Canara Bank Board has approved to raise Rs.9500 Crore via Bonds, Know all Details

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The Board of Directors of the Canara Bank in its meeting held on 12.06.2025 has approved the Capital Raising Plan of the Bank for the financial year 2025-26 amounting upto Rs 9,500 Crore by way of Debt Instruments (Additional Tier I/Tier II Bonds). Further, out of the above Capital Raising Plan, the Board of Directors of the Bank has approved the following:

  1. To raise Capital through Basel III Compliant Additional Tier I Bonds to the extent of Rs 3,500
    Crore during the FY 2025-26, subject to market conditions and necessary approvals.
  2. To raise Capital through Basel III Compliant Tier II Bonds to the extent of Rs 6,000 Crore during
    the FY 2025-26, subject to market conditions and necessary approvals.
    The meeting of the Board of Directors commenced at 11.30 A.M (IST) and concluded at 04.00 P.M(IST).

Bonds Explained

Basel III Compliant Additional Tier I (AT-1) Bonds and Tier II Bonds are types of debt instruments that banks use to raise capital, as per the norms set by the Basel III international banking regulations. These are not regular bonds—they are specially designed to help banks maintain financial stability in times of stress.

1. Additional Tier I (AT-1) Bonds

2. Tier II Bonds

Why Canara Bank Is Raising Capital Using These Bonds?

To meet regulatory capital requirements under Basel III norms, maintain financial strength, and support future business growth, Canara Bank plans to:

Both are subject to market conditions and regulatory approvals.

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