Canara Bank to raise upto Rs 8,500 crore via bonds in FY27

New Delhi, June 4: In an effort to bolster its capital base and foster future business expansion, state-owned Canara Bank has approved a plan to raise up to Rs 8,500 crore through debt instruments during FY27. The public-sector bank stated in an exchange filing that its board had authorized the issuance of up to Rs 4,500 crore in Basel III-compliant Additional Tier I (AT1) bonds and up to Rs 4,000 crore in Basel III-compliant Tier II notes. Subject to market circumstances and regulatory permissions, the fundraising will take place in FY27. At the bank’s board meeting on June 2, the decision was made. Enhancing the lender’s capital adequacy position and giving it more flexibility to support credit development in the face of growing loan demand are the goals of the proposed capital infusion. Prior to the news, Canara Bank’s shares finished 1.13 percent higher at Rs 129.40 on the National Stock Exchange (NSE).