Industry Profile: Banking is different from other businesses. In banking, Raw material and Final output are the same. Money. A high level of borrowed funds is not suitable for other businesses. In banking, it is necessary to borrow. Banking gives access to nearly all classes of people in society. Hardly any other business can do that. The use of public money is immense in the banking business concerning other businesses. Hardly other businesses achieve the status TO BIG TO FAIL. It’s easy for banks to become that much big. A real asset for any bank is mainly Its brand and Human resources. For others, Manufacturing plants or machines are essential assets. Banks play a crucial role in the Economy as giving loans or financing Infrastructure or housing is vital for Govt for that banks may play a key Role. Increasing the business of Banking network of branches is important though, in today’s Application era, we don’t need an extensive and Large network. But whatever is the web, that helps many businesses. Like when I need to go for IPO, I prefer KOTAK securities, SBi Cap, and Axis Capital rather than Other Investment bankers. Because they can use the Bank branch network to receive payment, banks are helping the general public invest the money and channel the savings. But the most significant thing a bank does is keep the flow in the Economy. Without a bank, Govt can’t make it. Banking also helps to make records of income. As we live in a cashless payment era, a bank account is a must.
Company Profile: Being a public sector bank, Canara Bank was set up by Shri Ammembal Subba Rao Pai in July 1906 at Mangalore. The Bank was nationalized in 1969. Bank has been scaling up its market position to emerge as a significant ‘Financial Conglomerate’ with as many as ten subsidiaries/sponsored institutions/joint ventures in India and abroad.
The Bank’s segments include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, and Other Banking Operations. The Bank provides personal banking, corporate banking, non-resident Indian banking, Internet banking, and micro, small, and medium enterprises (MSME) banking services. Its retail lending operations include education loans and vehicle loans. Its other services include merchant banking, depository services, executor, trustee and taxation services, and online payment services. In addition, it handles various government business products consisting of direct and indirect tax collections; payment of pensions of Central Government and State Government; handling of postal transactions and State Government treasury transactions; public provident fund scheme and senior citizens’ saving scheme, and issue of inflation-indexed bonds of Reserve Bank of India. Furthermore, the Bank manages four Digital Branches –CANDI opened in Bangalore, Chennai, Delhi, and Mumbai with fully automated facilities and robotic assistance for customers to open accounts and transact themselves.
184 hi-tech E-lounges are operational in select centers with facilities like ATMs, Cash Deposit kiosks with the voice-guided system, Cheque Deposit Kiosk, Self Printing Passbook Kiosk, Internet Banking Terminal, Online Trading Terminal, and Corporate Website Access.
Shareholding pattern: BSE Data
Financials and ratios : [table id=191 /]
Future prospectus: Public sector banks are all known for NPAs. Canara Bank is known for Growth in its loan books. The way Loan book and subsidiaries and other business. It looks great. The issue with the Bank is govt can tell it to merge some of the weak banks. The Bank itself was on the cusp of PCA, but the Bank successfully handled it due to management.
