy.
 
 - Further, representations received from Scheduled Caste / Scheduled
 Tribe employees, either directly or through the SC/ST Associations, are
 being looked into by the Liaison Officer/Chief Liaison Officer.
 Wherever required, necessary enquiries are conducted and appropriate
 action is taken. A separate register is maintained for recording
 various representations received from Scheduled Caste/Scheduled Tribe
 employees and the action taken is also recorded in the register.
 
 - In addition to the a bove, the representatives of majority Scheduled
 Caste / Scheduled Tribe Employees Association are invited for
 Quarterly Meeting with the Chief Executive of the Bank to discuss on
 the implementation of guidelines on reservation policy.  Quarterly
 Meetings are also held at Circle Offices, where Rosters a re maintained
 and grievances, if any, are redressed by the Liaison Officer.
 
 - The Board of Directors of the Bank also reviewed the progress made in
 the implementation of Reservation Policyona halfyearlyandyearlybasis.
 
 Training /Human Resource Development (HRD)
 
 The HR policies of the Bank have been reinvented and refocused time and
 again to suit to the changing banking scenario. HR interventions like
 SPANDAN for bringing attitudinal change among front line staff,
 PRATIBHA for grooming in-house talents in varied specialized areas and
 executive groomingthrough reputed institutes and other significant HR
 tools like Quality Circles, Study Circles, Staff Meetings and Brain
 Storming Sessions have been implemented for effective team building and
 fostering collective excellence.
 
 The Banks quest to enhance the competencies of the workforce will
 continuethrough focused and need based trainingsat various institutes
 of repute like IIMs, ISB,XLRI and NIBM. Customised programmes are also
 being organised to develop expertise in certain niche areas like Risk
 Management, Treasury Operations and IT.
 
 Specialised trainings to the Senior Management Level / Top Management
 Level executives are conducted based on the requirement. The Bank has
 been able to add substantially to the repertoire of knowledge of its
 officials through this training intervention and motivating them to
 perform with renewed vigour and enthusiasm.
 
 The Bank has trained 26875 employees during the year, covering a wide
 range of functional areas Out of the trained staff, 6937 personnel
 belonged to the Scheduled Caste category and 2022 under the Scheduled
 Tribe category.
 
 Establishing a proper Talent Management and Reward System will be the
 Banks focus in the com ingyears. There will be concerted efforts to
 identify potential leaders and groom them to take up higher
 responsibilities.
 
 Changes intheOrganizational Setup
 
 The Bank brought out further changes in its organizational/ operational
 set-up to facilitate smooth functioning and driving results.
 
 After completely moving into a 3 tier structure comprising of Head
 Office, Circle Offices and Branches, during FY11, the Bank has carved
 out 3 functional Wings, viz., MSME Wing, Credit Administration Wing and
 Transaction Banking Wing to expand lending to MSMEs, to have focused
 credit administration and expand alternative delivery channels
 respectively.
 
 Customer Orientation
 
 The Bank hastaken initiatives to remain customerfocused through
 providing fast service, bringing in diversified products/services,
 responding to customers queries and redressal of customers
 complaints. The Bank made arrangements for providing copies of the
 Code of Banks Commitment to Customersto customers at branches. An
 informative booklet containing all the relevant information on
 Frequently Asked Questions by Customers was made available at all
 branches towards better Customer Service. The Policy guidelines
 relating to Collection of Cheques/Instruments, Grievance Redressa
 Mechanism and Compensation Policy were placed on the Banks website for
 use of the customers. In order to assess the quality of customer
 service rendered by our branches and to get feedback a Contact
 Questionnaire is made available in the Banks website. A survey to
 measure customer satisfaction was conducted by M/s Campaign ndia
 Research and Marketing Services Pvt. Ltd. As a part of Customer
 Relationship Management initiatives, a Call Centre is functioning. The
 call centre caters to the customers in 6 languages viz., English,
 Hindi, Kannada, Tamil,Telugu and Malayalam. The number of calls
 received by the Call Centre during the year was more than 6.50 lakhs.
 The Bank redressed all the customer complaints within the stipulated
 period, with 95% customer complaint redressed.
 
 Systems and Procedures
 
 Risk Based Internal Audit (RBIA) was conducted in 2057 branches/ units
 programmed for on-site RBIA during the year. Information Security Audit
 was conducted along with RBIA. Concurrent / Continuous Audit was
 conducted in 752 identified branches/ units covering 60% of deposits
 and 78% of advances of the Bank as per RBI guidelines.  ncome/revenue
 audit was conducted on quarterly basis in 481 identified branches as
 per Jilani Committee Recommendations. Apart from the above, 341
 branches were subjected to Special Income Audit. On-site RBIA of
 Circles/Wings was introduced with effect from 01.04.2010 as perthe
 directions of the RBI.
 
 Know Your Customers (KYC)
 
 The Bank took several measures for the effective implementation of Know
 Your Customer (KYC) and Anti Money La undering(AML) guidelines and for
 ensuring KYC compliancebyall branches.
 
 To ensure better compliance of guidelines on KYC / AML followingsteps
 have been initiated.
 
 - All Zones/Circles have nominated an Executive as Nodal Compliance
 Officer for monitoring and ensuring compliance of guidelines on Know
 Your Customer (KYC)/Anti Money Laundering (AML)/Com bating of Financing
 of Terrorism (CFT).
 
 - Branches were advised to strictly adhere to the guidelines on
 KYC/AML/CFT to prevent abuse of banking system by money launderers
 using money mules.
 
 - NREGA job card/Aad ha r document has to be accepted as identification
 document for opening of accounts.  Accounts opened exclusively with
 these documents will have restrictions applicable tosmall accounts.
 
 - Printing and dispatch of Thanks giving letters to new account holders
 and introducers are done centrally at Zonal/CircleOffice.Thissystem has
 been implemented at all Zones/Circles.
 
 Vigilance Setup
 
 The Vigilance Wing of the Bank is headed by the Chief Vigilance Officer
 (CVO) in the rank of General Manager, assisted by 34 Vigilance Officers
 from all Zonal/Circles, RRBs and the Subsidiaries. The functions of the
 vigilance machinery of the Bank is broadly divided into 3 types viz.,
 Preventive, Predictive and Punitive. Vigilance Wing of the Bank
 constantly reviews existing systems and procedures in various areas and
 wherever required recommends changes to strengthen prevention of frauds
 and eradication of corruption. To educate the employees of the Bank,
 the Wing brings out various Fraud awareness Circulars and other
 periodical publications. During the year, the Wing has brought out a
 Compendium on Vigilance and Disciplinary matters - a comprehensive
 reference book on all Vigilance aspects.
 
 The Wing has organized Training Programmes and Conferences for the
 benefit of all CVOs of all Banks. In addition, the Wing has undertaken
 the task of imparting training to the Police Department Personnel on
 issues relating to frauds in Banks, particularly on Cyber Crime matters
 having severe impact on the technologica advancements inthe Industry.
 
 As per the directions of Central Vigilance Commission, Vigilance
 Awareness period was observed from 25th October 2010 to 1st November
 2010. This year the main focus was on the Generation of Awareness and
 Publicity against Corruption. While all the Circles of the Bank
 observed the Awareness Period with alacrity, the culmination of the
 event was marked by the Guest Lecture rendered by the eminent Lokayukta
 of Karnataka State, HonbleJustice N Santosh Hegde.
 
 The Wing hasalso introduced a New Linkonthe intranet, enabling even the
 remote branches to have an instant updation of all Vigilance
 Communications, especially on fraud prevention in CBS environment.
 
 The vibrancy and dynamism of the Vigilance Wing has enabled the Bank to
 take timely steps to improve the turnover time to less than six months,
 for closure of vigilance cases, from the date of issue of charge sheet.
 All complaints received are disposed off in less than two months. The
 Whistle Blowing mechanism has been encouraged, as a result of which,
 many fraudsters have been broughtto book.
 
 The Vigilance Management function has gone hand-in- hand with the
 business developmentf unction of the Bank.
 
 Security Arrangements
 
 The security environment in the Bank remained, by and arge, normal
 during 2010-11. There were 68 incidents of crime during the year
 involving a loss of Rs.30 lakh. There was one major fire incident
 during the year and loss approximated toRs. 15.30 lakh. The security
 arrangements have been reinforced by installation of CCTV in all
 Currency Chests and identified branches. Modern fire safety devices
 have been introduced at select offices. Fire safety drills have been
 introduced and conducted at regular intervals in orderto minimize
 damage to property and prevent injuryand lossof life.
 
 Ambience Improvement
 
 All the new branches opened in prime localities and branches shifted to
 new premises during the year were provided with suitable interior to
 meet the present day requirements of the customers. New branches were
 opened in Ground Floor as far as possible. Besides, the Bank is
 providing better interiors to augment the requirements of computer
 environment and also proposes to enhance the ambience at all branches.
 Ambience improvement has been taken as a core agenda forFY12.
 
 Rightto Information
 
 Underthe Rightto Information Act, 2005,the Bank set up an exclusive
 Right to Information Act outfit to provide information and bring
 transparency. As per the requirement of the RTI Act, Canara Bank
 nominated Public Information Officers and Appellate Authorities in all
 its 34 Zonal/Circle Offices to provide information to the applicants.
 During the Financial Year 2010-11, Bank received 3541 RTI applications,
 531 First Appeals and 155 Second Appeals as per the provisions of RTI
 Act, 2005.
 
 Implementation of Official Language
 
 The Bank made noteworthy progress under the implementation of official
 language and won many prizes at various levels during the year under
 review. The Bank was awarded second prize in Region C under Reserve
 Bank of India Shield Scheme. Town Official Language implementation
 Committee (TOLIC), Trivandrum and Coimbatore, where the Bank is the
 Convenor, were awarded first prize and third prize respectively by the
 Regional Implementation Office, Department of Official Language,
 Government of India. Apart from this, many Zones/Circles and branches
 have received awards from Official Language Department, Government of
 India and the respective Town Official Language Implementation
 Committees.
 
 As at March 2011, around 95% of employees have obtained working
 knowledge in Hindi and the Bank has notified 2192 Branches under Rule
 10(4) of OL Rules 1976. All the employees of the Bank possessing
 working knowledge of Hindi have been trained in Hindi workshops. The
 Bank has conducted 120 refresher training programmes for such employees
 during theyear.
 
 In the sphere of using Information Technology in Official Language, the
 Bank has furthered the use of Unicode and also made provision in ATM
 screens of the Bank for carrying transactions in 10 Indian languages.
 Telebanking facility has also been provided in Hindi and English and in
 other 6 major regional languages. The Banks corporate website is fully
 bilingual. Steps have been initiated for providing Hindi option in Core
 Banking System. In three pilot branches one each in A, B & C
 region, Hindi option was successfully installed. The Banks bilingual
 address booklet CANPATHA is made available to all branches and offices
 in electronicform.
 
 To encourage effective implementation of Official language in Bank, 148
 prizes were given to branches and offices under the award scheme
 formulated by the Bank viz., Canara Bank Rajbhasha Akhay Yojana and 103
 employees were awarded under Rajbhasha Puraskar Yojana.
 
 AtabletopKaryapalak Noting Sahayika was brought out to assist
 Executives to carry out Notings in Hindi and the same was released by
 ourC&MD on the occasion of Hindi Day Function 2010. Annual Hindi
 Journal Canarajyoti was brought out to encouage original writing in
 Hindi.
 
 The Parliamentary Committee on Official Language had inspected a few
 branches and the Banks Zonal/Circle Offices at Delhi and Coimbatore.
 The Committee lauded the efforts put bythe Bank in thefield of Official
 Language implementation.
 
 Promotion of Sports
 
 Canara Bank has always been encouraging and supporting sportsand
 contributed generously to sporting activities at over the country,
 sponsoring tournaments and providing scholarships to talented
 sportspersons. The Bank has also shown a keen and abiding interest in
 recruiting sportspersons and today has on its rolls 41 sports persons
 in six disciplines viz., Cricket, Hockey, Womens Athletics, Badminton,
 Ball Badminton and Table Tennis.
 
 International Cricketers Shri B K Venkatesh Prasad, Shri Sunil Joshi,
 Ms Shantha Rangaswamy, Ms Kalpana and Ms Sudha Shah (Coach of the
 Indian Womens Cricket Team) are presently in the Banks fold. Ace
 Shuttler and former National Champion and former coach of the Indian
 Badminton Team, Shri U Vimal Kumar, Internationa Athletes Smt. M K
 Asha, Smt. Suma Gopalakrishna and Smt. H M Jyothi and Hockey
 Internationals Shri Bharat Ch hetri a ndShriPShanmuga ma re also in the
 Banks rolls.
 
 Canara Bank recorded several distinctions in the sporting arena and the
 Banks Cricket, Ball Badminton and Table
 TennisTeamsrankni/meroi/nointheStateof Karnataka.
 
 FINANCIAL SUPERMARKET
 
 Subsidiaries, Sponsored Entities and Joint Ventures Canara Bank, with
 an objective of offering One Stop Banking Mart1 for the customers,
 forayed into diversified business activities by opening subsidiaries
 during late 1980s. Today, the Bank functions as a Financial
 Supermarket with as many as eight subsidiaries/ sponsored
 entities/joint ventures in diversified areas.  The Bank has taken
 significant steps towards strengthening fundamentals of these entities
 so as to emerge as a strong Financial Supermarket in India. All the
 subsidiaries/ sponsored entities/joint ventures of the Bank recorded
 satisfactory performance during the reportingyear.
 
 Commercial Bankof India LLC (CBIL)
 
 CBIL, a joint venture of Canara Bank and State Bank of ndia, has been
 operational since April 2004 in Moscow, Russia.TheCompanyearned a
 profit aftertax of USD 2.85 million as at 31st March 2011.
 
 Canbank Venture Capital Fund Limited (CVCFL)
 
 CVCFL, the Trustee and Manager of Canbank Venture Capital Fund (CVCF),
 is a wholly owned subsidiary of the Bank. For the year, the Company
 posted a profit of Rs.4.08 crore as com pa red to Rs.0.71 crore for
 2009-10. It lau nched its 5th Fund with the corpus of Rs.500 crore on
 15.06.2010.  The Company has proposed a 100% dividend for the
 year2010-ll.
 
 Can Fin Homes Limited (CFHL)
 
 CFHL, a sponsored entity of Canara Bank, is one of the premier housing
 finance entities in the country. As at 31.03.2011, the Banks stake in
 CFHL was 42.35%. The Company disbursed loans amounting to Rs.473 crore
 during the year, taking cumulative disbursement to Rs.2199 crore. CFHL
 posted a net profit of Rs.42.02 crore for FY11. The Company proposed a
 25% dividend for the year 2010-11.
 
 Canbank Factors Limited (CFL)
 
 Canbank Factors Limited, which is a factoring subsidiary of the Bank,
 is a member of Factors Chain International.  Factors Chain
 International is an umbrella organization for factoring companies
 across the world. The Company achieved a total business turnover of
 Rs.3998 crore as at 31.03.2011. The Company earned Profit after Tax of
 Rs.18.25 crore and paid a dividend of 16% for FY11. The Company enjoys
 the highest rating of P1+ by CRISILfor itsshortterm debt programme.
 
 Canbank Computer Services Limited (CCSL)
 
 Canbank Computer Services Limited is the only Software Company promoted
 by a public sector bank in the country. CCSL is primarily engaged in IT
 and Software development services, training/consultancy and registrar
 and share transfer agency. The Company is a member of the NASSCOM and
 Registered as a software solution provider for World Bank projects. The
 Company has posted profit after tax of Rs.1.26 crore as on 31.03.2011.
 The Company has been successfully managing the Call Centre activity and
 ATM outsourced services for 673 ATMs ofCanara Bank.
 
 Canara Bank Securities Limited (CBSL)
 
 Canara Bank Securities Limited (formerly Gilt Securities Trading
 Corporation Limited) has diversified into Capital Market related
 activities, mainly stock broking since2007.
 
 The Company offers stock broking services to both institutional and
 retail clients.OnlineTradingCounterfor retail customers is itsflagship
 productand has diversified into Currency Derivatives. The Company has
 posted a Profit after Tax of Rs.6.39 crore as at March 2011 and paid a
 dividend of 10%for 2010-11.
 
 Canbank Financial Services Limited (Canf ina)
 
 Canbank Financial Services Ltd confined its activities to legal matters
 arising out of past transactions in securities, besides concentrating
 on collection of lease rentals and recovery of dues under decreed
 Accounts.  During the year, Canfina posted a profit after tax of
 Rs.7.57 crore. It has repaid Rs.326.45 crore out of the funding support
 of Rs.376.45 crore given by the Bank and proposes to clear the
 outstanding liability of Rs.50 croreduringFY12.
 
 Canara Robeco Asset Management Company Limited (CRAMC)
 
 To manage assets of CanbankMutual Fund M/s Canbank nvestment Management
 Services Limited (CIMS) was established in 1993. In the year 2007,
 Canara Bank divested 49% stake of Asset Management Company in favour of
 M/s Robeco Groep N V forming a joint venture, for managing the assets
 of Canbank Mutual Fund. The Company has since been renamed as Canara
 Robeco Asset Management Company Limited. The JV aims to capture a
 worthwhile market share of Mutual Fund industry by bringing best
 international practices and expertise supported by the vast network of
 the Bank.  With a majority share of 51% held by the Bank, Assets Under
 Management (AUM) of the Company was Rs.5593 crore and Corpus fund was
 Rs.4115 crore, with investors base of 4.44 lakhs as at March 2011.
 
 The Company is currently managing 27 Mutual Fund Schemes. It achieved
 break even during 2009-10 and has posted a net profit of Rs.6.11 crore
 for the year 2010-11.  ncome Fund Scheme has been awarded Best Fund
 Award under Income Fund category by ICRA, CNBC TV 18, CRISIL Mutual
 Fund Awards and Business World MF Awards 2010. Equity Diversified and
 Equity Tax Saver Schemes received Best Fund Award under Equity: Large
 & Mid Cap1 and Equity: Tax Planning respectively by NDTV Profit MF
 Awards 2010. In FY11, the Company was ranked 16thoutof42 Fund
 Housescomparedto26thoutof 32 Fund Houses in FY10.
 
 Canara HSBC Oriental Bank of Commerce Life Insurance CompanyLimited
 
 An Insurance Joint Venture floated by the Bank in association with
 internationally reputed HSBC Insurance (Asia Pacific) Holding Limited
 and Oriental Bank of Commerce. The Company was incorporated during
 September 2007. With a majority shareholding of 51% in the Company the
 Bank has ventured into niche segment, with international expertiseand
 domesticoutreach.
 
 The Company commenced its business operations from 16.06.2008.The
 Companys investments duringtheyear stood at Rs.2740 crore. It has
 registered an Annualized Premium Equivalent (APE) of Rs.802 crore
 duringtheyear and crossed Rs.1500 crore in terms of total premium since
 inception. The Company became the fastest to achieve this milestone in
 a record time of 33 months. Out of the 22 private players in the
 insurance field in India, the Com pa ny ra n ked 10th.
 
 Regional Rural Banks (RRBs)
 
 Canara Bank has sponsored 3 RRBs in three States with a network of 806
 branches, viz., Pragathi Gramin Bank in the State of Karnataka, Shreyas
 Gramin Bank in the State of Uttar Pradesh and South Malabar Gramin Bank
 in the State of Kerala. All RRBs sponsored by Canara Bank are profit
 making as at March 2011 with a combined operating profit level atRs.148
 crore and profit after tax of Rs.72.49 crore. Aggregate business level
 of these RRBs stood at Rs.19860 crore, comprising Rs.10698 crore under
 deposits and Rs.9162 crore under advances as at March 2011. Gross NPA
 ratio of these RRBs was 2.93% and Net NPA ratio was 1.26% as at March
 2011. Priority sector advances constituted 87%. Agriculture credit
 outstandingstood atRs.6095 croreasatMarch 2011.
 
 NEW TECHNOLOGY PRODUCTS
 
 The Bank has further enhanced its basket of new tech- products for
 customer convenience like Canara Gift Cards, Canara Campus Card, Canara
 Platinum Card, Bills Deskfor utility bills payment, Cash withdrawal at
 Point of Sale (PoS) machines at Merchant Establishments, VISA money
 transfer and the ASBA (Application Supported by Blocked Amount)
 facility during FY11. The Bank has launched another new product, viz.,
 Mobile Banking, for the convenience of customers on 6th June 2011,
 inaugurated by Smt. Shyamala Gopinath, Deputy Governor, RBI at
 Bangalore.
 
 CONVERGENCE TO IFRS
 
 The Bank has appointed External Consultant for smooth convergence to
 International Financial Reporting Standards (IFRS). The consultant has
 submitted the im pact studyforinitiatingfurther steps.
 
 Bank has formed a high level Committee viz., Project Steering Committee
 headed by Executive Director as Chairman. The Committee is responsible
 for smooth transition to IFRS framework, framing accounting policies
 and solution for convergence, ensuring adequate and sound internal
 control over parallel run reporting, recommending auditors to audit
 opening Balance sheet and fixing the auditors role and
 responsibilities and responsible for timely communication of impact of
 IFRS convergence to External World.
 
 AWARDS/ACCOLADES
 
 In recognition of the varied initiatives, the Bank was conferred with
 several awards and accolades during the year. Some prominentawards
 received areas under:
 
 - The Bank has been conferred with the Second Best Bank Award under
 National Awards for Excellence in lending to Micro Enterprises for the
 year 2009-10, by the Ministry of MSME and Outstanding Performer at
 National level for implementation of nterest Subsidy Eligibility Scheme
 (ISEC) of KVIC in the country for 2009-10.
 
 - The Bank was conferred 4 awards by the Public Relations Council of
 India (PRCI), in the following categories
 
 Silver Award for Corporate Film (TV Commercial) - English
 
 Bronze Award for House Journal/Magazine- Languages
 
 Bronze AwardforTable Calendar Bronze Award for Corporate Advertisement
 -Single- English
 
 VARIOUS POLICIES OF THE BANK
 
 There is a system of well-defined policies and procedures of the Bank.
 During the year, concerted efforts were made to streamline the policies
 and procedures of the Bank in the light of regulatory requirements of
 the RBI, the directions of the Government of India and the emergent
 requirements of the Bank in the present day context. Accordingly, there
 has been a sharperfocus on policiesrelating to, among others, Credit
 Risk Management, Market Risk Management, Operationa Risk Management,
 Asset Liability Management, Liquidity Risk Management, Country Risk,
 Counterparty Bank Risk, Corporate Governance, Disclosures, Collatera
 Management, Stress Testing, Compliance Functions, Disaster Recovery and
 Business Continuity Planning, Business Lines, Outsourcing and Internal
 Capita Adequacy Assessment Process (ICAAP), Know Your Customers (KYC),
 Anti-Money Laundering (AML), Recoveryand Investments.
 
 CHANGES IN THE BOARD OF DIRECTORS
 
 Year2010-llsawchanges in the composition ofthe Board of Directors of
 the Bank.
 
 - Shri Khalid Luqman Bilgrami, Chartered Accountant, nominated as
 Part-time Non-Official Director on 22.06.2010.
 
 - Shri Sunil Gupta resigned as Part-time Non-officia Directoron
 19.07.2010.
 
 - Shri Sunil Gupta and Shri P. V. Maiya were elected as Shareholder
 Directors with effect from 27.07.2010.
 
 - Shri. G. Padmanabhan nominated as Reserve Bank of india Nominee in
 place of Smt. Vani J. Sharma. The term of Smt.VaniJ.  Sharma as
 Directoron the Board of the Bank ended on 29.07.2010.
 
 - Shri. A. C. Mahajan, Chairman and Managing Director, attained
 superannuation on 31.07.2010.
 
 - Shri. S. Raman appointed as Chairman and Managing Directoron
 01.09.2010.
 
 - Dr. Thomas Mathew nominated as Government of india Nominee Director
 in place of Dr K. P. Krishnan.  The term of Dr K.P.Krishna n as
 Director on the Board of the Bank ended on 28.10.2010.
 
 - The term of Dr. Yogendra Pati Tripathi as Director ended on
 22.11.2010.
 
 - Shri. G. V. Manimaran nominated as Other than Workmen Representative
 Director on 14.12.2010.
 
 Brief Profile of the newly appointed Directors of the Board of the Bank
 during 2010-11
 
 - S Raman is the Chairman and Managing Director of the Bank. He holds a
 Masters Degree in Economics from Nagpur University. He also holds a
 Diploma in Business Management and is an Associate of the Chartered
 Institute of Bankers, London. Further, he is also a Certified Associate
 of the Indian Institute of Bankers, Mumbai. He has over 34years of
 experience in Bank of ndia and has had exposure to different segments,
 including Corporate Banking, International Business and Human Resource
 Development. He had two overseas assignments at Jersey (UK) from
 1983-1987 and was the Chief Executive of Bank of ndias US operations
 from June 2005 to October 2008.  Hejoined the Union Bank of India as
 Executive Director on October 15,2008. He is the Chairman and Managing
 Director of the Bank since September 1,2010.
 
 - Dr. Thomas Mathew is the GOI Nominee Director on the Board of the
 Bank since October 29, 2010. He is an Officer of the 1983 batch of the
 Indian Administrative Service. He holds a Masters Degree in
 Internationa Relations from Jawaharlal Nehru University, New Delhi and
 an M. Phil in Strategic Studies from the School of International
 Studies and a Doctorate on US Foreign Policy from Jawaharlal Nehru
 University. He was the Deputy Director General of the Institute for
 Defence Service and Analysis. He is currentlythe Joint Secretary,
 Ministry of Finance (Capital Markets).
 
 - G Padmanabhan, M.A, CAIIB, MBA is the RB Nominee Director of the Bank
 since 30.07.2010. He is the Chief General Manager of RBI, currently
 heading the Department of Payment and Settlement System, of the Bank in
 Mumbai. Areas of work experience include Bank Regulation & Supervision,
 Regulation & Supervision of the Foreign Exchange Market in India as
 also Regulation and Supervison of Markets.
 
 - G VManimaran, B.Sc, (Agri), CAIIB Part-I is the officer employee
 Director of the Bank since December 14, 2010. He joined the Bank on
 February 19, 1986 as Agriculture Extension Officerand is currently
 working in IITBranch,ChennaiasManager.
 
 - Khalid Luqman Bilgrami is a Part-time Non-officia Director of the
 Bank under Chartered Accountant category. He has extensive experience
 in Management and Consultancy in Industrial Sector and has exposure to
 diverse socio-economic development projects spanning various
 Ministries/Departments in Government of India.  He has been a Director
 of the Bank si nee June 22,2010.
 
 - PVMaiya isthe Shareholder Directorofthe Banksince 27.07.2010. He
 holds a Masters degree in Economics and is a Certified Associate of
 the Indian Institute of Bankers. He has more than 32 years of
 experience in State Bank of India, including a four years of experience
 in their foreign offices. He was the Executive Director of Shipping
 Credit and Investment Corporation of India, a Director on the Board of
 Indian Bank. He is the founder Chairman of ICICI Bank and wasthefirst
 Managing Director of CDSL
 
 - Sunil Gupta is a Share holder Director of the Bank. He holds a Degree
 in Commerce and is a Chartered Accountant. He has experience in
 Banking, Finance and Income tax laws. He has been in professiona
 practice as a Chartered Accountant since 1986.  Further, he was a
 Non-official Part-time Director on the Board ofthe Banksince
 November23,2007toJuly 19, 2010. He has been a Share holder Director
 ofthe Bank since July 27,2010.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 The Directors, in preparation ofthe annual accounts for theyearended
 March 31,2011,confirm thefollowing:
 
 - That in the preparation ofthe annual accounts, the applicable
 accounting standards had been followed along with proper explanation
 relating to material departures.
 
 - Thatthey had selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view ofthe state of affairs ofthe
 Bank at the end ofthe financial yea rand ofthe profit or loss ofthe
 Bank for the period.
 
 - Thatthey hadtaken properand sufficientcareforthe maintenance of
 adequate accounting records in accordance with the provisions of
 applicable laws governing banks in India forsafeguardingthe assets
 ofthe Bank and for preventing and detecting fraud and
 otherirregularities.
 
 - That they had prepared the annual accounts on a goingconcern basis.
 
 ACKNOWLEDGEMENT
 
 2010-11 was an eventful yearforthe Bank as it sustained the business
 growth momentum, surpassed business milestones and maintained growth
 under profits and profitability. The Bank made several initiatives to
 maximize rewards for all its stakeholders, viz., shareholders,
 customers, investors, Government, RBI, employees and the public at
 large.
 
 The Board sincerely appreciates the significant contribution made by
 the Directors on the Banks Board and the Directors who completed their
 tenure during the financial year under review, to customers for their
 patronage, to the shareholders for their support, to the Government and
 the RBI for their valuable guidance and support, to the Banks
 correspondents inland and abroad for their co-operation and goodwill
 and to all the staff members for their full support in the journey
 towards high growth and collective excellence.
 
 S RAMAN
 
 CHAIRMAN AND MANAGING DIRECTOR