New Delhi, June 2: Canara Bank, a public sector bank, has approved a plan to raise up to ₹8,500 crore through debt instruments during the financial year 2027. This initiative aims to strengthen the bank’s capital base and support future business growth.
In an exchange filing, the bank’s board announced that it has authorized the issuance of ₹4,500 crore through Additional Tier I (AT1) bonds and ₹4,000 crore through Tier II bonds, both in accordance with Basel III norms.
The fundraising process will be completed during FY 2027, subject to market conditions and regulatory approvals.
This decision was made during a board meeting on June 2. The proposed capital infusion aims to enhance the bank’s capital adequacy and provide greater flexibility to support loan expansion amid rising loan demand.
Before the announcement of the fundraising, Canara Bank’s shares closed at ₹129.40 on the National Stock Exchange (NSE), reflecting a 1.13 percent increase.
This fundraising plan comes at a time of significant leadership change at the bank. Earlier this week, Canara Bank announced that Brajesh Kumar Singh has taken over as Managing Director and Chief Executive Officer.
Singh’s tenure will last until April 30, 2029, or until further notice from the government.
Prior to joining Canara Bank, he served as Executive Director at Indian Bank, where he was responsible for corporate lending, retail banking, human resources, and strategic operations.
The announcement of this capital raising follows Canara Bank’s results for the March quarter, which showed pressure on profits despite continued improvement in asset quality.
For the quarter ending March 2026, Canara Bank reported a net profit of ₹4,505 crore, reflecting a 9.9 percent decline compared to the same period last year, primarily due to a decrease in other income.
During the quarter, net interest income grew by 4 percent year-on-year, totaling ₹9,809 crore.
Meanwhile, the bank’s NPA ratio improved to 1.84 percent from 2.08 percent in the previous quarter.
The net NPA stood at 0.43 percent, compared to 0.45 percent in the December quarter.
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