Canara Bank raises Rs 2000 Cr via AT 1 bonds

The state owned lender said it has raised Rs 2,000 crore by issuing Basel III compliant additional tier I bonds.

The bank came out with the issuance of Rs 2,000 crore of additional tier-I bonds on 15 July 2022.

The bank said it received total bid amount of Rs 5719 crore, out of which full issuance of Rs 2000 crore was accepted at 8.24%.

Last month, the bank's board approved a Rs 9,000 crore capital raising plan through a combination of additional tier-1 and tier-2 bonds in FY 2022-23. The bank would look to raise Rs 5500 crore through Basel III compliant additional tier-I bonds, while the target to raise through tier-II bonds is fixed at Rs 3500 crore.

Canara Bank is a public sector bank. As of 31 March 2022, the Government of India held 62.93% in the bank.

The bank reported a 64.8% jump in standalone net profit to Rs 1,666.22 on 6.1% rise in total income to Rs 22,323.11 crore in Q4 FY22 over Q4 FY21.

Shares of Canara Bank jumped 4.03% to Rs 223.15 on Tuesday, 19 July 2022.

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