Canara Bank raises Rs 2,500 crore through Basel-III compliant bonds

Canara Bank on Friday said it has raised Rs 2,500 crore by issuing Basel-III compliant bonds to a total of 10 allottees.

The bank has successfully raised Basel-III compliant tier-II series I bonds, Canara Bank said in a regulatory filing.

"Our bank came out with the issuance of Rs 2,500 crore of tier-II bonds on December 12, 2021. The bank received a total bid amount of Rs 9,374 crore, out of which full issuance of Rs 2,500 crore was accepted at a coupon rate of 7.09 per cent per annum," the bank said.

The issue opened on December 23, 2021 and closed on the same day. The bonds were allotted to a total of 10 allottees on December 24, 2021.

To comply with Basel-III capital regulations, banks globally need to improve and strengthen their capital planning processes.

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

Canara Bank stock settled at Rs 193.90 apiece on BSE, down 3.27 per cent over previous close.