CANARA BANK A JOURNEY TOWARDS TOTAL FINANCIAL INCLUSION

Canara Bank, commonly known as a Small Mans Bank, was founded by Shri Ammembal Subbarao Pai, a great visionary and philanthropist, in July 1906 in a small port town in Karnataka. The Bank was driven by a mission of services rather than mere pecuniary motives. The founding principles and the philanthropy focused on people orientation and assisting the needy. The ethos and values given by the founder is A good bank is not only the financial heart of the community, but also one with an obligation of helping in every possible manner to improve the economic conditions of the common people. These insightful words of our founder continue to resonate even today in serving the Society with a purpose. While starting itself, the Bank had the following principles: 1. To spread education among all 2. To inculcate the habit of thrift and savings 3. To transform the financial institution not only as the financial heart of the needy but the social heart as well 4. To work with sense of service and dedication 5. To develop a concern for fellow human being and sensitivity to the surroundings with a view to make changes / remove hardships and sufferings The same founding principles have been continuously practiced by the Bank and imbibed by the cross section of the staff members to realize the goal of prosperity and awareness among all. The Bank has made significant progress over the years in relentlessly pursuing the above goals under commercial banking and mandated priority sector lending activities including agriculture. The Bank has also carved a distinctive mark in implementation of national priorities and catering to other corporate social responsibilities.

The Banks Priority Sector lending stood at Rs. 70,757 Crores forming 44.08% of the net bank credit, against a norm of 40%. The Agricultural credit rose to an all time high of Rs. 29,656 Crore, forming 18.48% of the net bank credit as against a norm of 18%, assisting over 31 lakh farmers across the length and breadth of the country. The Bank which has been a pioneer in agricultural credit dispensation and finding innovative ways of reaching the farmers has assisted over 34 lakh farmers under the Kisan Credit Card (KCC) Scheme, disbursing Rs. 18,000 Crore. The number of outstanding KCC stand at 6.62 lakhs, amounting to Rs. 4,979 Crore. NATIONAL PRIORITIES: Apart from pursuing various goals under commercial banking and mandated priority sector lending activities including agriculture, the Bank has also carved a distinctive mark in implementation of national priorities and catering to other corporate social responsibilities. Promoting an inclusive growth strategy, which has been formed as the basic plank of national policy agenda today, is in fact deeply rooted in the Banks founding principles. The Bank has made significant contribution to the Financial Inclusion programme in the country. The Government has allotted 1,615 villages to our Bank all over the country, having over 2,000 population, for coverage under financial inclusion. Of these, 1,615 villages, 300 villages are proposed to be covered under Bank / Branch model and the balance 1,315 villages will be covered by Business Correspondent (BC) model. The Bank has achieved total financial inclusion in all the 26 lead districts spread over five States. During FY11, the Bank opened 6.02 lakh no-frill accounts taking the total tally of No-frill accounts to 30.35 lakh since inception. Bank has also issued over 101,212 smart cards to various no frill account holders.
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CANARA NAYEE DISHA A TOOL OF CANARA BANK FOR HOLISTIC AND MEANINGFUL INCLUSIVE GROWTH: Canara Nayee Disha, a Scheme designed by the Bank, targeting the less privileged is a bouquet of services for NoFrill Account holders to facilitate financial deepening through Group Formation among the No-Frill Account holders. Such Groups formed out of the No-Frill Account holders would be linked to Credit for ensuring better utilization, income generation, peer pressure for repayment and overall economic improvement. Nayee Disha contains

Inbuilt overdraft facility Kisan Credit Card General Credit Card Scheme Differential Rate of Interest Financing SHGs/Micro Credit Groups Financing JLGs of Tenant Farmers Debt Swapping Scheme for Farmers & Urban poor Various Government sponsored schemes Micro-Insurance Free remittance

Certain uniqueness of the approach are Focus on Group Synergy Coverage of atleast 50% of No Frill account holders through SHGs / Micro Credit groups; on economic freedom and sustainability of lives of the just included by encouraging the cohesiveness among them Under ICT enabled model, No frill account holders will be facilitated to access all banking services at the branches apart from services through Business Correspondents Non-Financial support to back the financial initiatives through the rural employment Training Institutes Financial literacy at the door steps of the excluded through expanding the Banks pioneering initiative of
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Canara Grameen Vikas Vahini Scheme, Banking goes to villages exhibitions, Adoption of Schools, Farmers Clubs, etc. Dedicated delivery through Micro Finance branches and Financial Inclusion Cells at select branches Sensitizing staff through a specially designed training module on Financial Inclusion All the branches would be covered through this training programme with at least one employee at each branch getting trained It is envisaged under the Canara Nayee Disha Plan that about 50% of the No-Frill Account holders would form into Groups and balance would come for individual lending. So far, the experience of the Bank has been good in reaching the unreached through the Group concept. A look at the progress under the holistic scheme indicates The progress made under the Canara Nayee Disha Plan is furnished below (Upto July 2011): Bank as a Whole PARTICULARS No. of Amount Beneficia (Rs. In ries lakhs) General Credit Card 93947 23843 Kisan Credit Card 104555 66884 Krishi Mitra 8974 6429 Govt. Sponsored 14960 10577 Schemes Tenant Farmers 3765 2418 Groups MCG 11030 3766 DIR 31041 3532 DEBT Swap 7329 2286 Micro Credit 27183 11390 SHG Linked 198285 41086 TOTAL 396514 105327 Inbuilt OD 118 18 JLG SME 2207 556 GRAND TOTAL 503394 172784
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The Bank formed 3.51 lakh Self Help Groups as at March 2011, with credit linking of 3.20 lakh SHGs. With a view to provide further fillip to financial inclusion drive, the Bank has launched Credit Counselling Centers, established Farmers Clubs, commissioned bio-metric ATMs and has deployed 35 Grameena Vikas Vahinis to spread financial literacy campaign in 35 various districts across the country and opened 19 Micro-Finance Branches as exclusive outfits to cater to both urban and rural poor. In order to propel the financial inclusion drive, the Bank has plans to open man more branches in various rural centers during FY12. As of now, already 75 of such new rural branches under Financial Inclusion Programme have been opened in the States of Tamil Nadu, West Bengal, Kerala and Andhra Pradesh. The Bank has also recruited about 175 Rural Officers for posting to these branches. These rural officers will be working exclusively to implement the financial inclusion plans. Bank has set up Financial Literacy and Credit Counselling Centrres christened as AMULYA in the States of West Bengal, Kerala, Karnataka and Bihar to impart / disseminate knowledge to the rural poor about the objectives of financial inclusion and various banking and financial services available to them especially at their door steps. The Bank has also registered a new Trust, Canara Financial Advisory Trust to manage these Financial Literacy and Credit Counselling Centres. Bank has plans to open 4 more Financial Literacy and Credit Counselling Centres at Coimbatore, Theni, Tiruppur and Ooty, where Canara Bank is having lead district responsibilities. RURAL DEVELOPMENT:

Canara Bank has been in the forefront amongst the comity of the Banks in initiating various Rural Development Programmes. The bank promoted Canara Bank Centenary Rural Development Trust, which has formed 23 Rural Self Employment Training Institutes across the country. These Centres have trained more than 1.25 lakh youth in various self employment ventures and 70% of the trained are gainfully employed. The trust has also promoted 4 Information Technology Training Centres which include the recently opened one at Berhampur in Murshidabad District of West Bengal and 3 Artisans Development Centres. The training in these institutes is provided free of cost to youth. The bank has deputed its officers / staff as resource persons to manage these centres. The Bank has actively associated with Dharmasthala Manjunatheshwara Educational Trust and Syndicate Bank in establishing 25 Rural Development and Self Employment Training Institutes in different locations across the countries which have trained around 3 lakh youth so far with the success rate of well over 70%. These centres have now been well recognized at the National Level by Government of India and various State Governments and are being replicated by these Ministries. RUDSETIs have now become nodal centre for promoting selfemployment among rural youth. An array of welfare programmes initiated by the Bank are as under: Promoting 600 full time Rural Clinics and 740 Mobile Service Units. Implementation of Jala Yoga, a drinking water supply system at 35 villages. Deputation of 85 of its staff as full time Rural Service Volunteers who acted as catalyst of development covering cluster of villages, more than 600 benefiting 5000 families.
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 Bringing various Government and Non Government agencies under a common platform for implementing infrastructure programmes. Establishing 16 Cangrama Shikshana Kendras and 19 Rural Resource Development Centres, which acted as a nucleus, centre of selected village development. Organized more than 3000 animal health check up camps during the last three years and constructed 40 drinking water troughs to provide water to animals. Afforestation programme taken up at 90 locations. 2400 families were encouraged to adopt kitchen gardening, nursery development and growing plants having medicinal values. Established 135 Rural Libraries, 9000 illiterate adults made to acquire functional literacy. Assisted 267 Anganwadis and involved in encouraging school drops to get enrolled to schools. Established 40 living cum working sheds benefiting 80 rural artisans in the field of pottery, wood and stone carving and metal craft. Desilting of water tank at 70 villages, encouraging usage of gobar gas at 60 villages and wind energy. Setting up of Jubilee Education Fund which is providing free text books to BE/MBBS Students, offer scholarships and organizes educational tours on annual basis. A statistical profile of the Banks performance in priority and other sectors is appended for holistic view.
Page 1 UIDAI AADHAAR ENROLMENTS AND OTHER LINKED ACTIVITIES

Our Bank is a Registrar to UIDAI for Aadhaar enrollments. During the last year we have done 1.95 lakh enrollments on a pilot basis. Now UIDAI has been mandated by the Govt. of India to continue enrollments up to 31.03.2014. We propose to go in for a RFQ for finalizing the enrollment Agencies for restarting the enrollments across the country. Aadhaar enrollment has been taken up on a pilot basis in the states of Delhi, UP, Karnataka, Bihar, Andhra Pradesh and Kerala and Rajasthan. The details of enrollments are as under:
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Name of the Centre Delhi Agra Karnataka Bihar Total

No. of Enrollments 52702 30786 8147 5111

Name of the Centre Andhra Pradesh Maharashtra Kerala Rajasthan 195126 **

No. of Enrollments 37903 6352 24434 29691