RBI permits Canara Bank to exercise call options on Basel III AT1 Bonds worth ₹1755 crore
Canara Bank received RBI approval to exercise call options on two Basel III Additional Tier I Bonds totaling ₹1755 crore, with redemptions scheduled for December 2025 and February 2026.
The impact is medium as exercising call options on bonds is a planned financial activity for the bank and generally expected, although the significant amounts involved (₹1755 crore) and regulatory approval make it noteworthy.
The approval from RBI to exercise call options on Basel III bonds is a positive indicator of the bank's financial health and its ability to manage liabilities effectively, reinforcing regulatory compliance and prudent financial management.
Canara Bank has announced that the Reserve Bank of India (RBI) has permitted it to exercise the call option on its Basel III complaint Additional Tier I Bonds. * The bank had previously informed the exchanges of its decision to exercise the call option, subject to RBI approval. * The bonds involved are: * ISIN INE476A08100: Issued amount ₹1635 crore, with a coupon rate of 8.50% per annum, issued on 31-12-2020. The call option date is 31-12-2025. * ISIN INE476A08118: Issued amount ₹120 crore, with a coupon rate of 8.30% per annum, issued on 02-02-2021. The call option date is 02-02-2026. * RBI's approval was granted via a letter dated 07th November 2025. * Canara Bank is now in the process of exercising these call options on their respective due dates, 31st December 2025 and 2nd February 2026, in accordance with the terms of issuance.
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Canara Bank filed this with the NSE as a statutory disclosure, categorised under other corporate actions. 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.