New Delhi: State-owned Canara Bank has approved a proposal to raise up to ₹8,500 crore through bonds during the 2026-27 financial year as part of its strategy to strengthen capital reserves and support future business growth.
According to a regulatory filing, the bank’s board has cleared plans to raise up to ₹4,500 crore through Basel III-compliant Additional Tier-I (AT1) bonds and up to ₹4,000 crore through Basel III-compliant Tier-II bonds. The fundraising exercise will be carried out during FY27, depending on market conditions and necessary regulatory approvals.
The decision was taken at the bank’s board meeting held on June 2. The proposed capital infusion is expected to improve the lender’s capital adequacy position and provide greater flexibility for expanding its loan portfolio amid growing credit demand.
Ahead of the announcement, shares of Canara Bank closed 1.13 per cent higher at ₹129.40 on the National Stock Exchange (NSE).
The fundraising plan comes at a time of leadership transition within the bank. Earlier this week, Brajesh Kumar Singh assumed charge as the Managing Director and Chief Executive Officer following a government notification issued on May 30.
Singh will serve until April 30, 2029, or until further orders from the government. Before joining Canara Bank, he was Executive Director at Indian Bank, where he oversaw corporate credit, retail banking, human resources, and strategic operations.
The fundraising announcement follows the bank’s fourth-quarter financial results, which reflected pressure on profitability despite continued improvement in asset quality.
For the quarter ended March 2026, Canara Bank reported a net profit of ₹4,505 crore, down 9.9 per cent compared to the same period last year, mainly due to lower other income. However, net interest income rose 4 per cent year-on-year to ₹9,809 crore.
The bank also reported healthier asset quality metrics. Its gross non-performing asset (NPA) ratio improved to 1.84 per cent from 2.08 per cent in the previous quarter, while net NPAs declined to 0.43 per cent from 0.45 per cent, indicating continued progress in managing stressed assets.
With inputs from IANS