Canara Bank

Canara Bank is an Indian public sector bank based in Bengaluru. Established in 1906 in Mangalore by Ammembal Subba Rao Pai, the bank was nationalized in 1969. Canara Bank also has offices in London, Leicester, Hong Kong, Shanghai, Manama, Johannesburg, New York City, Dubai, and a representative office in Sharjah.^[4]

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent Fund in Mangalore, India, on 1 July 1906.^[5] In 1910, the name of the bank was changed to Canara Bank Ltd.^[6]

Canara Bank's first acquisition took place in 1961 when it acquired the Bank of Kerala. Founded in September 1944, the Bank of Kerala had three branches at the time of its acquisition on 20 May 1961. The second bank acquired was Seasia Midland Bank (Alleppey), which had been established on 26 July 1930 and had seven branches at the time of its takeover.^[7]

In 1958, the Reserve Bank of India ordered Canara Bank to acquire G. Raghumathmul Bank in Hyderabad. This bank was established in 1870 and converted to a limited company in 1925. At the time of the acquisition, G. Raghumathmul Bank had five branches.^[8] The merger took effect in 1961.^[9] Later that year, Canara Bank acquired Trivandrum Permanent Bank, which was founded on 7 February 1899 and had 14 branches at the time of the merger.^[9]

Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam Bank of Thrippunithura, Arnad Bank of Tiruchirapalli, Cochin Commercial Bank of Cochin, and Pandyan Bank of Madurai. Sree Poornathrayeesa Vilasam Bank was established on 21 February 1923 and had 14 branches at the time of its acquisition. Arnad Bank was established on 23 December 1942 and had one branch. Cochin Commercial Bank was established on 3 January 1936 and had 13 branches.^[9] Pandyan Bank was established in Madurai, Tamil Nadu, by S.N.K. Sundaram on 11 December 1946. It created an all-women's branch at Town Hall Road, Madurai, in 1947, staffed by ten women, one of whom was Kamala Sundaram, the founder's daughter. The merger with Canara Bank took effect on 2 December 1963, at which time Pandyan Bank had 83 branches.

The Government of India nationalised Canara Bank, along with 13 other major commercial banks, on 19 July 1969. Karkala Pulkeri Janardhan Prabhu (KPJ Prabhu) served as chairman of the bank post-nationalisation. In 1976, Canara Bank inaugurated its 1,000th branch. In 1983, the bank inaugurated their overseas branch in London. In 1985, it acquired Lakshmi Commercial Bank in a rescue. The same year, they commissioned Indo Hong Kong International Finance Ltd. In 1987, the bank launched Canbank Mutual Fund & Canfin Homes. In 1989, the Canbank Venture Capital Fund.^[10] During the year 1989-90, the bank incorporated their factoring subsidiary Canbank Factors Ltd. In 1992-93, they became the first bank to articulate and adopt their directive principles of Good Banking.^[11]

In 1995-1996, they were conferred with ISO 9002 certification for one of the branches in Bangalore. In 1996, Canara Bank became the first Indian bank to receive ISO certification for "Total Branch Banking" for its Seshadripuram branch in Bangalore. The Bank has since stopped opting for ISO certification for its branches. During the 2001-02, a Mahila Banking Branch in Bangalore and catered to the financial requirements of women. During the years 2003-04, they launched Internet Banking Services.^[12] During the year 2005-06, they launched Core Banking Solutions in certain branches. During 2006-07, the bank signed MoU's and commissioned two joint ventures in Insurance and Asset Management, like HSBC (Asia Pacific) Holding and Robeco Groep N.V.

The bank was listed on the stock market on December 23,2002, following the its Initial Public Offering. It traded on major Indian Stock Exchange.^[13]

During the years 2007-08, a new brand identity was launched. As part of this, insurance and asset management joint ventures. They also launched a Online Trading Portal and a Call Centre. In 2008-09, they commissioned their third international branch in Shanghai.^[14] During this year, they also added 314 branches.^[15]

Under Remit Money, a web based product by extending to 11 exchange companies/banks and continues to have Electronic Funds Transfer (EFT) arrangement with 10 exchange houses/banks. Their arrangement under Remit Money was expanded to include 17 exchange companies/banks and four branches abroad.^[16] The bank opened 54 branches during this year as well.^[17] They launched SME Sulabh, a new business model that delivers credit quickly to the MSME sector.

During the year 2010-11, the bank added 210 domestic branches, and four international branches in London, Leicester, Hong Kong and Shangai.^[18] During this year, the banks aggregate business crossed Rs. 5 Lakh Crore marked and net profit crossed the mark of Rs. 4000 crores. The bank achieved 100% coverage under core banking solutions that year as well.^[19] During this time period, the bank raised Rs. 1993 crore under QIP. In 2011-12, they opened their 5th international branch in Manama, Bahrain.^[20]

In 2013-14, the global business of the bank crossed the Rs. 7 Lakh Crore milestone. And during the years 2014-15, the banks crossed the Rs. 8 lakh crore.^[21] In 2015-16, they opened their 8th foreign branch in DICF (Dubai). In 2016-17, the network of banks crossed 6000. During this year, they also opened a foreign subsidiary in Tanzania. As on 2018, the bank has 7 domestic subsidiaries, one joint venture and one associate company under their wing.^[22] During 2019, the total deposits of the bank increased to Rs 599033 crore, with a y-o-y growth of 14.15%.

On 30 August 2019, Finance Minister Nirmala Sitharaman announced that Syndicate Bank would be merged with Canara Bank. The proposed merger would create the fourth-largest public sector bank in the country, with a total business of ₹15.20 lakh crore (US160ドル billion) and 10,324 branches.^{[23] [24]} The Board of Directors approved the merger on 13 September 2019.^{[25] [26]} The Union Cabinet approved the merger on 4 March 2020. The merger was completed on 1 April 2020, with Syndicate Bank shareholders receiving 158 equity shares in Canara Bank for every 1,000 shares held.^{[27] [28] [29] [30] [31] [excessive citations ]} During 2020, the Ministry of Finance, Government of India infused Rs. 6571 crores worth of capital into the bank by way of preferential allotment of equity shares. In the same year, the Scheme of Amalgamation of Syndicate Bank into Canara Bank as per the powers conferred by Section 9 of Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980.^[32]

In 2022, Canara Bank entered into a partnership with two Fin-tech companies, M/s Atyati Technologies Pvt. Ltd and M/s SUB K Impact Solutions Ltd., for sourcing loan proposals up to Rs. 10 lakhs. In the years that followed, 107 domestic branches merged into the bank.^[33] In 2024, the bank set a new standard for the country by inaugurating a new, cutting-edge data and analytics centre (DnA), Bangalore. In 2024, Canara Bank raised 300ドル million through its IFSC Banking Unit.^[34] In 2025, 15 domestic banks have been merged into the bank.^[35]

As on March 2026, the bank had 10097 branches, which includes a wide range of banks. The major goals for FY25 and FY26 includes Loan against Mutual Funds, new to bank customers for HEAL (Health Care Loan) and Loan against Mutual Funds (LAMF) loans; Mortgage Loans, Loans against Property, Overdraft against Property; Canara Vehicle (4 wheelers) and Digital Renewal of Working Capital till Rs. 10 lakhs.^[36]

As of October 2025, the promoter holding at the bank is 62.93% and the public holding is 37.07%.^[37] The shareholding pattern disclosure filed under Regulation 31(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended by June 2026, the bank had a total of 9,070,651,261 equity shares outstanding, which was held by 1,521,088 shareholders.

The government of India, represented by the President of India held 5,708,548,390 shares, amounting to 62.93% of the total equity, which was consistent with the bank's status as a PSU.^[38] Among public shareholders, domestic institutions held 11.91%, comprising mutual funds (6.31%), insurance companies (4.55%), alternate investment funds (0.48%), provident/pension funds (0.52%), and banks (0.05%).^[39] Foreign institutional holdings accounted for 12.68%, primarily through Foreign Portfolio Investors Category I (12.04%). Non-institutional shareholders held 12.48%, including resident individuals holding shares up to ₹2 lakh (7.21%) and above ₹2 lakh (3.79%), bodies corporate (0.85%), and non-resident Indians (0.28%).^[40]

Canara Bank sponsors two regional rural banks (RRB):

• Kerala Grameena Bank

Its headquarter is at Malappuram and it operates in all districts in Kerala. It was established on 8 July 2013 as a Scheduled Commercial Bank.^[50]

• Karnataka Grameena Bank

Its headquarter is at Ballary, Karnataka, and has 1750 branches spread over all districts in Karnataka. It established on 1 May 2025 under the "One State, One RRB"^[51] policy of government of India.

In 2003, Canara Bank partnered with UNEP to initiate a solar loan program.^[52] Under this programme, loans were offered to finance the costs of photovoltaic solar home systems in Karnataka, India. This initiative provides loans at a reduced interest of 5%, and is supported by UN Foundation and Shell foundation.^[53]

As part of its business responsibility goals, the bank has voluntarily adopted a strategic method to CSR, to strengthen the reputation of the bank while promoting social welfare. In the report of 2024-25, it details the CSR activities and rural training centres to support underprivileged communities. The key initiative is the rollout of 7000 "hybrid kiosk" models as having extended access to financial services in underprivileged areas.^[54] Another significant change made by the activities of the bank is a 111% increase of retail borrowers in its "Green Wheels Loans" scheme, that finances electric vehicle purchases, and this indicates a positive change in the realm of sustainable transport funding. The bank also operates a "Green Deposit Policy" framework that initiates customers into environmental sustainable financing.^[55] As of February 2025, the outstanding balance of the bank stood at Rs. 133.27 crore.^[56]

In terms of accessibility as well, the bank has undertaken significant measures. As of early 2025, 6810 of its branches and 7689 ATMs had been provided with ramps. This is in line with the requirements of the Rights of Persons with Disabilities Act, 2016. Their commitment to ensuring equitable access to employment as well. Their Equal Opportunity Policy mandates that 4% of the total position be reserved for persons with disabilities in recruitment and promotion.^[57]

According to the CSR report of 2024-2025, Canara HSBC Life Insurance Company Limited marked Rs. 1.59 crores for CSR activities, in line with the requirements of Section 135, Companies Act, 2013. The focus area of the bank includes education, environmental sustainability and healthcare.^[58] These projects are implemented through a mix of direct execution and partnerships with registered trusts, societies and companies having at least three years of experience in the sector. The oversight is provided by the CSR committee of the board and a management level CSR Review Group.^[59]

Under Education and Livelihood, the Ujjwal Bhawishya programme (East Delhi), "Prajwal" programme (focused on select areas in Karnataka), "Saakaar" (in selected districts of Kerala, Jharkhand and Madhya Pradesh), was introduced to focus and improve different areas, such as formal and non-formal education, vocational training, and livelihood generation support for women and other marginalised identities. Within the realm of healthcare, the programme "Drishti" was launched in certain areas of Odisha and Delhi, to help people with the eye health.^[60] For environment, multiple projects have been launched as part of the CSR activities. These include, the "Cheer-Urja" project in Himachal Pradesh, and "Sanrakshan" in Bangalore. These activities have been to promote biodiversity conservation and supporting sustainable agricultural practices.^[61]

Canara Bank established its international division in 1976. In 1983, Canara Bank opened its first overseas office, a branch in London. Two years later, Canara Bank established a subsidiary in Hong Kong, Indo Hong Kong International Finance. In 2008–2009, Canara Bank opened its third foreign operation, a branch in Shanghai. Later Canara Bank established a branch each in Leicester and Bahrain, and converted its Hong Kong subsidiary into a branch. Canara Bank incorporated its subsidiary in Tanzania as CBTL in 2015.

On 6 June 2018, the UK division of Canara Bank was fined 890,000ドル (1ドル.2 million) by the UK's Financial Conduct Authority and was blocked from accepting new deposits for around five months for systematic anti-money laundering (AML) failures.^[62]

Canara Bank faced a monetary penalty of Rs 2.92 crore from the Reserve Bank of India (RBI) due to non-compliance with regulations, including failures in linking interest rates of loans to external benchmarks and other operational norms.^[63]

In 2024, Canara Bank officers were recorded verbally abusing employees for not meeting their work targets, and the videos circulated on social media, prompting the bank to publicly address these incidents.^{[64] [65]}

• In FY18, the bank received Master Card Innovation Award for Canara International Prepaid Card under the prepaid segment.
• The bank received the VISA award on crossing the key milestone (on insurance) 1.35 crore VISA debit card.
• They also received the ASSOCHAM Social Banking excellence award 2017 for Government Sponsored Schemes, and a runner-up award for Agricultural Banking in large bank class.
• The bank received the Golden Peacock Award in 2017 for CSR from the Institute of Directors, New Delhi.
• During FY19, the bank secured Chamber of Indian Micro Small and Medium Industries (CIMSME) awards for best bank for promotional schemes (Large Category).
• The bank bagged four awards under the Social Banking Excellence 2018 awarded by ASSOCHAM.

• Banking in India
• List of banks in India
• Reserve Bank of India
• Indian Financial System Code

• Official website

• Kamath, M. V. (2006). A banking odyssey, the story of Canara Bank. Delhi: Konark Publishers. ISBN 81-220-0717-1. OCLC 80175889.