Canara Bank to raise Rs 6,300 cr via securities

Public sector lender Canara Bank will raise Rs 6,300 crore through various routes, including QIP, rights issue or follow on public offer.
The bank said the board of directors at the meeting held today approved the proposal to raise equity capital up to Rs 3,500 crore, inclusive of premium to be decided, by way of qualified institutional placement/rights issue/preferential allotment/follow-on public offer.
The bank may raise fund by any other means as well, it said in a regulatory filing.
Additionally, Canara Bank will also raise Rs 1,800 crore by issuing Basel III compliant additional Tier I bonds, it said.
The board has also approved the plan to issue Basel III compliant Tier II bonds up to Rs 1,000 crore.

"The bank would seek the approval of the shareholders for raising of equity capital in the ensuing AGM of the bank," it said.