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What is the story about?
Canara Bank on Wednesday (November 26) announced it will raise up to ₹3,500 crore through Additional Tier-1 (AT1) bonds, scheduled to be listed on the NSE’s Electronic Bidding platform on Friday, November 28.
According to the bank, this makes it the first lender in the current financial year to tap the AT1 bond market. The Basel III-compliant issue comprises a base component of ₹1,000 crore and a green shoe option of ₹2,500 crore to meet investor demand.
The issuance forms part of Canara Bank’s broader capital-raising programme for the year, which aims to mobilise up to ₹9,500 crore through Tier-1 and Tier-2 instruments to strengthen regulatory capital ratios under Basel III norms.
In a separate development, the bank appointed Sunil Kumar Chugh as Executive Director, effective November 24, for a term of three years.
According to the bank, this makes it the first lender in the current financial year to tap the AT1 bond market. The Basel III-compliant issue comprises a base component of ₹1,000 crore and a green shoe option of ₹2,500 crore to meet investor demand.
The issuance forms part of Canara Bank’s broader capital-raising programme for the year, which aims to mobilise up to ₹9,500 crore through Tier-1 and Tier-2 instruments to strengthen regulatory capital ratios under Basel III norms.
In a separate development, the bank appointed Sunil Kumar Chugh as Executive Director, effective November 24, for a term of three years.
Canara Bank’s asset quality improved sequentially in the September quarter, with gross non-performing assets (NPAs) declining to ₹27,040 crore from ₹29,518 crore in the previous quarter, and net NPAs falling to ₹6,113.2 crore from ₹6,765.2 crore. Its net interest income (NII) declined 2% year-on-year to ₹9,141 crore, while net profit rose 19% to ₹4,774 crore. Provisions for the quarter stood at ₹2,354 crore, largely unchanged from the previous quarter.
The bank reported global advances of ₹11.51 lakh
crore, up 13.74% from the previous year, and deposits of ₹15.27 lakh crore, reflecting a 13.40% year-on-year increase. Its slippage ratio improved by 24 basis points to 0.76%.
