Canara Bank to raise Rs 3,000 cr in AT1, tier-II capital in H2FY23

The bank, which aims to keep capital adequacy at the 16% and above level, has already raised Rs 6,000 cr via these instruments in H1

Public sector lender Canara Bank plans to raise up to Rs 3,000 crore in capital through additional tier I (AT1) and tier II bonds in second half (October 2022-March 2023) to support elevated growth in credit. The bank, which is looking to keep capital adequacy at 16 per cent and above level, has already raised Rs 6,000 crore via these instruments in the first half.

Early this month it raised Rs 2,000 crore in capital via AT1 bonds at a coupon rate of 7.99 per cent. This was 25 basis points lower than the rate of 8.24 per cent