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Auditor Report of Canara Bank

Mar 31, 2025

1. We have audited the accompanying standalone
financial statements of Canara Bank (''the Bank''),
which comprises of the Balance Sheet as at
March 31, 2025, the Profit and Loss Account and the
Statement of Cash Flow for the year then ended, and
notes to standalone financial statements including
a summary of significant accounting policies
and other explanatory information (''Standalone
Financial Statement'') in which are included the
returns for the year ended on that date of:

i) The Head Office, 20 Branches, 1 Integrated
Treasury Wing audited by us.

ii) 2637 Domestic Branches audited by statutory
branch auditors.

iii) 4 Foreign Branches audited by respective local
auditors.

The branches audited by us and those audited by other
auditors have been selected by the Bank in accordance
with the guidelines issued to the Bank by the Reserve
Bank of India. Also incorporated in the Balance Sheet,
the Profit and Loss Account and Statement of Cash Flows
are the returns from 7192 domestic branches which
have not been subjected to audit. These unaudited
branches account for 25.67% of advances, 50.34% of
deposits, 25.32% of interest income and 48.95% of
interest expenses.

2. In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid standalone financial statements give the
information required by the Banking Regulation Act,
1949 in the manner so required for the Bank and
are in conformity with the accounting principles
generally accepted in India and:

a) the Balance Sheet, read with the notes thereon
is a full and fair Balance Sheet containing all the

necessary particulars, is properly drawn up so
as to exhibit a true and fair view of the state of
affairs of the Bank as at March 31, 2025;

b) the Profit and Loss Account, read with notes
thereon shows a true balance of Profit for the
year ended as on that date; and

c) the statement of Cash Flows gives a true and fair
view of the cash flows for the year ended on that
date.

Basis for Opinion

3. We conducted our audit in accordance with
the Standards on Auditing (SAs) issued by the
Institute of Chartered Accountants of India
("ICAI"). Our responsibilities under those
Standards are further described in the Auditors''
Responsibilities for the Audit of the standalone
financial statements section of our report. We
are independent of the Bank in accordance
with the code of ethics issued by the ICAI,
together with ethical requirements that are
relevant to our audit of the standalone financial
statements, prepared in accordance with the
Accounting Principles generally accepted in India
including the Accounting Standards issued by
the ICAI, and the provisions of the Section 29 of
Banking Regulations Act, 1949 and circulars and
guidelines issued by Reserve Bank of India and
we have fulfilled our other ethical responsibilities
in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Key Audit Matters

4. Key audit matters are those matters that, in
our professional judgement, were of most
significance in our audit of the standalone
financial statements of the current period. These
matters were addressed in the context of our
audit of the standalone financial statements as
a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on
these matters. We have determined the matters
described below to be the key audit matters to be
communicated in our report:

Sl.

No.

Key Audit Matter

Response to
Key Audit Matter

Income Recognition, Asset
Classification, Adequacy
of provisions thereon.

Advances constitute the
largest class of assets of
the Bank. Classification,
income recognition and
provisioning thereon
have been in conformity
with the guidelines and
various norms prescribed
by Reserve Bank of India.
The management of the
bank relies on the CBS
(Core Banking Solutions)
along with other allied
IT systems accompanied
by various estimates,
prudent judgement
relating to performance of
borrowers, determination
of security value,
manual interventions
including services of
experts & professionals
for asset classification,
Income recognition and
provisioning thereon.

Principal Audit Procedures:

Our audit was focused on the
processofincomerecognition,
asset classification and
provisioning pertaining to
advances, in accordance
with the guidelines issued
by Reserve Bank of India,
considering the materiality of
the balances.

We assessed the efficacy
of Bank''s system and the
processes in place to identify
the non-performing assets
and create provision against
such non-performing assets.

Our audit approach consisted
of testing of the design and
operating effectiveness of the
internal controls with respect
to the following:

â¢ Assessing the Controls
with respect to approval,
documentation,
disbursement and
monitoring of advances.

â¢ Review of the CBS and
other related & allied
systems for compliance
with the prudential norms
issued by Reserve Bank of
India.

â¢ Evaluation of the design of
internal controls relating
to identification and
making provision for nonÂ¬
performing assets.

â¢ Review of the relevant
information technology
systems used in
identification and making
provision for such NPA as
per the RBI Guidelines.

â¢ Evaluated and tested the
management estimates
and judgements for the
purpose of identification
of NPA and adequacy of
provision required as per
RBI''s Prudential norms.

â¢ Reviewed the reliability,
effectiveness and
accuracy of the manual
interventions, wherever it
has come to our knowledge
on test check basis.

â¢ Relied on the reports /
returns/ judgements
of the Statutory Branch
Auditors (SBA) in case
of branches not audited
by us for identification
and provisioning for nonÂ¬
performing assets and for
overall compliance with
the regulatory requirement
in accordance with
Standards on Auditing 600
issued by ICAI.

â¢ Test checked the process
and logic of identification
and creation of provision
against non-performing
assets in accordance with
RBI Guidelines issued
from time to time and
also the mechanism for
identification of stressed
accounts

â¢ Relied on the opinions
and reports of various
experts, which includes
independent valuers,
lawyers, legal experts and
such other professionals,
who have rendered
services to the Bank in
various capacities in
conformity with Standards
on Auditing 620 issued by
ICAI.

â¢ Reviewed the internal
audit/inspection reports/
Concurrent audit reports,
wherever available.

2.	Classification and Valuation of Investments,	Principal Audit Procedures:
	Identification of and	Our audit was focused on
	provisioning for NonÂ¬ Performing Investments:	valuation, classification,
	provisioning for NonÂ¬ Performing Investments:	identification of nonÂ¬ performing investments
	Investments include	(NPIs), provisioning/
	investments made by	depreciation related to
	the Bank in various	Investments.
	Government Securities,	â¢ We understood and
	Bonds, Debentures,	evaluated the Bank''s
	Shares, Security receipts	system in place to comply
	and other approved	with the relevant RBI
	securities.	Guidelines regarding classification, valuation,
	These are governed by the	identification of NPIs
	circulars and directions of	provision / depreciation
	the RBI.	related to investments.
	These directions of RBI	â¢ We assessed and
	cover the classification of	evaluated the process
	investments, valuation	adopted for collection of
	of investments,	information from various
	identification of Non-	sources for determining
	Performing Investments,	fair value of these
	the corresponding nonÂ¬ recognition of income and	investments.
	provision thereon.	â¢ For the selected sample of investments in hand,
	The valuation of each	we tested accuracy and
	category (type) of the	compliance with the
	aforesaid securities is	RBI Master Circulars
	to be done as per the	and directions by re-
	method prescribed in	performing classification
	circulars and directives	and valuation for each
	issued by the RBI which	category of security.
	involves collection of	â¢ We carried out
	data / information from	substantive tests
	various sources such	including arithmetical
	as FIMMDA rates, rates	accuracy, data accuracy
	quoted on BSE / NSE,	and control over the
	financial statements of	financial reporting
	unlisted companies, etc.	system to recompute independently the provision to be maintained and depreciation to be provided in accordance with the circulars and directives of the RBI.

3.	Key Information	Principal Audit Procedures:
	Technology (IT) systems	We conducted an
	used in financial reporting process. The Bank''s operational and financial processes	assessment of key IT applications, databases and operating systems that are relevant to our
		audit and have identified
	are predominantly	application software for
	dependent on IT	CBS, Financial Statement
	systems due to large	Reporting Package,
	volume of transactions	Treasury operations, IRAC
	that are processed on	Classification and CRAR
	daily basis and hence,	calculation, which are
	considered as a Key Audit	primarily used for financial
	Matter, correctness &	reporting.
	effectiveness of which	Our audit approach
	are mainly dependent on	consisted of testing of
	the Core Baking Solution	the design and operating
	(CBS) and other allied	effectiveness of the internal
	systems.	controls as follows:
	We have relied	â¢ Obtained an
	upon the consistent functioning of CBS and other allied application software with respect to transactions	understanding of the Bankâs IT control environment and IT policies during the audit period.
	in Investments,	â¢ Reviewed the design,
	Income Recognition, Classification of Assets	implementation and operating effectiveness of the Bankâs basic IT controls including
	and Provisioning against
	advances in conformity	application, access
	with the RBI guidelines,	controls that are critical
	reconciliation & ageing	to financial reporting on
	of various items	test check basis.
	under Sundry Assets and Sundry Liabilities along with such other	â¢ Reviewed the IS Audit Reports and discussed with Inspection Wing on
	accounts.	compliance with key IS Controls.
		â¢ Tested the mapping
		of business logic with system logic adopted in the IT application software
		â¢ Tested key automated
		and business cycle controls and logic for system generated reports relevant to the audit on test check basis.

4.	Deferred Tax Asset	Principal Audit Procedures:
	The Bank has recognized	We have performed the
	a net deferred tax	following procedures as
	asset of ''4,891.04 Crore as on March	part of our control testing:
	31, 2025. Objective	â¢ Review of the policies
	estimation, recognition	used for recognition and
	and measurement of	measurement of deferred
	Deferred Tax Asset	tax assets to ensure
	are based on the	compliance with AS-22-
	expert opinion, judicial	Accounting for Taxes on
	pronouncements and precedents,	Income issued by ICAI.
	management	â¢ Reviewed the
	judgements and	management judgement
	estimates regarding the	and estimates regarding
	availability of profits	the readability of the
	in future in conformity	Deferred Tax Assets, w.r.t.
	with AS-22 issued by	expert opinion, judicial
	the ICAI. Deferred Tax	pronouncements and
	Asset has been carried forward to the extent	precedents.
	there is a reasonable	â¢ Assessed the probability
	certainty that sufficient	of the availability and
	future taxable income	certainty of profits
	will be available against	against which the Bank
	which such deferred tax	will be able to realize the
	assets can be realized.	Deferred Tax Asset in future.

5.	Various Litigations & Contingent Liability Assessment of Contingent liabilities in respect of certain litigations in relation to taxes and various other claims filed by other parties upon Bank, not	Principal Audit Procedures: We have performed the following procedures as part of our control testing: â¢ Reviewed the current status of the various credit and non-credit litigations and contingent liabilities, including tax related disputes. â¢ Examined the communications received
	acknowledged as debts. The Bank''s assessment is supported by facts of matter under
		from various authorities
	consideration, their	and follow-up actions
	own judgement, past experience, advises from	thereon.
	independent experts	â¢ Evaluated the merits
	and legal opinion, wherever necessary.	of the subject matter under consideration
	and legal opinion, wherever necessary.	with reference to the
	Therefore, unexpected adverse outcomes in the	background and relied
	litigation may impact the Bank''s profit and state of	on the expert opinion, legal advice, judicial
	affairs as reflected in the	pronouncements and
	balance sheet.	precedents thereon.

Information other than the Standalone Financial
Statements and Auditorsâ Report thereon

5. The Bank''s Board of Directors is responsible for
the preparation of other information. The Other
Information comprises the Pillar III Disclosures
under the New Capital Adequacy Framework (BASEL
III Disclosures) (but does not include the financial
statements and our auditors'' report thereon),
Corporate Governance report , which we obtained prior
to issuance of this Auditors'' Report and the Directors''
Report, Key Financial Indicators and Shareholder''s
Information, which is expected to be made available to
us after the date of our auditors'' report.

Our opinion on the standalone financial statements
does not cover the Other Information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the standalone
financial statements, our responsibility is to read the
Other Information identified above when it becomes
available and, in doing so, consider whether the
Other Information is materially inconsistent with the
standalone financial statements or our knowledge
obtained in the audit, or otherwise appears to be
materially misstated.

If, based on the work we have performed on the other
information that we obtained prior to the date of this
auditors'' report, we conclude that there is a material
misstatement of this Other Information, we are
required to report that fact. We have nothing to report
in this regard.

When we read the Other Information, if we conclude
that there is a material misstatement therein, we are
required to communicate the matter to Those Charged
with Governance.

Responsibilities of Management and Those Charged with

Governance for the Standalone Financial Statements:

6. The Bank''s Board of Directors is responsible with
respect to the preparation of these standalone
financial statements that give a true and fair view of
the financial position, financial performance and cash
flows of the Bank in accordance with the accounting
principles generally accepted in India, including the
Accounting Standards issued by ICAI, and provisions
of Section 29 of the Banking Regulation Act, 1949 and
circulars and guidelines issued by the Reserve Bank
of India (''RBI'') from time to time. This responsibility
also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for
safeguardingoftheassetsoftheBankandforpreventing
and detecting frauds and other irregularities; selection
and application of appropriate accounting policies;
making judgements and estimates that are reasonable
and prudent; and design, implementation and
maintenance of adequate internal financial controls,
that were operating effectively for ensuring the
accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the
financial statements that give a true and fair view and

are free from material misstatement, whether due to
fraud or error.

In preparing the financial statements, management is
responsible for assessing the Bank''s ability to continue
as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern
basis of accounting, unless management either intends
to liquidate the Bank or to cease operations, or has no
realistic alternative but to do so.

The Board of Directors is also responsible for overseeing
the Bank''s financial reporting process.

Auditorsâ Responsibilities for the Audit of the Standalone

Financial Statements:

7. Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due
to fraud or error, and to issue an auditors'' report that
includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements
can arise from fraud or error and are considered
material if, individually or in the aggregate, they could
reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.

As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
scepticism throughout the audit. We also:

a) Identify and assess the risk of material
misstatement of the financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than the one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.

b) Obtain an understanding of internal controls
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances.

c) Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by
management.

d) Conclude on the appropriateness of management''s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
Bank''s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditors'' report to
the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our
auditors'' report. However, future events or
conditions may cause the bank to cease to continue
as a going concern.

e) Evaluate the overall presentation, structure and
content of the financial statements, including
the disclosures, and whether the Standalone
Financial Statements represent the underlying
transactions and events in a manner that achieves
fair presentation.

Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified
misstatements in the financial statements.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal controls that we
identify during our audit.

We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to

communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the
current period and are therefore the key audit matters.
We describe these matters in our auditors'' report unless law
or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.

Other Matter:

8. We did not audit the financial statements / information
of 2637 domestic branches and 4 foreign branches
included in the Standalone Financial Statements
of the Bank whose financial statements / financial
information reflect total advances of ''4,91,642.52
Crore as at March 31, 2025 and total revenue of
''44,532.71 Crore for the year ended on that date, as
considered in the Standalone Financial Statements.
These branches and processing centres cover
43.01% of advances, 45.39% of deposits, 46.89% of
non-performing assets and 42.54% of revenue. The
financial statements / information of these branches
has been audited by the Bank''s Statutory Branch
Auditors whose reports have been furnished to us and
in our opinion in so far as it relates to the amounts and
disclosures included in respect of branches, is based
solely on the reports of such Branch auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements:

9. The Balance Sheet and the Profit and Loss Account
have been drawn up in accordance with Section 29 of
the Banking Regulation Act, 1949;

10. Subject to the limitations of the audit indicated in
above paragraphs and as required by the Banking
Companies (Acquisition and Transfer of Undertakings)
Act, 1970 / 1980, and subject also to the limitations of
disclosure required therein, we report that:

a) We have sought and obtained all the information
and explanations which, to the best of our
knowledge and belief, were necessary for the
purposes of our audit and have found them to be
satisfactory;

b) The transactions of the Bank, which have come
to our notice, have been within the powers of the
Bank; and

c) The returns received from the offices and branches
of the Bank have been found adequate for the
purposes of our audit.

11. As required by RBI Letter No. DOS.ARG. No. 6270/
08.91.001/2019-20 dated March 17, 2020 on

"Appointment of Statutory Central Auditors (SCAs)
in Public Sector Banks - Reporting obligations for
SCAs from FY 2019-20", read with subsequent
communication dated May 19, 2020 issued by RBI, we
further report on the matters specified in paragraph 2
of the aforesaid letter as under:

a) In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
issued bylCAl, to the extent theyare not inconsistent
with the accounting policies prescribed by the RBI.

b) There are no observations or comments on
financial transactions or matters which have any
adverse effect on the functioning of the bank.

c) On the basis of the written representations
received from the directors as on March 31, 2025,
none of the director is disqualified as on March 31,
2025 from being appointed as a director in terms of
Section 164 (2) of the Companies Act, 2013.

d) There are no qualifications, reservations or adverse
remarks relating to maintenance of accounts and
other matters connected therewith.

e) Our audit report on the adequacy and operating
effectiveness of the Bank''s Internal Financial
Controls over Financial Reporting as required by
the RBI Letter OS.ARG.No.6270/08.91.001/ 2019Â¬
20 dated March 17, 2020 (as amended) is given
in Annexure A to this report. Our report expresses
an unmodified opinion on the Bank''s Internal
Financial Controls over Financial Reporting as at
March 31, 2025.

12. We further report that

a) In our opinion, proper books of account as required
by law have been kept by the Bank so far as it
appears from our examination of those books and
proper returns adequate for the purposes of our
audit have been received from branches not visited
by us;

b) The Balance Sheet, the Profit and Loss Account and
the Statement of Cash Flows dealt with by this
report are in agreement with the books of accounts
and with the returns received from the branches
not visited by us;

c) The reports on the accounts of the branch offices
audited by branch auditors of the Bank under
Section 29 of the Banking Regulation Act, 1949
have been sent to us and have been properly dealt
with by us in preparing this report; and

d) In our opinion, the Balance Sheet, Profit and
Loss Account and the Statement of Cash Flows
comply with the applicable accounting standards,
to the extent they are not inconsistent with the
accounting policies prescribed by RBI.

13. The corresponding standalone financial statements
of the Bank for the year ended March 31, 2024,
were audited by five joint auditors of the Bank,
three of whom were predecessor audit firms, and
they had expressed an unmodified opinion on
standalone financial statements vide their report
dated May 08, 2024.

For K VENKATACHALAM AIYER For RODI DABIR & CO

& CO CHARTERED ACCOUNTANTS

CHARTERED ACCOUNTANTS FRN : 108846W

FRN : 004610S

(A. GOPALAKRISHNAN) (RUSHIKESH VILAS DESHPANDE)

PARTNER PARTNER

MEMBERSHIP NO: 018159 MEMBERSHIP NO: 114113

UDIN: 25018159BMOSRF8663 UDIN: 25114113BMKXCX8703

For ABARNA & ANANTHAN For S R GOYAL & CO

CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS

FRN : 000003S FRN : 001537C

(S. ANANTHAN) (AJAY KUMAR ATOLIA)

PARTNER PARTNER

MEMBERSHIP NO: 026379 MEMBERSHIP NO: 077201

UDIN:25026379BNQJHG6016 UDIN: 25077201BMLJOH2035

For M C BHANDARI & CO

CHARTERED ACCOUNTANTS
FRN : 303002E

(AMIT BISWAS)

PARTNER

MEMBERSHIP NO: 052296
UDIN: 25052296BMNXFW3689

Place of Signature : Bengaluru
Date of Report : 08.05.2025

Mar 31, 2024

Report on Audit of the Standalone Financial Statements.

Opinion

1. Â Â Â We have audited the accompanying standaloneÂ financial statements of Canara Bank ('the Bank'),Â which comprises of the Balance Sheet as at MarchÂ 31, 2024, the Profit and Loss Account and theÂ Statement of Cash Flow for the year then ended, andÂ notes to standalone financial statements includingÂ a summary of significant accounting policiesÂ and other explanatory information ('StandaloneÂ Financial Statement') in which are included theÂ returns for the year ended on that date of:

i) Â Â Â The Head Office, 20 Branches, 1 IntegratedÂ Treasury Wing audited by us.

ii) Â Â Â 2672 domestic branches audited by statutoryÂ branch auditors.

iii) Â Â Â 4 Foreign branches audited by respective localÂ auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordanceÂ with the guidelines issued to the Bank by the ReserveÂ Bank of India. Also incorporated in the Balance Sheet, theÂ Profit and Loss Account and Statement of Cash Flows areÂ the returns from 6912 domestic branches which haveÂ not been subjected to audit. These unaudited branchesÂ account for 26.85% of advances, 51.90% of deposits,Â 29.08% of interest income and 49.74% of interestÂ expenses.

2. Â Â Â In our opinion and to the best of our informationÂ and according to the explanations given to us, theÂ aforesaid standalone financial statements give theÂ information required by the Banking Regulation Act,Â 1949 in the manner so required for bank and are inÂ conformity with the accounting principles generallyÂ accepted in India and:

a) the Balance Sheet, read with the notes thereonÂ is a full and fair Balance Sheet containing all the

necessary particulars, is properly drawn up so as to exhibit a true and fair view of the state ofÂ affairs of the Bank as at March 31, 2024;

b) Â Â Â the Profit and Loss Account, read with notesÂ thereon shows a true balance of Profit for theÂ year ended as on that date; and

c) Â Â Â the statement of Cash Flows gives a true andÂ fair view of the cash flows for the year endedÂ on that date.

Basis for Opinion

3. Â Â Â We conducted our audit in accordance with theÂ Standards on Auditing (SAs) issued by the InstituteÂ of Chartered Accountants of India ("ICAI"). OurÂ responsibilities under those Standards are furtherÂ described in the Auditors' Responsibilities for theÂ Audit of the standalone financial statements sectionÂ of our report. We are independent of the Bank inÂ accordance with the code of ethics issued by the ICAIÂ together with ethical requirements that are relevantÂ to our audit of the standalone financial statements,Â prepared in accordance with the AccountingÂ Principles generally accepted in India including theÂ Accounting Standards issued by the ICAI, and theÂ provisions of the Section 29 of Banking RegulationsÂ Act, 1949 and circulars and guidelines issued byÂ Reserve Bank of India and we have fulfilled our otherÂ ethical responsibilities in accordance with theseÂ requirements and the Code of Ethics. We believe thatÂ the audit evidence we have obtained is sufficientÂ and appropriate to provide a basis for our opinion.

Key Audit Matters:

4. Â Â Â Key audit matters are those matters that, in ourÂ professional judgment, were of most significance inÂ our audit of the standalone financial statements ofÂ the current period. These matters were addressed inÂ the context of our audit of the standalone financialÂ statements as a whole, and in forming our opinionÂ thereon, and we do not provide a separate opinionÂ on these matters. We have determined the mattersÂ described below to be the key audit matters to beÂ communicated in our report:

Sl.

No.

Key Audit Matter

Response to Key Audit Matter

Income Recognition, Asset Classification,Â Adequacy of provisionsÂ thereon .

Advances constitute the largest class of assets ofÂ the bank. Classification,Â income recognition andÂ provisioning thereonÂ have been in conformityÂ with the guidelines andÂ various norms prescribedÂ by Reserve Bank of India.Â The management of theÂ bank relies on the CBSÂ (Core Banking Solutions)Â along with other alliedÂ IT systems accompaniedÂ by various estimates,Â prudent judgementÂ relating to performanceÂ of borrowers,Â determination ofÂ security value, manualÂ interventions includingÂ services of expertsÂ & professionals forÂ asset classification,Â Income recognition andÂ provisioning thereon.

Principal Audit Procedures:

Our audit was focused on income recognition,Â asset classification andÂ provisioning pertaining toÂ advances considering theÂ materiality of the balances.

We assessed the Bank's system in place to identifyÂ and provide for nonperforming assets.

Our audit approach consisted of testing of the design andÂ operating effectiveness ofÂ the internal controls withÂ respect to the followings:

â¢ Â Â Â Assessing the ControlsÂ with respect to approval,Â documentation,Â disbursement, monitoringÂ of advances.

â¢ Â Â Â Review of the CBS andÂ other related & alliedÂ systems for complianceÂ with the prudential normsÂ issued by Reserve Bank ofÂ India.

â¢ Â Â Â Evaluation of the design ofÂ internal controls relatingÂ to identification andÂ making provision for nonperforming assets.

â¢ Â Â Â Review of the relevantÂ information technologyÂ systems used inÂ identification and makingÂ provision for such NPA asÂ per the RBI Guidelines.

â¢ Â Â Â Evaluated and tested theÂ management estimatesÂ and judgements for theÂ purpose of identificationÂ of NPA and adequacy ofÂ provision required as perÂ RBI's Prudential norms.

â¢ Â Â Â Reviewed the reliability,Â effectiveness andÂ accuracy of the manualÂ interventions, whereverÂ it has come to ourÂ knowledge on test checkÂ basis.

â¢ Â Â Â Relied on the reports /Â returns/ judgements ofÂ the Statutory BranchÂ Auditors (SBA) in case ofÂ branches not audited byÂ us for identification andÂ provisioning for nonperforming assets andÂ for overall complianceÂ in conformity withÂ SA-600

â¢ Â Â Â Test checked theÂ identification andÂ provisioning of nonperforming assetsÂ in accordance withÂ RBI Guidelines issuedÂ from time to time andÂ also the mechanismÂ for identification ofÂ stressed accounts

â¢ Â Â Â Relied on the opinionsÂ and reports of variousÂ experts, which includesÂ independent valuers,Â lawyers, legal expertsÂ and such otherÂ professionals, whoÂ have rendered servicesÂ to the bank in variousÂ capacities in conformityÂ with SA-620.

â¢ Â Â Â Reviewed the internalÂ audit/inspectionÂ reports/ ConcurrentÂ audit reports, whereverÂ available.

2	Classification and Valuation of Investments,	Principal Audit Procedures:
Â	Identification of and	Our audit was focused on
Â	Identification of and	valuation, classification,
Â	provisioning for Non-	identification of non-
Â	Performing Investments:	performing investments
Â	Investments include	(NPIs), provisioning/
Â	investments made by	depreciation related to
Â	the Bank in various	Investments.
Â	Government Securities,	â¢ We understood and
Â	Bonds, Debentures,	evaluated the Bank's
Â	Shares, Security receipts	system in place to identify
Â	and other approved	and provide for NPI/
Â	securities. These are	depreciation related to
Â	governed by the circulars	investments.
Â	and directives of the	â¢ We assessed and
Â	RBI. The valuation of	evaluated the process
Â	each category (type) of	adopted for collection of
Â	the aforesaid securities	information from various
Â	is to be done as per the	sources for determining
Â	method prescribed in	fair value of these
Â	circulars and directives issued by the RBI which	investments. â¢ For the selected sample of investments in hand,
Â	involves collection of
Â	data/information from	we tested accuracy and
Â	various sources such	compliance with the
Â	as FIMMDA rates, rates	RBI Master Circulars
Â	quoted on BSE/NSE,	and directions by re-
Â	financial statements of	performing valuation for
Â	unlisted companies	each category of security. â¢ We carried out substantive testsÂ including arithmeticalÂ accuracy, data accuracyÂ and control over theÂ financial reportingÂ system to recomputeÂ independently theÂ provision to be maintainedÂ and depreciation to beÂ provided in accordanceÂ with the circulars andÂ directives of the RBI

3	Key Information	Principal Audit
Â	Technology (IT) systems used in financial	Procedures:
Â	reporting process. The Bankâs operational	We conducted an
Â	and financial processes are	assessment and identified
Â	dependent on IT systems	key IT applications,
Â	due to large volume of	databases and operating
Â	transactions that are	systems that are relevant to
Â	processed on daily basis and	our audit and have identified
Â	hence, considered as a key audit matter, correctness &	CBS, BSPL Reporting Package and Treasury SystemÂ primarily as relevant for
Â	effectiveness of which are mainly dependent on the	financial reporting.
Â	Core Baking Solution (CBS) and other allied systems.	Our audit approach consisted testing of theÂ design and operating
Â	We have relied upon the	effectiveness of the internal
Â	consistent and accurate	controls as follows:
Â	functioning of CBS & other	â¢ Obtained an
Â	allied systems with respect	understanding of
Â	to Income Recognition,	the Bank's IT control
Â	Classification of Assets and	environment and IT
Â	provisioning of advances in conformity with the RBIÂ guidelines, reconciliation &	policies during the audit period.
Â		â¢ Reviewed the design,
Â	ageing of various suspense and sundry accounts along	implementation and operating effectiveness
Â	with such other accounts,	of the Bank's basic
Â	recording investment	IT controls including
Â	transactions.	application, access controls that are criticalÂ to financial reporting onÂ test check basis.
Â	Â	â¢ Reviewed the IS Audit
Â	Â	Reports and discussed with IS Wing onÂ compliance to key ISÂ Controls.
Â	Â	â¢ Tested key automated
Â	Â	and business cycle controls and logic forÂ system generatedÂ reports relevant to theÂ audit on test check
Â	Â	basis.

4.	Deferred Tax Asset	Principal Audit
Â	The bank has recognized	Procedures:
Â	a net deferred tax	We have performed the
Â	asset of '5707.51	following procedures
Â	Crores as on March	as part of of our control
Â	31, 2024. Objective	testing:
Â	estimation, recognition and measurement ofÂ Deferred Tax Asset areÂ based on the judgementÂ and numerous estimatesÂ regarding the availabilityÂ of profits in future inÂ conformity with AS-22Â issued by the ICAI. It has	â¢ Â Â Â Review of the policiesÂ used for recognitionÂ and measurement ofÂ deferred tax assets inÂ accordance with AS-22-Accounting for TaxesÂ on Income. â¢ Â Â Â Assessedtheprobability
Â	been carried forward	of the availability and
Â	only to the extent that	certainty of profits
Â	there is a reasonable	against which the bank
Â	certainty that sufficient	will be able to use the
Â	future taxable income	Deferred Tax Asset in
Â	will be available against which such deferred taxÂ assets can be realized.	future.

5	Various Litigations & Contingent Liability Assessment of Contingent liabilitiesÂ in respect of certainÂ litigations withÂ respect to taxesÂ and various otherÂ claims filed by other	Principal Audit Procedures: We have performed the followingÂ procedures as part ofÂ our control testing â¢ Â Â Â Reviewed the currentÂ status of the taxÂ litigations and otherÂ contingent liabilities. â¢ Â Â Â Examined theÂ communicationsÂ received from variousÂ authorities and follow
	parties upon bank, not acknowledged asÂ debts. The bank's assessment is supported by factsÂ of matter, their
		up actions thereon.
	own judgement,	up actions thereon.
Â	past experience	â¢ Evaluated the merits
Â	and advises from	of the subject matter
Â	independent experts,	under consideration
Â	wherever necessary.	with reference to the
Â	Accordingly, unexpected adverseÂ outcomes may impactÂ the bank's profit andÂ the balance sheet.	background and relied on the expert opinionÂ thereon.
		Â
		Â

Information other than the Standalone Financial Statements and Auditorsâ Report thereon

5. The Bank's Board of Directors is responsible for theÂ preparation of other information.The other informationÂ comprises the Pillar III Disclosures under the NewÂ Capital Adequacy Framework (BASEL III Disclosures)Â (but does not include the financial statements andÂ our auditors' report thereon), Corporate GovernanceÂ Report, which we obtained prior to issuance of thisÂ Auditors' Report and the Directors' Report, Key FinancialÂ Indicators and Shareholder's Information, which isÂ expected to be made available to us after the date ofÂ our auditors' report.

Our opinion on the standalone financial statements does not cover the other information and we do notÂ express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read theÂ other information identified above when it becomesÂ available and, in doing so, consider whether theÂ other information is materially inconsistent with theÂ standalone financial statements or our knowledgeÂ obtained in the audit, or otherwise appears to beÂ materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the dateÂ of this auditors' report, we conclude that there is aÂ material misstatement of this other information,Â we are required to report that fact. We have nothingÂ to report in this regard.

When we read the other information, if we conclude that there is a material misstatement therein,Â we are required to communicate the matter to ThoseÂ Charged with Governance.

Responsibilities of Management and Those Charged with

Governance for the Standalone Financial Statements:

6. The Bank's Board of Directors is responsible withÂ respect to the preparation of these standaloneÂ financial statements that give a true and fair view ofÂ the financial position, financial performance and cashÂ flows of the Bank in accordance with the accountingÂ principles generally accepted in India, includingÂ the Accounting Standards issued by ICAI, andÂ provisions of Section 29 of the Banking RegulationÂ Act, 1949 and circulars and guidelines issued byÂ the Reserve Bank of India ('RBI') from time to time.Â This responsibility also includes maintenance ofÂ adequate accounting records in accordance with theÂ provisions of the Act for safeguarding of the assetsÂ of the Bank and for preventing and detecting fraudsÂ and other irregularities; selection and application ofÂ appropriate accounting policies; making judgementsÂ and estimates that are reasonable and prudent;Â and design, implementation and maintenance ofÂ adequate internal financial controls, that wereÂ operating effectively for ensuring the accuracy andÂ completeness of the accounting records, relevantÂ to the preparation and presentation of the financialÂ statements that give a true and fair view and are freeÂ from material misstatement, whether due to fraudÂ or error.

In preparing the financial statements, management is responsible for assessing the Bank's abilityÂ to continue as a going concern, disclosing, asÂ applicable, matters related to going concern andÂ using the going concern basis of accounting unlessÂ management either intends to liquidate the BankÂ or to cease operations, or has no realistic alternativeÂ but to do so.

The Board of Directors is also responsible for overseeing the bank's financial reporting process.

Auditorsâ Responsibilities for the Audit of the Standalone

Financial Statements:

7. Our objectives are to obtain reasonable assuranceÂ about whether the financial statements as a wholeÂ are free from material misstatement, whether dueÂ to fraud or error, and to issue an auditors' reportÂ that includes our opinion. Reasonable assuranceÂ is a high level of assurance but is not a guaranteeÂ that an audit conducted in accordance with SAsÂ will always detect a material misstatement when itÂ exists. Misstatements can arise from fraud or errorÂ and are considered material if, individually or in theÂ aggregate, they could reasonably be expected toÂ influence the economic decisions of users taken onÂ the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalÂ scepticism throughout the audit. We also:

a) Â Â Â Identify and assess the risks of materialÂ misstatement of the financial statements,Â whether due to fraud or error, design and performÂ audit procedures responsive to those risks, andÂ obtain audit evidence that is sufficient andÂ appropriate to provide a basis for our opinion.Â The risk of not detecting a material misstatementÂ resulting from fraud is higher than for one resultingÂ from error, as fraud may involve collusion, forgery,Â intentional omissions, misrepresentations, or theÂ override of internal control.

b) Â Â Â Obtain an understanding of internal controlÂ relevant to the audit in order to designÂ audit procedures that are appropriate in theÂ circumstances.

c) Â Â Â Evaluate the appropriateness of accountingÂ policies used and the reasonableness ofÂ accounting estimates and related disclosuresÂ made by management.

d) Â Â Â Conclude on the appropriateness ofÂ management's use of the going concern basisÂ of accounting and, based on the audit evidenceÂ obtained, whether a material uncertaintyÂ exists related to events or conditions that mayÂ cast significant doubt on the bank's ability toÂ continue as a going concern. If we conclude thatÂ a material uncertainty exists, we are requiredÂ to draw attention in our auditors' report to theÂ related disclosures in the financial statementsÂ or, if such disclosures are inadequate, to modifyÂ our opinion. Our conclusions are based onÂ the audit evidence obtained up to the date ofÂ our auditors' report. However, future eventsÂ or conditions may cause the bank to cease toÂ continue as a going concern.

e) Â Â Â Evaluate the overall presentation, structure andÂ content of the financial statements, includingÂ the disclosures, and whether the StandaloneÂ Financial Statements represent the underlyingÂ transactions and events in a manner thatÂ achieves fair presentation.

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or inÂ aggregate, makes it probable that the economic decisionsÂ of a reasonably knowledgeable user of the financialÂ statements may be influenced. We consider quantitativeÂ materiality and qualitative factors in (i) planning theÂ scope of our audit work and in evaluating the results ofÂ our work; and (ii) to evaluate the effect of any identifiedÂ misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scopeÂ and timing of the audit and significant audit findings,Â including any significant deficiencies in internal controlÂ that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevantÂ ethical requirements regarding independence, and toÂ communicate with them all relationships and otherÂ matters that may reasonably be thought to bear on ourÂ independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters thatÂ were of most significance in the audit of the financialÂ statements of the current period and are therefore theÂ key audit matters. We describe these matters in ourÂ auditors' report unless law or regulation precludes publicÂ disclosure about the matter or when, in extremely rareÂ circumstances, we determine that a matter should notÂ be communicated in our report because the adverseÂ consequences of doing so would reasonably be expectedÂ to outweigh the public interest benefits of suchÂ communication.

Other Matter:

8. Â Â Â We did not audit the financial statements /Â information of 2672 domestic branches and 4 foreignÂ branches included in the Standalone FinancialÂ Statements of the Bank whose financial statementsÂ / financial information reflect total advances ofÂ '4,11,083.76 crores as at March 31, 2024 and totalÂ revenue of '37,281.09 crores for the year ended onÂ that date, as considered in the Standalone FinancialÂ Statements. These branches and processing centresÂ cover 39.95% of advances, 44.80% of deposits,Â 45.60% of non-performing assets and 40.43% ofÂ revenue. The financial statements / informationÂ of these branches has been audited by the Bank'sÂ Statutory Branch Auditors whose reports have beenÂ furnished to us and in our opinion in so far as itÂ relates to the amounts and disclosures included inÂ respect of branches, is based solely on the reports ofÂ such Branch auditors.

Our opinion is not modified in respect of this matter.Â Report on Other Legal and Regulatory Requirements:

9. Â Â Â The Balance Sheet and the Profit and Loss AccountÂ have been drawn up in accordance with Section 29Â of the Banking Regulation Act, 1949;

10. Â Â Â Subject to the limitations of the audit indicatedÂ in above paragraphs and as required by theÂ Banking Companies (Acquisition and Transfer ofÂ Undertakings) Act, 1970/1980, and subject alsoÂ to the limitations of disclosure required therein,Â we report that:

a) Â Â Â We have sought and obtained all the informationÂ and explanations which, to the best of ourÂ knowledge and belief, were necessary for theÂ purposes of our audit and have found them toÂ be satisfactory;

b) Â Â Â The transactions of the Bank, which have comeÂ to our notice, have been within the powers ofÂ the Bank; and

c) Â Â Â The returns received from the offices andÂ branches of the Bank have been found adequateÂ for the purposes of our audit.

11. As required by RBI Letter No. DOS.ARG. No. 6270/Â 08.91.001 / 2019-20 dated March 17, 2020 onÂ "Appointment of Statutory Central Auditors (SCAs)Â in Public Sector Banks - Reporting obligations forÂ SCAs from FY 2019-20", read with subsequentÂ communication dated May 19, 2020 issued byÂ RBI, we further report on the matters specified inÂ paragraph 2 of the aforesaid letter as under:

a) Â Â Â In our opinion, the aforesaid Standalone FinancialÂ Statements comply with the AccountingÂ Standards issued by ICAI, to the extent they areÂ not inconsistent with the accounting policiesÂ prescribed by the RBI.

b) Â Â Â There are no observations or comments onÂ financial transactions or matters which have anyÂ adverse effect on the functioning of the bank.

c) Â Â Â On the basis of the written representationsÂ received from the directors as on March 31, 2024,Â none of the directors is disqualified as on March 31,Â 2024 from being appointed as a director in termsÂ of Section 164 (2) of the Companies Act, 2013.

d) Â Â Â There are no qualifications, reservations orÂ adverse remarks relating to maintenanceÂ of accounts and other matters connectedÂ therewith.

e) Â Â Â Our audit report on the adequacy and operatingÂ effectiveness of the Bank's Internal FinancialÂ Controls over Financial Reporting as requiredÂ by the RBI Letter OS.ARG.No.6270/08.91.001/Â 2019-20 dated March 17, 2020 (as amended)Â is given in Annexure A to this report. OurÂ report expresses an unmodified opinion on theÂ Bank's Internal Financial Controls over FinancialÂ Reporting as at March 31, 2024.

12. Â Â Â We further report that:

a) Â Â Â in our opinion, proper books of account asÂ required by law have been kept by the Bank soÂ far as it appears from our examination of thoseÂ books and proper returns adequate for theÂ purposes of our audit have been received fromÂ branches not visited by us;

b) Â Â Â the Balance Sheet, the Profit and Loss AccountÂ and the Statement of Cash Flows dealt with byÂ this report are in agreement with the books ofÂ accounts and with the returns received from theÂ branches not visited by us;

c) Â Â Â the reports on the accounts of the branch officesÂ audited by branch auditors of the Bank underÂ Section 29 of the Banking Regulation Act, 1949Â have been sent to us and have been properlyÂ dealt with by us in preparing this report; and

d) Â Â Â In our opinion, the Balance Sheet, Profit and LossÂ Account and the Statement of Cash Flows complyÂ with the applicable accounting standards, toÂ the extent they are not inconsistent with theÂ accounting policies prescribed by RBI.

13. Â Â Â The corresponding standalone financial statementsÂ of the bank for the year ended March 31, 2023, wereÂ audited by five joint auditors of the bank, two ofÂ whom were predecessor audit firms, and they hadÂ expressed an unmodified opinion on standaloneÂ financial statements vide their report datedÂ May 08, 2023.

For P. A. & ASSOCIATES Â Â Â For ARUN K AGARWAL &

CHARTERED ACCOUNTANTS Â Â Â ASSOCIATES

FRN : 313085E Â Â Â CHARTERED ACCOUNTANTS

FRN : 003917N

(S.S.PODDAR) Â Â Â (ARUN KUMAR AGARWAL)

PARTNER Â Â Â PARTNER

MEMBERSHIP NO: 051113 Â Â Â MEMBERSHIP NO: 082899

UDIN:24051113BKHJJM7027 Â Â Â UDIN: 24082899BKFOGV4359

For SARATH & ASSOCIATES Â Â Â For K VENKATACHALAM AIYER

CHARTERED ACCOUNTANTS Â Â Â & CO

FRN : 005120S Â Â Â CHARTERED ACCOUNTANTS

FRN : 004610S

(VEGUNTA SAI ROOP KUMAR) Â Â Â (A GOPALAKRISHNAN)

PARTNER Â Â Â PARTNER

MEMBERSHIP NO: 213734 Â Â Â MEMBERSHIP NO: 018159

UDIN:24213734BKCAKH1535 Â Â Â UDIN:24018159BKGFOD7176

For RODI DABIR & CO

CHARTERED ACCOUNTANTS FRN : 108846W

(DILIP RODI)

PARTNER

MEMBERSHIP NO: 035810 UDIN:24035810BKHSMO4448

Place :Â BengaluruÂ Date :Â 08.05.2024

Mar 31, 2023

Report on Audit of the Standalone Financial Statements.

Opinion

1. Â Â Â We have audited the accompanying standaloneÂ financial statements of Canara Bank ('the Bank'),Â which comprise the Balance Sheet as at March 31,Â 2023, the Profit and Loss Account and the StatementÂ of Cash Flow for the year then ended, and notesÂ to standalone financial statements including aÂ summary of significant accounting policies andÂ other explanatory information ('StandaloneÂ Financial Statement') in which are included theÂ returns for the year ended on that date of:

i) Â Â Â The Head Office, 20 Branches, 1 IntegratedÂ Treasury Wing audited by us.

ii) Â Â Â 2775 domestic branches audited by statutoryÂ branch auditors.

iii) Â Â Â 3 Foreign branches audited by respective localÂ auditors.

The branches audited by us and those audited by other auditors have been selected by the Bank in accordanceÂ with the guidelines issued to the Bank by the ReserveÂ Bank of India. Also incorporated in the Balance Sheet, theÂ Profit and Loss Account and Statement of Cash Flows areÂ the returns from 6911 domestic branches which haveÂ not been subjected to audit. These unaudited branchesÂ account for 26.32% of advances, 50.36% of deposits,Â 29.62% of interest income and 52.46% of interestÂ expenses.

a) the Balance Sheet, read with the notes thereonÂ is a full and fair Balance Sheet containing all the

necessary particulars, is properly drawn up so as to exhibit a true and fair view of the state ofÂ affairs of the Bank as at March 31, 2023;

b) Â Â Â the Profit and Loss Account, read with notesÂ thereon shows a true balance of Profit for theÂ year ended as on that date; and

c) Â Â Â the statement of Cash Flows gives a true andÂ fair view of the cash flows for the year endedÂ on that date.

Basis for Opinion

3. Â Â Â We conducted our audit in accordance with theÂ Standards on Auditing (SAs) issued by the InstituteÂ of Chartered Accountants of India ("ICAI"). OurÂ responsibilities under those Standards are furtherÂ described in the Auditors' Responsibilities for theÂ Audit of the standalone financial statements sectionÂ of our report. We are independent of the Bank inÂ accordance with the Code of Ethics issued by theÂ ICAI together with ethical requirements that areÂ relevant to our audit of the standalone financialÂ statements, prepared in accordance with theÂ Accounting Principles generally accepted in IndiaÂ including the Accounting Standards issued by theÂ ICAI, and the provisions of the section 29 of BankingÂ Regulations Act, 1949 and circulars and guidelinesÂ issued by Reserve Bank of India and we have fulfilledÂ our other ethical responsibilities in accordanceÂ with these requirements and the Code of Ethics.Â We believe that the audit evidence we have obtainedÂ is sufficient and appropriate to provide a basis forÂ our opinion.

Emphasis of Matter

4. Â Â Â We draw attention to the following:

i) Note No. 14(j) of the accompanying Statement regarding adoption of new tax regime rates as per section 115BAA of the IncomeÂ Tax Act, 1961 with effect from AssessmentÂ Year 2022-23. While calculating the impactÂ of the change in Tax regime from AssessmentÂ Year 2022-23, an amount of deferred tax ofÂ '2,972.77 Crores have been charged to P&L

Account in the current year. Further, Provision for Income Tax of previous Financial Year 2021- 22 of '1,578.20 Crores have also beenÂ reversed in the current year including '443.06Â Crores on account of change of regime.

Our Opinion is not modified in respect of this matter.

Key Audit Matters

5. Key audit matters are those matters that, in ourÂ professional judgment, were of most significance inÂ our audit of the standalone financial statements ofÂ the current period. These matters were addressed inÂ the context of our audit of the standalone financialÂ statements as a whole, and in forming our opinionÂ thereon, and we do not provide a separate opinionÂ on these matters. We have determined the mattersÂ described below to be the key audit matters to beÂ communicated in our report:

Sl.

No.

Key Audit Matter

Response to Key Audit Matter

Income Recognition, Asset Classification,Â Adequacy of provisionsÂ thereon & Investments.

Advances and investments constitute the largestÂ class of assets of theÂ bank. Classification,Â income recognition andÂ provisioning thereonÂ have been in conformityÂ with the guidelines andÂ various norms prescribedÂ by Reserve Bank of India.Â The management of theÂ bank relies on the CBSÂ (Core Banking Solutions)Â along with other alliedÂ IT systems accompaniedÂ by various estimates,Â prudent judgementÂ relating to performance ofÂ borrowers, determinationÂ of security value,Â manual interventionsÂ including services ofÂ experts & professionalsÂ for asset classification,Â Income recognition andÂ provisioning thereon.