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Canara Bank to raise Rs 2,500 cr via bonds

Press Trust of India  |  Mumbai 

Public sector today said it will raise up to Rs 2,500 crore in one or more tranches by issuing Basel-III compliant bonds.

The majority of the lender's directors have consented "to raise additional Tier-I capital funds through Basel-III compliant additional Tier-I perpetual bonds in rupee terms domestically for an amount not exceeding Rs 2,500 crore in single tranche or in tranches depending on the market conditions," it said in a regulatory filing.

The bank said the capital is being raised to maintain healthy CRAR during the current financial year.

It further said the board has also approved constituting a 'Bond Committee' to determine the structure of the issue size, tenor, coupon, timing of the issue, date of allotment, listing and other matters connected to the issue.

Canara Bank's shares closed at Rs 313.3 apiece on BSE, up 0.92 per cent over their previous close.

Indian banks are expected to fully comply with Basel III standards by March 2019 to improve and strengthen their capital planning processes.

The norms are being implemented to soothe concerns on potential stresses on asset quality and consequential impact on performance and profitability of banks.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 14 2016. 19:59 IST