Canara Bank to raise up to Rs 85 crore through share sale

It had said it would raise Rs 1,500 crore through a tier-I perpetual bond issue

State-run Canara Bank said on Saturday that it will raise up to Rs 85 crore ($13.85 million) through selling shares to institutional investors or a preferential issue.

The bank got approval from the government to raise up to Rs 80 crore with an option to raise an additional Rs 5 crore.

The bank will raise the capital in the current financial year, and will be used to fund its general business needs, Canara Bank said in a statement.

This month, the bank said it would raise Rs 1,500 crore through a tier-I perpetual bond issue.

(1 US dollar = Rs 61.3500)