Canara Bank raises ₹3,500 crore via Basel III additional tier I bonds at 7.55%

State-owned Canara Bank on Tuesday (December 2) said it has mobilised ₹3,500 crore through the issuance of 7.55% Basel III-compliant additional tier I bonds. The fundraise comprises a base size of ₹1,000

crore and a green shoe option of ₹2,500 crore, both fully subscribed.

The unsecured, subordinated, listed, rated, non-convertible, perpetual and fully paid-up bonds carry a face value of ₹1 crore each. The issue opened and closed on November 28, 2025, with 3,500 bonds placed with 37 allottees. Allotment was completed today, December 2, 2025.

The bonds are perpetual in nature, with interest payable annually on December 2. The coupon has been fixed at 7.55%. The issuance is proposed to be listed on the National Stock Exchange. According to the filing, the instrument qualifies as taxable additional tier I capital under Basel III regulations and is unsecured.

Also Read: NBCC India receives ₹45-crore contract from Canara Bank in Jharkhand

Second Quarter Results

Canara Bank's gross NPA improved to ₹27,040 crore from ₹29,518 crore last quarter, while net NPA improved to ₹6,113.2 crore from ₹6,765.2 crore in the previous quarter.

The lender's net interest income (NII) or core income fell 2% from last year to ₹9,141 crore, while net profit rose 19% on a year-on-year basis to ₹4,774 crore. Canara Bank's provisions stood at ₹2,354 crore, marginally above ₹2,351 crore in the previous quarter.

Global advances for the quarter increased by 13.74% from last year to ₹11.51 lakh crore, while deposits saw a 13.40% growth on a year-on-year basis to ₹15.27 lakh crore. The lender's slippage ratio stood at 0.76%, an improvement of 24 basis points.

Also Read: Canara Bank Q1 Results: PSU lender shares surge after asset quality improves, slippages moderate

Shares of Canara Bank Ltd ended at ₹152.05, down by ₹1.80, or 1.20%, on the BSE today, December 2.