Latest News on Canara Bank
NCLAT Gives Green Light for Banks to Pursue Legal Action Against Former IL&FS Directors
The National Company Law Appellate Tribunal (NCLAT) has passed an order allowing state-owned Canara Bank and Indian Bank to proceed with declaring former directors of Infrastructure Leasing & Financial Services (IL&FS) as willful defaulters, but only if they are not part of the new board. The tribunal granted leave to the banks to make an application against the former directors who were not part of the new board, which was constituted by the government in October 2018.
The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra, said that the protection extended to the former directors would not extend to those who are part of the new board. The tribunal also protected Professional Directors who were reappointed in IL&FS and its subsidiaries after October 1, 2018.
The crisis in IL&FS was triggered by a massive debt of Rs90,000 crore, which sent shockwaves through the financial sector of the country. The government had appointed a new board of IL&FS in October 2018, and NCLAT had passed an interim stay on certain actions by creditors and other parties against IL&FS and its group companies.
IL&FS had argued that in view of the stay order, all directors, including the erstwhile ones, were protected from legal proceedings. However, the banks emphasized that only show-cause notices were issued to the erstwhile directors, and the process needs to be completed as per the RBI circular.
The NCLAT order allows the banks to pursue proceedings against the former directors who are not part of the new board, but protects those who are part of the new board and have been reappointed as Professional Directors. The order is seen as a significant development in the IL&FS saga, which has been marked by controversy and legal wrangles.
NCLAT permits banks to take action against former IL&FS directors
The National Company Law Appellate Tribunal (NCLAT) has ruled that state-owned Canara Bank and Indian Bank can pursue legal proceedings against former IL&FS directors who are not part of the new board to declare them as wilful defaulters. However, the tribunal has granted protection to those directors who are part of the new board of IL&FS and its subsidiaries after October 1, 2018. This means that any former directors who are no longer affiliated with IL&FS in any capacity will be subject to legal action, while those who have been reappointed to the board of IL&FS or its subsidiaries will be shielded from such action.
The tribunal’s decision is a significant development in the ongoing saga surrounding IL&FS, which is currently undergoing a debt resolution process. The company’s financial troubles were caused in part by the actions of its erstwhile directors, who were accused of making reckless decisions that led to the company’s downfall. The banks had been seeking to declare these directors as wilful defaulters in order to recover their outstanding dues.
The NCLAT’s ruling is seen as a victory for the banks, which can now move forward with their efforts to recover their debts. The tribunal’s decision to grant protection to the new board members, however, is also seen as a positive development, as it will help to ensure that the company can move forward with a stable and effective leadership. The ruling is also expected to send a strong message to other companies and their directors, who are expected to be held accountable for their actions.
Overall, the NCLAT’s decision is a significant step forward in the debt resolution process and is likely to have important implications for IL&FS and its stakeholders. The company’s future direction and prospects will now depend on the actions of its new board and the success of its debt resolution plans.
NCLAT permits Canara Bank and Indian Bank to take legal recourse against former IL&FS directors, as reported by ET Infra
The National Company Law Appellate Tribunal (NCLAT) has ruled that state-owned Canara Bank and Indian Bank can pursue proceedings against former directors of Infrastructure Leasing & Financial Services (IL&FS) who are not part of the new board to declare them as wilful defaulters. However, those directors who are part of the new board of IL&FS and its subsidiaries after October 1, 2018, will remain protected.
The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member Barun Mitra, allowed the banks to make an application for proceeding against the former directors. The tribunal also granted protection to professional directors who were reappointed to the board of IL&FS and its subsidiaries after October 1, 2018.
The government had appointed a new board of IL&FS in October 2018 after a debt crisis, which sent shockwaves through the financial sector. NCLAT had also granted an interim stay on certain actions by creditors and other parties against IL&FS and its group companies.
IL&FS had argued that the directors are protected under the NCLAT order dated October 15, 2018, which restrained all persons from taking any coercive action against IL&FS and its group entities. However, the banks argued that the show cause notices were issued only to erstwhile directors of the companies, and the process needs to be completed as per the RBI circular.
The NCLAT ruling comes as a major relief to Canara Bank and Indian Bank, which will now be able to pursue proceedings against the former directors to declare them as wilful defaulters. The ruling is also a setback for the former directors, who will not be able to escape accountability for their actions.
Electricity consumers can now transfer their security deposits to prominent public sector banks, offering a convenient and secure alternative.
The Electricity Department of the Andaman and Nicobar Islands has announced that consumers can now transfer their electricity security deposits from the Andaman and Nicobar State Cooperative Bank (ANSCB) to any of the solvent Public Sector Banks operating in the Islands. This move has been approved by the competent authority and applies to all consumers of the department.
The list of eligible banks includes several major public sector banks such as State Bank of India, Canara Bank, Indian Bank, and others. Consumers are required to deposit the revised security amount with one of these banks either in the form of a bank guarantee or by providing a lien against a fixed deposit.
The revised security deposit amount will be equivalent to twice the average of the actual bills paid by the consumer during the previous financial year. This amount will be reviewed annually by the Electricity Department, as per Section 5.136 of the Joint Electricity Regulatory Commission (JERC) Regulations, 2018.
Once the new security deposit arrangement is established and necessary documentation is submitted, consumers can request the release of their existing security deposit held with ANSCB. The Department will forward these requests to ANSCB, which will then return the deposit amount along with accrued interest directly to the consumers.
This development is expected to provide more flexibility and convenience to consumers in managing their electricity bills and security deposits. It also aims to ensure that consumers are not penalized for fluctuations in their electricity consumption patterns. By allowing consumers to transfer their security deposits to other banks, the Electricity Department is providing an additional option for managing their financial obligations.
Canara Bank authoritative note: Top-level changes at Board of Directors announced.
The state-run Canara Bank has announced significant changes in its board by elevating six General Managers to the post of Chief General Manager. The newly promoted executives are seasoned bankers who have been with the bank for several years.
The six executives are:
1. Shri. Mahesh M Pai, who currently heads the Bengaluru Circle Office, has a qualification in B.Sc and CAIIB. He has been with the bank since 2007.
2. Shri. Prabhat Kiran, who heads the Large Corporate Credit Wing at the Head Office in Bengaluru, has a PG Diploma in Business Administration, BA (Hons) and CAIIB. He joined the bank in 1996.
3. Shri. T K Venu Gopal, who heads the Human Resources Wing at the Head Office in Bengaluru, has qualifications in ICWA and CAIIB. He has been with the bank since 1990.
4. Shri. Shambhu Lal, who heads the Ahmedabad Circle Office, has qualifications in M.Com and CAIIB. He joined the bank in 1992.
5. Shri. Vikram Duggal, who heads the Stressed Assets Management Wing at the Head Office in Bengaluru, has qualifications in CA and CAIIB. He joined the bank in 2000.
6. Shri. Ranjeev Kumar, who heads the Lucknow Circle Office, has a qualification in M.Sc (Mathematics) and CAIIB. He joined the bank in 1995.
All six executives have been promoted from General Managers to Chief General Managers, indicating their expertise and experience in various areas of the bank. This change is likely to bring new perspectives and leadership to the bank, which has been a leading public sector bank in India for several decades.
Stock Market Updates of Canara Bank
Recent Updates
Fitch confirms Canara Bank’s ‘BBB-‘ rating, with a stable outlook for future performance.
Fitch Ratings has reaffirmed Canara Bank’s Long-Term Issuer Default Rating (IDR) at ‘BBB-‘ with a Stable Outlook, along with its Viability Rating (VR) at ‘bb-‘ and Government Support Rating (GSR) at ‘bbb-‘. The ratings are based on the high probability of state support, given the government’s 63% stake in the bank and its systemic importance. The VR is also influenced by the bank’s risk profile, which has negatively impacted its financial metrics in weaker economic conditions.
Despite these challenges, Canara Bank’s asset quality has improved, with the impaired-loan ratio decreasing to 3.3% and the loan loss coverage ratio rising to 74%. The bank’s profitability appears to have peaked, with the operating profit/risk-weighted asset ratio steady at 3%, although Fitch expects this ratio to decline by 40 basis points by FY27. The bank’s Common Equity Tier 1 (CET1) ratio improved to 12% and may rise to 12.5% by FY27, while funding and liquidity remain strong with a liquidity coverage ratio of 123% and a loan-to-deposit ratio exceeding 80%.
The ratings are subject to certain triggers, with a downgrade in India’s sovereign rating or a reduction in the government’s support propensity potentially lowering Canara Bank’s rating. On the other hand, a sovereign upgrade or a significant improvement in asset quality and capital buffers could lead to an upgrade. Overall, the ratings reflect Fitch’s view on Canara Bank’s creditworthiness and its potential for future performance.
Karnataka High Court intervenes, halts bank from deducting full pension payments as loan EMI dues
The Karnataka High Court has intervened to protect the rights of a retired bank employee, Murugan O K, who was facing difficulties in settling his loan dues. The court has directed Canara Bank to refrain from debiting more than 50% of Murugan’s pension to settle his Equated Monthly Installments (EMIs). The court’s decision is based on the principle that a pension is meant to sustain an individual after retirement, and recovery of loan dues should not exceed 50% of the take-home salary.
The court’s ruling is significant, as it clarifies that even in cases where an employee has borrowed money, the entire pension amount cannot be recovered. The court noted that the recovery of the entire pension amount would be a violation of Article 21 of the Constitution, which guarantees the right to protection of life and personal liberty.
Murugan, a 70-year-old resident of Thrissur, Kerala, had approached the high court last year, seeking a directive to stop the recovery of his full pension towards his loan dues and to also stop penal interest on an educational loan for which he was a co-obligant with his daughter. Until June 2024, Murugan was paying the EMIs from a part of his pension amount, but from July 2024, the bank started debiting his entire monthly pension against EMIs.
The court has allowed Canara Bank to resort to any other mode available within law to recover the loan, along with interest. The bank can also enforce the security obtained against the loan, such as the bank’s security, to recover the loan.
The court’s decision is seen as a victory for Murugan, who was facing difficulties in settling his loan dues. The court’s intervention has ensured that Murugan’s pension is protected, and he can maintain a decent standard of living in his post-retirement life.
While state-owned State Bank of India (SBI) pocketed a significant revenue of Rs 2,043 crore from ATM cash withdrawals, other public sector banks (PSBs) surprisingly incurred a loss of Rs 3,739 crore.
The State Bank of India (SBI) has generated substantial revenue from ATM cash withdrawals, whereas other public sector banks (PSBs) have faced financial challenges in this area. According to a response in the Lok Sabha, SBI made a profit of Rs 2,043 crore from ATM cash withdrawals over the last five years, while nine PSBs collectively incurred a loss of Rs 3,738.78 crore. Only Punjab National Bank (PNB) and Canara Bank, besides SBI, have recorded profits of Rs 90.33 crore and Rs 31.42 crore, respectively.
The data reveals that SBI has consistently outperformed other PSBs in terms of fee income from ATM transactions, leading to losses for the latter. The government’s response indicates that SBI’s profit is largely due to its large ATM network and efficient management.
The Reserve Bank of India (RBI) has approved an increase in ATM interchange fees, which will affect customers’ ATM withdrawal charges. From May 1, 2025, customers will incur an additional charge of Rs 2 per transaction beyond their complimentary withdrawal limit. The non-transaction fee has also been raised by Rs 1. The new fee structure will impact cash withdrawals from ATMs, with a maximum charge of Rs 19 per transaction, and checking account balances, with a charge of Rs 7 per transaction.
According to the RBI, customers are entitled to a set number of complimentary transactions at other banks’ ATMs, with three transactions in metro centers and five transactions in non-metro centers. Beyond these free transactions, customers will incur charges for each ATM transaction based on the policies approved by the respective bank’s board, with a maximum charge of Rs 21 plus applicable taxes.
Canara Bank generously donates cricket equipment to a local medical college, promoting grassroots sports and supporting the next generation of healthcare professionals.
Canara Bank, as part of its Corporate Social Responsibility (CSR) initiative, has donated cricket kits to Nizamabad Government Medical College. The event, which took place in Nizamabad, was attended by several prominent officials from Canara Bank, including Hyderabad Circle head B Chandrasekhar, Nizamabad region head AGM B Srinivas, and divisional manager Pradeep Vasant. Additionally, staff from the regional office were also present.
The medical college’s principal, Dr. Shiva Prasad, vice principal, Dr. Jalagam Tirupathi Rao, assistant director, AD Sudharshan, and superintendent, Nagaraju, participated in the event and expressed their gratitude to the Canara Bank officials for their generous donation. The cricket kits donated by the bank will undoubtedly benefit the students of the medical college, providing them with the opportunity to engage in physical activities and develop their skills in a healthy and competitive environment.
The CSR initiative is a testament to Canara Bank’s commitment to giving back to the community and empowering young minds. The donation is also a reflection of the bank’s role in supporting education and sports, as well as its dedication to creating a positive impact on society. The event marked a significant milestone for Canara Bank in the Nizamabad region, as it solidified its position as a responsible and socially conscious corporate entity.
Overall, the cricket kit donation by Canara Bank to Nizamabad Government Medical College is a valuable gesture that will have a lasting impact on the students and community. It is a shining example of corporate social responsibility in action, and a testament to the bank’s commitment to making a difference in the lives of those around them. By supporting education and sports, Canara Bank is not only contributing to the development of young talent, but also shaping the future of the nation.
Canara Bank achieves victory in the 2025 All India Public Sector Hockey Tournament
The 2025 All India Public Sector Hockey Tournament was held at the SAI hockey ground in Kolkata, and Canara Bank from Bengaluru emerged as the champions. They defeated Union Bank of India from Mumbai 4-2 in a penalty shootout after the match ended 3-3 in regular time. The winning score was 7-5 in favor of Canara Bank.
The championship was organized by Coal India Ltd, and the trophy was presented by former India Hockey captain and double Olympic bronze medalist P.R. Sreejesh and Vinay Ranjan, Director (P & IR) Coal India Limited. The event was attended by dignitaries including Ramesh Sachdeva, Consultant (AIPSSCB), Victor Anthony, Selector (AIPSSCB), Executive Director, General Managers, and HODs from CIL Headquarters.
In his address, Sreejesh congratulated the management of CIL for promoting hockey among public sector undertakings and advised the company to promote young talents in the field of sports. Dr. Vinay Ranjan emphasized the company’s commitment to promoting sports activities, including the Khelo India initiative, and mentioned that CIL has organized various sports events, including a marathon in Jharkhand and Odisha.
The final match was a high-scoring affair, with Union Bank of India dominating the game with their attacking prowess. Canara Bank fought back with timely counterattacks, and the match ended 3-3 after 60 minutes. The penalty shootout saw K.P. Dinesh, Yathish Kumar, G.N. Pruthviraj, and Likhith B.M. successfully convert for Canara Bank, while Darshil and Rahul C.J. scored for Union Bank of India. Jagdeep Dayal, the Canara Bank goalkeeper, was adjudged the best goalkeeper of the tournament.
The tournament also recognized individual performances, with awards for Best Goalkeeper (Jagdeep Dayal), Best Defender (Surender Kumar, FCI), Best Midfielder (Rahul Shinde, UBI), and Best Forward (Krishna Mohan, SAIL). Food Corporation of India secured third place, defeating SAIL 3-2.
Senior Citizens’ FD Offer: Take advantage of 9.10% interest rates on Fixed Deposits from these top banks, find out more details here!
Fixed Deposits (FDs) have been a popular investment option in India for many years, particularly among senior citizens. This is because FDs are considered to be a safe and secure way to invest, with a high return on investment. Senior citizens can earn higher interest rates than normal citizens, typically around 0.5% more, making it an attractive option for those looking to generate a steady income post-retirement.
Banks and non-banking financial companies (NBFCs) offer FDs with interest rates ranging from 2.50% to 9.10% for a period of 7 days to 10 years. Many private banks offer interest rates up to 7%, while some NBFCs offer 9% interest on FDs. This makes FDs a lucrative option for those seeking a high return on investment.
Top banks and NBFCs in India offer FD rates as follows:
* Public Sector Banks: Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, State Bank of India, and Union Bank of India offer interest rates ranging from 7.75% to 7.95%.
* Private Sector Banks: Axis Bank, Bandhan Bank, DBS Bank, HDFC Bank, ICICI Bank, and Yes Bank offer interest rates ranging from 7.75% to 8.25%.
* Small Finance Banks: AU Small Finance Bank, Jan Small Finance Bank, North East Small Finance Bank, Unity Small Finance Bank, and Utkarsh Small Finance Bank offer interest rates ranging from 8.40% to 9.10%.
FDs provide several benefits to senior citizens, including the option to withdraw the full or partial amount before maturity, as well as the option to renew the FD once it matures. Additionally, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage up to Rs 5 lakh on deposits with participating banks. With a minimum investment requirement as low as Rs 100, FDs are an accessible and secure investment option for senior citizens.
Thrilling draw for United Bank of India; SAIL salvage a point in a hard-fought 3-3 encounter with Canara Bank
The All India Public Sector Hockey Tournament 2025 continued on its second day at the SAI hockey ground in Kolkata, with a thrilling match between SAIL and UBI in Pool A. The contest ended in a 3-3 draw, giving both teams a point each. SAIL, who had dominated the opening day, taking down NALCO 17-0, now has four points from one victory and one draw. UBI, on the other hand, needs to win their next match against NALCO by a margin of at least 18 goals to qualify for the final.
In another match, Canara Bank outplayed FCI 3-2, with P.N. Purthviraj, P. Somaiah, and Chethan Malappa K. scoring goals for the Karnataka-based team. FCI, who had won their opening match against CIL 34-0, did not translate their territorial dominance into goals and ultimately lost.
The tournament is being held under the aegis of the All India Public Sector Sports Control Board (AIPSSCB) and features six Public Sector Undertakings (PSUs): FCI, NALCO, Canara Bank, UBI, SAIL, and CIL. The event aims to promote sports and well-being among employees of these organizations. The tournament will continue with two more days of matches to determine the winner.
Canara Bank reduces lending rates on select tenures by 5-15 basis points, effective March 12, 2023.
Canara Bank, a major Indian public sector bank, has announced a reduction in lending rates on certain tenures by 5-15 basis points (bps), effective March 12, 2023. This move is aimed at boosting credit growth and supporting the economic recovery in the country.
The bank has reduced the marginal cost of lending rate (MCLR) by 15 bps, from 7.50% to 7.35%, for overnight and up to one-year tenure. For terms ranging from 1-3 years, the MCLR has been reduced by 10 bps, from 7.80% to 7.70%. For 3-5 year tenures, the MCLR has been lowered by 5 bps, from 8.20% to 8.15%.
This rate reduction is expected to make borrowing more affordable for customers, particularly for housing and personal loans. The bank’s decision is also seen as a response to the Reserve Bank of India’s (RBI) August 2022 circular, which asked banks to link their lending rates to external benchmarks, such as the RBI’s repo rate. The RBI has been lowering its repo rate to stimulate the economy, and Canara Bank’s rate cut is seen as a way to align its lending rates with the RBI’s monetary policy stance.
The rate reduction is also expected to boost business and employment in the economy by providing easier access to credit for small and medium-sized enterprises (SMEs) and individuals. SMEs are often the backbone of the economy, and access to credit can help them grow and create employment opportunities.
Canara Bank’s rate cut is seen as a positive move by financial experts, who point out that it can help accelerate economic growth and job creation. However, they also caution that more needs to be done to address structural issues affecting the banking sector, such as the high non-performing asset (NPA) levels and the need for more effective risk management.
Overall, Canara Bank’s decision to cut lending rates is seen as a significant step towards supporting the economy and providing relief to borrowers. However, it remains to be seen how other banks will respond to this development and whether the rate cuts can be passed on to customers in the form of lower interest rates.
Unlock the Key to Affordable Home Ownership: Say goodbye to high interest rates! Compare the best home loan deals of 2025 and start building your dream home now!
Are you dreaming of owning your own home, but high loan rates are giving you sleepless nights? Worry no more! Many banks are currently offering home loans at very affordable interest rates and EMIs (Equated Monthly Installments). In this article, we’ll help you discover which bank is offering the cheapest home loan option.
Rising interest rates and expensive loans can make home ownership a daunting task. However, several government banks, including Bank of Maharashtra, Central Bank of India, and Punjab National Bank, are offering home loans at attractive interest rates, starting from 8.10% to 10.65%. This can significantly reduce your EMI and make owning a home a more achievable goal.
Here’s a breakdown of the best home loan rates offered by various banks, with rates starting from 8.10%:
* Bank of Maharashtra: 8.10% to 10.65%
* Central Bank of India: 8.10% to 9.95%
* Punjab National Bank: 8.15% to 9.85%
* Indian Overseas Bank: 8.15% to 9.85%
* State Bank of India: 8.50% to 9.75%
* UCO Bank: 8.35% to 10.55%
* IDBI Bank: 8.40% to 12.25%
* Nainital Bank: 8.40% to 11.20%
When choosing a loan, consider factors beyond the interest rate, such as processing fees, loan transfer charges, and bank terms. Some banks, like Canara Bank and Punjab & Sind Bank, are waiving processing fees, which can further reduce your loan costs.
Don’t miss out on this opportunity to own your dream home. Review the list above to find the best home loan option for your needs and budget. Remember to also consider the bank’s terms and conditions before finalizing your decision. Happy home buying!