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dm{fH$ [anmoQ>2012-2013

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ANNUAL REPORT2012-2013

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CONTENTS

1. NOTICE 4

2. PROGRESS AT A GLANCE 28

3. DIRECTORS REPORT 2012-2013 29

MANAGEMENT DISCUSSION AND ANALYSIS 30

CANARA BANK IN 2012-2013 34

CHANGES IN THE BOARD OF DIRECTORS 71

DIRECTORS RESPONSIBILITY STATEMENT 72

ACKNOWLEDGEMENT 72

4. BUSINESS RESPONSIBILITY REPORT 73

5. REPORT OF THE BOARD OF DIRECTORS ON CORPORATE GOVERNANCE 94

6. AUDITORS CERTIFICATE ON CORPORATE GOVERNANCE 118

7. STANDALONE FINANCIAL STATEMENTS

AUDITORS REPORT 121

BALANCE SHEET 124

PROFIT AND LOSS ACCOUNT 125

SCHEDULES FORMING PART OF THE BALANCE SHEET 126

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT 134

ACCOUNTING POLICIES 136

NOTES ON ACCOUNTS 144

PILLAR 3 (BASEL II) DISCLOSURES 185

CASH FLOW STATEMENT 217

8. CONSOLIDATED FINANCIAL STATEMENTS

AUDITORS REPORT 220

CONSOLIDATED BALANCE SHEET 223

CONSOLIDATED PROFIT AND LOSS ACCOUNT 224

SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET 225

SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT 232 ACCOUNTING POLICIES 234 NOTES ON ACCOUNTS ON THE CONSOLIDATED FINANCIAL STATEMENTS 242

CONSOLIDATED CASH FLOW STATEMENT 255

9. CHAIRMAN & MANAGING DIRECTORS ADDRESS TO SHARE HOLDERS 257

10. LIST OF DP SERVICE CENTRES 258

11. NOMINATION FORM 260

12. DECLARATION 262

13. FORMAT FOR BIODATA OF THE CANDIDATE 264

14. ATTENDENCE SLIP CUM ENTRY PASS 270

15. PROXY FORM 272

ANNUAL REPORT 2012-2013

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dm{fH$ [anmoQ> 2012-2013

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NOTICENotice is hereby given that the Eleventh Annual General Meeting of the Shareholders of Canara Bank will beheld on Monday, the 22nd July 2013 at 10.00 am at Jnanajyothi Auditorium, Central College, Palace Road, Bangalore 560 001, to transact the following business:

1. To discuss, approve and adopt the Audited Balance Sheet of the Bank as at 31st March 2013, Profi t & Loss account for the year ended 31st March 2013, the Report of the Board of Directors on the working and activities of the Bank for the period covered by the Accounts and the Auditors Report on the Balance Sheet and Accounts.

2. To declare dividend for the fi nancial year 2012-13.

3. To elect three Directors from amongst Shareholders of the Bank other than the Central Government, in respect of whom valid nominations have been received, in terms of Section 9(3) (i) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (hereinafter referred to as the Act) read with The Banking Regulation Act, 1949 and Nationalised Banks (Management & Miscellaneous Provisions] Scheme, 1970 (hereinafter referred to as the Scheme) and Canara Bank (Shares and Meetings) Regulations, 2000 (hereinafter referred to as the Regulations) and Notifi cations No. DBOD.No. BC.No. 46 and 47/29.39.001/2007-08 dated 1st November, 2007 read with No. DBOD.BC. No. 95/29.39.001/2010-11 dated 23rd May, 2011 of Reserve Bank of India (hereinafter referred to as RBI Notifi cation) by passing the following resolution: -

RESOLVED THAT three Directors elected from amongst shareholders other than Central Government pursuant to Section 9(3)(i) of the Act read withScheme, Regulations made thereunder and Notifi cations be and are hereby appointed as the Directors of the Bank to assume offi ce from 27th July, 2013 and hold offi ce until the completion of a period of three years from the date of such assumption (i.e., up to 26th July, 2016)

By Order of the Board of Directors

R. K. DUBEYChairman and Managing Director

Place : BengaluruDate : 10-6-2013

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NOTES

1. EXPLANATORY STATEMENT: The Explanatory Statement setting out the material

facts in respect of Item No. 3 of the Notice regarding Election of Directors are annexed below.

2. APPOINTMENT OF PROXY: A SHAREHOLDER ENTITLED TO ATTEND AND VOTE AT

THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A SHAREHOLDER OF THE BANK. The Proxy Form in order to be effective must be lodged at the Head Offi ce of the Bank, at least Four days before the date of the Annual General Meeting i.e. on or before the closing hours of the Bank on Wednesday, 17 July 2013.

3. APPOINTMENT OF AN AUTHORISED REPRESENTATIVE: No person shall be entitled to attend or vote at

the meeting as a duly authorized representative of a company or any other Body Corporate which is a shareholder of the Bank, unless a copy of the Resolution appointing him/her as a duly authorized representative, certifi ed to be true copy by the Chairman of the meeting at which it was passed, shall have been deposited at the Head Offi ce of the Bank at least four days before the date of the Annual General Meeting, i.e. on or before the closing hours of the Bank on Wednesday, 17 July 2013.

4. REGISTRATION:

In order to facilitate the shareholders attending the meeting, Registration process will commence from 8.30 a.m. Monday, 22nd July 2013 at the venue. Shareholders are requested to be present for the meeting well in advance, to complete the Registration formalities.

5. ATTENDANCE SLIP: For the convenience of the shareholders,

attendance slip-cum-entry pass is annexed tothis notice. Shareholders/Proxy Holders/Authorised Representative is requested to fi ll in, affi x their signatures at the space provided therein, and surrender the same at the venue. Proxy/Authorised Representative of a shareholder should state on the attendance slip as Proxy or Authorised Representative as the case may be. Shareholders / Proxy holders / Authorised Representatives may note that the admission to the meeting will be

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subject to verifi cation / checks, as may be deemed necessary and they are advised to carry valid proof of identity viz., Voters ID Card / Employer Identity Card/ Pan Card / Passport / Driving license etc. Entry to the venue will be permitted only on the basis of valid Attendance Slip-cum-Entry Pass.

6. COMMUNICATION WITH THE SHARE TRANSFER AGENTS:

Shareholders holding shares in physical form are requested to intimate changes, if any, in their Registered Addresses, to the Share Transfer Agents of the Bank at the following address:

Karvy Computershare Pvt. Ltd Unit: Canara BankPlot No. 17-24, Vittal Rao NagarMadhapur HYDERABAD 500 081

Further, the shareholders are advised to inform/register their e-mail IDs either to the Share Transfer Agents (at the above address) or to the Bank at hosecretarial@canarabank.com

Shareholders holding shares in dematerialised form are requested to intimate the aforesaid changes only to their depository participants.

7. CLOSURE OF BOOKS: The Register of shareholders and the share transfer

books of the Bank will remain closed from Saturday, 6th July 2013 to the Monday, 22nd July 2013 (both days inclusive) in connection with the Annual General Meeting and for the purpose of determining the shareholders entitled to receive the dividend, declared by the Bank.

8. PAYMENT OF DIVIDEND / RECORD DATE: The Board has recommended a dividend of `13.00

per equity share (130%) for the year 2012-13. It has been decided to pay the dividend to the Shareholders whose names appear on the Register of Shareholders/ Benefi cial owners as furnished by NSDL/CDSL as on Friday, 5th July 2013 (hereinafter referred to asRecord Date).

The Bank will credit the dividend amounts to the bank accounts of the shareholders through National Electronic Funds Transfer (NEFT) / National Electronic Clearing Service (NECS) facility, wherever possible. The shareholders, who are holding the shares in electronic form, are, therefore, requested to inform their Depository Participants about their latest change

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of address and bank mandate details (including new account number, if any, banks MICR and IFS Code numbers) immediately to ensure prompt crediting of the dividend amounts through NEFT / NECS. The shareholders who are holding the shares in demat form may approach their DEPOSITORY PARTICIPANTS ONLY for necessary action in this connection.

The Shareholders who are holding their shares in physical form should furnish / update their Bank Mandate details to the Secretarial Department of the Bank or to the Share Transfer Agent of the Bank at the address given in this Notice.

9. CONSOLIDATION OF FOLIOS: The shareholders who are holding shares in identical

order of names in more than one account are requested to intimate Karvy Computershare Pvt. Ltd, the ledger folio of such accounts together with the share certifi cates to enable the Bank to consolidate all the holdings into one account. The share certifi cates will be returned to the Shareholders after making necessary endorsement in due course.

10. UNCLAIMED DIVIDEND, IF ANY: The shareholders who have not encashed their

Dividend Warrants / received dividend of previous periods, are requested to contact the Share Transfer Agent of the Bank for revalidation / issue of duplicate dividend warrants.

The Bank has posted the details of the Unclaimed/ Unpaid Dividend Warrants on its site ie.,www.canarabank.com to enable the shareholders to claim by taking up with the Share Transfer Agent / or with the Bank at hosecretarial@canarabank.com

As per the newly inserted Section 10B of the Banking Companies (Acquisitions and Transfer of Undertakings) Act, 1970, the amount of dividend remaining unpaid or unclaimed for a period of seven years is required to be transferred to the Investor Education and Protection Fund (IEPF) established by the Central Govt. under section 205C of the Companies Act, 1956, and thereafter no claim for payment shall lie in respect thereof either to the Bank or to the IEPF.

11. ANNUAL REPORT: Shareholders / Proxy holders / Authorized Representatives

are requested to bring their copies of the Annual Report to the Annual General Meeting.

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AlUk W M u uwM Aq oPM q Ai xqr uwM UmO M Aml mir s AL |

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12. VOTING RIGHTS OF SHAREHOLDERS: In terms of the provisions of Section 3 (2E) of the

Act (as amended and effective from 18.01.2013), no shareholder of the Bank, other than the Central Government shall be entitled to exercise voting rights in respect of any shares held by him / her in excess of ten per cent of the total voting rights of all the shareholders of the Bank.

In terms of Cl. 68(i) of Canara Bank (Shares and Meetings) Regulation, 2000, subject to the provisions contained in Section 3 (2E) of the Act, each shareholder who has been registered as a shareholder as on the date of the closure of the Register, prior to the date of the Annual General Meeting shall have one vote on show of hands and in case of a poll shall have one vote for each share held by him.

EXPLANATORY STATEMENT IN RESPECT OF THE BUSINESS MENTIONED AGAINST ITEM NO. 3 OF THE NOTICE:

ELECTION OF DIRECTORS

The Bank, as part of the Eighth Annual General Meeting of shareholders of the Bank, conducted the election for two Directors from amongst the shareholders of the Bank other than the Central Government and two candidates were declared elected. Their term of offi ce is 3 years from the date of assuming offi ce after election i.e., on 27.07.2010 and the said term is expiring on 26.07.2013.

As per the Section 9 (3) (i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, if the paid up capital issued to Public is more than 32%, three (3) Directors are to be elected by the Shareholders, other than the Central Government from amongst themselves. Consequent to the issue of shares pursuant to a Qualifi ed Institutional Placement made in 2011,the paid-up capital held by Public is 32.28 % of the Bank and the shareholders are entitled to elect 3 Directors of the Bank.

In line with Section 9 (3) (i) of the Act, the Bank has as a part of Eleventh Annual General Meeting of shareholders of the Bank, decided to conduct the election of three Directors from amongst the shareholders of the Bank other than the Central Government.

A Director so elected shall be deemed to have assumed offi ce from 27th July, 2013 and shall hold offi ce for a period of three years from the date of such assumption of offi ce.

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ukM mukl: ukM mukl:

Cx xok q sa up Aklrq / relA / ulrq / AkxclA q lWi mukl M xMi lql xUh q Sr ar W:

Aklrq, rel, ulrq,Aklrq, rel, ulrq,AkxclAkxcl

mukl mukl xmi uuUh xmi uuUh

oMa ulrq Aklrq, 1949 kU 16 (1) kU 20

xqlr lSvM M lwk Mx lSzM M r Mx lSzM M AU x Gh u Aaq M qeU M sL miok

oMa Mml (Emq M AkaWh u AiUh) Aklrq, 1970

kU 3 (2D) kU 9(3)(i)kU 9(3L) (L) x (x) kU 9(3D) u kU 9(3Lo)

kU 9(3o)

kU 13(2)

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xir M m q l u amlri M okri

UrMi oM (mokl u uuk mukl) rel, 1970

ZQ 9(4)ZQ 10ZQ 11ZQ 11 L ZQ 11 o ZQ 12(8)

luci lSzM M MrMs oM M lSzM M m q cl el x Arar PWUr el lSzM M mS M U Mr elluci lSzM M mScri Mr el luci lSzM M mS q Ur M pUl Aml WilxU MN uruxjA q lSzM U Wi M mMOl

MlU oM (zrU u oPM) ulrq, 2000 (rj xzki)

ulrq 10 ulrq 61ulrq 63ulrq 64ulrq 65ulrq 66ulrq 67 ulrq 68ulrq 69ulrq 70

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LEGAL PROVISIONS:The following table indicates the provisions contained in various Acts/ Scheme/ Regulations/ Notifi cations applicable in this regard:

ACT, SCHEME, REGULATIONS,NOTIFICATIONS

PROVISIONS SHORT PARTICULARS

The Banking Regulation Act, 1949 Section 16 (1)Section 20

Prohibition of Common DirectorRestrictions for granting loan or advance to or on behalf of any of its directors

The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

Section 3 (2E)Section 9(3)(i)Section 9(3A) (A) to (C)Section 9(3AA) &Section 9(3AB)

Section 9(3B)

Section 13(2)

Restriction on voting rightsNo. of directors to be elected by the shareholdersSpecial knowledge in certain fi elds

No person shall be eligible to be elected as director unless he is a person having fi t and proper status based upon track record, integrity and such other criteria as RBI may prescribe.Right of RBI to remove a director so elected who does not fulfi ll the requirements of Section 9(3A) and 9(3AA) of the said Act.Obligation as to fi delity and secrecy

The Nationalised Banks (Management And Miscellaneous Provisions) Scheme, 1970

Clause 9(4)Clause 10Clause 11Clause 11AClause 11BClause 12(8)

Term of offi ce of elected directorsDisqualifi cations from being elected as a Director of the BankVacation of offi ce of DirectorRemoval from offi ce of an elected DirectorFilling of vacancy in the offi ce of an elected directorDisclosure of interest by directors in certain arrangements in which they are interested.

Canara Bank (Shares and Meetings) Regulations, 2000(as amended)

Regulation 10 Regulation 61Regulation 63Regulation 64Regulation 65Regulation 66Regulation 67 Regulation 68Regulation 69Regulation 70

Exercise of rights of joint holdersVoting at General MeetingsDirectors to be elected at General MeetingsList of Shareholders Nomination of candidates for electionScrutiny of nominationsElection disputesDetermination of voting rightsVoting by duly authorized representativeProxies

RBI Notifi cation No. DBOD.No. BC.No.46 and 47/29/.39.001/2007-08 dated 01.11.2007 and No.DBOD.BC.No.95/29.39.001/ 2010-11 dated 23.05.2011

Pursuant to Section 9(3AA) and Section 9(3AB) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

Fit and Proper criteria for elected directors on the Board of nationalized banks

RBI Master Circular dated 2nd June 2012 (RBI/2012-13/79 DBOD.No. Dir.BC.4/13.03.00/2012-13)

Granting loans and advances to relatives of Directors

11

EXTRACTS OF RELEVANT ACTS / SCHEME / REGULATIONS / NOTIFICATIONS ETC.

For the convenience of the shareholders, the relevant extracts from Regulation Act, the Act, the Scheme as well as RBI Notifi cations No. DBOD.No. BC.No.46 and 47/29/.39.001/2007-08 dated 01.11.2007 andNo.DBOD.BC.No.95/29.39.001/2010-11 dated 23.05.2011 are reproduced at the end of this Notice. Such extracts will also be e-mailed to the intending candidates on receipt of a request addressed to the Secretarial Department of the Bank, on or before the last date fi xed for submission of nomination forms viz. 06th July, 2013.

13. QUALIFICATION REQUIRED FOR BEING ELECTED AS A DIRECTOR OF THE BANK

a) In terms of Section 9(3-A) of the Act, a candidate being a Shareholder of the Bank and who desires to be elected as Director under the clause (i) of Sub section (3) of the Act shall-

A) have special knowledge or practical experience in respect of one or more of the following matters namely:-

- agriculture and rural economy

- banking

- co-operation

- economics

- fi nance

- law

- small-scale industry

- any other matter the special knowledge of and practical experience in which, would, in the opinion of the Reserve Bank be useful for the Bank.

B) represents the interest of depositors; or

C) represent the interest of farmers, workers and artisans.

b) In terms of Section (3-AA) of the Act, without prejudice to the provisions of sub-section (3A) and notwithstanding anything to the contrary contained in this Act or in any other law for the time being in force, no person shall be eligible to be elected as director under clause (i) of sub-section (3) unless he is a person having fi t and proper status based on track record, integrity and such other criteria as the Reserve Bank may notify

xo Aklrq / relA / ulrq / AkxclA AS M EUh:

zrUkUM M xukj xo Aklrq, relA, ulrq, pUir Ueu oM M Akxcl QoAQ. x. ox. x. 46 AU 47/29.39.001/2007-08, SlM 01.11.2007 AU QoAQ. ox. x.95/29.39.001/2010-11 SlM 23 qD, 2011 M EUh Cx lOx M Ai q ml: Sr ar W | Lx EUh oM M xcur mpa M mirzr x lqMl mm mxii MUl M sL lkUi ij M r ExM mWs, Aji 06 esD, 2013 iM AlUk M mmi mU D-qs U mwi Mr eLa |

13. oM M lSzM M m q cl el M sL Ami 13. oM M lSzM M m q cl el M sL Ami rari:rari:

M) Aklrq M kU 9(3-L) M AlxU oM M zrUkUM Wl us mirz e Aklrq M EmkU (3) M ZQ (i) M iWi lSzM M m q cl el M CcNM W, M:

M) lql uwr q x LM r AkM q uzw l r uruWUM Alpu Wl cWL:-- Mw AU aqh Ajuruxj - oMa- xWMUi- Ajzx- u- uk- sb Ea- Mx Alr uwr M uzw l AU uruWUM

Alpu e pUir Ueu oM M ucU q oM M sL Emra Wa|

Z. eqMiA M Wi M milkiu MUi W; r

a. Mxl, qM AU MUaU M Wi M milkiu MUi W|

Z) Aklrq M kU (3-L L) M EmkU (3 L) M mukl M mukUh M ol AU Cx Aklrq r xmi muil q UWl us Mx Alr uk q lWi Mx uwr M u Wl us x MD isMi lW UZi WL mu ApsZ, AZQi AU Cx Sz q xqr-xqr mU pUir Ueu oM U xcilxU MD Alr qlM M AkU mU

12

from time to time in this regard. Further the elected director should execute the deed of covenants and is required to furnish annual declarations as prescribed by the Reserve Bank of India in this regard.

c) In terms of Section (3-AB) of the Act, the Reserve Bank may also specify in the notifi cation issued under sub-section(3AA), the authority to determine the fi tand proper status, the manner of such determination, the procedure to be followed for such determination and such other matters as may be considered necessary or incidental thereto.

14. DISQUALIFICATION FROM BEING ELECTED AS A DIRECTOR OF THE BANK:

A. In terms of Clause 10 of the NationalisedBanks (Management & Miscellaneous Provisions) Scheme, 1970, a person shall be disqualifi ed for being appointed, as and for being a Director:

a) if he has at any time being adjudicated an insolvent or has suspended payment or has compounded with his creditors; or

b) if he has been found to be of unsound mind and stands so declared by a competent court; or

c) if he has been convicted by criminal court of an offence which involves moral turpitude or

d) if he holds any offi ce of profi t under any nationalised Bank or State Bank of India constituted under sub-section (1) of Section 3 of the State Bank of India Act, 1955 or any subsidiary Bank as defi ned in Section 3 of the State Bank of India (Subsidiary Banks) Act, 1959, except for holding the post of a whole-time Director, including the Managing Director and Directors nominated under clauses (e) and (f) of sub-section (3) of Section 9 of the Act from among the employees of the Bank.; And

B. In terms of Notifi cation of Reserve Bank of India-DBOD No. BC. No. 46 & 47/29.39.001/2007-08 dated 01.11.2007 read with No. DBOD.BC.No.95/29.39.001/2010-11 dated 23rd May, 2011, he is not found to be fi t and proper person, by the Nomination Committee of the Directors of the Bank.

MD ur rar AU Eci Wxri us l W i EmkU (3) M ZQ (i) M Aiai lSzM M m q cl el M sL m lW Wa| Aa cl ar lSzM M mxuS usZ lwmSi MUl cWL AU pUir Ueu oM U Cx Sz q lkUi uwM bwhL MUl Wa|

a) Aklrq M kU (3-L o) M AlxU, pUir Ueu oM EmkU (3LL) M Aiai eU M aD Akxcl q rar AU Eci Wxri lkUi MUl M mkMU, Lx lkUh M iU iUM, Lx lkUh M sL AlxUh M el us mr AU ExM sL AuzrM r mxaM ql el us qqs M oU q p Akxcl q ulS MU xMi W|

14. oM M lSzM M m q cl el x Arar PWUr 14. oM M lSzM M m q cl el x Arar PWUr el:el:

M. UrMi oM (mokl u uuk mukl) rel, 1970 M ZQ 10 M AlxU ur uzw M lql MUh x lSzM M m q lr Wl x Arar PWU eLa:

M. rS Ex Mp Susr lhi Mr ar W r ExM sl SU M cMi lW Mr W r

Z. Ex uoql mr ar W r xq lrrsr U Lx bwi Mr ar W

a. rS Ex liM Essbl Aiai Mx AmUk M iWi AmUkM lrrsr U Sw PWU ar W|

b. oM M MqcUr q x Aklrq M kU 9 M EmkU 3 M ZQ (D) AU (LT) M Aiai lqi lSzM AU mok lSzM zqs MUM mhMsM lSzM M mS kUl M NQMU Mx UrMi oM r pUir xOO oM Aklrq, 1955 M kU 3 M EmkU (1) M iWi aPi pUir xOO oM r pUir xOO oM M kU 3 q mUpwi AlxU Mx Alwa oM q Mx mMU M spSrM AkMU q W; AU

Z. pUir Ueu oM M Akxcl - QoAQ.x. ox. x. 46 AU 47/29.39.001/2007-08, SlM 01.11.2007, QoAQ.ox x.95/29.39.001/2010-11 SlM 23 qD, 2011 M xj mPi M AlxU oM M lSzM M lqMl xqi U Ex rar AU Eci lW mr ar i

13

15. AVAILABILITY OF LIST OF SHAREHOLDERS: To enable the Shareholders to contest the election,

a copy of the list of shareholders as mentioned in Regulation 64 of Canara Bank (Shares and Meetings) Regulations 2000 will be made available at the Head offi ce of the Bank, from Monday, 1st July 2013 onwards for purchase by Shareholders on payment of

`50,000/-[Rupees Fifty Thousand Only] by Demand Draft in favour of Canara Bank payable at Bangalore.

The Register of Shareholders will be open for inspection at the Head Offi ce of the Bank on all working days (other than Sundays and Bank holidays) ie., Monday to Friday between 3.00 p.m. to 5.00 p.m. and Saturday between 11.00 a.m. to 1.00 p.m. If any shareholder requires a copy or computer print outs of the register or of any part thereof, the same shall be supplied to him/her on pre-payment at the rate of

`5/- for every 1000 words or fractional part thereof required to be copied/printed.

16. PARTICIPATION IN ELECTION/INTERNAL CUT-OFF DATE:

Those shareholders whose names appear on the Register of Shareholders / Benefi cial owners as furnished by NSDL/CDSL as at the close of business hours on the date i.e Friday, 21st June 2013 (hereinafter referred to as the Internal Cut-Off Date) shall be entitled to participate in the election i.e. nominate, contest and vote in election of three directors from amongst Shareholders other than Central Government.

17. NOMINATION OF CANDIDATES FOR ELECTION: No nomination of a candidate for election as a

Director shall be valid unless,

a) he/she is a shareholder holding not less than100 shares in Canara Bank as on Friday, 21st June 2013, being the Internal Cut-Off Date/Date of reckoning for participating in the election;

b) he/she is as on Saturday, 6th July 2013 being the last date for receipt of nomination not disqualifi ed to be a Director under the Act or under the Scheme or RBI Notifi cation;

c) the nomination is in writing signed by atleast one hundred shareholders entitled to elect Directors under the Act or by their duly constituted attorney, provided that a nomination by a shareholder who is a company may be

15. zrUkUM 15. zrUkUM M xc M Emsoki:M xc M Emsoki:

clu sQl q zrUkUM M xqj oll M sL MlU oM (zrU u oPM) ulrq 2000 M ulrq 64 q oir ar zrUkUM M xc xquU, 1 esD 2013 x sMU oM M mkl Mrsr q Emsok MUD era iM oasU q xSr MlU oM M m q qaQnO U `50,000/- (mcx WeU mL q) AS MUM ZUS e xM|

zrUkUM M UexOU oM M mkl Mrsr q xp MrSux mU (UuuU ij oM AuMz M NQMU), Aji xquU x zuU iM AmU 03.00 oe x 05.00 iM AU zluU M mu 11.00 oe x AmU 01.00 oe iM lUh M sL Emsok Wa | rS MD zrUkUM M UexOU M mi r UexOU M Wxx M mi r MmrOU mO AEO M AuzrMi W i mi 1000 zoS r ExM Wxx M sL `5/- M mupail mU Ami Mr eLa |

16. clu q mipai / AiUM MO-BT ij: 16. clu q mipai / AiUM MO-BT ij:

xSxr M UexOU / LlLxQLs / xQLxLs U S aD spj xuq UexOU q SlM vuU, 21 el 2013 (Aa AiUM MO-BT ij sZ eLa) M MUoU xqr M mi lq W i clu q mipai, Aji lqMl MUl M sL, clu sQl M sL ij MlS xUMU M Asu il lSzM M cll M sL qiSl Sl M sL m W eLa

17. clu M sL mirzr M lqMl:17. clu M sL mirzr M lqMl:

lSzM M mS M sL mirz M lqMl io ukWa, eo

M. clu q pa sl M ahl MUl sl M sL AiUM MO-BT ij / clu q pa sl M sL ahl M e UW iUZ vuU, 21 el 2013 M MlU oM M 100 zrU lW UZi W|

Z. Ex Aklrq r rel M iWi lqMl mmi MUl M AZU iUZ vluU, 6 esD 2013 M lSzM Wl M sL Arar lW PWUr ar W|

a. lSzM M cll M sL m Mq x Mq 100 zrUkUM r ElM ukui aPi qZiU U sZi m q lqMl WxiUi lW Mr ar W| ozi

14

made by a resolution of the Directors of the said company and where it is so made, a copy of the resolution certifi ed to be a true copy by the Chairman of the meeting at which it was passed shall be dispatched to the Head Offi ce of Canara Bank addressed to the General Manager, Canara Bank, CMDs Secretariat, Head Offi ce,112, J C Road, Bangalore 560002 and such copy shall be deemed to be a nomination on behalf of such company;

d) the nomination accompanies or contains a declaration signed by the candidate before a Judge, Magistrate, Registrar or Sub-Registrar of Assurances or other Gazetted Offi cer or an offi cer of the Reserve Bank of India or any Nationalized bank, that he accepts the nomination and is willing to stand for election, and that he/she is not disqualifi ed either under the Act or the scheme or these regulations from being a Director. His/her personal details (bio-data) duly signed and affi rming that details furnished are true to the best of his/her knowledge and belief and also his/her undertaking to keep the Bank fully informed as soon as possible of such events which are relevant to the information, subsequent to the declaration.

e) he/she is not disqualifi ed under the Banking Regulation Act, 1949, or the Banking Companies (Acquisition and Transfer of Undertakings)Act, 1970 or the Nationalized Banks (Management & Miscellaneous Provisions) Scheme, 1970 or the Canara Bank (Shares and Meetings) Regulations, 2000 and Notifi cation No. DBOD No. BC No. 46/29.39.001/2007-08 dated 01.11.2007 & DBOD No. BC No. 47/29.39.001/2007-08, dated 01.11.2007 and DBOD BC No. 95/29.39.001/2010-11, dated 23.05.2011 of Reserve Bank of India, from being a director.

18. SUBMISSION OF NOMINATION FORMS: Shareholders desirous of contesting the election of

Directors of the Bank from amongst the Shareholders other than the Central Government should submit their nomination forms [a minimum of 100] along

M Mml Wl us zrU kUM U lqMl Mji Mml M lSzM M mxiu U Mr er AU Lx Mr el mU Cx oPM q xMsm mUi Mr ar W ExM Akr U xW xir mi M m q mqhi mxiu M mi qW mokM, MlU oM, Akr u mok lSzM M xcusr, mkl Mrsr, 112 e x UQ, oasU-560 002 M xoki MUM MlU oM M mkl Mrsr M mwi Mr er AU Lx mi M Mml M iUT x Mr ar lqMl xqf era|

b. lqMl M xj r Exq lrrkz, qexOO r Axl UexOU r Em UexOU r MD Alr Uemi AkMU r pUir Ueu oM r Mx UrMi oM M AkMU M xql mirz U WxiUi bwh Wa M uW lqMl xuMU MUi W AU clu sQl M CcN UZi W AU uW lSzM oll M sL Aklrq r rel r Cl ulrq U Arar lW PWUr ar| ukui WxiUi AU Cx oi M m MUl us ExM urai orU (or-QO), ExM elMU AU ux M WS iM xW W AU bwh M oS xcl x xoki MD bOl bO W i eil esS W xM Eil esS ExM oU q oM M mhi: xci MUl M ucl Si W|

X. Ex oMa ulrq Aklrq, 1949 r oMa Mml (Emq M AiUh AU AkaWh) Aklrq, 1970 r UrMi oM (mokl u uuk mukl) rel, 1970 r MlU oM (zrU u oPM) ulrq 2000 AU pUir Ueu oM M AkxclL QoAQ x.ox x.46/29.39.001/2007-08, SlM 01.11.2007 u QoAQ x. ox x. 47/29.39.001/2007-08 SlM 01.11.2007 AU QoAQ x. ox x. 95/29.39.001/2010-11 SlM 23.05.2011 M Akl Ex Arar lW Mr ar|

18. lqMl m M mxiiMUh:18. lqMl m M mxiiMUh:

MS xUMU x Alr zrUkUM q x oM M lSzM M m q clu sQl M CcNM zrUkUM M Aml lqMl m [lrliq 100] bwh AU xoki Sxiue

15

with a declaration and the connected documents such as testimonials viz., Bio-data, qualifi cation certifi cates, experience certifi cates, copy of PAN, latest Income Tax Return etc to

General ManagerSecretarial Department,C&MDs Secretariat Canara Bank, Head Offi ce,112, J C RoadBangalore - 560002

on a working day not less than fourteen days before the date of the Annual General Meeting i.e. on or before closing hours of the Bank i.e., 2 pm on 6th July 2013. The said nomination forms should be complete in all respects and should be duly fi lled in by a minimum of 100 Shareholders in the format annexed to this notice failing which, the nominations are liable to be rejected.

19. SCRUTINY OF NOMINATIONS:a) Nominations shall be scrutinized on Monday,

8th July 2013 the fi rst working day following the date fi xed for receipt of the nominations and in case any nomination is not found to be valid, the same shall be rejected after recording the reasons therefor.

b) Nominations shall also be subjected to scrutiny by the Nomination Committee of the Board in terms of the Fit and Proper Guidelines dated 01st November, 2007 and 23rd May, 2011 issued by the Reserve Bank of India as well as the General Policies for nomination of Non Offi cial Directors in Banks and Financial Institutions as issued by Ministry of Finance, Government of India from time to time.

c) If there are only three valid nominations for the vacancies to be fi lled by election, the candidates so nominated shall be deemed to be elected forthwith and their names and addresses shall be published as so elected. In such an event there shall be no election at the meeting.

d) In the event of an election being held, if valid nominations are more than the number of directors to be elected, the candidate polling the majority of votes shall be deemed to have been elected and their names will be published in newspapers.

ex or QO, rari mqhm, Alpu mqhm, ml M mi, luliq Ar MU uuUh AS M xj

qW mokMqW mokMxcur mpaxcur mpaAkr u mok lSzM M xcusrAkr u mok lSzM M xcusrMlU oM, mkl Mrsr, MlU oM, mkl Mrsr, 112, e x UQ112, e x UQoasU - 560 002 oasU - 560 002

M uwM xqlr oPM M iUZ x Mq x Mq 14 Sl M mWs Aji AmU 2 oe, 6 esD 2013 M oM Mr xqr M xqmi Wl M mWs Mx MrSux M mxii MUl cWr| E lqMl m xU mWsA x mU Wl cWL AU Cx lOx x xsal mm q lrliq 100 zrUkUM U ukui pU el cWL Alrj lqMl AxuMU MU Sr eLa|

19. lqMl M xq:19. lqMl M xq:

M. lqMl m mmi MUl M sL lri iUZ M mUui MrSux 8 esD 2013 M ElM xq M eLa AU Mx lqMl M uklqlr lW mr ar W i ExM MUh EssZi MUi WL Ex AxuMU MU Sr eLa|

Z. pUir Ueu oM U SlM 01 luoU, 2007 ij 23 qD, 2011 M eU xu M rar u Eci qalSz M AlxU AU pUi xUMU, u qsr U oM u ur xxjA q AlkMUM lSzM M lqMl M sL xqlr lir M AlxU lqMl M xq oQ lqMl xqi U p M eLa|

a. clu U pU el us Ur M sL il W lqMl W i Lx lqMi mirzr M iiMs cl ar xqf eLa AU iSlxU ElM lq AU mi mMzi Mr eLa| Lx xji q oPM q MD clu lW Wa|

b. clu Arei M el us xji q cl el us lSz M xZr M isl q ukqlr AkM W i oWqi mmi Wl us mirz cl ar xqf era AU ElM lq xqcU m q mMzi Mr era|

16

e) The directors so elected shall be deemed to have assumed offi ce from 27th July, 2013.

f) If there is any dispute, the same will be settled as per Regulation 67 of the Canara Bank (Shares and Meetings) Regulations, 2000.

20. POLL PROCESS on 22nd July 2013 The Voting for election of directors will not be on the

basis of show of hands but shall be done by Poll by means of Secret Ballot.

The issue of Ballot Paper will commence immediately after an announcement in this regard is made by the Chairman & Managing Director and continue upto 2.30 p.m or such other extended time as may be decided by the Chief Returning Offi cer appointed for the conduct of Election. Ballot Papers shall be issued at the Counters set up for this purpose to the shareholders / Proxy holders / authorized representatives on surrender of Ballot Paper issued at the time of registration. The number of votes will be equivalent to the number of shares held by them on 21st June 2013.

Shareholders may exercise their right by affi xing a rubber stamp (X) against the names of three candidates of their choice in the Ballot Paper and deposit them in the Ballot Box(es).

The counting of votes would be taken up thereafter and result would be announced by the Chairman & Managing Director.

The entire process of Election would be conducted by Chief Returning Offi cer, an Independent Consultant

appointed for the said purpose by the Bank and

would be overseen by the Central Government

Nominee who will act as an Observer.

21. TENURE OF DIRECTORS:

Pursuant to Clause 9(4) of the Scheme, an elected

director shall hold offi ce for three years and shall be

eligible for re-election.

Provided that no such director shall hold offi ce

continuously for a period exceeding six years.

X. Lx cl ar lSzM M oU q xqf era M ElWl 27 esD, 2013 M MraWh MU sr W|

c. MD uuS W i Ex MlU oM (zrU u oPM) ulrq, 2000 M ulrq M 67 M AlxU lmO Sr era|

20. lucl Mr 22 esD 2013 M 20. lucl Mr 22 esD 2013 M

lSzM M lucl Wj SZl M AkU mU lW Wa osM rW ami qim U Wa |

qim M uiUh Akr u mok lSzM M Cx xok q bwh M iiMs oS AUp Wa e AmU 2.30 oe iM r lucl M xcsl M sL lr qZr lucl AkMU U lkUi uxiUi xqr iM eU UWa | qiSl m M uiUh Cx Mr M sL xjmi MEOU mU zrU kUM / mYx kUM / mkMi milkr M meMUh M xqr eU M aD qim M umx ML el mU Mr eLa | uO M xZr ElM U 21 el 2013 M kUi zrU M xZr M oUoU Wa |

zrUkUM U qim q Aml mxS M il EqqSuU M lq M xql UoQ M qWU (X) saMU ElW qi mOM(A) q QsMU Aml qikMU M mra Mr e xMi W |

uO M ali Wl M oS Akr u mok lSzM U mUhq M bwh M eLa |

lucl M mU mr M xcsl Cx Mr M sL oM U lr xui qZr lucl mSkMU U Mr eLa ij CxM mruh MlS xUMU M lqi U M eLa e mruM M m q Mr MUa |

21. lSzM M MrMs:21. lSzM M MrMs:

rel M ZQ 9(4) M mUhq xum cl ar lSzM il uw M sL mS M kUh MUa AU ml: clu M sL m Wa|

ozi M Lx lSzM lUiU 6 uw M Auk M sL mS kUh lW MUi W|

17

Attention of Shareholders is invited to Section 9 (3B) of the Act, on the right of Reserve Bank of India to remove a director so elected under Section 9 (3) (i) of the said Act, who does not fulfi ll the requirements of Section 9 (3A) & (3AA) of the said Act.

22. WITHDRAWAL OF CANDIDATURE: If any candidate desires to withdraw his/her

nomination, he/she would be entitled to do so at any time prior to closing hours of the Bank on i.e., 2.00 p.m. on Saturday, the 20th July 2013.

23. MANNER OF RETIREMENT OF EXCESS ELECTED DIRECTOR

a) In the event of the non governmental holding in the Bank reducing below 16% / 32% of the paid-up capital of the Bank, the Bank will be entitled to have only one / two Directors on the Board of the Bank.

b) In terms of Clause 4A of the Scheme the number of excess director(s) shall be determined under the second proviso to clause (i) of Sub-section (3) of Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and such number of directors elected by the shareholders (other than the Central Government) equal to the number so determined shall retire, and the order in which the directors shall retire, will begin with the longest serving director;

Provided that, if two or more directors have served for the same period of time, the older among the said directors shall retire fi rst.

24. INTEREST OF DIRECTORS Directors of the Bank may be deemed to be concerned

or interested in the aforementioned item of business in case they contest the election.

By Order of the Board of Directors

R. K. DUBEYChairman and Managing Director

Place : BengaluruDate : 10-6-2013

E Aklrq M kU 9(3L) AU (3 L L) M AmA M mU lW MUl us, E Aklrq M kU 9(3) (i) M iWi Lx cl ar lSzM M WOl M pUir Ueu oM M AkMU mU Aklrq M kU 9(3 o) M AU zrUkUM M krl AMwi Mr ei W|

22. lqMl M umx sr el:22. lqMl M umx sr el: MD mirz Aml lqMl umx s sl cWi W i

uW AmU 2 oe, vluU 20 esD 2013 M oM M Mrxqr M xqmi Wl M mWs Lx MU xMi W|

23. AiU luci lSzM Mxulu M iUM 23. AiU luci lSzM Mxulu M iUM

M) oM q aU xUMU kUh oM M mS me M 16% u

32% x Mq W i oM oQ q Mus LM / S lSzM

M luci MUl M sL AW Wa |

Z) rel M ZQ 4L M AlxU AiU lSzM M

xZr M lkUh oMa Mml (Emq M AkaWh

u AiUh) Aklrq, 1970 M kU 9 M Em kU (3)

M ZQ (i) M AlxU Mr ei W ij Lx zrUkUM

(MlS xUMU x Alr) U luci lSzM M isr

lSzM xulu Wa AU xulu M q xox

AkM MrMs xqmi lSzM x z Wa;

ozi M, rS S r S x AkM lSzM M MrMs isr W i, El lSzM q x AkM Arus lSzM mWs xulu Wa |

24. lSzM M Wi 24. lSzM M Wi oM M lSzM rS clu sQi W i Lx xqf eLa

M u Emr MUoU qS q Wi UZa |

lSzM qQs M ASz M UlSzM qQs M ASz M U

Ueu MzU SoUeu MzU SoAkr u mok lSzM

xjl : oasUSlM : 10-6-2013

18

ELECTION OF DIRECTORS EXTRACTS OF RELEVANT ACTS, SCHEME AND REGULATIONS ETC.

In terms of Section 9 (3) (i) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, Shareholder Directors shall have to be appointed depending upon the extent of capital issued under Clause (c) of Sub-Section 2 (B) of Section 3. The relevant Sections of The Banking Companies Regulation Act, 1949, the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1970 and relevant regulations of the Canara Bank (Shares and Meetings) Regulations, 2000 respectively in this regard, are reproduced below for the information of the shareholders.

THE BANKING REGULATION ACT, 1949

Prohibition of Common Directors: Section 16 (1)

No banking company incorporated in India shall have as a Director in its Board of Directors, any person who is a Director of any other Banking Company.

Restrictions on loans and advances:

Section 20:

1. Notwithstanding anything to the contrary contained in Section 77 of the Companies Act, 1956 (1 of 1956), no banking company shall

a) grant any loans or advances on the security of its own shares, or

b) enter into any commitment for granting any loan or advance to or on behalf of

i) any of its directors

ii) any fi rm in which any of its directors is interested as partner, manager, employee or guarantor, or

iii) any company not being a subsidiary of the banking company or a company registered under Section 25 of the Companies Act, 1956 (1 of 1956), or a Government Company of which or the subsidiary or the holding company of which any of the directors of the banking company is a director, managing agent, manager, employee or guarantor or in which he holds substantial interest, or

iv) any individual in respect of whom any of its directors is a partner or guarantor.

lSzlSzM M luM M lucl-xo Aklrq, rel AU cl-xo Aklrq, rel AU ulrq ASulrq AS M xUz M xUz

oMa Mml (Emq M AkaWh AU AiUh) Aklrq 1970 M kU 9(3)(i) M Alm kU 3 M EmkU 2(o) M ZQ (x) M iWi eU M aD me M urmi M AkU mU zrUkUM lSzM M lr Mr el W| oMa Mml ulrq Aklrq, 1949, oMa Mml (Emq M AkaWh AU AiUh) Aklrq 1970, UrMi oM (mokl u uuk mukl) rel 1970 M xo kUA AU MlU oM (zrU u oPM) ulrq 2000 M xo ulrq M zrUkUM M elMU M sL lc ml: Ei Mr ar W|

oMa Mml ulrq Aklrq, 1949oMa Mml ulrq Aklrq, 1949xqlr lSzM mU lwk: kU 16 (1)xqlr lSzM mU lwk: kU 16 (1)

pUi q laqi MD oMa Mml Aml lSzM qQs qMx Alr oMa Mml M lSzM M Aml lSzM M m q lW sa|

Gh AU Aaq mU miokGh AU Aaq mU miok

kU 20 kU 20

1. Mml Aklrq, 1956 (1956 M 1) M kU 77 q lWi Mx oi M u Wi WL MD p oMa Mml-

M. Aml ZS M zrU M mipi mU MD Gh r Aaq qeU lW MUa|

Z. lql M r ElM m q Gh r Aaq qeU MUl M sL Mx mMU M mioi q mu lW Wa:

(i) ElM Mx lSzM

(ii) MD Tq exq xfSU, mokM, MqcU r aUOU M m q ExM MD lSzM Wi UZi W, r

(iii) oMa Mml M Alwa lW Wl us MD Mml r Mml Aklrq 1956 (1956 M 1) M kU 25 M iWi meMi Mml, r Mx xUMU Mml exM Alwa r kUM Mml exM oMa Mml M MD lSzM lSzM, mokl LeO, mokM, MqcU r aUOU W r exq mrmi Wi UZi W, r

(iv) MD urYi exM xok q lSzM, xfSU r aUOU W|

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2. Where any loan or advance granted by a banking company is such that a commitment for granting it could not have been made if Clause (b) of Sub-Section (1) had been in force on the date on which the loan or advance was made, or is granted by a Banking Company after the commencement of Section 5 of the Banking Laws (Amendment) Act, 1968 (58 of 1968), but in pursuance of a commitment entered into before such commencement, steps shall be taken to recover the amounts due to the banking company on account of the loan or advance together with interest, if any, due thereon within the period stipulated at the time of the grant of loan or advance, or where no such period has been stipulated, before the expiry of one year from the commencement of the said Section 5.

Provided that the Reserve Bank may, in any case on any application in writing made to it by the Banking Company in this behalf, extend the period for the recovery of the loan or advance until such date, not being a date beyond the period of three years from the commencement of the said Section 5 and subject to such terms and conditions as the Reserve Bank may deem fi t.

Provided further that this Sub-Section shall not apply if and when the director concerned vacates the offi ce of the director of the banking company, whether by death, retirement, resignation or otherwise.

3. No loan or advance, referred to in Sub-Section (2), or any part thereof shall be remitted without the previous approval of the Reserve Bank, and any remission without such approval shall be void and of no effect.

4. Where any loan or advance referred to in Sub-Section (2), payable by any person, has not been repaid to the banking company within the period specifi ed in that Sub-Section, then such person shall, if he is a director of such banking company on the date of the expiry of the said period, be deemed to have vacated his offi ce as such on the said date.

Explanation In this Section

a) Loan or advance shall not include any transaction which the Reserve Bank may, having

2. eW oMa Mml U qeU Mr ar Gh r Aaq Cx mMU M W M ex iUZ M Gh r Aaq Sr ar W, Ex iUZ M EmkU (1) M ZQ (Z) muil q W i ExM qeU el M sL MD uS lW Mr WA Wa r oMa uk (Azkl) Aklrq 1968 (1968 M 58) M kU 5 M AUp Wl M oS Mx oMa Mml U qeU Mr ar W, sMl Lx AUp Mr el M mWs Mr ar uS M mUhqxum Gh r Aaq M MUh oMa Mml M Sr Uzr ore M xj Gh r Aaq M qeU Mr el M xqr Alo Auk M ASU r Lx Auk Alo lW M aD W i Mji kU 5 M AUp Wl x LM uw M xqmi Wl M mWs uxs MUl M MSq EPr eLa|

ovi M Mx xSp q Cx qqs q oMa Mml U sZi m x AuSl Sr el mU Gh r Aaq M uxs M Auk M pUir Ueu oM U Eci xqf el us zi M Akl Lx iUZ iM oRra e Mji kU 5 M AUp Wl x 3 uw M Auk M mU l W|

ovi M xoki lSzM qir, xuluii, iram r Alrj oMa Mml M lSzM M mS M U MU Si W i rW EmkU sa lW Wa|

3. EmkU (2) q xSpi MD Gh r Aaq r ExM MD pa pUir Ueu oM M mu AlqSl M ol mwi lW Mr eLa AU Lx AlqSl M ol Mr ar MD p mwh zlr AU lwmpu Wa|

4. Mx ur U xSr EmkU (2) q xSpi MD Gh r Aaq Ex EmkU q ulS Auk M ASU oMaMml M cMi lW Mr W io Lx ur Mji Auk M xqmi Wl M iUZ M Lx oMa Mml M lSzM W i xqf era M Exl Mji iUZ M Aml mS M U MU Sr W|

xmMUh - Cx kU qxmMUh - Cx kU q

M. "Gh r Aaq"M. "Gh r Aaq" q Lx MD xuruWU zqs lW Wa ex xuruWU M xupu, ex Auk M ASU AU Lx

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regard to the nature of the transaction, the period within which, and the manner and circumstances in which, any amount due on account of the transaction is likely to be realized, the interest of depositors and other relevant considerations, specify by general or special order as not being a loan or advance for the purpose of this section.

b) Director includes a member of any board or committee in India constituted by a banking company for the purpose of managing, or for the purpose of advising it in regard to the management of, all or any of its affairs.

5. If any question arises whether any transaction is a loan or advance for the purpose of this section, it shall be referred to the Reserve Bank, whose decision thereon shall be fi nal.

THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS ) ACT, 1970

Restriction on Voting Rights :

Section 3 (2E) No shareholder of the corresponding new Bank other than the Central Government shall be entitled to exercise voting rights in respect of any shares held by him in excess of ten per cent of the total voting rights of all the shareholders of the corresponding new Bank.

Composition of the Board of Directors:

Section 9 (3) (i): Where the capital issued under clause (c) of sub-section (2B) of Section 3 is: -

(i) Not more than sixteen per cent of the total paid-up capital, one Director.

(ii) More than sixteen percent but not more than thirtytwo percent of the total paid-up capital, two Directors.

(iii) More than thirty two percent of the total paid-up capital, three Directors.

to be elected by the shareholders, other than the Central

Government, from amongst themselves:

Provided that on the assumption of charge after election

of any such Directors under this clause, equal number of

Directors nominated under clause (h) shall retire in such

manner as may be specifi ed in the scheme.

mUxjir eW xuruWU M MUh Sr Uz M uxs

Mr el M xpul W, eqMiA M Wi AU Alr xo mWsA M qleU xqlr r uzw ASz U Cx kU M sL Gh r Aaq M m q ulS lW MUa|

Z. lSzMlSzM q oMa Mml U pUi q aPi Mx oQ r xqi M xSxr zqs Wa, exM aPl ExM mokl, r ExM mokl i M Cx Sz q mUqz Sl M sL Mr ar W|

5. Cx kU M sL MD xuruWU Gh Wi W r Aaq Cx oU q MD mzl mNi W i Ex pUir Ueu oM M xSpi MUl W Ex mU elM lhr Aiq Wa|

oMa Mml (Emq M AkaWh AU AiUh) oMa Mml (Emq M AkaWh AU AiUh) Aklrq 1970 Aklrq 1970

qiSl AkMU mU miok: qiSl AkMU mU miok:

kU 3 (2 D)- MS xUMU M zrUkUM M NQMU lr oM M MD p zrUkUM lr oM M xU zrUkUM M Ms qiSl AkMU M Sx mizi M mU ExM U kU ar zrU M qqs q qiSl AkMU M mra MUl M sL m lW Wa|

lSzM qQs M aPllSzM qQs M aPl

kU 9 (3)(i): eW kU 3 M EmkU 2(o) M ZQ x q lai me:

(i) Ms mS me M 16% x AkM l W i LM lSzM |

(ii) Ms mS me M 16% x AkM sMl 32% x AkM l W i S lSzM |

(iii) Ms mS me M 32% x AkM W i il lSzM M Aml q x MlS xUMU M zrUkUM M NQMU cl el W |

ovi M Cx ZQ M iWi Lx Mx lSzM M clu M oS

MrpU aWh Mr el mU ZQ (Lc) M iWi lqi lSzM

rel q ulS iUM M xq xZr q xulu Wa|

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Obligation as a Fidelity and Secrecy:Section 13 (2): Every Director, member of a local board or a committee, or auditor, advisor, offi cer or other employee of a corresponding new bank shall, before entering upon his duties, make a declaration of fi delity and secrecy in the form set out in the Third Schedule.

NATIONALISED BANKS (MANAGEMENT AND MISCELLANEOUS PROVISIONS) SCHEME, 1970

Clause 11: Vacation of Offi ce of Director, etc.

i) If a Director becomes subject to any of the disqualifi cation as specifi ed in Clause 10, or is absent without leave of the Board for more than three consecutive meetings thereof, he shall be deemed to have vacated his offi ce as such and thereupon his offi ce shall become vacant.

ii) The Chairman or a whole-time Director including the Managing Director or a Director referred to in Clause (b) or Clause (c) of Sub-Section (3) of Section 9 of the Act may resign his offi ce by giving notice thereof in writing to the Central Government and on such resignation being accepted by that Government shall be deemed to have vacated his offi ce; and any other Director may resign his offi ce by giving notice thereof in writing to the Central Government and such resignation shall take effect on the receipt of the communication of the resignation by the Central Government.

iii) Without prejudice to the provision of the foregoing Sub-Clauses, the offi ce of the Director referred to in Clause (e) or Clause (f) of Sub-Section (3) of Section 9 of the Act shall become vacant as soon as the Director ceases to be a workman or an employee, other than a workman of the Nationalized Bank of which he is a Director.

iv) Where any vacancy occurs in the offi ce of a Director, other than an elected director, it shall be fi lled in accordance with Sub-Section (3) of Section 9 of the Act.

Clause 11A: Removal from Offi ce of an Elected Director:The Shareholders, other than the Central Government, may, by a resolution passed by the majority of votes of such Shareholders holding in aggregate, not less than one-half of the share capital held by all such Shareholders,

uxlri AU amuxlri AU amlri M m q Sriu:lri M m q Sriu:kU 13 (2): lr oM M mirM lSzM, xjlM oQ r xqi M xSxr r sZ mUM, mUqzSi, AkMU r Alr MqcU Aml Miur q mu Wl M mWs ixU xc q mri m q uxlri AU amlri M bwh MU|

UrMi oM (mokl u uuk mukl) UrMi oM (mokl u uuk mukl) rel, 1970rel, 1970

ZQ 11: lSzM AS M mS U MUl ZQ 11: lSzM AS M mS U MUl

i. MD lSzM ZQ 10 q ulS Arari M SU x aeUi W r oQ M Alqi M ol saiU il oPM q Almxji Wi W i xqf ei W M Exl Aml mS M U MU Sr W AU ExM mS U W era|

ii. Aklrq M kU 9 M EmkU (3) M ZQ (o) r ZQ (x) q xSpi mok lSzM M zqs MUM Akr r mhMsM lSzM MS xUMU M sZi m q xci MUM Aml mS x iram Si W AU Ex xUMU U Lx iram M xuMU el mU xqf ei W M Exl Aml mS M U MU Sr W; AU MlS xUMU M sZi m q xci MUM Aml mS x MD Alr lSzM iram Si W i Lx iram MS xUMU U ExM mmi Wl mU mpu Wa|

iii. Emr EmZQ M mukl M mukUh M ol Aklrq 9 M EmkU (3) M ZQ (D) r ZQ (LT) q xSpi lSzM M mS exM uW lSzM W, Ex UrMi oM M MqaU x Alr M NQMU MqaU r MqcU lW UW ei W i xSpi lSzM M mS U W ei W|

iv. luci lSzM x Alr eW lSzM M mS q U Ei Wi W i Aklrq M kU 9 M EmkU 3 M Alm Ex pU era|

ZQ 11 L: luci lSzM M mS x WO Sl:ZQ 11 L: luci lSzM M mS x WO Sl:

MlS xUMU x Alr zrUkUM Lx zrUkUM U pU aD zrU me M LM - Ak x Mq lW Wl us zrU me M kUh MUl us zrUkUM M oWqi U mUi xMsm U kU

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remove any Director elected under Clause (i) of Sub-Section (3) of Section 9 and elect instead of another person to fi ll the vacancy.

Clause 11 B: Filling of Vacancy in the Offi ce of an Elected Director:

1. Where any vacancy occurs before the expiry of the term of offi ce of a elected Director, the vacancy shall be fi lled in by election;

Provided that where the duration of vacancy is likely to be less than six months, the vacancy may be fi lled in by the remaining directors.

2. A person elected or co-opted as the case may be, under Sub-Clause (1) shall hold offi ce for theun-expired portion of the term of his predecessor.

Disclosure of Interest by Directors:

Clause 12 (8): A Director who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into by or on behalf of the Nationalized Bank shall, as soon as possible after the relevant circumstances have come to his knowledge, disclose the nature of his interest to the Board and shall not be present at the meeting of the Board when any such contract, loan, arrangement or proposal is discussed unless his presence is required by the other Directors for the purpose of eliciting information and no Director so required to be present shall vote on any such contract, loan, arrangement or proposal.

Provided that nothing contained in this Sub-Clause shall apply to such Director by reason of his being:

i) A shareholder (other than a Director) holding not more than two percent of the paid up capital in any public company as defi ned in the Companies Act, 1956 (1 of 1956), or any corporation established by or under any law for the time being in force in India or any Co-operative Society, with which or to which the nationalized Bank has entered into or made or proposes to enter into or make, a contract, loan, arrangement or proposal, or

ii) An offi cer or other employee of the nationalized bank, if he is a Director referred to in Clause (e) or Clause (f) of Sub-Section (3) of Section 9 of the Act.

9 M EmkU 3 M ZQ (L) M iWi luci Mx lSzM M

WOMU Ex U M pUl M sL ExM oSs q Alr urr M

cl xMi W|

ZQ 11 o: luci lSzM M mS q U M pUl:ZQ 11 o: luci lSzM M mS q U M pUl:

1. luci lSzM M mS M MrMs xqmi W el M mWs

MD U Ei Wi W i Ex lucl U pU era; ozi

M U Auk N: qWl x Mq Wl M xpul W i Ex

zw lSzM U pU er|

2. ex p xji W EmZQ (1) q luci r zqs Mr

ar ur ExM muui lSzM M zw Auk iM mS

xpsa|

lSzM U WikUh M mMO Mr el:lSzM U WikUh M mMO Mr el:

ZQ 12(8): UrMi oM U r ExM m q mu Mx

xuS, Gh, mokl r mxiu q mir r Amir m x Wi

UZl us lSzM xo mUxjir M oU q ExM elMU q

Al M oS eil zb W xM oQ M Aml Wi M xupu M

oU q mMO MUa AU elMU mmi MUl M sL Alr lSzM

U ExM Emxji M Am lW M ei i Lx, xuS, Gh,

mokl r mxiu mU cc M el us oQ M oPM q Emxji

lW Wa AU Emxji Wl Ami MD p lSzM Lx xuS,

Gh, mokl r mxiu mU qiSl lW MUa|

ozi M uW:

(i) Mml Aklrq 1956 (1956 M 1) q mUpwi Mx

xuelM Mml q mS me M S mizii x AlkM

kUh MUl us zrUkUM (lSzM x Alr) r pUi q

xmi muil Mx uk M iWi xjmi Mx laq r

xWMU xxj CxM xj UrMi oM xuS, Gh, mokl

r mxiu q mu WA W r mxiu MUi W|

(ii) Aklrq M kU 9 M EmkU (3) M ZQ (D) r ZQ (LT)

q xSpi lSzM W i UrMi oM M MD AkMU r

Alr MqcU W i Lx lSzM mU Lx EmZQ q lWi MD

ijr sa lW Wa|

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CANARA BANK (SHARES AND MEETINGS)REGULATIONS, 2000

CHAPTER II

SHARES AND SHARE REGISTER

10. Exercise of Rights of Joint Holders: If any share stands in the names of two or more

persons, the person fi rst named in the register shall, as regards voting, receipt of dividends, service of notices and all or any other matters connected with Canara Bank except the transfer of shares, be deemed to be sole holder thereof.

CHAPTER IV

MEETING OF SHAREHOLDERS

61. Voting at General Meeting.

(i) At any general meeting, a resolution put to the vote of the meeting shall, unless a poll is demanded, be decided on a show of hands.

(ii) Save as otherwise provided in the Act, every matter submitted to the general meeting shall be decided by a majority of votes.

(iii) Unless a poll is demanded under sub-regulation (i), a declaration by the Chairman of the meeting that a resolution on show of hands has or has not been carried either unanimously or by a particular majority and an entry to that effect in the books containing the minutes of the proceedings, shall be conclusive evidence of the fact, without proof of the number or proportion of the votes cast in favour of, or against such resolution.

(iv) Before or on the declaration of the result of the voting on any resolution on a show of hands, a poll may be ordered to be taken by the Chairman of the meeting of his own motion, and shall be ordered to be taken by him on a demand made in that behalf by any shareholder or shareholders present in person or by proxy and holding shares in the Bank which confer a power to vote on the resolution not being less than one fi fth of the total voting power in respect of the resolution.

(v) The demand for a poll may be withdrawn at any time by the person or persons who made the demand.

(vi) A poll demanded on a question of adjournment or election of Chairman of the meeting shall be taken forthwith.

MlU oM (zrU u oPM) ulrq, 2000MlU oM (zrU u oPM) ulrq, 2000

Akrr Akrr IIIIzrU u zrU merzrU u zrU mer

10. xr 10. xr kUM M AkMU M mra:kUM M AkMU M mra:

MD zrU LM r AkM urr M lq x UW W i UexOU q mWs lq Se Mr ar ur M xqf eLa M uW zrU M AiUh M NQMU qiSl, spz mmi MUl, xclmwh AU MlU oM x xo MD AU qqs q LMs zrUkUM W|

Akrr Akrr IVIVzrUkUM M oPMzrUkUM M oPM61. xqlr oPM q qiSl 61. xqlr oPM q qiSl

(i) Mx xqlr oPM q qiSl M sL mxii Mr ar xMsm mU, qiSl Ami lW W i Wj SZl M U lhr sr era|

(ii) Aklrq M mukl M Alrj xqlr oPM M xql mxii Mr ar WU qqs mU oWqi U lhr sr era|

(iii) Em ulrq (i) M iWi qiSl Ami lW Wi i oPM M Akr M Cx Azr M bwh M Wj SZl M U xMsm uzw M LMqi x r oWqi uzw M xj Amlr ar W r Amlr lW ar W AU Lx xMsm M m q r u mmi qi M xZr AU Almi M xr M ol MruW M Mruii UWl us oWr q Cx Azr M mu Ex ijr M lwMwiqM xr Wa|

(iv) Wj SZMU Mx xMsm mU Mr ar qiSl M mUhq M bwh M mWs r Mr el mU oPM M Akr U qiSl M ASz Sr e xMi W AU urai m x r mYx U Emxji Mx zrUkUM r zrUkUM U Ex Azr x M aD qa mU qiSl mmi MUl M sL AS Wa|

(v) qiSl M qa MUl us ur r urr U qiSl M qa Mp umx s e xMi W|

(vi) oPM M Axjal r Akr M clu M mzl mU qa ar clu iiMs Wa|

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(vii) A poll demanded on any other question shall be taken at such time not being later than forty-eight hours from the time when the demand was made, as the chairman of the meeting may direct.

(viii) The decision of the Chairman of the meeting as to the qualifi cation of any person to vote, and also in case of a poll, as to the number of votes any person is competent to exercise shall be fi nal.

CHAPTER V

ELECTION OF DIRECTORS

63. Directors to be elected at General Meeting:

i) A Director under Clause (i) of Sub-Section (3) of Section 9 of the Act shall be elected by the Shareholders on the register, other than the Central Government, from amongst themselves in the General Meeting of Canara Bank.

ii) Where an election of a Director is to be held at any General Meeting, the notice thereof shall be included in the notice convening the meeting. Every such notice shall specify the numberof Directors to be elected and the particularsof vacancies in respect of which the election is to be held.

64. List of Shareholders:i) For the purpose of election of a Director

under Sub-Regulation (i) of Regulation 63 of these regulations, a list shall be prepared of shareholders on the register by whom the Director is to be elected.

ii) The list shall contain the names of the shareholders, their registered addresses, the number and denoting numbers of shares held by them with the dates on which the shares were registered and the number of votes to which they will be entitled on the date fi xed for the meeting at which the election will take place and copies of the list shall be available for purchases atleast three weeks before the date fi xed for the meeting at a price to be fi xed by the Board or the Management Committee, on application at the Head Offi ce.

67. Election Disputes:i) If any doubt or dispute shall arise as to the

qualifi cation or disqualifi cation of a person deemed or declared to be elected, or as to the

(vii) Mx Alr mzl mU qa ar qiSl oPM M Akr M lSz M AlxU sr era, e qa Mr xqr x 48 bO M oS l W|

(viii) qiSl MUl M sL ur uzw M rari AU qiSl Amlr el M xSp q p ur uzw Mil qi SlM sL xq Wa, Cl mU oPM M Akr M lhr Aiq Wa|

Akrr Akrr VlSzM M lucllSzM M lucl

63. xqlr oPM q luci Mr el us lSzM:63. xqlr oPM q luci Mr el us lSzM:

i) Aklrq M kU 9 M EmkU 3 M ZQ (i) M iWi MS xUMU M NQMU UexOU mU UWl us M U zrUkUM q x MlU oM M xqlr oPM q lSzM M cl era|

ii) Mx xqlr oPM q lSzM M lucl Mr el W i ExM xcl oPM Arei MUl M xcl q zqs M era| Lx mirM xcl luci Mr el us lSzM M xZr AU el Ur M sL clu Mr e UW W, ElM orU p ulS MU|

64. zrUkUM M xc:64. zrUkUM M xc:i) Cl ulrq M ulrq 63 M Em-ulrq (i) M

iWi lSzM M luci MUl M sL El zrUkUM M xc olD era, elM U lSzM M clr el W|

ii) xc q zrUkUM M lq, ElM meMi mi, zrU M meMi MUl M iUZ M xj ElM U kU ar zrU M xZr AU uz xZrL AU lucl Arei M el us oPM M sL lri iUZ mU u Mil qi M sL m Wa, ExM xZrL Wa| AU xc M mir oQ r mokl xqi U lri qsr mU oPM M sL lri iUZ M mWs Mq x Mq il Wni M mWs mkl Mrsr q Emsok Wa|

67. lucl xok uuS:67. lucl xok uuS:i) luci xqf r luci bwi Mr elus ur

uzw M rari r Arari M oU q, r lSzM M lucl M ukqlri M oU q MD xSW r

25

validity of the election of a director, any person interested, being a candidate or shareholder entitled to vote at such election, may, within seven days of the date of the declaration of the result of such election, give intimation in writing thereof to the Chairman and Managing Director of Canara Bank and shall in the said intimation give full particulars of the grounds upon which he doubts or disputes the validity of the election.

ii) On receipt of an intimation under Sub-Regulation (i), the Chairman and Managing Director or in his absence, the Executive Director of Canara Bank shall forthwith refer such doubt or dispute for the decision of a committee consisting of the Chairman & Managing Director or in his absence, the Executive Director and any two of the Directors nominated under Clause (b) and (c) of Sub-Section (3) of Section 9 of the Act.

iii) The committee referred to in Sub-Regulation (ii) shall make such enquiry as it deems necessary and if it fi nds that the election was a valid election, it shall confi rm the declared result of the election or, if it fi nds that the election was not a valid election, it shall, within 30 days of the commencement of the enquiry, make such order and give such directions including the holding of a fresh election as shall in the circumstances appear just to the committee.

iv) An order and direction of such committee in pursuance of this regulation shall be conclusive.

CHAPTER VI

VOTING RIGHTS OF SHAREHOLDERS

68. Determination of Voting Rights:

i) Subject to the provisions contained in Section 3 (2E) of the Act, each shareholder who has been registered as a shareholder on the date of closure of the register prior to the date of a General Meeting shall, at such meeting, have one vote on show of hands and incase of a poll shall have one vote for each share held by him.

ii) Subject to the provisions contained in Section 3 (2E) of the Act, every shareholder entitled to vote as aforesaid who, not being a company, is present in person or by proxy or who being a company is present by a duly authorized representative, or by proxy shall have one vote on a show of hands and in case of a poll shall have one vote for each share held by him as stated hereinabove in Sub-Regulation (i).

uuS Eim W i Lx lucl q qiSl MUl M sL m mirv r zrUkUM Wl us MD CcNM ur, Lx clu M mUhq M bwh ij M xi Sl M ASU Akr r mok lSzM M sZi m x xci MUa AU Mji xcl q el oi M AkU mU lucl M ukqlri mU uW xSW MU UW W r uuS ZQ MU UW W|

ii) Em ulrq (i) M iWi xcl mmi Wl mU Akr u mok lSzM r ElM Almxji q MlU oM M MrmsM lSzM Lx xqi M lhr M sL Lx xSW r uuS M xSpi MUa, exq Akr u mok lSzM r ElM Almxji q MrmsM lSzM AU Aklrq M kU 9 M EmkU M ZQ (o) AU (x) M iWi lqi MD S lSzM Wa|

iii) Em ulrq (ii) q xSpi xqi ExM U AuzrM xqf el us mN-iN MUa AU rS uW rW qWxx MU M clu ukqlr W, i uW lucl M mUhq bwi MUa r clu M ukqlr lW qWxx MUi W i uW ec-mQis M z M 30 Sl M ASU Ex xai sal us mUxjir q lr xU x lucl Arei MUl M xj-xj Lx ASz AU lSz S xMi W|

iv) Cx ulrq M mUhqi: Lx xqi M ASz AU lSz Aiq Wa|

Akrr Akrr VIVIzrUkUM M qiSl AkMU:zrUkUM M qiSl AkMU:68. qiSl AkMU M lkUh:68. qiSl AkMU M lkUh:

i) Aklrq M kU 2(D) q lWi mukl M Akl xqlr oPM M ij M mWs UexOU oS MU Sr el M iUZ M zrUkUM M m q meMi mirM zUrkUM M Lx oPM q Wj SZl mU LM qi mmi Wa AU qiSl Arei Mr el mU ExM U kU ar mirM zrU M sL LMqi Wa |

ii) Aklrq M kU 3 (2D) q lWi mukl M Akl Emr AlxU qi Sl M sL m mirM zrUkUM, e Mml l W, e urz: r mYx U Emxji W r Mml W i ukui mkMi milk U r mYx U Emxji W, M Wj SZl mU LM qi mmi Wa AU qiSl Arei Mr el mU ExM U kU ar mirM zrU M sL LM qi Wa| ex Emr Emulrq (i) q oir ar W |

26

Explanation for this Chapter, Company means any body corporate.

iii) Shareholders of the Bank entitled to attend and vote at a general meeting shall be entitled to appoint another person (whether a shareholder or not) as his proxy to attend and vote instead of himself; but a proxy so appointed shall not have any right to speak at the meeting.

69. Voting by Duly Authorised Representative:

i) A shareholder, being the Central Government or a company, may by a resolution, as the case may be, authorize any of its offi cials or any other person to act as its representative at any General Meeting of the shareholders and the person so authorized (referred to as a duly authorized representative in these regulations) shall be entitled to exercise the same powers on behalf of the Central Government or company which he represents, as if he were an individual shareholder of Canara Bank. The authorization so given may be in favour of two persons in the alternative and in such a case any one of such persons may act as a duly authorized representative of the Central Government / Company.

ii) No person shall attend or vote at any meeting of the shareholders of Canara Bank as the duly authorized representative of a company unless a copy of the resolution appointing him as a duly authorized representative certifi ed to be a true copy by the Chairman of the meeting at which it was passed shall have been deposited at the Head Offi ce of the Canara Bank not less than four days before the date fi xed for the meeting.

70. Proxies:i) No instrument of proxy shall be valid unless, in the

case of an individual shareholder, it is signed by him or by his attorney duly authorized in writing or in the case of joint holders, it is signed by the Shareholder fi rst named in the register or his attorney duly authorized in writing or in the case of the body corporate signed by its offi cer or an attorney duly authorized in writing;

Provided that an instrument of proxy shall be suffi ciently signed by any shareholder, who is, for any reason, unable to write his name, if his mark is affi xed thereto and attested by a Judge, Magistrate, Registrar or Sub-Registrar of Assurances or other Government Gazetted Offi cer or an Offi cer of Canara Bank.

xmMUh-Cx Akrr M sL "Mml" M Aj Mx p laq lMr x W|

iii) xqlr oPM q Emxji WMU qi Sl M sL m oM M zrUkUM ElM oSs q Emxji WMU qi Sl M sL mYx M m q Alr ur (zrUkUM W r l W) lr MUl M sL m Wa AU Lx lr mYx M oPM q oi MUl M AkMU lW Wa|

69. ukui mkMi milk U qiSl:69. ukui mkMi milk U qiSl:

i) MS xUMU r Mml Wl us zrUkUM ex p xji W mxiu U zrUkUM M Mx xqlr oPM q Aml milk M m q Aml Mx AkMU M r Alr ur M mkMi MU xMi W AU Cx mMU mkMi ur (Cl ulrq q ukui mkMi milk MW ar)| mkMi ur MS xUMU r ex Mml M uW milkiu MU UW W, ExM iUT x ElW AkMU M Emra MUl M sL m Wa, ex uW MlU oM M ur zrUkUM W| Cx mMU Sr ar mkMU uMsmi: S urr M m q W xMi AU Lx xji q Lx urr q x MD LM ur MS xUMU r Mml M ukui mkMi milk M pqM lp xMi W|

ii) MD p ur Ex mkMi milk M m q ukui lr MUl us mxiu M mi mU ex oPM q Ex mUi Mr ar W, ExM Akr U ExM xir mism Wl M Azr M mqhl M ol AU Ex oPM M lri iUZ M cU Sl mWs MlU oM M mkl Mrsr q eqlW Mr ei W i ukui mkMi milk M m q MlU oM M zrUkUM M oPM q Emxji lW Wa r qi Sa|

70. mYxr: 70. mYxr:

i) ur zrUkUM M qqs q ExM U r sZi m x ukui mkMi AOl r xr kUM M qqs q UexOU q mjq zrUkUM M m q lq sZ ar zrUkUM r ExM ukui mkMi AOl U r laq lMr M qqs q ExM AkMU r sZi m x ukui mkMi AOl U WxiU lW Mr ar W i MD p mYx m ukqlr lW Wa|

ozi M MD mYx m Mx zrUkUM, e Mx MUhuz, Aml lq sZl q Axqj W, U mrmi: WxiUi Wa, rS ExM cWl Ex mU AMi WMU Mx lrrkz, qexOO, LzrUx M UexOU r Em-UexOU, Alr xUMU Uemi AkMU r MlU oM M Mx AkMU U Akmqhi Mr ei W|

27

ii) No proxy shall be valid unless it is duly stamped and a copy thereof deposited at the Head Offi ce of Canara Bank not less than four days before the date fi xed for the meeting, together with the power of attorney or other authority (if any) under which it is signed or a copy of that power of attorney or other authority, certifi ed as a true copy by a Notary Public or a Magistrate, unless such a power of attorney or the other authority is previously deposited and registered with Canara Bank.

iii) No instrument of proxy shall be valid unless it is in Form B.

iv) An instrument of proxy deposited with Canara Bank shall be irrevocable and fi nal.

v) In the case of an instrument of proxy granted in favour of two grantees in the alternative, not more than one form shall be executed.

vi) The grantor of an instrument of proxy under this regulation shall not be entitled to vote in person at the meeting to which such instrument relates.

vii) No person shall be appointed as duly authorized representative or a proxy who is an offi cer or an employee of Canara Bank.

Notifi cation of Reserve Bank of India DBOD No. BC No. 46/29.39.001/2007-08 & DBOD No. 47/29.39.001/2007-08, dated 01st November, 2007 and DBOD No. BC. No. 95/29.39.001/2010-11 dated 23rd May, 2011:

The Reserve Bank of India has notifi ed as under:

No nomination shall be valid unless Fit and Proper status is accorded by the Nomination Committee appointed by the Board of Directors of the Bank for this purpose. The Nominations should accompany additional information about the candidates to enable the Nomination committee to decide on the Fit and Proper status with regard to educational qualifi cation, experience and fi eld of expertise, track record and integrity of the candidates. Adverse notice of any authority / regulatory agency or insolvency or default of any loan from any bank or fi nancial institution would make the respective candidate unfi t and improper to be elected as a director on the Board.

Master Circular on Loans and Advances (RBI/2012-13/79 DBOD.No.Dir.BC.4/13.03.00/2012-13) dated 2nd July 2012 - Granting loans and advances to relatives of Directors.

ii) ukui xOqm WMU ExM mi oPM M sL lri iUZ x cU Sl mWs Lx qZiUlq r Alr mkMU (rS W i) mWs W MlU oM q eq AU meMi lW Mr ar W i, exM iWi Ex mU WxiU Mr ar W Ex qZiUlq r mkMU M mi ex xir mism Wl M Azr x lOU mosM r qexOO U mqhi Mr W M xj MlU oM M mkl Mrsr q eq lW M ei i MD p mYx ukqlr lW Wa |

iii) Tq o q l W i MD p mYx m ukqlr lW Wa|

iv) MlU oM q eq Mr ar mYx m umx lW Wa AU Aiq Wa|

v) uMsmi: S urr M m q qeU Mr ar W i LM x AkM Tq lwmSi lW Wa|

vi) Cx ulrq M iWi mYx m Sl us uW m ex oPM x xoki W Exq urz: qi Sl M sL m lW Wa|

vii) MlU oM M Mx AkMU r MqcU M ukui mkMi milk r mYx M m q lrYi lW Wa|

pUir Ueu oM M Akxcl - QoAQ x. ox. x. pUir Ueu oM M Akxcl - QoAQ x. ox. x. 46/29.39.001/2007-08 AU QoAQ x. 47/29.39.001/ 46/29.39.001/2007-08 AU QoAQ x. 47/29.39.001/ 2007-08, SlM 01 luqoU 2007 AU QoAQ x.2007-08, SlM 01 luqoU 2007 AU QoAQ x.ox.x. 95/29.39.001/2010-11 SlM 23 qD, 2011:ox.x. 95/29.39.001/2010-11 SlM 23 qD, 2011:

pUir Ueu oM l lqlai Akxci Mr W:

CxM sL oM M lSzM qQs U lr lqMl xqi U rar AU Eci W xri lW S ei i MD p lqMl ukqlr lW Wa| lqMl M xj z rari, Alpu AU uzw l M AU mirzr M uxlri M qqs q rar AU Eci Wxri lkUi MUl M sL lqMl xqi M xqj oll M sL mirzr M oU q AiU xcl Wl cWL| Mx mkMU r lrM Lex M miMs AusMl r Mx oM r u xxj M Gh M cM r Susr xoki mirz M oM M lSzM M m q cl el M sL Arar AU Alci olra|

Gh u Aaq mU qxOU mUm Gh u Aaq mU qxOU mUm (AUoAD/2012-13/79 QoAQ x. QADAU.ox.4/13.03.00/2012-13) SlM SlM 02 esD, 201202 esD, 2012- lSzM M UziSU M Gh u Aaq M qeU

28

mai M fsMmai M fsM / PROGRESS AT A GLANCE(Uz ` MUQ q / Amount in ` Crore)

2010-11 2011-12 2012-13

mS me / Paid-up Capital 443 443 443AUi lkr / Reserves 19597 22247 24435Ms eqL / Aggregate Deposits 293437 327054 355856u (%) / Growth (%) 25.05 11.46 8.81Alux eqL / Non-Resident Deposits 12884 13762 17164uSz MUoU / Foreign Business Turnover 124095 144662 143795Aaq (lus) / Advances (Net) 211268 232490 242177u (%) / Growth (%) 24.76 10.04 4.17ZSU Aaq / Retail Advances 25259 24782 23084mjqMi Aaq / Priority Sector Advances 62108 67383 78998Mw / Agriculture 26305 31946 40786Mw (xuiUh) / Agriculture(Disbursal) 22374 27327 33730xq, sb u qkrq Eq / Micro, Small and Medium Enterprises 37684 34893 37016Q AU AD rel M iWi Aaq / Advances under DRI Scheme 52 58 67Ae / Aee aWM M Aaq / Advances to SC/ST Clients 5087 4293 5179lri xZ / Export Credit 10489 10382 10067Ms Ar / Total Income 25752 33778 37231Ms urr / Total Expenditure 19660 27835 31341mUcsl sp / Operating Profi t 6091 5943 5890lus sp / Net Profi t 4026 3283 2872zZA M xZr / Number of Branches 3257 3600 3728LOLq M xZr / Number of ATMs 2216 2858 3526aWM AkU ( MUQ q) / Clientele (In crore) 3.87 4.20 4.70Ms MqcUr M xZr / Total Number of Staff 43397 42272 42693xur xWri xqW (xZr) / Self Help Group (Nos.) 351000 371000 398000

qZr MrlwmSl Almi qZr MrlwmSl Almi (%) / / Key Performance Ratios (%)me mrmii Almi / Capital Adequacy Ratio 15.38 13.76 12.40mi zrU Ael (`) / Earnings Per Share (`) 97.83 74.10 64.83oW qsr (`) / Book Value (`) 359.25 429.51 490.56mi MqcU MUoU (` MUQ q ) / Business Per Employee (`crore) 11.96 13.74 14.20mi MqcU sp (` sZ q ) / Profi t Per Employee (` lakh) 9.76 8.21 6.96Axi Axir mU UOl / Return on Average Assets 1.42 0.95 0.77sai-Ar Almi / Cost-Income Ratio 42.05 44.02 46.61xMs Ll m L Almi / Gross NPA Ratio 1.49 1.73 2.57lus Ll m L Almi / Net NPA Ratio 1.10 1.46 2.18xZ- eq Almi / Credit - Deposit Ratio 72.00 71.09 68.05mjqMi xZ- xqrei lus oM xZ / Priority Credit to Adjusted Net Bank Credit 38.69 33.45 35.30

29

lSzMlSzM M UmO M UmO 2012-2013

DIRECTORS REPORT

30

DIRECTORS REPORT: 2012-13The Board of Directors have pleasure in presenting the 44th Annual Report together with the Balance Sheet as on 31st March, 2013 and Profi t and Loss Account for the fi nancial year ended March 31, 2013.

MANAGEMENT DISCUSSION AND ANALYSIS

I. ECONOMIC ENVIRONMENT Indian economy moderated for the second

consecutive year. As per the provisional estimates released by the Central Statistical Organization (CSO), GDP growth for 2012-13 estimated at 5% compared to 6.2% in 2011-12. Agriculture and industrial sectors grew by 1.9% (3.6%) and 2.1% (3.5%) respectively. Growth in services sector decelerated to 7.1% (8.2%). Under industry segments, while electricity, gas and water supply grew by 4.2% (6.5%), manufacturing sector grew by 1% (2.7%). Under Services, trade, hotels, transport and communications grew by 6.4% (7%), fi nancing, insurance, real estate and business services grew by 8.6% (11.7%) and community, social and personal services grew by 6.6% (6%).

Infl ation, which remained at an elevated level during 2012 eased signifi cantly during the last quarter of the fi nancial year. During 2012-13, WPI infl ation moderated to an average of 7.3% as compared to 8.9% in the previous year. Food and Fuel price infl ation was the source of upward pressure on overall infl ation during the year though non-food manufactured products infl ation declined in the latter half of the fi nancial year.

External trade sector witnessed a dismal performance during the year with signs of recovery seen only during Q4 FY13. As per the provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), during April-March 2012-13, merchandise exports of India declined by 1.8% to US$301 billion much lower than the US$360 billion exports target set for the year, owing mainly to global uncertainties and weak external demand. Slowdown in domestic growth, among others, affected imports during the year, which was valued at US$491 billion, with almost fl at growth at 0.4%. Trade defi cit widened to US$191 billion in 2012-13, higher than US$183 billion defi cit in 2011-12. Rising current account defi cit was another area of concern, which rose to an all time high of 6.7% in Q3 FY13, is expected to be 5% for 2012-13.

lSzM M UmO: 2012- 13lSzM M UmO: 2012- 13lSzM qQs U rj 31 qc, 2013 M Auk M sL islm u rj 31 qc, 2013 M xqmi ur uw M sL sp u Wl sZ xWi 44u uwM UmO xWw mxii M e UW W |

mokl ucU-uqz u uzswhmokl ucU-uqz u uzswh

I.I. ur m ur mUuzUuz pUir Ajuruxj saiU SxU uw q p qQUO UW |

MSr xZrM xaPl (xLxA) U eU M aD Aliq Alql M AlxU uw 2012-13 M sL eQm u uw 2011-12 M 6.2% M isl q 5% Alqli W | Mw AU Ea qz: 1.9% (3.6%) u 2.1% (3.5%) u mmi M | xu q u SU Mq WMU 7.1% (8.2%)UW | Ea M iWi oes, ax AU es Ami 4.2% (6.5%), lqh 1% (2.7%) u Se M | xu, urmU, WOs, mUuWl u xcU 6.4%(7%) u Se M, url, oq, xjuU xmS u MUoU xuL 8.6% (11.7%) u Se M ij xqSr, xqeM u urai xu 6.6%(6%) uSe M |

2012 M SUl Fc xiU mU ol UW qSxTi, ur uw M Aiq iqW q Rs W ar | uw 2012-13 M SUl mNs uw M 8.9% Misl q QosrmAD qSxTi 7.3% mU qQUO UW | uw M SUl xqa xTi qS FmU ol UWlM qZr MUh Z AU Dkl q WD qSxTi j ij ur uw M EUk q aU Z EimS M qSxTi q aUuO AD W |

uw M SUl uSz urmU LM lUzelM mSzl SZ AU Cxq xkU M xMi ur uw 13 M cj iqW q W SZ | uherM Axcl u xZrM qW lSzsr x eU M aD Aliq QO M AlxU, Ams-qc 2012-13 M SUl pUi M qs M lri 1.8% bOMU 301 osrl rLx $ W ar, e uM AliiA ij MqeU oWU qa M MUh uw M sL lkUi M aD 360 osrl rLx $ M sr x MT Mq W | Alr M xj bUs uMx q qS uw M SUl lri M mpui Mr, exM qsrMl sapa 0.4% nsO u M xj 491 osrl rLx $ Mr ar j | urmU bO uw 2011-12 M 183 osrl rLx$ M isl q uw 2012-13 M SUl 191 osrl rLx $ iM oR | cs Zi bO q u ci M Alr j e ur uw M ixU iqW q 6.7% iM oR ar e uw 2012-13 M sL 5% Alqli j |

31

The fi nancial markets in India moved in tune with the developments witnessed in the global and domestic fronts. Primary markets generally remained subdued during the year, though resource mobilization through equity issue, mutual funds and qualifi ed institutional placements was witnessed during the year. Strong FII infl ows, especially during the second half of the fi nancial year, augured well for the foreign exchange and equity markets. Money markets remained stable, despite liquidity pressures. G-sec yields softened during the last quarter of the year, with some increase noticed at the year-end. Rupee has further depreciated during the year from `51.16 in March 2012 to `54 level in March 2013.

Economic Environment in Karnataka Karnataka is one of the progressive States in India.

Widely acclaimed for its internationally reputed Information and Bio-technology companies, the State is home to varied industrial activities, leading research and development institutions and a pool of skilled manpower. As per the Economic Survey of Karnataka 2012-13, the real growth in Gross State Domestic Product (GSDP) is estimated at 5.9% during 2012-13 compared to 5.5% recorded during last year. Canara Bank, owing its origin to the State, is continuing its key position in the State. The Bank has been playing a leading role in extending fi nancial services to large number of people through its 706 branches and 725 ATMs, spread across the State. The State contributes about 16% to total domestic business of the Bank. The total business of the Bank in the State stood at `88738 crore, comprising `55031 crore under deposits and `33707 crore under advances as at March 2013.

II. MONETARY AND BANKING DEVELOPMENTS Growth in key monetary aggregates and money

supply in 2012-13 refl ected the changing liquidity conditions arising from domestic and global fi nancial environment. The monetary policy stance during the year was primarily to contain infl ation and manage liquidity, though the shift towards addressing downside risks to growth was undertaken during Q4FY13.

Money supply (M3) growth, which was 13.7% at the