Canara Bank Share Price in Focus; Board Approves ₹8,500 Crore Capital Raising Plan for FY27

Canara Bank has received board approval for a capital raising programme of up to ₹8,500 crore for the financial year 2026-27. The fundraising will be undertaken through Basel III-compliant debt instruments, subject to market conditions and regulatory approvals.  

The move is aimed at strengthening the bank's capital base and supporting future business growth. 

Board Clears ₹8,500 Crore Fundraising 

The Board of Directors approved the capital raising plan during its meeting held on June 2, 2026. Under the approved proposal, the bank plans to raise a total of up to ₹8,500 crore through debt instruments during FY27.  

The fundraising programme will comprise both Additional Tier I (AT1) bonds and Tier II bonds, which form part of banks' regulatory capital requirements under Basel III norms. 

₹4,500 Crore AT1 Bonds and ₹4,000 Crore Tier II Bonds 

As part of the overall plan, the board approved the issuance of Basel III-compliant Additional Tier I bonds of up to ₹4,500 crore during FY27.  

In addition, the bank has received approval to raise up to ₹4,000 crore through Basel III-compliant Tier II bonds.  

The actual timing and size of issuances will depend on market conditions and the receipt of necessary approvals.  

Strengthening Capital Position 

The proposed fundraising is expected to provide additional capital buffers and support the bank's lending growth plans while ensuring compliance with regulatory capital requirements. AT1 and Tier II bonds are commonly used by banks to enhance their capital adequacy position without diluting equity shareholders.  

Read More: IT Sector Witnesses Sharp Reversal; Nifty IT Drops 3.5%, TCS, Tech Mahindra, Infosys Fall Up to 6%! 

Canara Bank Share Price Performance 

As of 03 June 2026, at 11:45 AM, Canara Bank share price is trading at ₹127.94 per share, reflecting a decline of 0.88% from the previous closing price. 

Conclusion 

Canara Bank's ₹8,500 crore capital raising plan underscores its focus on maintaining a strong capital base to support future growth. The approved mix of AT1 and Tier II bonds will provide the bank with additional financial flexibility during FY27.  

Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.