Canara Bank has informed the Exchange regarding 'Issue of Basel III Compliant Tier II Bonds, Series I for Rs.5,000 Crore.'.
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Canara Bank has successfully raised Rs. 5,000 crore through Basel III Compliant Tier II Bonds in a single day on 26 February 2026. The issue comprised a base size of Rs. 2,000 crore plus a green shoe option of Rs. 3,000 crore, indicating strong investor demand. The bonds carry a coupon of 7.24% per annum, are unsecured and subordinated, and have a 10-year tenor (redeemable on 27 February 2036) with a call option exercisable after 5 years. Interest will be paid annually. The bonds were allotted to 12 investors and are proposed to be listed on NSE.
This is a routine capital-raising exercise by Canara Bank to strengthen its Tier II capital base under Basel III norms, which supports lending growth. The fully-subscribed issue (including green shoe) reflects healthy investor appetite at a competitive 7.24% coupon, with minimal direct impact on retail shareholders beyond marginal dilution of future earnings from interest outflow.