Canara Bank Limited is one of the largest public sector banks owned by the Government of India. It is headquartered in Bengaluru. It was established at Mangalore in 1906 by Ammembal Subba Rao Pai and later the government nationalized the bank in 1969. The bank also has offices abroad in London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania and New York.[2] As per the announcement made by the Finance Minister Nirmala Sitharaman on 30 August 2019, Manipal based Syndicate Bank merged with Canara bank on 1 April 2020, making it the fourth largest bank in the country.[3][4][5]

History

Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent Fund in Mangalore, India, on 1 July 1906.[6] The bank changed its name to Canara Bank Limited in 1910 when it incorporated.

Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. This had been founded in September 1944 and at the time of its acquisition on 20 May 1961 had three branches. The second bank that Canara 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 had ordered Canara Bank to acquire G. Raghumathmul Bank, in Hyderabad. This bank had been established in 1870, and had 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 in 1961, Canara Bank acquired Trivandrum Permanent Bank. This had been founded on 7 February 1899 and had 14 branches at the time of the merger.[9]

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Next, Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam Bank, Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin, and Pandyan Bank, Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21 February 1923 and at the time of its acquisition it had 14 branches. Arnad Bank had been established on 23 December 1942 and at the time of its acquisition had only one branch. Cochin Commercial Bank had been established on 3 January 1936, and at the time of its acquisition had 13 branches.[9]

The Government of India nationalised Canara Bank, along with 13 other major commercial banks of India, on 19 July 1969. In 1976, Canara Bank inaugurated its 1000th branch. In 1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue. This brought Canara Bank some 230 branches in northern India.

In 1996, Canara Bank became the first Indian Bank to get ISO certification for "Total Branch Banking" for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting for ISO certification of branches.

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 total business of 15.20 lakh crore (US$210 billion) and 10,324 branches.[10][11] The Board of Directors of Canara Bank approved the merger on 13 September.[12][13] 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 the former for every 1,000 shares they hold.[14]

Overseas subsidiaries, branches and offices

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 2008–9, Canara Bank opened its third foreign operation, this one a branch in Shanghai. Later Canara Bank established a branch each in Leicester and Bahrain, and converted its Hong Kong subsidiary into a branch. It also has a representative office in Sharjah.

Together with State Bank of India, Canara Bank established a joint venture in Moscow, Commercial Bank of India LLC.

Canara Bank provides the general manager and the branch managers for Al Razouki Intl Exchange Co (LLC), which a number of business leaders and non-resident Indians (NRIs) established in 1981 in the United Arab Emirates to facilitate remittances to India by tourists and NRIs.

Since 1983, Canara Bank has been responsible for the management of Eastern Exchange Co. WLL, Doha, Qatar, which Abdul Rahman M.M. Al Muftah established in 1979. [15]

Canara Bank opened its seventh overseas branch in New York, United States on 10 June 2014.

Subsidiary companies

  • Canfin Homes Limited (CFHL), with a network of 110 branches and 28 satellite offices throughout India
  • Canbank Factors Limited
  • Canbank Venture Capital Fund Limited
  • Canbank Computer Services Limited
  • Canara Bank Securities Limited
  • Canara Robeco Asset Management Company Limited
  • Canbank Financial Services Limited
  • Canara HSBC Oriental Life Insurance Company Limited.

Regional rural banks

Canara Bank sponsors four regional rural banks (RRB):

  • Kerala Gramin Bank – It is the largest RRB in India. Its headquarters are at Malappuram and it operates in all districts in Kerala. It was established in 1976 as a Scheduled Commercial Bank.[16]
  • [17] has its headquarters at Bellary, Karnataka, and has 645 branches spread over eleven districts.
  • Karnataka Vikas Grameena Bank was constituted on 12 September 2005 after amalgamation of four Regional Rural Banks (RRBs) namely Malaprabha Grameena Bank, Bijapur Grameena Bank, Varada Grameena Bank and Netravathi Grameena Banks as per recommendations of the Narasimhan Committee under Government of India Notification dated 12 September 2005. All four amalgamated RRBs were sponsored by Syndicate Bank(Now Canara Bank) and were located in Karnataka.

Development projects

Canara Bank partnered with UNEP to initiate a solar loan program. This four-year $7.6 million effort launched in April 2003, to help accelerate the market for financing solar home systems in southern India.

Empower

Canara Bank offers Unified Payment Interface (UPI) app named “empower”. This app empowers Canara Bank and other Bank customers to perform pay and collect transactions using a single mobile app. On 19 November 2017, it launched Canarites (Candi) app,[18] a digital library, a field recovery mobile app, a retail loan (vehicle) – tracking system, and a regulatory guidance tracking system

On 7 May 2020, Bhanu Srivastav from Canara Bank, partnered with NGOs to donate all his royalty proceeds for the betterment of needy children.[19] He is working at Canara Bank Head Office, in Human Resource Department and a bestselling author of novel 'Hacker 404 Happiness not found'.[20][21]

On 23 May 2020, Canara Bank announced credit support for borrowers affected by COVID-19 to enable them to avail the sanctioned facilities to the full extent and improve their business.[22][23]

On 19 July 2020, Canara Bank announced to raise up to Rs 5,000 crore equity capital in Financial Year 2021 to strengthen capital base and to boost capital adequacy ratio in view of expansion plans. The Bank will seek nod from shareholders for the same in its AGM in August 2020.[24]

Controversies

Money Laundering

On 6 June 2018, the UK division of Canara Bank was fined £890,000 ($1.2 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.[25]

See also

Citations and references

Citations
  1. ^ a b c d e f g "Balance Sheet 31.03.2020".
  2. ^ Bureau, Our (29 December 2017). "Canara Bank shelves plan to sell stake in AMC arm". The Hindu Business Line. Retrieved 15 January 2018.
  3. ^ "Canara Bank, Syndicate Bank to merge to become 4th largest public sector bank". www.businesstoday.in. Retrieved 31 May 2020.
  4. ^ Mohapatra, Debasis (7 December 2019). "30 committees monitoring the Canara-Syndicate Bank merger process". Business Standard India. Retrieved 31 May 2020.
  5. ^ Ghosh, Shayan (1 April 2020). "Canara Bank now 4th largest PSU bank after merger with Syndicate". Livemint. Retrieved 31 May 2020.
  6. ^ "About Us". www.canarabank.com. Retrieved 12 June 2017.
  7. ^ Kamanth (2006), p. 108.
  8. ^ Pagdi, Raghavendra Rao. 1987. Short History of Banking in Hyderabad District, 1879–1950. In M. Radhakrishna Sarma, K.D. Abhyankar, and V.G. Bilolikar, eds. History of Hyderabad District, 1879-1950AD (Yugabda 4981–5052). (Hyderabad: Bharatiya Itihasa Sankalana Samiti), Vol. 2, pp.85–87.
  9. ^ a b c Kamanth (2006), p. 112.
  10. ^ "Bank Merger News: Government unveils mega bank mergers to revive growth from 5-year low | India Business News - Times of India". Retrieved 30 August 2019.
  11. ^ Writer, Staff (30 August 2019). "10 public sector banks to be merged into four". Mint. Retrieved 30 August 2019.
  12. ^ "Canara Bank board gives approval for merger with Syndicate Bank". Business Today. Retrieved 13 September 2019.
  13. ^ "PSU Bank merger: Canara Bank board approves merger with Syndicate Bank; key things to know". The Financial Express. 13 September 2019. Retrieved 13 September 2019.
  14. ^ Reporter, S. I. (5 March 2020). "Syndicate Bank, Oriental Bank gain on Cabinet nod for merger of 10 PSBs". Business Standard India. Retrieved 6 March 2020.
  15. ^ "Eastern Exchange". Archived from the original on 16 May 2014. Retrieved 22 October 2012.
  16. ^ Kerala Gramin Bank
  17. ^ "Karnataka Gramin Bank, Banks in India, Gramin Banks India, Karnataka". karnatakagraminbank.com. Retrieved 20 January 2020. Karnataka Gramin Bank with its Head office at Ballari under the sponsorship of Canara Bank came to existence on 01.04.2019 as per the gazette Notification of Government of India No.852 dated 22.02.2019 with amalgamation of 2RRBs i.ePragathi Krishna Gramin Bank (Sponsored by Canara Bank with Head Office at Ballari) &KaveriGrameena Bank (Sponsored by State Bank of India with Head Office at Mysuru).
  18. ^ Ghosh, Rashi Aditi (28 July 2017). "Canara Bank launches "CANDI"-its first digital branch in Bengaluru". Retrieved 31 May 2020.
  19. ^ India, Press Trust of (7 May 2020). "Bhanu Srivastav from Canara Bank Ties-up With NGOs to Donate Royalty Proceeds From his Novel 'Hacker'". Business Standard India. Retrieved 31 May 2020.
  20. ^ "Banker Bhanu Srivastav becomes best-selling author in India". MarketWatch. Retrieved 31 May 2020.
  21. ^ "HACKER 404 Happiness not found". www.goodreads.com. Retrieved 31 May 2020.
  22. ^ "Canara Bank announces credit support for borrowers affected by COVID". The Indian Express. 23 May 2020. Retrieved 31 May 2020.
  23. ^ Panda, Sushmita (23 May 2020). "Canara Bank releases emergency credit facilities for MSMEs". www.indiatvnews.com. Retrieved 31 May 2020.
  24. ^ "Canara Bank to raise up to Rs 5,000 crore equity capital in FY21 to strengthen capital base". Moneycontrol. Retrieved 5 August 2020.
  25. ^ "Canara Bank fined in UK for anti-money laundering breaches". Economic Times. Retrieved 7 June 2018.
References
  • Kamath, M.V. (2006) A Banking Odyssey: The Canara Bank Story. (Konark Publishers). ISBN 9788122007176

External links