Outcome of the Board Meeting - Capital Raising Plan for the Financial Year 2025-26.
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Canara Bank's Board of Directors approved a capital raising plan of up to Rs 9,500 Crore for FY 2025-26 through Basel III compliant debt instruments. This includes Rs 3,500 Crore via Additional Tier I (AT1) Bonds and Rs 6,000 Crore via Tier II Bonds. The actual fundraise will depend on market conditions and necessary approvals. The Board meeting was held on June 12, 2025. This is a debt-based capital raise, not an equity dilution.
This move strengthens Canara Bank's capital adequacy ratio to meet regulatory requirements under Basel III norms, but will add to interest expenses. There is no equity dilution, so existing shareholders are not impacted on share count or ownership.