Canara Bank Raises ₹3,500 Crore Through AT1 Bond Issue To Strengthen Capital Base Under Basel III Norms

Wednesday, December 03, 2025: Canara Bank (NSE: CANBK | BSE: 532483) has successfully raised ₹3,500 crore through a Basel III-compliant Additional Tier‑1 (AT1) bond issue. The move aims to reinforce the bank’s core capital base and enhance capital adequacy under Basel III norms, ensuring greater financial resilience.

Key Details of the Bond Issue

The bond issue was structured under Series I. It opened and closed on November 28, 2025, and has successfully completed with ₹ 3,500 crore raised. The bank will pay an annual interest on it on December 2 each year.

The issue included 3,500 bonds with a face value of Rs 1 crore each. These are unsecured, subordinated, listed, rated, non-convertible, perpetual, and fully-paid-up bonds which were issued at a coupon rate of 7.55%. The 3,500 bonds were allotted to 37 investors. The bank has proposed to list the bonds on the National Stock Exchange (NSE).

Why Did the Bank Issue the Bonds?

The additional AT1 bond issue by the Canara Bank is aimed at strengthening the bank’s core capital base. The funds from the issue will also help the bank in improving its capital adequacy under Basel III norms. Further, the bond issue may strengthen the bank’s financial resilience and stability. As the AT1 bonds are perpetual debt instruments, they will allow the bank to raise capital without diluting equity.

Stock Market Snapshot

The share price of Canara Bank was trading at ₹146.16 as of 3:20 pm IST on 3 December 2025, down ₹5.87 or 3.86% from the previous close. The stock opened at ₹152.80, reached a high of ₹152.95, and fell to a low of ₹145.03 during intraday trade. The bank’s market capitalisation stands at ₹1.33 lakh crore, with a price-to-earnings ratio of 7.65 and a dividend yield of 2.74%. Its 52-week trading range spans from ₹78.60 to ₹154.21, and the quarterly dividend was ₹1.00 per share, reflecting active market engagement.

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