Latest News

Canara Bank to invest Rs 1500 crore in technology upgradation


➡️ Click here to join our Whatsapp Group

Canara Bank is set to undergo a significant digital transformation, committing nearly Rs 1,500 crore over the next three years. K Satyanarayana Raju, MD and CEO of Canara Bank, provided insights into the strategic initiatives driving this evolution.

Investment in Technology

Canara Bank plans to invest nearly Rs 1,500 crore over a three-year tech roadmap. Approximately 80% of this investment has already been deployed in the first year, impacting operational expenses.

Digital Initiatives

Canara Bank has introduced API banking for corporate customers and leveraged data mining on 10 crore accounts. This approach resulted in an 8%-12% incremental growth in housing and vehicle loans, as well as CASA accounts.

Technological Workforce Expansion

To foster a digital-first mindset, Canara Bank is hiring an additional 200 technologists this year, complementing the existing 600.

AI/ML Models Development

In the 2022-23 financial year, the bank developed 50 AI/ML models, covering areas such as upselling, cross-selling, customer churn prediction, retention, NPA prediction, and increasing fee income.

Digital Offering Expansion

The establishment of the Data and Analytics Centre (DnA) in Bengaluru aims to enhance the bank’s digital offerings. Additionally, regional language call centres across branches are set to be implemented in February.

Strategic Partnership with Kyndryl

Canara Bank has partnered with Kyndryl for an end-to-end view of its business services and risk mitigation using advanced capabilities. Kyndryl will deploy a unified digital IT services dashboard for employees.

Financial Targets

The bank aims to double its net profit to Rs 20,000 crore in the 2026-27 financial year. In the December quarter, net profit rose by 26.8%, with a gross NPA ratio dropping to 4.3%.

Future Goals

Canara Bank aims to achieve a 10% growth in business over the next three years. Targets include bringing down the net NPA ratio to below 1%, maintaining return on average assets at about 1%, keeping credit cost below 1%, and limiting slippages below 1.2%.

Focus on RAM Accounts

The bank is emphasizing RAM accounts—retail, agriculture, and MSMEs—to increase market share and expand its footprint. Staff training in newer technology areas is underway to support the bank’s growth roadmap.

Leave a Reply

Your email address will not be published. Required fields are marked *