Canara Bank to Raise ₹ 3,500 Crore through First AT-1 Bond Issue of Fiscal Year

Canara Bank plans to raise up to ₹3,500 crore on 25 November 2025, through Additional Tier-1 (AT-1) bonds, as per the news reports. The issue has a base size of ₹1,500 crore and a greenshoe option of ₹2,000 crore. This will be the first AT-1 bond issue by bank in the current financial year. 

First Large AT-1 Issue 

As per the news reports, Banks have stayed largely inactive in the bond market this year, which has slowed overall corporate fundraising. Most issuances so far have been in short-term categories, with long-term bond activity missing for several months. Canara Bank’s issue is one of the first large AT-1 issuances to enter the market in FY26. 

SBI’s Recent Issue Set the Tone 

The interest in fresh issues increased after State Bank of India raised ₹7,500 crore through Tier-II bonds at a coupon of 6.93%. This was one of the few large-sized bond issues in the year and saw strong participation. Other banks are now preparing to issue either for refinancing callable bonds or to build capital buffers before the next monetary policy review. 

Approvals but Limited Activity 

Some lenders, such as Bank of India and Bank of Maharashtra, already have board approvals for their own bond issuances, but none have been launched so far. Last year, banks raised capital actively through infrastructure bonds as loan growth outpaced deposits. The slow pace this year may pull total corporate fundraising below last year’s level of around ₹11 trillion. 

Canara Bank Share Price Performance 

As of November 20, 2025, 10:05 AM, Canara Bank share price was trading at ₹150.40, a 0.01% increase from the previous closing price. 

Read More: NTPC Green Energy Arm Commissions 75.5 MW Solar Project at Khavda-I! 

Conclusion 

Canara Bank’s AT-1 issue signals a return of bond activity from banks after months of limited movement. If demand stays firm, more lenders may follow with their own capital raises in the coming months. 

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.