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.
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.
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.
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.
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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.
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.
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Published on: Jun 3, 2026, 12:01 PM IST
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