Canara Bank Plans Rs 4,000 Crore Tier II Bond Sale

State-owned Canara Bank is planning to raise Rs 4,000 crore via Basel III compliant Tier II Bonds, featuring a decade-long term and a 5-year call option. Previously, the bank secured Tier I bonds worth Rs 3,000 crore in August 2024, as part of a larger fundraising strategy.

State-owned Canara Bank announced plans to raise up to Rs 4,000 crore through Basel III compliant Tier II Bonds, according to a statement released on Thursday.

The proposed bond issuance will feature a 10-year term and a 5-year call option, part of the bank's strategy to strengthen its capital base.

Earlier, Canara Bank's board had approved a capital-raising plan involving Rs 4,000 crore in Tier I Bonds and Rs 4,500 crore in Tier II Bonds for 2024-25. In August 2024, the bank successfully raised Rs 3,000 crore through Tier I bonds.

(With inputs from agencies.)