Canara Bank to raise Rs 4,500 crore through AT-1 bonds

Canara Bank plans to raise up to Rs 4,500 crore through Basel III-compliant Additional Tier 1 (AT-1) bonds as part of its broader capital-raising programme

Canara Bank to raise Rs 4,500 crore through AT-1 bondsPSU Watch

Published on:

10 Sep 2026, 1:39 pm

New Delhi: Canara Bank plans to raise up to Rs 4,500 crore through Basel III-compliant Additional Tier 1 (AT-1) bonds as part of its broader capital-raising programme.

The bank's Board of Directors has authorised the raising of up to Rs 4,500 crore through AT-1 bonds and an additional Rs 4,000 crore through Tier 2 bonds.

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The proposed AT-1 securities will be perpetual debt instruments with a call option after five years, subject to regulatory approvals. The bonds have been assigned a rating of “AA+; Stable” by ICRA Ratings and “AA+; Stable” by India Ratings.

The proposed AT-1 issue is expected to be offered through the Electronic Bidding Platform (EBP) of the National Stock Exchange on September 16, 2026, between 12:00 p.m. and 1:00 p.m. Market expectations indicate a coupon rate in the range of 7.85 percent to 7.90 percent.

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The capital raising comes as Canara Bank continues to report growth across its key business segments. The bank is currently targeting a business size of Rs 30 lakh crore, supported by continued growth in deposits and advances across the retail, agriculture, MSME and corporate segments.

Canara Bank has also reported strong liability mobilisation following the Reserve Bank of India's recently announced FCNR(B) swap facility. The bank said it has mobilised USD 5.80 billion under the facility, highlighting its domestic and international reach and continued customer confidence.

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"The proposed AT-1 issuance is expected to strengthen Canara Bank's capital position and provide additional headroom to support future business growth while maintaining its capital strength and financial resilience," the bank said in a statement.

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