Canara Bank to issue additional tier-1 bonds worth ₹3,500 Crore

27 Nov 2025 , 02:12 PM

Canara Bank announced that it is planning to raise up to ₹3,500 Crore through Additional Tier-1 (AT1) bonds. These bonds will be listed on the NSE’s Electronic Bidding platform on Friday, November 28.

At around 2.00 PM, Canara Bank was trading 0.55% higher at ₹150.98, against the previous close of ₹150.16 on NSE. The counter touched an intraday high and low of ₹151.82, and ₹149.85, respectively.

As per the details disclosed by the bank, this makes it the first lender in the current financial year to tap the AT1 bond market. The Basel III-compliant issue comprises a base issue of ₹1,000 Crore. This also includes a green shoe option of ₹2,500 Crore to meet investor demand.

The issue forms part of Canara Bank’s broader capital-raising initiative for the year. With this fund, the business aims to mobilise up to ₹9,500 Crore through Tier-1 and Tier-2 instruments to bolster regulatory capital ratios under Basel III norms.

In a separate development, the bank announced the appointment of Sunil Kumar Chugh as Executive Director. His appointment is effective from November 24, 2025 for a period of 3 years.

In the September 2025 quarter, the bank’s asset quality improved sequentially. NPAs declined to ₹27,040 Crore as compared to ₹29,518 Crore in the previous corresponding period.

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