Canara Bank to Exercise Call Option on ₹4,000 Crore Basel III AT1 Bonds
Canara Bank has decided to exercise the call option on three Basel III-compliant Additional Tier I (AT1) bond issues worth ₹4,000 crore, subject to approval from the Reserve Bank of India (RBI) and other applicable regulatory authorities.
The decision covers two ₹1,500 crore bond issues and one ₹1,000 crore issue, carrying annual interest rates between 8.05% and 8.40%.
Key Highlights
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Total bond value: ₹4,000 crore
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Instrument: Basel III-compliant Additional Tier I bonds
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RBI approval: Required
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₹1,500 crore bond: 8.05% interest
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₹1,500 crore bond: 8.40% interest
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₹1,000 crore bond: 8.07% interest
Three Bond Issues Covered
Canara Bank plans to exercise the call option on the following AT1 bonds:
|
Bond |
Amount |
Interest Rate |
Call Option Date |
|---|---|---|---|
|
INE476A08134 |
₹1,500 crore |
8.05% |
December 2, 2026 |
|
INE476A08126 |
₹1,500 crore |
8.40% |
October 25, 2026 |
|
INE476A08159 |
₹1,000 crore |
8.07% |
March 4, 2027 |
The bonds were originally issued in October 2021, December 2021 and March 2022, respectively.
RBI Nod Required
The proposed exercise of the call option is subject to RBI approval, along with approval from other regulatory authorities wherever applicable.
Canara Bank disclosed the decision to the stock exchanges on September 4, 2026. The filing was signed by Santosh Kumar Barik, Company Secretary.