Canara Bank Approves ₹9,500 Crore Bond Issue To Boost Capital Base
By Shishta Dutta | Updated at: Jun 13, 2025 10:36 AM IST
Bengaluru, June 12—Canara Bank (NSE: CANBK, BSE: 532483) has announced a capital raising initiative for FY 26 of ₹9500 crore through fixed-income debt instruments under the Basel III framework. This initiative will support the bank’s credit growth ambitions, as the bank has set a 10–11% loan growth target for FY26. Further, the step will help enhance customer confidence and provide the bank with a competitive positioning among other PSBs.
Canara Bank’s share dropped by 1.38% intraday on Thursday. However, it maintained strong monthly momentum, with a one-month rise of 14.50%.
Key Board Decisions
In a meeting held on June 12, 2025, the bank’s board approved two major tranches of bond issuances:
| Instrument Type | Amount Approved | Conditions |
|---|---|---|
| Additional Tier I (AT1) Bonds | ₹3,500 crore | Subject to market conditions & regulatory nods |
| Tier II Bonds (Basel III compliant) | ₹6,000 crore | Subject to market conditions & regulatory nods |
| Total Capital Raise (FY26) | ₹9,500 crore |
The capital infusion aims to strengthen the bank’s capital adequacy, support credit growth, and meet long-term funding requirements.
Regulatory Compliance
The resolution was passed following Regulation 30 and other applicable clauses of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting began at 11:30 a.m. IST and concluded at 4:00 p.m. IST on June 12, 2025.
Strategic Context
This capital raising follows the earlier intimation dated June 5, 2025. It marks a proactive move by the bank to align with capital buffer requirements and Basel III mandates while preserving liquidity to support business expansion. However, the investors should consider the temporary margin pressure as issuing bonds can impact profitability, unless offset by loan yields.
About the Company
Canara Bank is a leading public sector bank listed on the NSE and BSE. Headquartered in Bengaluru, the bank provides a comprehensive suite of banking services across retail, corporate, and international segments. With a legacy spanning over a century, Canara Bank maintains a robust presence across India’s banking landscape.
REF:https://nsearchives.nseindia.com/corporate/CANBK_12062025162346_Outcome.pdf
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