In an exchange filing on Monday, the bank said its board had approved raising up to ₹4,500 crore through Basel III-compliant Additional Tier I (AT1) bonds and up to ₹4,000 crore through Basel III-compliant Tier II bonds during FY27. The fundraising will be subject to market conditions and regulatory approvals.
The decision was taken at the bank’s board meeting held on June 2. The capital raise is expected to strengthen the lender’s capital adequacy position and provide additional flexibility to support credit growth amid rising demand for loans.
Shares of Canara Bank ended 1.13% higher at ₹129.40 on the NSE ahead of the announcement.
The fundraising plan comes at a time of leadership transition at the public-sector lender. Earlier this week, Canara Bank announced that Brajesh Kumar Singh had assumed charge as Managing Director and Chief Executive Officer following a government notification dated May 30. His tenure will run until April 30, 2029, or until further orders.
Also Read: Canara Bank appoints Brajesh Kumar Singh as MD and CEO; tenure till April 2029
Singh previously served as Executive Director at Indian Bank, where he oversaw functions spanning corporate credit, retail banking, human resources and strategic operations.
The capital raising proposal also follows the bank’s March quarter earnings, which reflected pressure on profitability despite an improvement in asset quality. Canara Bank reported a net profit of ₹4,505 crore for the quarter ended March 2026, down 9.9% from a year earlier, largely due to lower other income.
Net interest income rose 4% year-on-year to ₹9,809 crore, while gross non-performing assets improved to 1.84% from 2.08% in the previous quarter. Net NPAs stood at 0.43%, compared with 0.45% in the December quarter.
Canara Bank is one of India’s largest public-sector lenders, offering retail, corporate and treasury banking services through an extensive domestic and international network.
