Canara Bank Raises ₹5,000 Crore via Basel III Compliant Tier II Bonds
Canara Bank has successfully raised ₹5,000 crore through the issuance of 7.24% Basel III Compliant Tier II Bonds. The bonds were opened and closed on February 26, 2026, with allotment on February 27, 2026. Redemption is set for February 27, 2036, with a call option.
Raising substantial capital through debt instruments can improve the bank's financial leverage and capacity for lending, positively impacting its operations, but it also increases its debt burden.
The successful fundraising of a significant amount through bond issuance indicates a positive financial maneuver for the bank, strengthening its capital base.
Canara Bank announced the successful issuance of Basel III Compliant Tier II Bonds, Series I, for a total amount of ₹5,000 crore. The bonds are unsecured, subordinated, listed, rated, non-convertible, redeemable, and fully-paid-up debentures with a face value of ₹1 crore each.
The issue size comprised a base amount of ₹2,000 crore with a green shoe option of ₹3,000 crore, and the bank accepted a total of ₹5,000 crore from 12 allottees.
The bonds carry a coupon rate of 7.24% and interest will be paid annually on February 27th until maturity or the call option date. The issue opened and closed on February 26, 2026, with the allotment date being February 27, 2026. The redemption date is scheduled for February 27, 2036, with a call option available at the end of five years or on every anniversary thereafter. The bonds are proposed to be listed on the National Stock Exchange (NSE).
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Canara Bank filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Canara Bank. Read the original for the full detail.