Canara Bank raises Rs 3,000 cr by Basel III bonds

State-owned Canara Bank on Wednesday said it has raised up to Rs 3,000 crore by issuing Basel-III-compliant bonds.

The bank has issued and allotted Basel III-compliant tier II bonds amounting to Rs 3,000 crore, it said in a regulatory filing.

The unsecured rated listed subordinated non-convertible fully paid up taxable redeemable bonds bearing coupon of 7.18 per cent were given to 20 allottees on March 11, 2020, the bank said.

To comply with Basel-III Capital Regulations, banks 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.

Indian banking system has been implementing Basel III standards in phases since April 1, 2013, and are yet to fully comply with these norms.

Canara Bank shares closed at Rs 116.65 on BSE, down 3.87 per cent from the previous close.