Canara Bank Raises ₹5,000 Crore via 7.24% Basel III Tier II Bonds

MUmbai: February 27, 2026: Canara Bank (BSE: 532483 | NSE: CANBK) has successfully raised ₹5,000 crore through the issuance of Basel III compliant Tier II Bonds (Series I) at a coupon rate of 7.24%.

The bonds are unsecured, subordinated, listed, rated, non-convertible, redeemable, fully paid-up, and taxable, issued in the nature of debentures with a face value of ₹1 crore each.

Issue Details

• Issue Size: ₹5,000 crore

  • Base Issue: ₹2,000 crore

  • Green Shoe Option: ₹3,000 crore

• Accepted Amount: ₹5,000 crore

• Number of Bonds Issued: 5,000

• Coupon Rate: 7.24% per annum

• Issue Opened & Closed: February 26, 2026

• Date of Allotment: February 27, 2026

• Redemption Date: February 27, 2036

• Call Option: After 5 years and on every anniversary thereafter

• Interest Payment: Annually on February 27

• ISIN: INE476A08274

• Proposed Listing: National Stock Exchange (NSE)

• Number of Allottees: 12

Strategic Significance

The capital raised through Tier II bonds will strengthen Canara Bank’s capital adequacy ratio and support future credit growth in line with regulatory requirements under Basel III norms. Tier II instruments form an important component of banks’ supplementary capital, enhancing their ability to absorb losses and support expansion.

The successful subscription of the full ₹5,000 crore, including the green shoe option, reflects strong investor confidence in the bank’s financial stability and growth outlook.

The disclosure has been made under Regulation 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.