Canara Bank to raise up to ₹4,500cr via AT-1 bonds
Canara Bank is gearing up to raise up to ₹4,500 crore by issuing AT-1 bonds, which are basically perpetual debt instruments with a call option of 5 years, subject to regulatory clearance.
Rated AA+; Stable, these bonds are expected to be offered on the electronic Bidding Platform (EBP) of the NSE on September 16, 2026, from 12pm to 1pm with market expectations for a coupon rate of 7.85% to 7.90%.
Canara Bank plans ₹8,500cr capital raise
This move is part of Canara Bank's bigger plan to raise ₹8,500 crore in total (including another ₹4,000 crore through Tier 2 bonds) to fuel its growth across retail, agriculture, MSME, and corporate sectors.
The bank recently brought in $5.8 billion via RBI's swap facility, showing strong customer trust and aiming for a massive ₹30 lakh crore business size.
All this capital is meant to make Canara Bank more financially resilient and ready for future expansion.