Canara Bank to raise up to Rs 3K cr via Basel III-compliant bonds

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

The decision was taken at the bank's board meeting held on Wednesday, it said in a regulatory filing.

The board has decided to raise additional tier-I capital through Basel III-compliant additional tier-I perpetual bonds in rupee terms for an amount not exceeding Rs 3,000 crore, the bank said.

Canara Bank said it can raise the funds in single or multiple tranches, depending on market conditions.

Banks across the globe have to mandate themselves with the Basel III standards that seek to protect them against unfavourable economic conditions by improving and strengthening their capital planning processes.

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

Being implemented in phases since April 1, 2013, India is expected to fully implement Basel III standards by March 2020.

Stocks of Canara Bank closed 2.04 per cent higher at Rs 274.55 apiece on the BSE.