Canara Bank plans to raise Rs 5, 000 crore via bonds. Check details

Canara Bank is looking to raise Rs 5000 crore in bonds to strengthen its capital base and support future growth plans.

The sale of Basel III-compliant tier 2 bonds is scheduled on February 26, the bank said Tuesday.

In November, the state-owned lender raised the advance growth target to 13% for the fiscal year from an earlier projection of 10-11%.


The bank has board approval for raising Rs 6,000 crore in tier-2 bonds and Rs 3500 crore via additional tier 1 (AT1) bonds. The bank also has plans to plough back profits to augment the capital adequacy ratio.

Canara Bank's capital to risk (weighted) assets ratio (CRAR) stood at 16.50% as of December 31, 2025.

Earlier in January, bank managing director Hardeep Singh Ahluwalia told ET that the bank would raise capital by selling tier 2 bonds before the end of the fiscal year.

Earlier, in November 2025, the lender raised Rs 3,500 crore in additional tier 1 bonds.

Its gross advances increased 14% year-on-year to Rs 11.92 lakh crore at the end of December 31 last year, largely buoyed by a near 19% expansion of retail, agricultural and micro, small and medium enterprises (RAM) advances. Corporate credit grew at a slower 7% rate.